If you have not purchased property in Thailand before. The first question you may need answering is "How can I buy a property in Phuket?''
Foreigner’s currently owning property in Thailand have done so by:
-Leasing the property from the owner for renew able 30 years terms, with options to extend for up to 90 years.
- Forming a Thai company which would own the property on behalf of the foreigner.
Either of these methods of ownership can be utilized to own property in Thailand. The large number of people from other
countries currently living/owning properties in Thailand is testimony to the success of either of the above methods.
Several Multi language speaking law firms operating in Phuket Contact our helpful staff for any inquiries you may have.
When property is transferred from seller to buyer, there are some taxes to pay at the Land Office. The Land Office has its own, forever changing, evaluations of land in different locations, and this is how the "appraised" value of the land is set. The appraised value of buildings is 5,250.00 baht per square meter, no matter their quality and features. These two values together constitute the basis for calculation of the Registration Fee (2%) and the Stamp Duty (0.5%).
Then there is the "registered" value of the property, which is the basis of the Withholding Tax (1%, falls away if the seller has owned the land for more than 5 years) and the Business Tax (3.3%). It would be entirely correct to register the property at the price one is actually paying, but this never done (to lessen the tax impact), except with condos where the purchase contract must be presented at the Land Office.
Normal practice decrees that buyer and seller agree what value they will state at the Land Office, and this value is normally set just a little over the appraised value. It would also be entirely correct for the buyer to pay the Registration Fee and Stamp Duty, and for the seller to pay the Business Tax and Withholding Tax, but arrangement is seldom made. Normally, the entire tax bill is bourn equally by both parties.