Cost to transfer a residential land in BKK

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Cost to transfer a residential land in BKK

Postby Nir » Tue Jul 10, 2012 9:23 pm

My wife's aunt decided to transfer her land in BKK to my wife's name. The area of the land is 176 Tarang Wah. We ended up paying about 175,000 baht for tax etc to the land office today. It seems too high to me, but I do not understand a word of Thai and my wife does not asks questions like how they come up with that amount. The land was valued 17000 per Tarang Wah. She also has another 18 Tarang Wah land connected to the lamd she got from her aunt. I am no sure of they are making her pay tax for her existing land too. Please let me know if you think the total fee is too high and possible to go back to the land office and get some clarification. Thanks for your time!

By the way, my wife is Thai. I am from Nepal. We met in Nepal, married in the U.S. and live there. We are the parents of two young children. The whole family is in BKK at the moment.
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Re: Cost to transfer a residential land in BKK

Postby BKKBILL » Tue Jul 10, 2012 10:45 pm

Hope this helps.


Standard tax rates for transferring real estate property (land, land and house, condominium)

In a standard sale and purchase or transfer of property (land, house, condominium) in Thailand there is no fixed rule for who pays the transfer fee, stamp duty or Specific Business Tax. It can vary from purchaser pays all to the seller pays all. This is part of the overall price negotiation and must be included in the sale and purchase agreement  and should not be negotiated at the transfer and registration at the land office.
As a standard rule we recommend the following general formula for sharing the transfer fees and taxes:
    * Specific Business Tax
 the seller's duty
    * Stamp duty
 the seller's duty or shared
    * Transfer fees
 the buyer's duty or shared
    * Withholding tax
 the seller's duty
In case of an official housing or condominium development, by law, only up to 50% of the 2% transfer fees may be passed on to the buyer. Often the developer's contract for sale will state a different formula for sharing the transfer fees and taxes. Do not pay more than required by law. Have your sale and purchase agreement reviewed online by a legal professional and get detailed advice on the contract and compliance with Thai law for 4,800 THB ('ask a Thai Lawyer'). Save on lawyer fees, save on travel time.
Rates:
Transfer Fee
2% over the appraised value (1) of the property (Note tax reduction below)
Business Tax (2)
3.3% registered value * or appraised value (whichever is higher) note current tax rate reduction below
Stamp Duty
0.5% (3) over the registered value
Withholding Tax
1% registered value or appraised value (whichever is higher) (4)
                  
(1) Appraised is an actual evaluation price of the land which calculated by the land office by reference to each area at which the land situated and some more criteria set out by the Land Department of Thailand (the appraised of a house by the Land Department depends on the floor area of the house, number of floors, materials used (e.g. wood or concrete) and location). Registered value is the actual sale price as declared at the Land Office when selling the property.
(2) Specific Business tax shall be payable if the seller sells the property within five years of the purchase registration date. The transfer is not subject to business tax if the seller is an individual and has possessed the property for more than five years before the transfer. Companies with specific objectives/ business purposes are subject to Specific Business tax irrespective the period of ownership.
(3) If the seller is subject to any Specific Business tax, the seller is exempt from the payment of the Stamp Duty. However, if the stamp duty has been paid to the Land Department, the seller shall have the right to claim for the refund in full within 6 months after the payment.
(4) The Withholding tax of 1% is applicable if the seller if a company. Withholding Personal Income Tax depends if the immovable property is acquired by inheritance or gift or if the sale and purchase of the property has a trade or profit seeking purpose or not, usually the final Withholding Personal Income Tax income , as opposed to corporate withholding tax, shall be calculated at progressive rate with a deduction depending on the number of years of possession.


http://www.bangkoklawonline.com/faq/pro ... r-tax.html
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Re: Cost to transfer a residential land in BKK

Postby Rick B » Wed Jul 11, 2012 8:23 am

It seems to me that you didn't pay too much. Your problem is that the land is valued very high. You're talking about just under THB 3 million for the land in total. Your taxes were only 5.8% overall. That seems to be right in line with the percentages that BKKBill quoted.
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Re: Cost to transfer a residential land in BKK

Postby MGV12 » Wed Jul 11, 2012 9:31 am

Your wife should only be charged SBT [Specific Business Tax] if her aunt has not had the land in her name at the Land Office for 5 years or more; if it had been her legal parent it would have been exempt anyway but not for an aunt. Less than 5 years and a private transfer is classified as a business deal and taxed accordingly. The taxes will have been assessed on the Government's Appraised Value of the land, which I assume is the 17,000 Baht per TW you quoted; this value can often be negotiated down but not if your wife doesn't like to ask questions! If the transfer is liable for SBT then the total of taxes charged is probably in the right region.

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Re: Cost to transfer a residential land in BKK

Postby Nir » Wed Jul 11, 2012 10:37 am

Thank BKKBill, Rick B, and MGV12 for your replies and time. I used the information provided by bkkbill and some other online resources and calculated the fees again and it seems to be correct or close enough that I will not worry about it any more.

Aunt had the land in her name for over 20 years and there is a big old house sitting on it. My wife's family and her another aunt's family live in it (separate kitchens and areas). Hopefully the land is successfully transferred to my wife (I do not see a document that says she is the sole owner of the land or something similar).

Now, we have another situation. The house that is sitting on that land is in my wife's grandfather's name (mother's father) and he is passed way a long time ago. My wife's mother is listed as "the current leader" of the home. Don't know if we need to transfer the house to my wife's name and how to do that. We eventually want to get rid of that house and built a new home, maybe in 5 years. Thanks!
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Re: Cost to transfer a residential land in BKK

Postby Nir » Wed Jul 18, 2012 8:43 am

This is me again. We are back in the US now. Before we left Thailand, we hired a lawyer and took care of everything. Four living children of my wife's grandpa, including her mom, gave permission to her in writing to be the owner of the house that sits on the land that was just transferred to her a few days before. We also went to the Local District Office and made my wife the leader of the home. So, everything seems to be ok now. Just wanted to post the update. Have a nice day!
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Re: Cost to transfer a residential land in BKK

Postby MGV12 » Wed Jul 18, 2012 10:05 am

Nir wrote:This is me again. We are back in the US now. Before we left Thailand, we hired a lawyer and took care of everything. Four living children of my wife's grandpa, including her mom, gave permission to her in writing to be the owner of the house that sits on the land that was just transferred to her a few days before. We also went to the Local District Office and made my wife the leader of the home. So, everything seems to be ok now. Just wanted to post the update. Have a nice day!


Glad it worked out for you in the end.

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