Following we have new explanation on the soon to be implemented property tax in Thailand. The proposed real estate tax law, formally known as Land and Building Tax Act BE (the Draft Act) is pending before Parliament. The Draft Act was prepared by the Ministry of Finance and has been approved by the Council of State. On Aug 25 this year Korn Chatikavanij, the Minister of Finance, presented the Draft Act to the cabinet. It will probably be...

Politics will only have a short-term impact on the property sector as long as the turmoil does not further dampen the overall economy, employment and people’s future income, property developers say. Issara Boonyoung, president of the Housing Business Association, says housing demand in the second quarter could drop by about 40% due to several factors. The dominant cause is the end of property tax incentives, originally scheduled to...

Fractional ownership of holiday homes is a relatively new concept in Thailand. It offers the benefits of owning a holiday home for a fraction of the cost. The tax considerations for fractional property owners are similar in many respects to traditional ownership of real estate in Thailand. In brief, the points to consider are: - The transfer taxes and fees imposed on entry and exit. Where joint ownership in a property occurs at the same time,...

At the age of 61, economist Somjai Phagaphasvivat is still active with his work, which often has him traveling across Bangkok, slogging it out in the city’s notorious traffic. That’s why he decided to buck the Thai tradition of living with his adult children, and instead has bought himself a downtown condo as a second home that is convenient to public transportation. “I bought this condo because of its convenience and because...

Cash-rich early birds are investing in condominiums for attractive returns at a time of low deposit interest rates, says Kittisak Jumpathippong, chief executive of the property consultant Century 21 Realty Affiliates (Thailand) Co Ltd. “No business generates higher margins than property,” he said. “The situation now is like in 2000-01 when the country just came out of the crisis and investors started their...

Many foreigners who buy property in Phuket opt for a stand-alone house (or ‘villa’), either in a managed estate or on a single plot, instead of an apartment or condominium, as the latter usually do not provide the individuality and/or privacy the buyer seeks. Due to legal restrictions in Thailand that prohibit land ownership by foreigners, it is common for foreigners buying stand-alone homes to enter into two main legal ...