Opportunity for homebuyers
The cabinet approved measures to boost investments in immovable property, and is now considering reducing property transfer fees from 2% to 0.01%, and mortgage fees from 1% to 0.01% of the appraised value.
Keywords: Mazars, Thailand, Tax, Property Transfer, Mortgage Fees, Homebuyers
10 November 2015
This will apply to property valued at less than 3 million baht. This would help make buying a home more affordable, and would lower the financial burden for making a property transfer.
While the proposal includes a reduction in property transfer and mortgage fees, it does not include a change in the special business tax. Therefore, property owners must pay 3.3% special business tax if they resell their property within five years of ownership of it being transferred to them.
These measures for a reduction in property transfer and mortgage fees will be temporary – for 6 months. The reductions will apply to both new and second-hand homes.
In addition, first-time homebuyers who purchase a home valued at no more than 3 million baht by 31 December 2016 will be able to deduct 20% of the value of the house from their annual personal income tax each year for a 5-year period, provided that the transfer of ownership from the seller takes place by 31 December 2016, and that the homebuyer remains in possession of the home for at least 5 years.