New Property Tax Law

kaptainrob

Administrator
In January of this year (2020) the new property tax law came into effect. Whilst the majority of Expats who (via their partner) own and reside in a single property are most likely exempt, it is useful to examine the law in detail if considering an investment purchase.

Details are provided at this site here > https://www.bdo.co.th/en-gb/insights/tax-updates/new-property-tax-law-in-thailand

Around us, many vacant lots are being planted with fruit trees, banana being the easiest and cheapest, though lime, mango and jackfruit are also popular. Agricultural use of your future dream house site reduces the taxable rate from (an initial) 1.2% to just .015%.

We understand there is a period of grace for non-compliance due to several factors, Covid being one, or if a house is for sale. Eg: you've moved out from one house into a new one - the 'investment' property tax rate of .3% applies to your old property unless 'For Sale' in which case a 90% discount is allowed - however, this grace period ceases end of March 2021.

Shrewd Thai's are also 'installing' family members in erstwhile investment/vacant properties to reduce their assessable tax to a mere .02%.
 
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