For house ownership transfer fees, the buyer will pay both parts. The seller pays or pays together. There are no rules specifying who must pay what. Depends on the agreement between the buyer and seller as appropriate. Sometimes, the project seller Might organise a promotion to pay transfer fees, etc., house to the buyer. This matter is, therefore, another issue that the seller must clearly understand. The best way is to specify it in the purchase and sale contract. For the case where the seller is a real estate company, the salesperson will usually summarize the list of expenses for the buyer to prepare. However, if it is a transaction between individuals, buyers may need to prepare their information. These are generally divided into the following items:
1 Ownership transfer fee
The transfer fee is calculated as 2% of the appraised value of the land, including buildings. This cost is typically split, with 1% paid by the buyer and 1% paid by the seller. However, in some cases, the seller may offer to cover the entire transfer fee as part of a promotion or as agreed upon by both parties.
In 2024, the Cabinet decided to implement measures aimed at reducing transfer fees from 2% to only 0.01% in order to alleviate the financial burden on individuals purchasing homes. However, this reduction applies only to properties with a purchase price not exceeding 7 million baht, whether they are first-hand or second-hand houses or condos.
For instance, if you purchase a house valued at 7 million baht, the transfer fee will range from the standard 2% to 140,000 baht. If reduced to 0.01%, you will only pay 700 baht.
2 Stamp duty fees
The stamp duty is calculated at 0.5% of the purchase price, which cannot be lower than the land appraisal price. If the purchase price is lower, the land appraisal price will be used to calculate the stamp duty instead. Typically, the seller is responsible for this cost. However, if the seller is subject to specific business tax, they will not need to pay stamp duty.
3 Specific business taxes
The tax is calculated at a rate of 3.3% of the purchase price and is the responsibility of the seller. If the seller has occupied the house for no more than 5 years or has had their name in the house registration for less than 1 year, they will need to pay this specific business tax. However, if the seller has occupied the house for more than 5 years or has had their name in the house registration for more than 1 year, they will not have to pay this specific business tax, but will instead need to pay stamp duty.
4 Mortgage costs
The mortgage fee is calculated as 1% of the total loan amount, up to a maximum of 200,000 baht. It is an expense for those who purchase a home by borrowing a loan and mortgaging the property with the bank. If you buy a home or condo with cash, you will not have to pay this mortgage fee.
In 2024, the Cabinet has decided to implement special measures to reduce mortgage fees from 1% to 0.01% for houses and condos priced no more than 7 million baht, both new and second-hand. This is intended to stimulate the economy and ease the burden on people.
For example, in the case of buying a house priced at 7 million baht, the transfer fee will normally be 1% for 70,000 baht. When reduced to 0.01%, you will pay only 700 baht.
5 Personal income tax charges
If you are an individual seller, you are obligated to pay this tax, as it is deemed income from trading transactions. The amount to be paid is determined by the duration for which the property has been held and the method of acquisition. This is calculated based on the assessed value of the land and buildings by the Land Department, not the actual trading price. You can think of it as a tax ladder.