EXTRA CHARGES explained!

All other extra charges explained: when buying a property in Thailand : CAM fees, sinking funds, Electricity & Water meters installation

CAM fees stand for Common Area Maintenance and are the maintenance fees for the property common areas such as swimming pool, gym, garden, elevators, etc. CAM fees are calculated per surface area owned on a per month basis and in most cases are to be paid a year in advance in a single or double payment. CAM fees range between 40 to 160 THB per sqm per month.

The sinking fund is a one-off sum paid by owners for a new property ONLY. The budget is the responsibility of the legal entity of the condominium, which uses it for unforeseen expenses outside the budgeted costs of the property. Basically, the sinking fund is a reserve fund managed by the condominium, for major structural works such as roofing, walkways or elevators. This fund is different from the CAM, which is used for the day-to-day running of the complex. The sinking fund can represent from 500 to 1500 THB per sqm

Freehold Property:

• Transfer Fee: 2% of the property’s appraised value.
• Withholding Tax: 1% for companies / up to 3% for individuals based on the actual selling price.
• Stamp Duty: 0.5% of the appraised value.
• Special Business Tax: 3.3% (if applicable) when the property is sold within five years. This tax is generally applied to new properties.

Leasehold Property:

• Transfer Fee: 1% of the appraised value.
• Stamp Duty: 0.1% of the appraised value.
• Special Business Tax: 3.3% (if applicable) when the property is sold within five years, typically applied to new properties.

Important Note:
In most cases, the transfer fees are borne by the buyer. However, it is common (though not guaranteed) for the buyer and seller to share these fees equally, depending on the terms in the Sales and Purchase Agreement. All other costs, including taxes, are typically covered by the seller. Thus, as a buyer, you may only end up paying 1% in transfer fees, or even 0.5%, at the Land Department, depending on the agreement’s terms.

Low property tax scheme in Thailand

Thailand is not free of “property tax” as it may exist in other countries but the tax amounts are very low in comparison. Depending on the type of property you own in Thailand, for residential purposes, the “land and new building tax“ starts as low as 0.02% and is capped at max 0.3% of the appraised property value, yearly.

All taxes and fees related to owning a property in Thailand are to be paid at the Land department at the time of registration or transfer of property / lease.