Property taxes in Koh Samui: what buyers should check

Start with the proposed transaction

Before paying a reservation fee or signing a contract, ask for an itemised estimate for the specific property. Record the seller's legal status, the proposed ownership or lease, the relevant values, and which party is expected to pay each cost. A general percentage is not a reliable quotation.

Tax on a property sale

The Revenue Department lists income tax withheld at source, specific business tax and stamp duty among the taxes to consider when an individual or a company sells real estate. Their application and calculation require the transaction details. Withholding is not limited to individual sellers. Revenue Department: taxes on property sales.

Specific business tax rules cover certain commercial or profit-making property sales. A property's holding period alone is not a complete assessment. The stamp-duty schedule exempts receipts subject to specific business tax; ask your adviser which treatment applies. Revenue Code, Section 91/2; stamp-duty schedule, item 28.

Transfer and ongoing costs

Obtain the current registration-fee calculation from the Land Office and agree the allocation of costs in writing. Ask the local authority for the property's current Land and Building Tax assessment. Budget separately for legal advice, insurance, utilities, maintenance and any project charges.

Rental income is a category of assessable income in the Revenue Department's personal income tax guidance. Ask a tax adviser about your filing obligations, allowable expenses and any cross-border issues. Do not treat a projected gross rental yield as net income. Revenue Department: personal income tax.

Ownership needs a separate check

For condominiums, the foreign-ownership limit is based on floor area, not the number of units: up to 49% of the total unit floor area in a registered condominium building. This rule does not establish a right to own a villa's land. Confirm eligibility and quota availability before signing. Thailand government: foreign condominium ownership.

Request the listing documents from LKS, then have independent Thai legal and tax advisers review the proposed transaction. This guide provides general information, not a personalised tax calculation.