Building transfer fee is a type of government levy in real estate transactions in Bangkok. This fee differs from stamp duty and business tax in its application and rate.
Government authorities charge building transfer fees at the point of transferring ownership from one party to another.
Building transfer fees have specific rates, typically 2% of the registered value of the property. Examples include transactions for condominiums, single-family homes, and commercial properties.
This fee contrasts with stamp duty, which applies at varying rates depending on the property type and transaction value, and business tax, charged at 3.3% of the assessed or sale value, whichever is higher.
Popular features of building transfer fees include their fixed rate, applicability to both residential and commercial transactions, and mandatory payment at the Land Department during transfer.
Common features encompass the requirement for payment by either buyer or seller, as negotiated, calculation based on the government-assessed property value, and inclusion in the overall cost of acquiring real estate in Bangkok.
Unusual features of building transfer fees include exemptions under certain conditions, such as transfers between family members, which might be subject to different or waived fees. Unique features entail the specific 2% rate, the direct contribution to local government revenue, and the clear delineation from other types of transaction fees.
Building transfer fees are distinct in their universal fixed rate, unlike variable rates for stamp duty based on transaction types and values. Their application to a broader range of property transactions sets them apart from business tax, which targets specific transaction categories.
For detailed information on terms related to the real estate process, visit our glossary about Bangkok real estate.