New tax measures to stimulate real estate sector

On April 9, 2024 the Cabinet approved new real estate stimulus measures proposed by the Ministry of Finance, including reduced registration and transfer fees for properties not exceeding Baht 7 million in value.

Earlier this year two ministerial regulations came into effect to lower registration and transfer fees unto 31 December, 2024 for both new and second-hand residential properties with a value not exceeding Baht 3 million. Read more about Reduction of property transfer fees and mortgage fees to promote home ownership extended for another year.

The new measures approved in their place reduce the ownership registration fee and the mortgage registration fee for properties worth up to Baht 7 million per transaction.

The transfer registration fee is reduced to 1% on the sale of condominiums, residential and commercial buildings, including detached houses, twin houses, townhouses, commercial buildings, or land with residential or commercial buildings, if the purchaser is a Thai citizen and the sales price and official appraised price does not exceed Baht 7 million.

In the case of a mortgage not exceeding Baht 7 million registered in respect of such transfer, the registration fee is reduced to 0.01%.

The new measures are effective until 31 December 2024. The Ministry of Finance expects these measures will help generate property sales worth approximately Baht 799,374 million baht per annum, helping to increase domestic consumption by more than Baht 118,413 million per annum and result in gross domestic product (GDP) increasing by 1.58% per annum.