Сosts associated with the purchase of real estate and its maintenance

• APARTMENT

Taxes/fees: ⠀

Trasfer Fee = 2%⠀
The fee is 50/50 between the seller and the buyer. ⠀
Calculated based on the larger amount, cadastral value or transaction value. Paid at registration of the transaction.
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Sinking Fund – made by the first buyer of the property: start from 500 Baht per sqm. ⠀
Purpose: The Depreciation Fund. It is kept in the account of the management company that serves the property. Expenses are incurred after the guarantee from the developer is completed. For example: In condominiums the warranty period for bearing structures is 5 years. Further, through the meeting, the owners decide, if a major overhaul is needed, the money is spent from this Fund. ⠀

Monthly expenses:
Common Fee (service fee) – from 50 Baht per sqm.
The amount of the fee depends on the location, size of the territory and it’s content: swimming pools, gym, security, garbage disposal, treatment of the territory against insects, etc. Payment for the first year, always paid at once.
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Electricity – from 4.5 Baht per unit. Depends on location.
Water – from 3.5 Baht per unit (if the city line), if it is, for example, a residence with its own well, the price start from 35 Baht per unit.
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If necessary, the cost of: cleaning from 500-1,000 Baht / time.
Given the tropical climate and humidity, make sure to air the room once a week to avoid mold.
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Also, the ownership of real estate, does not give any privileges in the visa (except for investment visas – the acquisition of real estate from 10 million Baht and ownership of more than 3 years in the property). Therefore, we take into account the expenses on: Visa

 

• VILLA

Taxes/fees:

Fee for registration of the rental agreement = 1% of the total rental cost for the entire term. ⠀
Paid 50/50 between the seller and the buyer (to be negotiated before signing the contract). ⠀
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Sinking Fund – contributed by the first buyer: start from 100 thousand Baht. ⠀
Purpose: The Depreciation Fund. It is kept on the account of the managing company, which serves the territory of the village.

Monthly costs:
Common Fee (service fee) – from 5,000 Baht/month. The price depends on the location, size of the area and maintenance. Payment for the first year, payable at once.

Electricity from 4.5 Baht per unit. Depends on the location of the property. ⠀
Water – from 25 Baht per unit. Depends of the managing company.

Also consider, if necessary: cleaning, from 1,000 Baht /time. Given the tropical climate and humidity, make sure to air the room once a week to avoid mold. ⠀
Pool Cleaning – from 2,000 Baht/month⠀
Gardener services – from 2,000 Baht/month
Pest control – from 2,000 Baht/month

If the property will be registered for a company, together with the Thai founder, where the foreigner’s share is 49%:

Opening of the company, work permit: from 50,000 Baht
Legal support of the company: from 3,000-5,000 Baht/month
Accounting/annual balance sheet: from 15,000 Baht/year
Operating expenses ~ ⠀
Land and building tax – 12.5% of the annual lease value, according to the lease agreement or annual (state) estimated value, whichever is higher

It should be noted that the company MUST be necessarily working, in case of detection of nominal shareholding in order to obtain 100% control over the land, such transaction may be considered fictitious and, as a result, invalid, and the participants will incur administrative and/or criminal liability.

Also take into account that the ownership of real estate does not give any privileges in visa (except investment – the purchase of real estate from 10 million Baht and ownership of more than 3 years). Therefore, we also calculate the costs for: Visa.

Additional information: due to the new Law on Land and Building Tax, which came into force on March 13, 2019, property taxes will apply from 2020.

 

02.02.2020