Thailand: Property taxes reduced for home buyers

A potential buyer checks prices of units at a house and condominium fair at Queen Sirikit National Convention Center on Thursday.
The cabinet on Tuesday approved a series of economic measures to revitalise the property sector with low-income earners to benefit most.

The incentives include cuts in the housing transfer fee to 0.01% from 2%, and slashing mortgage fees to 0.01% from 1% from next Monday to the end of April.

Buyers of homes costing less than 3 million baht have an extra incentive as 20% of the price tag will be tax deductible for five years, starting Dec 31.

Deputy Prime Minister Somkid Jatusripitak and Finance Minister Apisak Tantivorawong said the tax reduction was designed to help low-income earners.

Government Housing Bank (GHB) will  set aside 10 billion baht in mortgage loans for borrowers refused by other banks until the end of next year. Details will be announced by GHB.

Mr Somkid expected the tax and fee reductions would eat into government revenue by around 15 billion baht a year, but the state will collect more taxes in future after the economy picks up.

Bangkok Post