Thailand Usufruct

The laws regarding Usufruct in Thailand are found in section 1417 of the Thailand Civil and Commercial Code. Usufruct is a right which allows an original owner to retain ownership of the real estate. The usufruct holder is then allowed to enter and occupy the property.

Usufructs have both pros and cons.

The main advantage is that there is no requirement under the Thailand law for a payment for the transfer of the usufruct right. A Usufruct is available for the life term of the holder. A holder of the Usufruct right is allowed to lease or rent out the land and receive a payment pursuant to a rental agreement. The usufruct can be registered for the life term of the usufruct holder. This is in contrast to a normal lease agreement which has a maximum term of 30 years. A longer time period may be important for foreign persons seeking to reside in Thailand.

Land transfer fee 2024 according to the Land and Building Tax Act.

Land transfer fee 2024, transfer of ownership Distribute land to relatives to relieve your own tax burden. Must pay tax on land transfer How much is the land transfer fee? What are the differences between transferring land ownership to children, relatives, or trading? This is something that land owners should know. After land and building taxes according to the new Land and Buildings Tax Act. Set tax rates so that land holders must pay more taxes on land transfers.

Land transfer fee According to the new land and building tax

Land and building taxes It is a tax that requires owners of land worth more than 50 million baht to pay taxes on land transfer fees. Or owning more than 1 plot of land must pay tax from the first baht. The more land is held that is not being used. The higher the tax, therefore, the change to paying land transfer tax once. to give to relatives to help hold Therefore, it is a solution that can help alleviate the tax burden.

Fee for transferring land to relatives on a gift basis

Fees for transferring land to legitimate children

In the case of parents registering their marriage and want to give land to their legitimate children Or the mother wants to give the land to the child. (Which the child is always legally of the mother's side) will pay land transfer tax in 2024 and there will be a land transfer fee as follows.

• Land ownership transfer fee is 0.5% from the appraised value.

• Stamp duty is 0.5% from the appraised value.

• Personal income tax of 5% from the assessed value. Only for the portion exceeding 20 million baht

Even though parents owned the land for only a few years But it is not eligible to pay the 3.3% specific business tax according to the Revenue Department's exemption. In this case, there is the lowest land transfer tax rate.

Fees for transferring land to children who are not legal

In the case where the parents have not registered their marriage or the father's side has not registered to certify the child at birth Then the father wanted to give the land to his illegitimate son. There will be a land transfer fee of 2024 and there are land transfer fees as follows.

• Land ownership transfer fee is 0.5% from the appraised value.

• Stamp duty 0.5% or specific business tax 3.3% from the assessed value.

• Personal income tax based on the assessed value. Expenses can be deducted 50%

In this case, you will still pay a transfer fee of only 0.5%, but will have to pay income tax on a step-by-step basis. And if you have held it for no more than 5 years or have your name in the house registration for no more than 1 year, it will also be subject to specific business taxes.

Calculate taxes with ready-made programs

Calculating home and condo sales tax is not difficult with a ready-made program.

Cost of transferring land to relatives other than children

Giving land to relatives in the bloodline Whether it be siblings, parents, grandparents, grandchildren, or even bequeathing land to adopted children. If it's not an heirloom There will be a land transfer fee of 2024 and there are land transfer fees as follows.

• Land ownership transfer fee 2.0% of the appraised value.

• Stamp duty 0.5% or specific business tax 3.3% from the assessed value.

• Personal income tax based on the assessed value. Expenses can be deducted 50%

If they are not parents and children Even if they are close relatives Must pay taxes like normal land transactions. Exemption from personal income tax That deducts 50% of the standing expenses, no matter how many years you've owned it.

Precautions for giving out of kindness

As a general rule, gifts given by affection cannot be revoked. However, there are cases where the giver can sue to withdraw the money, such as the recipient who behaves ungratefully. Serious defamation, cruelty, or failure to provide support to those who give when they are poor. But will you get it back or not? It depends on the consideration of the court.

Fees for transferring land to relatives in the normal way

Trading in all cases

Land transfer fees when buying and selling in all cases Whether selling land to children, grandchildren, siblings, parents, or grandparents There will be a fee for transferring land ownership. and various expenses according to normal trading as follows

• Land ownership transfer fee 2.0% of the appraised value.

• Stamp duty 0.5% or specific business tax 3.3% from the appraised or selling price. Whichever price is higher

• Personal income tax based on the assessed value. Deduction of expenses according to the year of ownership

The land transfer tax rate will use the same criteria for everyone. But the tax will be cheap or expensive depending on the holding period. and setting a selling price that is higher than the appraised value It also results in higher stamp duty or specific business taxes.

Cost of transferring land to relatives other than children

Giving land to relatives in the bloodline Whether it be siblings, parents, grandparents, grandchildren, or even bequeathing land to adopted children. If it's not an heirloom There will be a land transfer fee of 2024 and there are land transfer fees as follows.

• Land ownership transfer fee 2.0% of the appraised value.

• Stamp duty 0.5% or specific business tax 3.3% from the assessed value.

• Personal income tax based on the assessed value. Expenses can be deducted 50%

If they are not parents and children Even if they are close relatives Must pay taxes like normal land transactions. Exemption from personal income tax That deducts 50% of the standing expenses, no matter how many years you've owned it.

Precautions for giving out of kindness

As a general rule, gifts given by affection cannot be revoked. However, there are cases where the giver can sue to withdraw the money, such as the recipient who behaves ungratefully. Serious defamation, cruelty, or failure to provide support to those who give when they are poor. But will you get it back or not? It depends on the consideration of the court.

Fees for transferring land to relatives in the normal way

Trading in all cases

Land transfer fees when buying and selling in all cases Whether selling land to children, grandchildren, siblings, parents, or grandparents There will be a fee for transferring land ownership. and various expenses according to normal trading as follows

• Land ownership transfer fee is 2.0% from the appraised value.

• Stamp duty 0.5% or specific business tax 3.3% from the appraised or selling price. Whichever price is higher

• Personal income tax based on the assessed value. Deduction of expenses according to the year of ownership

Transfer tax rate

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If foreigners could buy real estate in Thailand What will Thai people get?

Let's understand first that Nowadays, foreigners can buy domestic property in Thailand. Foreigners who can come and buy houses in Thailand. Must be a foreigner with high potential and are long-term residents of Thailand, divided into 4 groups:

1.Foreigners with high security

2. Retired foreigners

3.Foreigners who want to work from Thailand

4.Foreigners with special skills Able to live and work in Thailand

Requirements for foreigners to purchase houses and land in Thailand

1.Foreigners can own land not exceeding 1 rai.

2.Foreigners can only buy land from the seller whose name is on the document showing their rights. If there is a transfer of land and buildings The seller also needs to have documentation proving ownership of the building.

3.Foreigners who will buy land or house in Thailand Must have the specified qualifications And must also bring money to invest in Thailand of not less than 40 million baht and invest for not less than 3 years and must be a business that is specified by law, one or a combination of types, including

3.1 Buy bonds

3.2 Mutual funds

3.3 Trusts

3.4 Invest in share capital

3.5 Invest in the business

4. Must be a foreigner who has received permission from the Minister of Interior only.

5.Foreigners must purchase in the Bangkok area, Pattaya city area, municipal area or in an area designated as a residential area according to urban planning laws. and must be outside the safety zone while serving in the military

6.Foreigners who are permitted to own land or real estate must use it for their own residence only. If there is a violation of the conditions or used for other purposes Has the right to be processed for resale

Requirements for foreigners when purchasing a condo in Thailand: Foreigners can legally own no more than 49% of the total condo area in the project. For example, if a project has 500 units, foreigners can only own only 49% of the total condo space in the project. Only 245 rooms

Perspective on the advantages

1. Get new groups of people to circulate the country's economy. They may be people who have potential in various fields that are important to the movement of the world. Let Thailand become a source of potential people from many countries. For example, the United States has allowed people from foreign countries to live since the early days of the country and helped drive the economy. Until now it has become the world's most powerful country.

2.Thailand is entering an aging society. There is a lower birth rate. Therefore, the population that works at all levels and pays taxes in the country will inevitably decrease as well. Accepting foreigners to live in Thailand. It is another way to invite people with knowledge and abilities. skilled labor Come to work in the country and increasing tax collection to be used for further development of the country

3. Future customers are "elderly people". Our country has strengths in medical services, food, and a low cost of living. Allowing retirees from abroad to buy real estate to use in their later years. It may be another customer group for the business sector in Thailand. Because the group of elderly people who are able to travel abroad to retire Must have high purchasing power, for example, businesses in health care, food, tourism, home decoration, life insurance, including technology for caring for the elderly. Will be able to create work Create many more business opportunities.

4. Increase purchasing power from new markets Because at present the economic condition is still considered to be slowing down. The purchasing power of Thai people has also decreased. But the group of foreigners Purchasing power has almost never slowed down, especially among Chinese people. It can be considered a group with high potential. and is the main customer in promoting product exports. travel and investing in real estate sales and rentals

5. Solve the problem of breaking the law by foreigners who secretly use nominees as a front. In the past, foreigners who came to own real estate in Thailand Often used to marry Thai people. or trade through a nominee company The company establishment representative is a Thai person. But the real owner is a foreigner. Issuing this measure may help solve the problem of illegal activities by foreigners. It is like bringing things that are underground to the surface. and manage it in accordance with the law correctly

Disadvantage point of view

1.Land or real estate may be more expensive. Because real estate business owners increasingly want to sell to foreigners. It may cause even more inequality as well. This will cause Thai people to be fully affected if anyone doesn't have their own land or property yet. This makes it even more difficult to own your own property.

2. May not stimulate as much money as it should. Many Thai economic analysts consider that If we try to analyze the 4 potential groups that have been set as criteria. It is possible that this measure will attract “Foreigners with high stability” get the most because they have the ability to invest. But other groups may not have many.

3. There are still loopholes in the Thai government system's information. Foreigners may come to buy land or real estate, but secretly use it to do business. This problem is difficult to solve. because of information from the Thai bureaucracy Still can't follow that much. Therefore, the government must have measures to seriously regulate this matter.

4. From the perspective of some academics I am concerned about the influx of foreigners buying land and real estate. Therefore, comparisons have been made that some parts of Thailand may become a colony of foreigners.

So what can be done to make Thai people benefit from this measure?

1. The government should clearly set the price of land and real estate that foreigners can purchase. which must not affect Thai buyers with limited budgets and set clear conditions that in the future house prices must not be more expensive Thai people can still buy it. And measures should be taken to collect taxes on buildings and buildings for foreigners to be as fair and comprehensive as possible.

2. The government should communicate with the people about the duration of the measures. When will it be used? When it's due We must reconsider to see whether this measure really helps the country's economy grow. In order not to cause concern and doubt to the people who question this measure.

Of course, there are many analyzes of this measure. There are those who agree and those who disagree. However, We must continue to monitor and see what measures are in place for foreigners to purchase land and real estate in Thailand. How beneficial will it be to the country and the Thai people? And how ready are we to adapt to find opportunities and benefits from this measure?