Thai property law permits foreign nationals to purchase condominium units not exceeding 49 per cent of the total area of a condominium building.

To make the purchase foreign buyers are required to transfer the funds for the purchase from abroad, or withdraw the money from their local nonresident bank account.

Like most other countries, property transactions in Thailand are subject to a number of different taxes.

If you own a condominium and wish to sell it, it is prudent to have an understanding of what fees and taxes you will need to pay to better calculate your nett return.

The sale of a condominium is subject to four different taxes and fees that must be paid to the relevant government offices. They are a government transfer fee, specific business tax (SBT), stamp duty, and withholding tax.

Under the law, only the government transfer fee is shared equally between the buyer and the seller, while the remaining taxes are the responsibility of the seller.

The government transfer fee is quite straightforward and calculated at 2 per cent of the government appraised value, irrespective of the actual selling price.

However, from March 29, 2008, until March 28, 2009, condominium sales are eligible for a 0.01 per cent reduction in the government appraised value.

SBT is a special levy on certain business transactions and applied to the sale of a condominium by an individual if the condominium is sold within one year of acquisition, if the individual has registered the condominium as his or her official residence in the government household registration system, or if the condominium is sold within five years of acquisition in other cases.

SBT is applied at the rate of 3 per cent of the government appraised value or the sale price, whichever is higher.

The sale of a condominium by a company is generally always subject to SBT at the rate of 3 per cent of either the sale proceeds or the government appraised value, whichever is higher.

A local tax of 0.3 per cent is also payable at the same time and on the same basis as the SBT.

From March 29, 2008, to March 28, 2009, the rate of SBT and local tax applicable to condominium sales, either by individuals or companies, has been temporarily lowered to 0.11 per cent.

Stamp duty is applied to all condominium sales that are not subject to SBT at the rate of 0.5 per cent of the government appraised value, or the selling price, whichever is higher.