The Thai government has become very vocal about property developers who are under-declaring the property values during a sale in order to lower the property transfer taxes payable. In the Thap Sakae district the Revenue Department has been asked to step into investigate tax fraud with regard to the transfer of property in the region.
In the district of Huay Yang near to Hua Hin the Huay Yang administration has said that certain property transactions can simply be viewed as fraud and it is costing the local administration enormous amounts of lost revenue. some of the property which is being sold is being transferred as 30 year lease agreements. There has also been property which the government valued at more than 7million THB yet the taxes payable was only 700THB. Another problem was that a property developer who transferred land valued at 300,000 THB and then asked for 8 registrations for homes on the land yet there was no development on the land.
This against bring to the fore of having an attorney in Hua Hin to ensure that due diligence has been done on the property and if you are leasing land and plan on building a home of the leased land then you should ensure that the process to completed correctly and that all taxes payable are paid during the transaction. As noted you can build a house in Thailand on rented land and this was explained on this website under superficies and the process which goes with it. Clearly from the above story it is in the middle of superficies however nobody has informed the Land Department or paid transfer taxes on the transaction. This later will become a major issue when the house gets sold and the process was not done properly.
If you are looking at buying property in Hua Hin or in Southern Thailand then speak to us at Siam Legal so we may be able to assist you from our law offices in Hua Hin. Always speak to a lawyer first before signing any property agreement. Call us today or speak to us online. See our main website for more information about property, property scams and the process of owning property in Thailand legally.
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