Thailand’s property market just got a boost in 2024 and beyond with the government officially reducing transfer and mortgage fees for real estate transactions. These measures aim to stimulate the housing market by lowering the financial barrier to entry for buyers—both Thai and foreign. For those looking to buy real estate in Pattaya, especially luxury villas and high-end properties, this is news worth paying attention to.
But do these tax cuts actually apply to foreigners buying houses in Thailand through holding companies? What about luxury villas held in Thai corporations? Let’s break it all down.
Transfer and Mortgage Fee Reductions Until December 2024
As of April 2024, the Thai government has reduced two major fees for property transactions:
- Transfer fee: Reduced from 2% to 1%
- Mortgage registration fee: Reduced from 1% to 0.01%
These reduced rates apply to residential properties priced at up to 7 million baht (about $190,000 USD), and they are in effect until December 31, 2024. Properties must be transferred with both the sale price and official appraisal value not exceeding 7 million baht.
How Does This Affect Foreigners Buying Through Thai Holding Companies?
Many foreign buyers—especially those purchasing luxury pool villas in Pattaya —structure their property purchase through a Thai limited company, usually set up with the assistance of a local law firm. While this method has become standard for acquiring land-linked homes (since foreigners cannot directly own land in Thailand), there are some important details to understand in the context of the 2024 fee reductions.
Do the Transfer and Mortgage Fee Cuts Apply to Company Purchases?
Yes—in most cases, the fee cuts do apply when the property is sold by or to a Thai company, provided the company is legally registered and the transaction is structured properly.
- If the Thai company is buying or selling the property, and the purchase price and appraised value do not exceed 7 million baht, the transfer and mortgage fee reductions will apply.
- This includes many pool villas in Pattaya suburbs that fall under the 7 million baht cap, especially in areas like East Pattaya, Huay Yai, or Nong Pla Lai.
- However, for higher-end villas priced above 7 million baht, the normal 2% transfer and 1% mortgage fees still apply.
Important Caveats
Foreigners using a Thai company to hold property must ensure:
- The company is legally active, with annual filings and tax payments maintained.
- The structure is not set up solely to evade Thai land laws—authorities have become stricter about this in recent years.
- Any changes in shareholding, especially if part of a property sale, may trigger additional tax or legal scrutiny.
It’s highly recommended to consult with a Thai law firm to handle any transaction involving company-held property, especially when buying luxury homes or land.
Why This Matters for Pattaya’s Villa Market
Pattaya continues to be a favorite destination for foreign buyers, particularly retirees and investors looking for a second home. While condos are easy for foreigners to buy outright, villas with private pools and land must typically be purchased through a Thai company structure.
In 2024, mid-range villas priced under 7 million baht—which are quite common in Pattaya—will benefit from these reduced fees, even if they’re bought through a company. That means buyers can potentially save tens of thousands of baht in closing costs.
For example, a 6.5 million baht villa sold by a Thai company to another Thai company (used by a foreigner) would qualify for the reduced 1% transfer fee—saving 65,000 baht right off the bat. That kind of savings could go straight into renovations, furnishing, or legal fees.
Pattaya vs. Bangkok: Which Is Better for Villa Buyers?
1. Price Advantage
In Bangkok, a luxury pool villa in a central location is likely to cost 20–50 million baht or more. In Pattaya, buyers can find modern villas with pools for under 10 million baht, and sometimes even below 7 million if they’re outside the city center.
2. Land Ownership Strategy
Both cities require foreigners to use a company or leasehold structure for land ownership, but Pattaya law firms are often more experienced with handling foreign villa purchases through company structures due to the city’s international buyer base.
3. Lifestyle
Bangkok offers a fast-paced urban lifestyle with world-class shopping and dining. Pattaya, on the other hand, delivers a more laid-back, tropical vibe with beaches, golf courses, and easier access to nature—all while being just 90 minutes from Bangkok by car.
4. Rental Potential
Short-term rentals can be lucrative in both cities, but Pattaya’s pool villas remain in high demand with tourists, digital nomads, and long-stay visitors. Legal restrictions on short-term rentals still apply, but long-term rental demand remains strong.
Additional Tax Relief for Land & Property Owners
As of 2023, Thailand also implemented a 15% reduction in land and building tax across all property types. This applies to homes, rental units, farmland, and even vacant land. For foreigners who already own villas through a Thai company, this tax relief offers a small but welcome break on annual costs.
Conclusion: Is Now a Good Time to Buy a Villa in Pattaya?
With lower transfer and mortgage fees in place for 2024, and the potential to save thousands of baht on closing costs, now is a strategic time to buy a pool villa in Pattaya—especially if the price is under 7 million baht. Even higher-end villas still benefit from the general momentum in the market, as more foreign buyers enter or re-enter the scene.
For foreigners purchasing via a holding company, these fee cuts generally apply, but it’s essential to work with a reputable law firm to ensure compliance with Thai regulations.
Whether you’re looking for a vacation home, rental investment, or a retirement retreat, Pattaya’s villa market remains one of the most accessible and attractive in Southeast Asia—especially under the current tax environment.
