Pricing:
Our intention is to lease ( as indicated under “Foreign Ownership”) or sell the land. The square meter price, with full infrastructure, will be about Bath 3000 (USD 100/ CHF 110) . The smallest land plot is around 1043 m2. (see “Residence” ” Master Plan” for exact m2)
However, should you require us, Mae Rim Oasis Resort & Spa Co. Ltd. to control the construction of your villa the following approximate prices will apply.
Please note that all indicated prices for the land and villas are approximate only and have to be calculated at the time of lease or purchase.
A villa inclusive of land will be available from about 11 Million Bath or approximately USD 350’000 (CHF 380’000). The final price will reflect your selection of numerous options available, as well as the site of your choice. Some lots will have a premium added due to size and/or superior views.
The majority of our foreign buyers pay cash over a five staged payment structure during a 10-12 month build time. Once construction is at least 70% complete and a Thai bank can appraise the built up property, a refinance loan can be issued for a 10 year period with annual interest at approximately 8.5%.
Payment schedule to building construction company are:
is a 5-phased payment plan tied in to construction stages:
Bath 300’000 (approximate USD 9000/CHF 10’000) reservation deposit (1st day)
30% down payment (week 2)
20% substructure payment (month 2)
20% roof structure payment (month 5)
20% practical completion payment (month 10)
10% final acceptance payment (month 11)
Note: Above dates are approximate and subject to construction progress
Taxes with the Purchase of Land:
Transfer Fee - 2% based on Land Department's estimated value of the land. The estimated land values are in the process of being updated throughout Thailand, but as a general rule these estimates are lower that the actual purchase price for land.
Specific Business Tax - 3.3% of the actual purchase price as registered at the Land Department.
Withholding Tax- 1% of the actual purchase price as registered at the Land Department. Withholding Tax is exclusively the responsibility of the Seller and cannot be reallocated amongst the parties by agreement.
Value Added Tax:
Value Added Tax (VAT) was implemented in Thailand in 1992 replacing Business Tax. VAT is an indirect tax imposed on the value added of each stage of production and distribution. Any person or entity that regularly supplies goods or provides services in Thailand and has an annual turnover exceeding One Million Two Hundred Thousand Thai Baht is subject to VAT in Thailand.
The purchase of the property with Mae Rim Oasis Resort & Spa Co. Ltd. is divided into two parts. The first being the purchase of land, which is subject to taxes set forth above and the second being the purchase of construction services which is subject to 7% VAT. Mae Rim Oasis Resort & Spa Co. Ltd construction services, including materials constitutes approximately 60% of the total purchase price for the Land and Villa and would be paid incrementally according to staged construction payments as set forth in the Construction Agreement.
Corporate Income Tax:
The corporate income tax rate is 30% in the Kingdom of Thailand. However, there is a special exception for small to medium sized enterprises ("SMEs") with registered share capital below Five Million Thai Baht and the end of the account period. SMEs are taxed 20% on net profits up to One Million Thai Baht and are taxed at the rate of 25% on net profits of One Million Thai Baht to Three Million Thai Baht on net profits. Net profits are calculated by deducting from gross income the expenses that are allowed under the Revenue Code and supplemental regulations.
Tax Implications on Future Sale of Property:
There are a number of different sale scenarios and method to minimize tax implications associated with the future sale of the property. One such scenario involves the formation of a land holding structure that is beneficially owned by an offshore company that can be transferred to a future purchaser thereby avoiding the need to pay corporate income taxes or the transfer fees as discussed above. This option requires that the financial books and records of all companies forming a part of the land holding structure be well maintained in order to give a future purchaser comfort that there are no unforeseen liabilities that may be acquired when purchase the land holding structure. When establishing the land holding structure, we would recommend that you disclose to your legal representative your short, mid and long term goals for the property so that your legal representative can recommend the appropriate ownership structure.
