Countries with No Property Tax?
There are just a few countries left in the World where you pay no property tax on an annual basis. You might still have to pay a transfer fee when you first buy real estate in these countries. But there are no other tax obligations.
Most of the countries without property taxes are in Asia and here is the list:
Starting off our list, Thailand is the only country in Southeast Asia with truly no annual property tax.
You still must pay a fee upon buying a property. Transfer tax is 2% of its appraised value, although the seller usually pays that entire amount – or at the very least half of it.
Besides this one-time payment you can own a condominium unit in Thailand with zero obligations to the local tax authorities. Unless you either sell or start renting out the property, that is.
Foreigners can directly own condominium units in Thailand. So, you’ll have to pay a yearly management fee due to the nature of condo buildings.
Of course, management fees aren’t really the same as a property taxes since the money goes toward keeping your asset in good condition. Having access to facilities like a pool and gym certainly helps.
Land needs to be structured as leasehold for foreigners in Thailand but the villa that sits on the land can be freehold.
United Arab Emirates
Next on the list is the Middle East, with the United Arab Emirates (UAE) and especially Dubai. This is one of the best tax havens in the World. Not just for real estate buyers but with regards to practically everything else too. If you can live with the heat in the summer months to tax structure is fantastic.
The UAE was made famous as one of few nations on the planet without any personal income tax. Of course, the 0% rate extends to all rental income as well.
Cambodia technically does have annual property tax, however it’s a miniscule 0.01% of the total appraised value.
For example, the owner of a house in Cambodia worth US$100,000 owes just US$100 per year worth of real estate tax.
But things aren’t always as they appear and the government hardly ever bothers collecting this tax in practice. Perhaps because it’s such an insignificant amount.
You might get a call from somebody if you own an expensive apartment in Phnom Penh or some prime land. However, a clear majority of Cambodian property owners don’t pay any tax.
Malaysia is an example of a place that boast incredibly low rates. Low enough to where they may as well not collect taxes at all. While you must pay two different annual fees (property assessment and quit rent tax), rates of both are miniscule.
The exact amount you’ll pay in Malaysia depends on location, type, and size. But even large homes aren’t usually subject to more than a few hundred dollars annually.
To learn more about Thailand real estate opportunities with no annual property taxes call +66 93 606 0906 today.