Real Estate Sector Stimulus Package announced by the Thai Government

The Royal Thai government has just launched a real estate stimulus program with the following changes effective 19 October 2015 – 31 December 2016 (unless stated otherwise):

(1) Fiscal Stimulus: The Government Housing Bank (GHBank) would ease its mortgage lending rules for middle and low income housing buyers who have previously been rejected mortgage. The budget cap is at THB 10 billion.

(2) Monetary stimulus that affects all transacting parties: A reduction of the stamp duty and transfer fees to 0.01% of the officially appraised property value from 2.00% previously ONLY for the first THB 200,000. Policy in effect from 19 October 2015 to 18 April 2016.

(3) Monetary stimulus that benefits only first home buyers: First home buyers reduce their personal income tax for the value of up to 20% of the value of the first home he or she has purchased. The home must not exceed THB 3 million in value and must be owner-occupied for the next five years. The tax reduction would be spread out equally each year for the next five years but the transaction must occur before 31 December 2016.