Property sector benefits included in Thai government bailout

The government in Thailand has unveiled a new financial aid package that could benefit helping homeowners and property investors in the country.

In a bid to buoy the nation through the global financial crisis, THB40 billion (GBP0.8 billion) will be injected into the economy via tax relief measures, Reuters reports.

The tax allowance of THB100,000 a year for mortgage interest payments is to be extended under the new measures, it was revealed.

And the government added that purchasers of new property in 2009 will now be entitled to a tax allowance of up to THB300,000 a year.

According to finance minister Korn Chatikavanij, the measures will help the country record growth of two per cent in 2009 - the lowest level since 2.1 per cent was achieved in 2001.

The implications of new tax laws were recently outlined to British investors seeking a property investment opportunity in Europe.

Director of personal tax at accountancy firm PFK Matt Coward stated that investors need to aware of the financial consequences of selling a home in euro zone in the current climate.