Editorial
Condo Purchase Tax Breakdown Thailand: 2026 Guide
By THAI.ESTATE Editorial Team18 min read
When you buy a condo in Thailand as a foreign national, four government fees apply at the Land Department on transfer day: a transfer fee, either Specific Business Tax (SBT) or stamp duty (not both), withholding tax, and in some cases a mortgage registration fee. Together these typically add 4% to 7% of the registered sale price to your transaction cost, depending on how long the seller has owned the unit and how the deal is structured. Knowing which party pays which fee, and when each applies, is the single most practical piece of due diligence you can do before signing a sale-and-purchase agreement.
This guide works through each fee at the purchase stage, then covers ongoing land and building tax, rental income tax for non-residents, and the exit withholding tax mechanics when you sell. Every figure is marked as indicative and referenced to 2026 conditions. Always verify current rates with a licensed Thai lawyer before transfer.
Quick answer
- Transfer fee: 2% of the appraised value (the Land Department's assessed value, which is often lower than the sale price); customarily split 50/50 between buyer and seller, but negotiable
- Specific Business Tax (SBT): 3.3% (3% SBT + 0.3% local tax) of the registered price or appraised value, whichever is higher; applies when the seller has owned the unit for fewer than 5 years OR is a company
- Stamp duty: 0.5% of the registered price or appraised value; applies only when SBT does not apply (individual seller, ownership longer than 5 years)
- Withholding tax on sale: calculated on a sliding progressive scale against the seller's net income from the sale; paid by the seller, but buyers should understand it because it affects deal negotiations
- Annual land and building tax: generally 0.02% to 0.1% of the appraised value for residential property; very low in practice
- Common-area fees (CAM): not a government tax, but typically THB 40 to THB 120 per sqm per month; the real recurring cost of condo ownership
- Foreign-owned quota: a condo building can have at most 49% of its total floor area foreign-owned under the Condominium Act; this does not change the tax rate but affects what you can legally buy
Options and scenarios
What is the transfer fee and who pays it?
The transfer fee is 2% of the Land Department's appraised value. The appraised value is the government's own assessed price, recalculated periodically; it is frequently 20% to 50% below the market sale price in popular areas such as Sukhumvit (Bangkok), Phuket, or Pattaya. This means the actual baht amount you pay in transfer fees is often lower than 2% of what you paid for the unit.
By long-standing Thai market custom, the transfer fee is split equally between buyer and seller (each pays 1%). However, nothing in Thai law mandates this split. In a buyer's market or when buying directly from a developer, you may be able to negotiate the developer to absorb the full 2%.
When does Specific Business Tax apply, and when does stamp duty apply?
These two taxes are mutually exclusive. Only one applies to any given transaction.
SBT at 3.3% applies when:
- The seller is a company (regardless of ownership duration), OR
- The seller is an individual who has owned the unit for fewer than 5 years (with 'owned' measured from the Land Department registration date)
Stamp duty at 0.5% applies when:
- The seller is an individual who has owned the unit for 5 years or more, AND the transaction is not subject to SBT
The SBT base is the higher of the registered sale price or the Land Department appraised value. Stamp duty is also calculated on the higher of the two. Because SBT is 6.6 times the rate of stamp duty, the ownership period of your seller has a major effect on the total cost stack.
In practice, most new-build condos purchased from a developer (always a company) carry SBT. Resale condos may carry either, depending on how long the individual seller has held the title.
How does withholding tax work on a condo sale?
Withholding tax is a seller's liability, not a buyer's. However, it is deducted at the Land Department on the day of transfer, so it affects how the seller nets out of the deal and can influence price negotiations.
For individual sellers, withholding tax is calculated using a progressive income-tax formula applied to an estimated net gain. The Land Department uses its own appraised value and a depreciation schedule based on ownership years, not the actual sale price, to compute the taxable base. For company sellers, a flat 1% withholding tax is applied to the registered price or appraised value (whichever is higher) as an advance corporate income tax.
As a buyer, you do not pay withholding tax directly, but you should confirm at signing whether the seller's quoted price is net or gross of their tax obligations, as sellers sometimes attempt to pass part of this cost to buyers through price adjustments.
What is the annual land and building tax?
Thailand's Land and Building Tax Act, effective since 2020, replaced the old house-and-land tax and local development tax. For residential property, the rate is graduated by appraised value:
- Appraised value up to THB 50 million: 0.02% per year
- THB 50 million to THB 75 million: 0.03% per year
- THB 75 million to THB 100 million: 0.05% per year
- Above THB 100 million: 0.1% per year
For a foreign buyer who does not register the condo as their primary Thai residence (which requires a valid residency-linked document), the unit may be assessed as secondary residential at a slightly higher rate tier. The juristic person (the management company that administers the condo building) typically calculates and collects this from unit owners annually. Verify with your building's juristic person how they handle this for foreign-title units.
For most foreign buyers owning a single mid-range Bangkok or Phuket condo, the annual land and building tax amounts to a few thousand baht per year - a minor cost.
What do common-area management fees cost?
Common-area management fees (often called CAM fees or maintenance fees) are not a government tax, but they are the most significant recurring cash outflow for a condo owner. They are set by the building's juristic person and cover security, cleaning, pool, gym, and building maintenance.
Market estimates in Bangkok and Phuket as of 2026 range from THB 40 to THB 120 per square metre per month, depending on the building's grade and amenity level. A 50 sqm studio in a mid-grade Bangkok building might carry CAM fees of around THB 2,000 to THB 3,500 per month (THB 24,000 to THB 42,000 per year).
At purchase, you will also typically pay a sinking fund contribution. A sinking fund is a one-time capital reserve paid upfront; it funds future major repairs such as elevator replacement or roof work. Market rates range from THB 500 to THB 1,000 per sqm, paid once at the time of first registration.
How is rental income taxed for non-resident foreign owners?
If you rent out your Thai condo and you are a non-resident (you spend fewer than 180 days per calendar year in Thailand), your Thai-sourced rental income is subject to Thai Personal Income Tax (PIT) or, if you hold the condo through a Thai company, Corporate Income Tax (CIT).
For individual non-residents, the Thai Revenue Department taxes Thai-sourced income (including rent) at progressive rates from 5% to 35%. A standard deduction of 30% of gross rental income (capped at certain conditions) is allowed for expenses before applying the rate. You are required to file a Thai tax return and pay any tax due. The withholding tax mechanism also applies: a tenant who is a company must withhold 5% from rent payments to an individual landlord and remit it to the Revenue Department. This withheld amount offsets your final annual tax bill.
Your home country will almost certainly also want to tax this rental income. Thailand has double-taxation treaties (DTTs) with over 60 countries as of 2026. A DTT typically lets you credit Thai tax paid against your home-country tax liability, so you avoid being taxed twice on the same income. The specifics depend entirely on your country of residence and its treaty with Thailand. You must consult a tax adviser in your own country. THAI.ESTATE does not give country-specific tax advice.
What withholding tax applies when you (the foreign owner) sell the condo later?
When you sell, you become the seller and withholding tax becomes your liability. For an individual (as opposed to a company), the Land Department calculates withholding tax on the day of transfer using its own appraised value, your number of ownership years, and a statutory depreciation table. The resulting amount is deducted from the proceeds at the counter and remitted directly to the Revenue Department.
You will receive a withholding-tax certificate. If your actual tax liability for the year is lower than the amount withheld (for example because you have deductible costs), you can file a Thai tax return to claim a partial refund. This process requires a Thai tax identification number, which you should obtain from a Thai Revenue Department office.
SBT on your exit sale will apply again if you have owned the unit for fewer than 5 years or if the property was transferred to you in a business context.
Worked example: indicative total cost stack on a THB 5,000,000 condo purchase
All figures below are indicative as of 2026. Assumptions: buyer is a foreign individual; seller is an individual who has owned the unit for fewer than 5 years (so SBT applies, not stamp duty); the Land Department appraised value is THB 4,200,000; the agreed sale price is THB 5,000,000; no mortgage.
| Cost item | Calculated on | Rate | Indicative amount (THB) |
|---|---|---|---|
| Transfer fee (buyer's 50% share) | Appraised value THB 4,200,000 | 1% (half of 2%) | 42,000 |
| Transfer fee (seller's 50% share) | Appraised value THB 4,200,000 | 1% (half of 2%) | 42,000 |
| Specific Business Tax (SBT) | Higher of sale price / appraisal = THB 5,000,000 | 3.3% | 165,000 |
| Withholding tax (seller) | Land Dept formula (indicative) | Variable | ~90,000 to ~150,000 (estimate) |
| Sinking fund (one-time, buyer) | Per sqm - assume 50 sqm at THB 700/sqm | Flat | 35,000 |
| CAM fee advance (1-3 months typical) | 50 sqm at THB 70/sqm/month x 3 | Flat | 10,500 |
| Annual land and building tax (ongoing) | Appraised value THB 4,200,000 | 0.02% | 840/year |
The buyer's direct cash outlay at transfer in this scenario (transfer fee share + sinking fund + CAM advance) is approximately THB 87,500 on a THB 5,000,000 purchase, or about 1.75% of the purchase price. The seller customarily absorbs SBT and withholding tax, but this is negotiable and in practice developers sometimes ask buyers to absorb SBT on new builds. If you agree to pay SBT as buyer, add another THB 165,000 to your cost.
Always add legal fees (a reputable Thai property lawyer typically charges THB 15,000 to THB 50,000 for a straightforward condo transfer) and, if applicable, a FET transfer cost. A FET (Foreign Exchange Transaction) document - issued by a Thai bank when you remit foreign currency to Thailand and convert it to Thai baht - is required by the Land Department as proof that your purchase funds came from abroad. Your Thai bank will charge a small SWIFT/conversion fee for this; the FET document itself is free, but you must request it at the time of transfer, not retroactively.
Comparison table
| Fee type | Who pays (custom) | Rate | Base value | Applies when |
|---|---|---|---|---|
| Transfer fee | 50/50 buyer-seller | 2% total (1% each) | Land Dept appraised value | Every transaction |
| Specific Business Tax (SBT) | Seller (often negotiated) | 3.3% | Higher of sale price or appraisal | Seller owned < 5 yrs, or seller is company |
| Stamp duty | Seller | 0.5% | Higher of sale price or appraisal | Seller owned 5+ yrs, individual only |
| Withholding tax (individual seller) | Seller | Progressive (Land Dept formula) | Land Dept appraised value + years owned | Every sale by an individual |
| Withholding tax (company seller) | Seller | 1% | Higher of sale price or appraisal | Every sale by a company |
| Sinking fund | Buyer (first purchase) | THB 500-1,000/sqm (market rate) | Per sqm of unit | New registration or first resale |
| Annual land and building tax | Owner | 0.02%-0.1% | Appraised value | Every year of ownership |
| CAM fees | Owner | THB 40-120/sqm/month | Per sqm of unit | Every month of ownership |
Risks and mistakes
Relying on the sale price, not the appraised value, to estimate fees. The Land Department uses its own appraised value (lower than market) for the transfer fee base, but uses the higher of sale price or appraisal for SBT and stamp duty. If your agreed price is above the appraisal, SBT is calculated on the full sale price. Buyers who model costs using only the sale price for all fees will underestimate the transfer fee but may still be surprised by the SBT amount.
Assuming the cost split is fixed. There is no statutory requirement that the seller pays SBT. In new-build purchases, developers routinely ask buyers to absorb SBT as a condition of the discounted price. Read your sale-and-purchase agreement carefully before signing.
Not obtaining a FET document. If you remit foreign currency to Thailand to fund your condo purchase but fail to request the FET certificate from your Thai bank at the time of conversion, the Land Department may refuse to register the transfer in a foreign name. This document proves that foreign funds entered Thailand in an amount at least equal to the purchase price. It cannot be issued retroactively for most transactions.
Ignoring the 49% foreign-ownership quota. Under the Condominium Act, no more than 49% of the total floor area of a building can be held under foreign title. If a building is at or near its quota, you cannot legally take a foreign-name freehold title regardless of the price you pay. Check the quota status with the building's juristic person before paying any reservation deposit.
Underestimating ongoing costs. The annual land and building tax is negligible for most owners. The real recurring cost is the CAM fee, which for a well-amenitised building in Phuket or Bangkok can reach THB 60,000 to THB 100,000 per year for a mid-sized unit. Budget for this before calculating net rental yield.
Not accounting for Thai rental income tax. Many foreign owners rent out their condo and assume Thai tax does not apply because they live abroad. It does. Rental income from a Thai property is Thai-sourced income and is taxable in Thailand for both residents and non-residents. Failure to file and pay can result in penalties and complications when you eventually sell and need a clean tax record.
Assuming a double-taxation treaty eliminates all Thai tax. A DTT typically lets you avoid being taxed twice on the same income - it does not eliminate Thai tax. It usually means you can credit what you paid in Thailand against what you owe at home, or vice versa. The mechanism depends on the specific treaty with your country. Verify the current treaty status and rules with a qualified adviser in your home country.
Not verifying the seller's title and mortgage status. A clean chanote (full-title freehold deed, the strongest land title document in Thailand) is the only title type you should accept for a condo unit. Confirm with the Land Department that the chanote is free of mortgages, liens, or encumbrances before transfer day.
FAQ
What taxes do I pay when buying a condo in Thailand as a foreigner?
As the buyer, you directly pay your share of the transfer fee (customarily 1%, being half of the 2% total, calculated on the Land Department appraised value) and the sinking fund on new registrations. SBT and withholding tax are the seller's liability by law, though the actual split is negotiable in your sale-and-purchase agreement. You will also pay legal fees separately.
Is the transfer fee 2% of what I paid for the condo?
No. The transfer fee is 2% of the Land Department appraised value, which is the government's own assessed price. This is typically lower than the market price, so the actual baht amount is often lower than 2% of your purchase price. SBT and stamp duty, however, use whichever is higher - the sale price or the appraised value.
What is Specific Business Tax (SBT) and do I have to pay it?
SBT is a 3.3% tax (3% SBT plus 0.3% municipality tax) on the sale of property. It is legally the seller's liability. It applies when the seller has owned the unit for fewer than 5 years or is a company. On new-build purchases from a developer, the developer is always a company, so SBT always applies. Some developers ask buyers to absorb SBT as part of the deal terms.
Do I need a FET certificate to buy a condo in Thailand?
Yes, if you are a foreign national purchasing a condo in a foreign name. The Land Department requires a Foreign Exchange Transaction (FET) certificate, issued by a Thai commercial bank when you convert foreign currency to Thai baht. The certificate proves that the purchase funds came from outside Thailand. Request it from your bank at the time of transfer; most banks issue it automatically if you ask. The amount on the FET must equal or exceed the purchase price.
How much is the annual property tax on a condo in Thailand?
For residential property, the Land and Building Tax is 0.02% of the Land Department appraised value per year for units valued up to THB 50 million. On a condo appraised at THB 4 million, this is THB 800 per year - very low. The rate increases at higher appraisal tiers, reaching 0.1% above THB 100 million.
Do I have to pay tax in Thailand on rental income from my condo?
Yes. Rental income from Thai property is Thai-sourced income and is subject to Thai Personal Income Tax for individual owners, whether you are resident in Thailand or not. Progressive rates apply from 5% to 35% after a standard 30% expense deduction. A tenant that is a company must withhold 5% from rent and remit it to the Revenue Department. You should also declare this income in your home country and check your country's double-taxation treaty with Thailand to understand how credits apply.
When I sell my condo later, what taxes do I pay?
As the seller, you pay withholding tax (calculated by the Land Department using a progressive formula based on the appraised value and your ownership years) and either SBT at 3.3% (if you have owned for fewer than 5 years) or stamp duty at 0.5% (if you have owned for 5 or more years as an individual). The transfer fee is split 50/50 by custom. These amounts are settled at the Land Department counter on transfer day.
Is there a capital gains tax in Thailand?
Thailand does not have a separate capital gains tax for individuals. Instead, the gain on property sales is captured through the withholding tax mechanism, which uses the Land Department's formula rather than your actual profit. The withholding tax is treated as a final tax for individual sellers who do not wish to include property income in their annual PIT return. If your actual gain produces a lower tax liability, you can choose to include it in your annual return and claim a refund of excess withholding.
What is the sinking fund and is it refundable?
The sinking fund is a one-time capital reserve contribution you pay at the time of first registration (or as specified in the building's rules for resale units). It is held by the building's juristic person (the management company) to fund major future repairs. It is not refundable when you sell. On resale, some buildings require the buyer to top up the sinking fund; check the building's rules before signing.
Can I reduce the tax cost by registering a lower sale price at the Land Department?
Some sellers suggest declaring a price lower than the actual sale price at the Land Department to reduce SBT and transfer fees. This is tax fraud under Thai law and carries criminal liability for both parties. The Land Department will in any case use the appraised value if it is higher than the declared price, which limits the benefit on SBT. Do not accept arrangements involving dual contracts or undeclared payments.
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