Editorial
Foreign Buyer Taxes on Thai Real Estate: 2026 Guide
By THAI.ESTATE Editorial Team15 min read
As a foreign buyer of Thai property, you pay several distinct taxes and fees - at purchase, during ownership, on rental income, and at sale. The total transaction cost at purchase typically runs between 3% and 7% of the sale price, depending on how the costs are split between buyer and seller. Rental income earned in Thailand is subject to Thai withholding tax. When you sell, a withholding tax is deducted at the land office before you receive proceeds. None of these obligations disappear because you live abroad.
This guide covers every stage of the property lifecycle for a foreign owner, with indicative figures as of 2026, a worked numeric example, and a plain-English explanation of each levy.
Quick answer
- Transfer fee: 2% of the registered value, normally split 50/50 between buyer and seller (each pays 1%), though this is negotiable
- Specific Business Tax (SBT): 3.3% of the higher of the appraised or sale price, paid by the seller if the property is sold within 5 years of acquisition - if SBT applies, stamp duty is waived
- Stamp duty: 0.5% of the registered value, paid by the seller, only when SBT does not apply
- Withholding tax at sale: deducted from the seller's proceeds at the land office; the rate depends on whether the seller is an individual or a company
- Annual land and building tax: for residential condominiums owned by a foreign individual and not rented out, the effective rate is low - generally 0.02% to 0.1% of the appraised value under the Land and Building Tax Act (B.E. 2562 / 2019)
- Rental income tax: non-resident foreign individuals earning rental income in Thailand face a flat 15% withholding tax on gross rent collected by a Thai-registered agent, or must file a personal income tax return if rent is paid directly
- Home-country tax obligations: you must also declare Thai-sourced income in your country of residence; double-taxation treaties may reduce the total burden - consult a tax adviser in your home country
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
When a sale is registered at the Land Department (the government office that records all property transfers), four possible charges arise. Two are always present; two are mutually exclusive.
Transfer fee (2% of registered value) - This is always due. It is calculated on the Land Department's appraised value or the declared sale price, whichever is higher. Market practice in Thailand is for buyer and seller to split this equally, so you each pay 1%. The split is not fixed by law and can be negotiated.
Specific Business Tax (SBT) - 3.3% - SBT applies when the seller has owned the property for fewer than 5 years. It is 3.3% of the higher of the appraised value or the sale price. SBT is legally the seller's liability. In practice, who actually bears the cost is negotiated. If SBT applies, stamp duty is not charged.
Stamp duty - 0.5% - Stamp duty applies only when the seller has owned the property for 5 or more years (so SBT does not apply). Like SBT, it is the seller's legal obligation but the split can be negotiated.
Withholding tax on the seller - At every land office transfer, the land office deducts withholding tax from the seller's proceeds. For individual sellers, this is calculated on a sliding progressive scale applied to the appraised value divided by the years of ownership. For corporate sellers, a flat 1% of the higher of appraised or sale value is withheld. As a foreign buyer, you are not directly responsible for this tax, but you should understand it because sellers factor it into their net price expectations.
Worked numeric example (indicative, as of 2026)
Assume you buy a condominium unit in Chiang Mai with a registered sale price of THB 5,000,000 (approximately USD 135,000 at indicative 2026 rates). The Land Department appraised value is THB 4,200,000. The seller has owned the unit for 3 years, so SBT applies.
The registered price (THB 5,000,000) is higher than the appraised value, so all calculations use THB 5,000,000.
Costs at the land office (indicative)
- Transfer fee: 2% x THB 5,000,000 = THB 100,000 - split by agreement: you pay THB 50,000, seller pays THB 50,000
- SBT: 3.3% x THB 5,000,000 = THB 165,000 - seller's liability (negotiate whether you share this)
- Stamp duty: not applicable (SBT applies)
- Withholding tax on seller: calculated separately at land office; not your direct cost
Your direct purchase cost stack (indicative)
- Your share of transfer fee: THB 50,000
- Legal / title review fee (if you use a property lawyer, which is strongly recommended): THB 15,000 to THB 40,000, indicative
- Sinking fund (a one-time payment into the building's reserve fund for major repairs, set by the juristic person - the legal management body of the condominium building): typically THB 500 to THB 700 per square metre; on a 50 sqm unit this is approximately THB 25,000 to THB 35,000
- Common area maintenance fee (monthly charge for building upkeep, paid to the juristic person): typically THB 40 to THB 80 per square metre per month; on 50 sqm this is THB 2,000 to THB 4,000 per month
Total one-time buyer costs (excluding purchase price), indicative range: THB 90,000 to THB 125,000, or roughly 1.8% to 2.5% of the purchase price. If you also negotiate to share SBT, add up to THB 82,500 more.
What is the annual land and building tax for a foreign condo owner?
Thailand's Land and Building Tax Act (B.E. 2562, in force since 2020) replaced the older house and land tax system. For residential property that you own and do not rent out, the annual tax is very low. The rate for residential use is 0.02% per year on the portion of appraised value up to THB 50,000,000, rising to 0.05% above that threshold. On a THB 5,000,000 appraised value, the annual tax would be approximately THB 1,000 per year - a negligible cost.
If the property is rented out or classified as commercial, the rate rises. Rates are applied to the Land Department's appraised value, not the market price. Verify current rates with the relevant local administration office (municipality or subdistrict office), as the Department of Local Administration may adjust rates.
The juristic person (building management) typically handles land and building tax filing for condominium buildings and passes the individual owner's share through the annual fee statement.
How is rental income taxed for a foreign owner in Thailand?
If you rent out your Thai condo or house, that rental income is Thai-sourced income and is subject to Thai tax, regardless of where you live.
If a Thai property management company collects rent on your behalf, they are required to withhold 5% withholding tax on rent paid by a corporate tenant, or to advise individual tenants to withhold. In practice, for residential rentals to individual tenants, withholding at source is uncommon. The more likely scenario is that you (or your agent) must file a Thai personal income tax return (PND 90 or PND 94 form) declaring the rental income.
Rental income is treated as assessable income under Thai personal income tax rules. Allowable deductions include a flat 30% deduction for expenses (no receipts required for residential property) plus personal allowances if you have a Thai tax identification number. The remaining net income is taxed on a progressive scale: 0% up to THB 150,000, then 5%, 10%, 15%, 20%, 25%, 30%, up to 35% on income above THB 5,000,000 per year. Verify current bracket thresholds with the Thai Revenue Department, as these can change.
Non-resident status and the 180-day rule: if you spend fewer than 180 days per calendar year in Thailand, you are a non-resident for Thai tax purposes. Non-residents are taxed only on Thai-sourced income. Thailand has double-taxation agreements (DTAs) with over 60 countries as of 2026. A DTA may allow you to offset Thai tax paid against your home-country tax liability. The specific mechanics depend entirely on your home country - consult a tax adviser there.
What withholding tax applies when I sell my Thai property?
When you sell, the land office deducts withholding tax from your proceeds before you receive the balance. For individual sellers (including foreign individuals), the calculation uses the Land Department's appraised value divided by the number of years held, applies the progressive personal income tax rate schedule to that annual figure, then multiplies back by the years held. This can produce an effective withholding rate roughly between 1% and 5% of the appraised value for most residential transactions, but the actual amount depends on the appraised value and holding period. The land office staff perform this calculation on the day of transfer.
Withholding tax at sale is a final tax for non-residents - you do not need to file an additional return in Thailand solely for this transaction. Keep the land office receipt as proof for your home-country tax adviser.
Do I need to transfer money into Thailand in a specific way?
Yes. Foreign buyers of Thai condominiums must bring purchase funds into Thailand from abroad as a foreign currency wire transfer. The receiving Thai bank issues a Foreign Exchange Transaction (FET) certificate (sometimes called a Thor.Tor.3 form). This document proves the money originated offshore and is essential for two purposes: it satisfies the Condominium Act requirement that foreign quota units be purchased with foreign-sourced funds, and it allows you to repatriate the same amount (in the original foreign currency) when you sell. Without a FET certificate for each payment tranche, you may not be able to repatriate sale proceeds. Keep every FET certificate permanently.
Comparison table
| Tax or fee | Who pays | Rate or amount | When due |
|---|---|---|---|
| Transfer fee | Buyer and seller (split by negotiation) | 2% of registered value | Day of land office transfer |
| Specific Business Tax (SBT) | Seller (negotiable) | 3.3% of higher of appraised or sale value | Day of transfer (if held under 5 years) |
| Stamp duty | Seller (negotiable) | 0.5% of registered value | Day of transfer (if held 5+ years; mutually exclusive with SBT) |
| Withholding tax at sale | Seller | Progressive (individual) or 1% (company) of appraised value | Deducted at land office on transfer day |
| Annual land and building tax | Owner | 0.02%-0.1% of appraised value (residential) | Annual, billed by local authority |
| Common area fee | Owner | THB 40-80 per sqm per month (indicative) | Monthly, to juristic person |
| Sinking fund | Buyer (one-time at purchase) | THB 500-700 per sqm (indicative) | One-time at transfer |
| Rental income tax | Owner (landlord) | Progressive PIT rate after 30% expense deduction | Annual tax return or withholding at source |
Risks and mistakes
Relying on the seller's declared price alone - The land office uses its own appraised value if it is higher than the declared sale price. All taxes are calculated on whichever figure is greater. Ask your lawyer to check the current appraised value before you agree a price.
Assuming the seller pays all transaction costs - In Thailand, the split of transfer fee, SBT and stamp duty is negotiated case by case. Some developers and private sellers pass all costs to the buyer. Read the sale and purchase agreement carefully before signing.
Not obtaining FET certificates for every payment - If you pay in multiple tranches (deposit, then balance), each tranche must arrive as a separate foreign currency wire and generate its own FET certificate. Missing FET documentation for any tranche can block repatriation of that portion of your proceeds at sale.
Ignoring home-country reporting obligations - Thai withholding tax at source does not discharge your legal duty to declare Thai income in your country of residence. Many buyers discover this only when audited. Engage a tax adviser in your home country before or immediately after your first rental period.
Treating common area fees as negligible - On a 50 sqm unit at THB 80 per sqm per month, annual fees are THB 48,000 (approximately USD 1,300 at indicative rates). Over a 10-year hold, this is a meaningful recurring cost. Also factor in the sinking fund and any special assessments voted by the juristic person for major building repairs.
Miscounting the 5-year SBT threshold - The 5-year period is counted from the date of land registration, not the date you signed the sale and purchase agreement or paid a deposit. If you sell one month before the 5-year mark, SBT applies at 3.3% rather than stamp duty at 0.5%.
Assuming a double-taxation treaty eliminates all Thai tax - DTAs reduce double taxation but rarely eliminate Thai withholding entirely. The treaty reduces or credits the tax; it does not exempt you from filing in your home country.
FAQ
What is the total tax cost when buying a condo in Thailand as a foreigner?
The direct costs you pay as a buyer are typically the buyer's share of the transfer fee (1% of registered value if split equally) plus legal fees and the sinking fund contribution. On a THB 5,000,000 unit, your one-time outlay is roughly THB 90,000 to THB 125,000 (1.8% to 2.5%), not counting any portion of SBT you agree to share with the seller. These figures are indicative as of 2026.
Do I pay tax on rental income from my Thai condo if I live abroad?
Yes. Rental income from Thai property is Thai-sourced income and is taxable in Thailand regardless of your residence. You must either file a Thai personal income tax return or ensure correct withholding at source. You may also owe tax in your home country - check your local rules and any applicable double-taxation treaty.
What is the FET certificate and why does it matter?
A Foreign Exchange Transaction (FET) certificate is a document issued by a Thai bank when you receive an inbound foreign currency wire transfer for a property purchase. It proves the funds came from abroad. Thai law requires foreign buyers of condominium units to use foreign-sourced funds. Without FET certificates matching the full purchase price, you cannot legally repatriate your sale proceeds when you exit.
How is withholding tax calculated when I sell my Thai property?
For an individual seller, the land office divides the property's appraised value by the number of years you held it, applies the progressive personal income tax rates to that annual figure, then multiplies by the years held. The result is deducted from your proceeds on the day of transfer. For most residential transactions, this works out to roughly 1% to 5% of the appraised value, but the exact figure must be confirmed at the land office.
Is the annual land and building tax in Thailand high?
For a residential condo you own and do not rent out, the annual rate is 0.02% of the appraised value on the first THB 50,000,000. On a THB 5,000,000 appraised value, that is approximately THB 1,000 per year. This is low compared to most Western countries. If you rent the property, a higher rate applies - verify the current rate with your local administration office.
Can I avoid paying Specific Business Tax if I hold the property long enough?
Yes. SBT applies only when the property is transferred within 5 years of acquisition (measured from the land registration date). If you hold for 5 or more years, SBT does not apply and stamp duty (0.5%) is charged instead. Stamp duty is substantially lower than SBT, so holding period affects the seller's net proceeds meaningfully.
Do double-taxation treaties protect me from paying tax in two countries?
DTAs reduce or eliminate double taxation but do not remove your obligation to declare income in both countries. The treaty typically allows you to credit tax paid in Thailand against your home-country liability. The specific rules depend entirely on which country you are resident in. A tax adviser in your home country is the only reliable source for this analysis.
What is the sinking fund and is it a one-time cost?
The sinking fund is a reserve held by the condominium's juristic person (the legal management body of the building) for major future repairs such as roof replacement, lift overhaul or facade work. You pay it once at the time of purchase. It is set by the juristic person, typically in the range of THB 500 to THB 700 per square metre (indicative as of 2026). It is separate from the monthly common area maintenance fee.
Who actually pays the transfer fee - buyer or seller?
Legally, the transfer fee is a shared cost. In practice, how it is split depends on negotiation. The most common arrangement in the secondary market is a 50/50 split (each party pays 1%). Some developers advertise 'free transfer' promotions where they cover the seller's share. Always confirm the split in writing in the sale and purchase agreement before signing.
Do I need a Thai tax identification number as a foreign property owner?
If you earn rental income in Thailand or need to file a Thai personal income tax return, you will need a Thai tax identification number (TIN), issued by the Thai Revenue Department. Your property lawyer or a local accountant can assist with the application. Having a TIN also makes it easier to claim personal allowances that reduce your taxable rental income.
Planning a property purchase in Thailand? Send us your requirements - the THAI.ESTATE team will reply with specific options and a safety checklist for your case.