Foreign Buyer Taxes on Thailand Real Estate: 2026 Guide

As a foreign buyer of Thai property, you pay taxes and fees at three distinct points: when you buy, while you own, and when you sell. The total transaction cost at purchase typically runs between 4% and 7% of the registered price, depending on how long the seller has held the property. Rental income is taxable in Thailand even if you live abroad. Understanding each charge before you sign protects your budget and prevents surprises at the land office.

This guide covers every layer of the tax stack in plain terms, with a worked numeric example at an indicative purchase price. All figures are marked as indicative and reflect conditions as of 2026.

Quick answer

• Transfer fee: 2% of the registered (assessed) value, paid at the land office on completion
• Specific Business Tax (SBT): 3.3% of the higher of the registered or appraised value, applies when the seller has owned the property for fewer than 5 years
• Stamp duty: 0.5% of the registered value, applies only when SBT does not apply
• Withholding tax: deducted from the seller's proceeds; the rate depends on whether the seller is a company or an individual
• Annual land and building tax: generally 0.02% to 0.3% of the appraised value for residential property, payable by the owner each year
• Common-area fees (CAM fees): not a tax, but the real recurring cost for condo owners - typically 40 to 80 THB per square metre per month in most projects

Options and scenarios

What taxes do I pay when buying a condo in Thailand?

At the land office on transfer day, four charges are settled simultaneously. Two of them - the transfer fee and withholding tax - involve both buyer and seller. In practice, the split of costs is negotiated in the sale agreement, so read yours carefully before you sign.

Transfer fee

The transfer fee is 2% of the registered value. The registered value is the lower of the sale price or the government appraised value set by the Treasury Department. In many popular areas the appraised value sits below the actual market price, which can reduce this fee. By custom, buyers and sellers often split this 50/50, but this is a negotiation point, not a legal requirement.

Specific Business Tax (SBT) vs. stamp duty

SBT applies when the seller has held the property for fewer than 5 years. The rate is 3.3% (3% SBT plus 0.1% municipal tax) of whichever is higher: the sale price or the government appraised value. When the seller has held for 5 years or more, SBT does not apply and stamp duty of 0.5% is charged instead. SBT and stamp duty are legally the seller's obligation, but they are frequently passed to the buyer in developer presale agreements. Verify which party bears this cost in your contract.

Withholding tax on the seller

Withholding tax (WHT) is deducted from the seller's proceeds at the land office. For a company seller, the rate is a flat 1% of the registered value or the appraised value, whichever is higher. For an individual seller, WHT is calculated on a progressive scale based on the appraised value, the number of years owned, and personal income tax brackets. This is the seller's tax, but in some negotiations sellers ask buyers to absorb part of it. Confirm the contract terms.

Worked numeric example - indicative purchase price of 5,000,000 THB

Assume: new condo unit, developer (company) seller, property held less than 5 years, government appraised value equals sale price. All figures are indicative as of 2026.

• Transfer fee: 2% x 5,000,000 = 100,000 THB (often split: buyer pays 50,000 THB)
• SBT: 3.3% x 5,000,000 = 165,000 THB (often contractually passed to buyer in new builds)
• Withholding tax: 1% x 5,000,000 = 50,000 THB (seller's cost, sometimes shared)
• Stamp duty: not applicable here (SBT applies)

If the buyer absorbs the transfer fee (50%) and the full SBT, the buyer's out-of-pocket at the land office is approximately 215,000 THB on a 5,000,000 THB unit, or about 4.3% of the purchase price. This excludes lawyer fees, due-diligence costs and any agent commission. Always obtain a written cost schedule from the developer or seller before signing.

What taxes do I pay during ownership?

Annual land and building tax

Thailand introduced an annual land and building tax under the Land and Building Tax Act (effective from 2020). For residential property used as a primary residence, the rate is 0.02% to 0.1% of the appraised value per year. For residential property that is not the owner's primary home (which covers most foreign-owned condos), the rate rises to 0.02% to 0.3%. Rates are applied in bands on the appraised value. For most mid-range condos with appraised values below 10,000,000 THB, the annual tax bill is modest - often a few thousand THB per year at indicative figures. Verify the current applicable rate with the local municipality (tessaban) where your property is located.

Common-area management fees

For condominium units, the juristic person (the legally constituted body that manages the building under the Condominium Act) collects monthly common-area management fees (CAM fees). These are not taxes, but they are unavoidable recurring costs. Typical rates in most Thai cities and resort areas run from 40 to 80 THB per sq m per month as of 2026, per market estimates. A 50 sq m unit at 60 THB/sq m costs 3,000 THB per month or 36,000 THB per year. Premium buildings charge more.

Sinking fund

A sinking fund is a one-time capital reserve payment made at purchase to cover future major repairs to common areas. It is not annual. Typical rates are 500 to 700 THB per sq m, paid once at transfer. On a 50 sq m unit this is roughly 25,000 to 35,000 THB (indicative). Some developers charge more. Confirm the sinking fund amount before signing.

What taxes do I pay on rental income from a Thai property?

If you rent out your Thai property, the rental income is sourced in Thailand and is therefore subject to Thai income tax, regardless of where you live. For a non-resident individual receiving rental income from Thailand:

• Thai-sourced income is taxable under the Revenue Code.
• If rental income is remitted abroad in the same tax year it is earned, it may need to be declared in Thailand. Thai tax rules on the timing of remittance have been updated; verify current Revenue Department guidance for the applicable tax year.
• For non-residents who appoint a Thai property manager, the manager may be required to withhold tax at source.
• Progressive personal income tax rates in Thailand run from 0% up to 35% on net income after allowable deductions. Rental income deductions in Thailand allow either a flat 30% standard deduction on gross rental income or actual proven expenses.
• You should also check your home country's rules. Most countries require their residents to declare foreign income. Double-taxation treaties (DTTs) exist between Thailand and many countries; a DTT may allow you to offset Thai tax paid against your home-country liability. The THAI.ESTATE team cannot give country-specific tax advice - consult a qualified tax adviser in your home country.

What taxes do I pay when I sell my Thai property?

On sale, the same land office charges apply as on purchase, but now you are the seller:

• Transfer fee (2%): negotiated in the sale agreement - agree who pays.
• SBT (3.3%) or stamp duty (0.5%): depends on how long you have held the property.
• Withholding tax: this is your liability as the individual seller. The land office calculates it at the time of transfer based on the appraised value, years of ownership, and a formula under the Revenue Code. The withheld amount is deducted from your proceeds on the day of transfer. You receive the net amount. In some cases you may receive a refund if the withheld amount exceeds your actual liability - consult a Thai tax adviser.

Capital gains are not separately taxed in Thailand for individual sellers. The withholding tax mechanism effectively functions as the final income tax settlement on the gain for most individual sellers who are not conducting a business of property trading.

Comparison table

Tax or fee	Rate	Paid by	When paid
Transfer fee	2% of registered value	Buyer and seller (negotiated)	At land office on transfer
Specific Business Tax (SBT)	3.3% of higher of sale price or appraised value	Legally seller; often passed to buyer	At land office on transfer
Stamp duty	0.5% of registered value (only if SBT does not apply)	Legally seller; negotiated	At land office on transfer
Seller withholding tax (company)	1% of higher of sale price or appraised value	Seller	Deducted at land office
Seller withholding tax (individual)	Progressive; depends on years held and appraised value	Seller	Deducted at land office
Annual land and building tax	0.02% to 0.3% of appraised value (residential, non-primary)	Owner	Annually, billed by local authority
Common-area management fee (condo)	40 to 80 THB/sq m/month (indicative)	Owner	Monthly
Sinking fund (condo, one-time)	500 to 700 THB/sq m (indicative)	Buyer	Once, at transfer
Rental income tax (non-resident individual)	Progressive up to 35% after 30% standard deduction	Owner	Annual Thai tax filing

Risks and mistakes

Assuming the registered price equals the sale price. Land offices in Thailand use the government appraised value as a minimum assessment basis. If your actual sale price is lower than the appraised value, fees may still be calculated on the appraised value. Understand both figures before signing.

Not reading who bears SBT in the contract. Developer sale agreements frequently state that the buyer pays all transfer-related fees, including SBT. On a 5,000,000 THB unit this alone is 165,000 THB. Negotiate this before you sign, not after.

Ignoring rental income tax obligations. Many foreign owners rent out their Thai condos without filing a Thai tax return. This creates legal exposure. The Revenue Department has mechanisms to identify undeclared rental income, including reports from juristic persons. Engage a Thai accountant if you rent.

Missing the home-country declaration. Rental income and gains on foreign property are usually taxable in your home country too. Not declaring them is a compliance risk in your country of tax residence, separate from Thai law. Always consult a tax adviser in your own country.

Confusing 'freehold condo title' with 'land ownership'. Foreigners can own a condominium unit outright under the Condominium Act (a form of freehold title in a building) but cannot own land. Tax treatment of the condo unit applies only to the unit. Different structures (leasehold land, company holding land) have different tax profiles. Confirm your ownership structure with a Thai lawyer before purchase.

Forgetting the sinking fund and CAM fees in your budget. These are not optional. The juristic person will enforce non-payment. Include them in your total cost of ownership calculation from day one.

Using unverified fee estimates from agents. Agents may underquote land office costs to close a deal. Ask the land office or your lawyer for a formal cost breakdown before signing the transfer documents.

FAQ

Do foreigners pay capital gains tax in Thailand?

Thailand does not have a separate capital gains tax for individual sellers. When you sell, the land office deducts withholding tax from your proceeds. This withholding tax is calculated on the appraised value and years of ownership and acts as the effective income tax on the transaction for individual sellers. You may need to check for capital gains tax obligations in your home country separately.

Can I deduct mortgage interest or property expenses from Thai rental income?

For rental income declared in Thailand, you can take either a standard flat deduction of 30% of gross rental income or deduct actual, documented expenses. Most non-residents use the standard 30% deduction for simplicity. Interest on a Thai mortgage would count as an actual expense if you choose the actual-expense method and can document it.

Who pays the transfer fee when buying a Thai condo - buyer or seller?

The 2% transfer fee is legally the joint responsibility of buyer and seller under Thai law. In practice, the split is negotiated in the sale contract. A 50/50 split is common in resale transactions. Developer contracts often place the full burden on the buyer. Always check your contract.

Is the annual land and building tax high for a foreign-owned condo?

For most mid-range condos, the annual land and building tax is modest. On an appraised value of 3,000,000 THB, the tax at 0.02% would be 600 THB per year (indicative). At 0.3% on the same value it would be 9,000 THB. The rate depends on the appraised value band and whether it is your primary residence. Foreign-owned condos rented out or left vacant attract higher rates. Verify the current rate with the local authority.

Do I need to file a Thai tax return if I rent out my condo and live abroad?

Yes. Thai-sourced rental income is taxable in Thailand regardless of where you live. If your annual income in Thailand exceeds the applicable personal income tax threshold (verify the current threshold with the Thai Revenue Department), you are required to file a Thai personal income tax return. Consider appointing a Thai accountant to manage this.

What is SBT and how does it affect my purchase cost?

Specific Business Tax (SBT) is a 3.3% tax charged when the seller has held the property for fewer than 5 years. It is legally the seller's cost but is often passed to the buyer in developer contracts. On a 5,000,000 THB unit, SBT equals 165,000 THB. If stamp duty applies instead (seller held for 5+ years), the charge is only 0.5%, or 25,000 THB. The difference is significant - check which applies to your transaction.

Does Thailand have a double-taxation treaty with my country?

Thailand has signed double-taxation treaties (DTTs) with more than 60 countries, including most of Europe, the United Kingdom, the United States, Japan, China, Australia and many others. A DTT may allow you to offset tax paid in Thailand against your home-country tax liability on the same income. The specific rules depend on your country and the treaty terms. A tax adviser in your home country is the right person to assess this for you.

What is a juristic person in a Thai condo building?

Under the Condominium Act, every registered condominium building in Thailand must have a juristic person - a legally constituted management body made up of the unit owners. The juristic person collects common-area fees, manages the building's accounts, and enforces the building's regulations. As a unit owner, you are automatically a member and you pay the fees set by the juristic person's committee.

Are there any taxes specific to foreign buyers that Thai buyers do not pay?

No. The taxes and fees at the land office are the same for Thai and foreign buyers. The Condominium Act requires that at least 51% of a building's unit area is owned by Thai nationals, but the tax structure on individual unit purchases does not differ by nationality. What differs is that foreign buyers may have additional obligations in their home country that Thai buyers do not face.

What happens if I hold my Thai property in a Thai company?

Some buyers hold property through a Thai-registered company (typically a limited company). This structure has different tax implications: the company pays corporate income tax, separate accounting and annual filing obligations apply, and the land office fees on transfer to or from the company may differ. This structure is subject to legal scrutiny. Consult a qualified Thai lawyer before using a company structure to hold property.

---

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.

Contact the team ->