Tax on Buying a Condo in Thailand: 2026 Full Guide

When you buy a condo in Thailand as a foreign national, you pay a predictable set of government taxes and fees at the point of transfer. The total transaction tax cost typically falls between 2% and 6.3% of the registered sale price, depending on how long the seller has owned the property and whether they are a company or an individual. You do not pay annual property tax at a significant rate, but you do pay recurring common-area fees that can be material. Rental income and eventual resale each carry their own tax obligations.

This guide covers every stage of the ownership lifecycle: purchase taxes, annual holding costs, rental income tax and exit taxes. All figures are indicative and based on Thai law as understood in 2026. Verify current rates with a licensed Thai lawyer before you sign any contract.

Quick answer

• Transfer fee: 2% of the registered value, split by negotiation (often 50/50 between buyer and seller, but not fixed by law)
• Specific Business Tax (SBT): 3.3% of the appraised or sale price (whichever is higher), paid by the seller when the property has been owned less than 5 years - or by a company seller at any time
• Stamp duty: 0.5% of the registered value, paid instead of SBT when SBT does not apply
• Withholding tax: paid by the seller, calculated on a sliding scale tied to the appraised value and years of ownership; as a buyer you are rarely responsible, but the cost can affect the net price negotiated
• Annual Land and Building Tax: very low for residential property - indicatively 0.02% to 0.1% of the official appraised value for private residences as of 2026; verify the current band with the local municipality
• Common-area (maintenance) fees: the real recurring cost, typically THB 40-80 per square metre per month in most urban and resort developments
• Rental income tax: non-resident foreign owners who earn rental income in Thailand are subject to Thai withholding tax, often at a flat 15% on gross rental receipts remitted abroad, though the exact mechanism depends on whether a management company or tenant withholds
• Capital gains on sale: Thailand has no separate capital gains tax; gains are captured through the withholding tax mechanism at the point of sale

Options and scenarios

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

At the Land Department office (the Thai government body that registers property ownership), five line items are collected on or around the transfer date.

1. Transfer fee The transfer fee is set by the Land Department at 2% of the registered transaction value. This value is the higher of the declared sale price and the Land Department's own official appraised value. In practice, both buyer and seller negotiate who pays which share. A common split is 50/50, meaning each party pays 1%. Some sellers ask the buyer to carry the full 2%. Set your budget assuming you pay 1-2%.

2. Specific Business Tax (SBT) SBT is charged at 3.3% (3% tax plus a 10% local government surcharge applied to that 3%, giving 3.3% in total) when:

• The seller is a company, regardless of holding period, or
• The seller is an individual who has owned the property for fewer than 5 years

SBT is legally the seller's liability, but the seller may factor it into the asking price or negotiate for the buyer to absorb part of it. In developer pre-sale or resale transactions, it is common to see this cost shared informally.

3. Stamp duty When SBT does not apply - meaning an individual seller who has owned the property for 5 or more years - stamp duty of 0.5% is charged instead. SBT and stamp duty are mutually exclusive; you pay one or the other, not both.

4. Withholding tax (seller's tax) Withholding tax is deducted at source at the Land Department and is formally the seller's obligation. For a company seller, it is a flat 1% of the appraised value or sale price, whichever is higher. For an individual seller, it is calculated using a Thai personal income tax formula: the appraised value is divided by the number of years of ownership, an allowable deduction is applied, and the result is taxed on a progressive schedule, then multiplied back up by the number of years held. The rate in practice ranges from a few percent to over 10% of the appraised value, depending on holding period and the official appraised value. As a buyer, you pay this indirectly through price negotiation, so understanding the seller's withholding tax burden helps you assess whether the asking price is realistic.

5. Mortgage registration fee (if applicable) If you finance the purchase with a Thai bank loan (available to some foreign buyers under limited conditions), a mortgage registration fee of 1% of the loan amount applies. Most foreign buyers purchasing condos pay in cash or transfer funds from abroad.

How does the Foreign Exchange Transfer (FET) rule affect my condo purchase?

To buy a condo as a foreign national under the Condominium Act - the Thai law that permits foreigners to own freehold units up to 49% of the total floor area of a building - you must import the purchase funds from abroad in foreign currency and convert them in Thailand. Your Thai bank issues a Foreign Exchange Transaction form (commonly called an FET form or Thor Tor 3). Keep this document permanently. It is your evidence of foreign-origin funds and is required when you later repatriate sale proceeds.

What are common-area fees and sinking fund?

Common-area fees (also called maintenance fees or CAM fees) are not a government tax, but they are a mandatory recurring cost collected by the juristic person - the legal body that manages the condominium building on behalf of all co-owners. Typical rates in 2026 range from THB 40 to THB 80 per square metre per month in mainstream Bangkok, Phuket, Chiang Mai and Pattaya projects. A 50 sqm unit in a mid-range Bangkok condo might therefore cost THB 2,000-4,000 per month in maintenance fees (indicative figures).

A sinking fund is a one-time payment made at purchase (and sometimes topped up later by owner vote) to fund major future repairs - elevator overhauls, roof waterproofing, facade work. Sinking fund rates at purchase are typically THB 500-700 per square metre as an indicative market figure in 2026, though premium developments charge more. Always check the sinking fund balance before buying a resale unit; a depleted fund is a risk.

What tax do I pay on rental income from a Thai condo?

If you rent out your condo and are non-resident in Thailand for tax purposes (you spend fewer than 180 days per year in Thailand), rental income earned in Thailand is still Thai-source income and is subject to Thai tax. The practical mechanism for non-resident landlords depends on how the property is managed:

• If a licensed Thai management company manages the rental and remits income to you abroad, they are required to withhold tax at source. The applicable withholding tax rate on rental income remitted to foreign individuals is generally 15% of the gross amount remitted, as of 2026 - verify the current rate with a Thai accountant, as it can depend on applicable double-taxation treaty provisions.
• If you manage the rental yourself and collect income in Thailand, you are required to file a Thai personal income tax return and report rental income. Allowable deductions exist (a flat deduction of 30% of gross rental income is the standard option for residential property, as of 2026 - verify with a Thai accountant).
• Thailand has double-taxation agreements with numerous countries. These treaties may reduce or eliminate the Thai withholding rate for residents of specific countries. Check whether your home country has a treaty with Thailand and what the treaty rate is.

You almost certainly also have an obligation to declare the income in your home country. This guide cannot advise on any country's domestic tax rules. Engage a tax adviser in your home jurisdiction.

What tax do I pay when I sell my Thai condo?

Thailand does not have a standalone capital gains tax for individuals. Instead, the gain is captured through the withholding tax at the Land Department, described above under the purchase taxes (from the seller's perspective). When you eventually sell:

• You pay withholding tax calculated on the official appraised value using the individual progressive formula, based on how many years you have held the property.
• You pay either SBT (3.3%) if you have held the property fewer than 5 years, or stamp duty (0.5%) if 5 or more years.
• You pay the transfer fee (2%), typically negotiated with your buyer.

A longer holding period reduces your withholding tax per year of ownership calculation and eliminates SBT. Holding for 5 or more years therefore produces a meaningfully lower tax bill at exit.

You may also repatriate sale proceeds abroad by presenting your FET form to your Thai bank as evidence that the original funds were foreign-sourced. This is why retaining the FET form is critical.

Comparison table

Tax or fee	Who pays	Rate (indicative, 2026)	When due	Notes
Transfer fee	Buyer and/or seller (negotiated)	2% of registered value	At Land Department transfer	Often split 50/50
Specific Business Tax (SBT)	Seller	3.3% of appraised or sale price	At Land Department transfer	Applies if seller is a company OR individual owner under 5 years
Stamp duty	Seller	0.5% of registered value	At Land Department transfer	Replaces SBT when individual holds 5 or more years
Withholding tax (seller)	Seller	Variable: 1% flat for companies; progressive formula for individuals	At Land Department transfer	Buyer pays indirectly through price negotiation
Mortgage registration fee	Buyer	1% of loan amount	At Land Department transfer	Only if financing through a Thai bank
Common-area maintenance fee	Owner	THB 40-80 per sqm per month (indicative)	Monthly or quarterly	Collected by juristic person
Sinking fund (initial)	Buyer at purchase	THB 500-700 per sqm (indicative)	At purchase completion	One-time; check existing fund balance on resale
Annual Land and Building Tax	Owner	Approx. 0.02%-0.1% of official appraised value for residences	Annually (April deadline)	Assessed by local municipality; very low for residential
Rental income withholding tax	Owner (deducted by payer)	Up to 15% of gross remittance (verify treaty rate)	Per remittance or annual filing	Check applicable double-taxation treaty

Worked example: indicative purchase tax stack

Assume you buy a resale condo unit in Bangkok for THB 5,000,000 (indicative price, 2026). The seller is an individual who has owned the unit for 3 years. The Land Department's official appraised value is THB 4,500,000.

All numbers below are indicative. They use the registered sale price of THB 5,000,000 where the law references the higher of sale price and appraised value.

Transfer fee: 2% x THB 5,000,000 = THB 100,000. If split 50/50, you pay THB 50,000.

Specific Business Tax (SBT): 3.3% x THB 5,000,000 = THB 165,000. This is the seller's cost, but it often affects the negotiated price. If the seller passes it fully to you (uncommon but possible), your total outlay rises accordingly.

Stamp duty: Not applicable here because SBT applies (seller owned fewer than 5 years).

Sinking fund top-up (if required): Check with the juristic person. If the building requires a THB 500 per sqm top-up and the unit is 50 sqm: THB 25,000.

Your direct cash out at transfer (conservative estimate - you pay your share of transfer fee plus sinking fund):

• Transfer fee (your 50%): THB 50,000
• Sinking fund: THB 25,000
• Subtotal from your pocket at the Land Office: THB 75,000 (approximately 1.5% of purchase price)

If you negotiated to absorb all transfer fee and SBT (aggressive seller's market scenario):

• Transfer fee (full): THB 100,000
• SBT: THB 165,000
• Sinking fund: THB 25,000
• Subtotal: THB 290,000 (approximately 5.8% of purchase price)

In practice, your total transaction cost contribution typically lands between these two figures. Budget 3-4% of the purchase price for transaction taxes and fees as a working estimate, then confirm the actual split in your Sale and Purchase Agreement. All figures are indicative and should be verified with a Thai lawyer before contracting.

Risks and mistakes

Agreeing verbally on cost splits without a written contract clause In Thailand, who pays the transfer fee, SBT and withholding tax is a matter of private negotiation. If the Sale and Purchase Agreement does not specify the split clearly, disputes arise at the Land Office. Insist on a written clause.

Not retaining the FET form Foreign buyers who lose their Foreign Exchange Transaction form (FET/Thor Tor 3) face serious difficulty repatriating sale proceeds later. Store a scan in a permanent cloud location immediately after receiving it from your bank.

Assuming the registered price equals the real transaction price Some sellers historically declared a price lower than the actual sale price to reduce tax. Thai authorities have tightened enforcement. Undervalued declarations expose both parties to penalties. Use the real transaction price in all documents.

Ignoring the sinking fund balance on a resale unit A building with a depleted sinking fund will either need an emergency levy from all owners or will defer critical repairs. Always request the current sinking fund balance and recent meeting minutes from the juristic person before signing.

Overlooking home-country tax obligations Rental income, and potentially capital gains on sale, may be taxable in your country of residence or tax domicile even if Thai tax has already been withheld. Double-taxation treaty provisions may give you a credit, but you must file correctly. Failing to declare is a legal risk, not just a financial one. A tax adviser in your home country is mandatory.

Assuming annual property tax is negligible forever The annual Land and Building Tax for residential property is very low in 2026, but Thai tax policy can change. The tax was significantly reformed in 2020 and rates could be adjusted again. Do not treat the current low rate as permanent.

Not verifying the condo's foreign ownership quota The Condominium Act limits foreign freehold ownership to 49% of total floor area per building. If the foreign quota in your chosen building is full, you cannot take freehold title as a foreign national. Check the quota before you pay a reservation deposit.

FAQ

What is the total tax cost of buying a condo in Thailand for a foreign buyer?

As a buyer, your direct tax contribution at the Land Department is typically 1% to 2% of the registered price (your share of the transfer fee), plus the sinking fund. If you negotiate to absorb additional seller taxes, the total cost stack can reach 3% to 6% of the purchase price. Budget 3-4% as a working estimate and confirm the split in your contract.

Do I pay capital gains tax in Thailand when I sell my condo?

Thailand does not levy a separate capital gains tax on individuals. When you sell, you pay withholding tax (calculated on a progressive formula tied to the appraised value and holding years), either SBT (3.3%) or stamp duty (0.5%), and the transfer fee (2%). The combined seller-side tax cost at exit is typically lower after 5 or more years of ownership.

Can I recover Thai taxes paid when I file taxes in my home country?

Possibly. Thailand has double-taxation treaties with many countries. These treaties may allow you to credit Thai withholding tax against your home-country tax bill. You must check the specific treaty between Thailand and your country and file correctly at home. This guide cannot advise on any specific country's rules.

Who actually pays the transfer fee - buyer or seller?

The law does not fix who pays the transfer fee. It is entirely a matter of negotiation between buyer and seller. A 50/50 split is common in the Thai market, but a strong seller may ask the buyer to cover the full 2%. Agree and document the split in writing before proceeding.

What is the Specific Business Tax and when does it apply?

SBT is a 3.3% tax (3% plus a 10% municipal surcharge on that amount) that applies to property resales when the seller is a registered company (always) or an individual who has owned the property for fewer than 5 years. It is the seller's legal obligation but can be negotiated into the transaction terms. When SBT does not apply, stamp duty of 0.5% applies instead.

Do I pay annual property tax in Thailand?

Yes, but the amount for residential condos is very low. Under the Land and Building Tax Act, residential property owned by a private individual is taxed at indicative rates of around 0.02% to 0.1% of the official appraised value per year as of 2026. For a condo appraised at THB 5,000,000, this could be THB 1,000 to THB 5,000 per year. Verify the current rate and your specific assessment with the local municipal office (the 'Tessaban' or 'Or Bor Tor').

What tax do I pay on rental income from my Thai condo if I live abroad?

Rental income sourced in Thailand is taxable in Thailand even for non-residents. If a Thai management company remits your rental income abroad, they withhold tax at source - currently up to 15% of the gross amount, though an applicable double-taxation treaty may reduce this rate. Check the treaty between Thailand and your country of residence and engage a Thai accountant to ensure correct filing.

What happens if the foreign ownership quota in the building is full?

If the 49% foreign freehold quota in a building is already full, you cannot purchase that unit as a freehold foreign owner. Alternatives include purchasing in a Thai company's name (which carries its own legal risks and must be structured carefully to comply with Thai company law) or using a long-term leasehold structure. Both alternatives require specialist legal advice. This guide does not recommend any specific ownership structure; consult a licensed Thai lawyer.

Why do I need to keep my FET form after buying a condo in Thailand?

The Foreign Exchange Transaction form (FET or Thor Tor 3) is the Bank of Thailand's record that you imported foreign currency to fund the purchase. When you sell the condo later and want to send the proceeds back to your home country, your Thai bank requires this document as evidence that the money originally came from abroad. Without it, repatriation can be blocked or delayed.

Is there a stamp duty and a transfer fee, or just one payment?

They are separate charges. The transfer fee (2%) is always collected. Stamp duty (0.5%) is collected only when SBT does not apply. SBT (3.3%) and stamp duty are mutually exclusive - you pay one or the other based on the seller's holding period and entity type. The transfer fee is paid on top of whichever of SBT or stamp duty applies.

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