Editorial
Tax on Buying a Condo in Thailand: 2026 Full Guide
By THAI.ESTATE Editorial Team16 min read
When you buy a condo in Thailand as a foreign national, you pay a set of government fees and taxes at the point of transfer. The total transaction cost at the Land Department typically runs between 3% and 6.3% of the registered price, depending on which transfer taxes apply. You also face ongoing annual taxes during ownership, and a withholding tax is deducted when you eventually sell. This guide walks through every stage: purchase, ownership, rental income, and exit.
The numbers below are indicative figures based on standard published Thai government rates as of 2026. Always verify current rates with a licensed Thai lawyer before you sign anything, because rates and exemptions do change.
Quick answer
- Transfer fee: 2% of the registered value, customarily split 50/50 between buyer and seller, so you typically pay 1%
- Specific Business Tax (SBT): 3.3% of the higher of registered value or appraised value, paid when the seller has owned the unit for fewer than 5 years (replaces stamp duty)
- Stamp duty: 0.5% of the registered value, applies only when SBT does not
- Withholding tax on seller: deducted at source from the seller, not from you, but often negotiated into the price
- Annual land and building tax: very low for residential property, 0.02% to 0.1% of the government appraised value
- Common-area fees (CAM fees): typically 30 to 80 THB per square metre per month - your main recurring cost
- Rental income tax for non-residents: flat 15% withholding on gross rental income paid to non-residents, or assessed under the personal income tax scale if you file a return
- Foreign buyers must declare income in their home country too - consult a tax adviser in your own country
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
Every condo purchase registered at the Thai Land Department (the government office where title is formally transferred) triggers a stack of fees. The fees are calculated on whichever is higher: the registered contract price or the Land Department's own appraised value. Sellers sometimes register a lower price to reduce their tax, but this creates risk for you as the buyer (lower recorded value means lower resale base for future capital gains calculations).
The four components at transfer are:
- Transfer fee - set at 2% of registered value. In practice, buyer and seller each pay 1%, though this is a market convention, not a legal requirement. You can and should negotiate who pays what before signing.
- Specific Business Tax (SBT) - 3.3% (3% SBT plus 0.1% local tax surcharge) of the appraised or registered value, whichever is higher. SBT applies when the seller has held the property for fewer than 5 years, or when the property is not the seller's primary registered residence. SBT is legally the seller's liability, but sellers frequently pass it to the buyer in negotiations.
- Stamp duty - 0.5% of registered value, used only when SBT does not apply (seller held for 5+ years and has resided there). SBT and stamp duty are mutually exclusive.
- Withholding tax on the seller - the Land Department withholds a portion of the proceeds from the seller. The rate is calculated on a sliding scale based on the registered price and the seller's holding period. This is the seller's tax, not yours, but it affects the net price the seller will accept, so it indirectly affects your negotiation.
Worked numeric example at an indicative purchase price
Assume you are buying a resale condo in Bangkok for a registered price of 5,000,000 THB (roughly 130,000 USD at indicative 2026 rates). The seller has owned the unit for 2 years, so SBT applies rather than stamp duty. The Land Department appraised value is also 5,000,000 THB in this example.
| Fee | Rate | Calculated on | Amount (THB) | Customary payer |
|---|---|---|---|---|
| Transfer fee (your share) | 1% | 5,000,000 | 50,000 | Buyer (50% of 2%) |
| Transfer fee (seller's share) | 1% | 5,000,000 | 50,000 | Seller |
| Specific Business Tax | 3.3% | 5,000,000 | 165,000 | Seller (often negotiated) |
| Stamp duty | N/A | - | 0 | N/A (SBT applies) |
| Seller withholding tax | Variable | Assessed value | Seller's liability | Seller |
| Your minimum certain cost | 50,000 | |||
| If you agree to pay SBT | 215,000 | Negotiated |
All figures are indicative as of 2026. If you agree to cover SBT as part of the deal, your total transaction tax cost rises to approximately 215,000 THB on a 5,000,000 THB purchase - around 4.3% of the price. If the seller covers SBT, your cost is 50,000 THB - 1% of price. The difference is significant, so clarify this in writing before signing any reservation or sale agreement.
Legal fees, title search fees, and your Thai lawyer's fee (typically 15,000 to 40,000 THB for a straightforward condo transaction, market estimates as of 2026) are additional costs.
What does the annual land and building tax cost?
Thailand introduced its current Land and Building Tax Act in 2020, replacing older systems. For residential property, the tax is assessed on the government appraised value, not the market value. Rates are low by international standards.
- Owner-occupied residential property up to 50,000,000 THB appraised value: effectively 0% to 0.02%
- Residential property not used as primary residence (including investment condos): 0.02% to 0.1% of appraised value
- The local municipality (municipality or subdistrict administrative organisation) sends the annual assessment
For a condo with a government appraised value of 5,000,000 THB used as a rental investment, the annual land and building tax is approximately 1,000 to 5,000 THB per year at the 0.02% to 0.1% range. These are indicative figures. Verify the current rate with your juristic person (the management body of the condominium building, which handles collective administration) or your lawyer.
What are common-area fees and why do they matter more than the annual tax?
For foreign condo owners, the real recurring financial obligation is not the land and building tax - it is the common-area management fee, known as CAM fee or maintenance fee. This covers the lifts, lobby, pool, security, and shared services in the building.
Typical CAM fee rates in Thai condominiums as of 2026 run from 30 THB to 80 THB per square metre per month, though luxury buildings in prime Bangkok or Phuket locations may charge 100 THB or more.
For a 40-square-metre unit at 60 THB per sq m: 2,400 THB per month, or 28,800 THB per year.
In addition, most condominium buildings require a sinking fund contribution at the time of purchase. A sinking fund is a one-off (or periodic) reserve payment into a collective account that the juristic person uses for major capital repairs such as roof replacement or lift overhaul. Typical sinking fund amounts range from 500 THB to 700 THB per square metre at purchase, paid once. Some buildings levy additional sinking fund top-ups later.
How is rental income taxed for non-resident foreign owners?
If you rent out your Thai condo and you are not a Thai tax resident (defined broadly as spending 180 days or more per calendar year in Thailand), Thai-source rental income is subject to 15% withholding tax deducted at source by the tenant or agent who pays you. This is the standard non-resident withholding rate as prescribed under Thai Revenue Code provisions applicable to foreign-sourced payments.
Alternatively, if you spend enough time in Thailand to be treated as a tax resident in a given year, you may need to file a Thai personal income tax return. The progressive scale runs from 0% on annual income below 150,000 THB up to 35% on income above 5,000,000 THB per year. You may deduct certain expenses (50% of rental income, capped at 100,000 THB per year, is a standard allowance under Thai Revenue Department rules as of 2026 - verify the current deduction cap).
Thailand has double-taxation agreements (DTAs) with over 60 countries as of 2026. A DTA may reduce or eliminate the Thai withholding tax, or give you a credit in your home country. However, you must still declare Thai rental income in your home country in most cases. The rules differ by country. Consult a tax adviser qualified in your own jurisdiction - this guide cannot and does not give home-country tax advice.
What taxes apply when I sell my Thai condo?
At exit, the same Land Department transfer fees apply again, but now the roles are reversed: you are the seller.
- Transfer fee: 2% of registered value, split by convention
- SBT at 3.3%: applies if you have held for fewer than 5 years
- Stamp duty at 0.5%: applies if you have held for 5+ years and conditions are met
- Withholding tax: the Land Department calculates a withholding tax on your proceeds based on a formula using the appraised value, number of holding years, and a standard deduction table. This amount is deducted directly from the transfer proceeds at the Land Department counter before you receive funds. The effective rate varies considerably by holding period and appraised value - ask your lawyer for a projection specific to your property.
Thailand does not currently levy a separate capital gains tax for individuals. The withholding tax at transfer effectively functions as the exit tax for individual sellers. However, tax law can change - verify the current rules before you sell.
Comparison table
| Tax or fee | Rate | Who pays | When | Notes |
|---|---|---|---|---|
| Transfer fee | 2% of registered value | Split buyer/seller (1% each by convention) | At Land Department transfer | Negotiable in contract |
| Specific Business Tax | 3.3% of appraised or registered value (higher) | Legally seller; often negotiated | At transfer (if seller held under 5 years) | Replaces stamp duty when it applies |
| Stamp duty | 0.5% of registered value | Seller | At transfer (if SBT does not apply) | Only when SBT is not triggered |
| Seller withholding tax | Sliding scale (varies by holding period) | Seller (deducted at counter) | At transfer | Affects net proceeds for seller |
| Annual land and building tax | 0.02% to 0.1% of appraised value | Owner | Annual | Very low for residential use |
| Common-area (CAM) fee | 30 to 80 THB per sq m per month (market range) | Owner | Monthly | Main recurring cost for condo owners |
| Sinking fund | 500 to 700 THB per sq m (one-off, indicative) | Buyer at purchase | At purchase or as levied | Reserve for major building repairs |
| Rental income withholding | 15% of gross rent (non-residents) | Withheld by payer | On each payment | DTA may reduce; file return if resident |
All rates are indicative as of 2026. Verify current rates with a licensed Thai lawyer or the Thai Revenue Department.
Risks and mistakes
1. Registering a price lower than the actual price paid
Some sellers propose registering a lower value at the Land Department to reduce their SBT and withholding tax. You should be aware that doing this understates your acquisition cost, reduces your legal protection if a dispute arises, and may constitute tax fraud under Thai law. Decline this arrangement.
2. Assuming the seller covers SBT automatically
SBT is the seller's legal liability, but nothing prevents a seller from negotiating for you to pay it. Many foreign buyers discover at the Land Department that they agreed to cover SBT without realising it. Read your sale and purchase agreement carefully before signing. Specify in writing which party pays each component.
3. Ignoring the sinking fund
Some buyers focus on the transfer taxes and overlook the sinking fund. In an older building with deferred maintenance, the juristic person may levy a special sinking fund assessment after you purchase. Ask for the current sinking fund balance and any outstanding maintenance liabilities before signing.
4. Failing to check the chanote title
A chanote (also written 'nor sor 4 jor') is Thailand's highest form of freehold title, derived from a full GPS-surveyed cadastral map. Buying a condo unit should always involve a chanote for the building plot. A different title type may restrict your rights. Your lawyer should verify this before transfer.
5. Overlooking home-country tax obligations
Thailand may withhold 15% on rental income, but your home country may also tax that income. Many countries tax worldwide income for their residents or citizens. A Thai DTA may give you a credit, but you must file correctly in both countries. Failing to declare Thai income at home can result in penalties. Engage a tax adviser in your own country before you receive your first rent payment.
6. Confusing the appraised value with the market price
The Land Department's appraised value (set by the Treasury Department) is often lower than the market price. SBT and transfer fees are calculated on the higher of the two. If the market price is higher, you pay taxes on the market price. Get clarity on the current appraised value for your specific unit before you negotiate the purchase price.
7. Not verifying the Foreign Exchange Transfer (FET) documentation
For foreign nationals to register a condo in their name under the Condominium Act, the purchase funds must be remitted into Thailand from abroad in foreign currency. The receiving Thai bank issues a Foreign Exchange Transaction form (FET, sometimes called a Thor.Tor.3 form). This document proves the foreign origin of funds and is required at Land Department transfer. If you pay from a Thai baht account held locally without the correct documentation trail, you may not be able to register the unit in your name. Arrange the remittance correctly from the start.
FAQ
What is the total tax cost when buying a condo in Thailand as a foreigner?
The minimum is approximately 1% of the registered price (your share of the transfer fee) if the seller covers all other taxes. If you negotiate to cover SBT as well, the cost rises to approximately 4.3% of the registered price. Legal fees and the sinking fund are additional. Budget 5% to 6% of the purchase price for all transaction costs to be safe.
Does Thailand charge capital gains tax on condo sales?
Thailand does not currently have a standalone capital gains tax for individual sellers. Instead, a withholding tax is deducted at the Land Department counter when you sell. The amount is calculated using a formula based on the appraised value, your holding period, and a statutory deduction schedule. The effective tax is lower the longer you hold the property.
Can I reduce my tax by registering a lower sale price at the Land Department?
Registering a price lower than the actual price paid is not advisable. It may reduce the seller's tax, but it understates your acquisition cost for future resale calculations, reduces your legal record of the transaction value, and may constitute a false declaration. A licensed Thai lawyer will advise you against this practice.
What is the FET form and why do I need it to buy a condo in Thailand?
The FET (Foreign Exchange Transaction) form, sometimes called a Thor.Tor.3, is issued by a Thai bank when you receive an international wire transfer in foreign currency. The Condominium Act requires foreign buyers to show proof that purchase funds came from abroad in foreign currency. Without this document, the Land Department will not register the condo in your name. Always remit condo purchase funds from your overseas bank account directly to Thailand in foreign currency.
How much is the annual property tax on a condo in Thailand?
For a residential condo not used as the owner's primary Thai residence (the typical case for a foreign investor), the land and building tax rate is 0.02% to 0.1% of the government appraised value. On a unit with an appraised value of 5,000,000 THB, the annual tax is roughly 1,000 to 5,000 THB. This is very low compared to most countries. The main recurring cost is the monthly common-area management fee.
Is rental income from my Thai condo taxed in Thailand?
Yes. If you are not a Thai tax resident, rental income paid to you from a Thai source is subject to 15% withholding tax, deducted by the tenant or agent before payment reaches you. If you are a Thai tax resident (180 days or more in Thailand in a calendar year), you file a personal income tax return on a progressive scale. Thailand has double-taxation agreements with over 60 countries, which may reduce the withholding rate or give you a credit at home.
Who pays the Specific Business Tax when a condo is sold in Thailand?
SBT is legally the seller's obligation. However, it is a common market practice in Thailand for sellers to negotiate and transfer this cost to the buyer. The assignment of costs between buyer and seller must be agreed in writing in the sale and purchase agreement. Read the contract carefully and specify each tax item explicitly.
What is a sinking fund in a Thai condo purchase?
A sinking fund is a one-off capital reserve payment into the condominium building's collective maintenance account, managed by the juristic person (the building's legal management body). It covers future major repairs such as lift replacement, roof work, or facade renovation. It is typically paid at purchase and ranges from 500 to 700 THB per square metre in most buildings, though amounts vary. Ask for the current fund balance before you buy, so you can assess the building's financial health.
Does Thailand have a double-taxation agreement with my country?
Thailand has DTAs with more than 60 countries as of 2026, including most EU member states, the UK, the USA, Australia, China, Japan, and several Gulf states. A DTA may reduce the Thai withholding tax on your rental or sale proceeds, or entitle you to a tax credit at home. The exact effect depends on your country's specific DTA with Thailand and your personal circumstances. A tax adviser in your home country is the correct person to advise you on this.
Do I need a Thai lawyer to buy a condo in Thailand?
There is no legal requirement to hire a lawyer, but doing so is strongly recommended. A lawyer will verify the chanote title, check the juristic person's accounts and any outstanding debts on the unit, review the sale and purchase agreement, confirm the FET documentation requirements, and represent you at the Land Department. Legal fees for a standard condo transaction are typically 15,000 to 40,000 THB as a market estimate in 2026.
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.