Editorial
Tax When Buying an Apartment in Thailand: 2026 Guide
By THAI.ESTATE Editorial Team15 min read
When you buy an apartment (condominium unit) in Thailand as a foreigner, you pay transfer fees and either a Specific Business Tax or a stamp duty at the Land Department on the day of transfer. The seller pays withholding tax. In practice, these costs are often split by negotiation. On top of that, you face annual land and building tax during ownership, and if you rent the unit out, Thai income tax on rental receipts. When you sell, withholding tax is deducted at source again.
This guide walks you through every tax and fee stage - purchase, ownership, rental income, and exit - with a worked numeric example so you can see the full cost stack before you commit.
Quick answer
- Transfer fee: 2% of the registered value, paid at the Land Department on transfer day
- Specific Business Tax (SBT): 3.3% of the registered value (including a 0.3% local surcharge), 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 (seller owned 5 or more years)
- Withholding tax on sale: deducted from the seller's proceeds; calculated on a sliding progressive scale based on assessed value and years of ownership
- Annual land and building tax: 0.02%-0.1% of official appraised value for residential use, as of 2026 under the Land and Building Tax Act B.E. 2562
- Rental income tax: non-resident foreign owners pay Thai withholding tax at 15% on gross rental income remitted or received in Thailand, or file a Thai personal income tax return; verify the current applicable rate with a Thai tax adviser
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
The key taxes and fees are collected by the Land Department on the day the title deed (a chanote - Thailand's highest-grade freehold title document) is transferred into your name. There are four line items:
1. Transfer fee
The transfer fee is 2% of the value registered at the Land Department. This registered value is the higher of the sale price or the Land Department's official appraised value. In practice the two figures are often similar for condominiums in major cities.
By Thai custom, the buyer and seller split this 50/50 (1% each), but this is negotiable and must be stated in your sale and purchase agreement. Never assume the split - confirm it in writing.
2. Specific Business Tax (SBT) versus stamp duty
Only one of these two applies to any given transaction:
- SBT at 3.3% applies when the seller has owned the unit for fewer than 5 years, or the unit is not their primary registered address for at least 1 year. This is the more common situation for developer-sold new builds and short-hold resales.
- Stamp duty at 0.5% applies when the seller has owned the unit for 5 years or more and meets the primary-residence registration condition. You will not pay both at the same time.
SBT is legally the seller's liability, but buyers in Thailand regularly agree to absorb some or all of it during negotiation, especially in new-build presales where the developer offers 'free transfer' promotions.
3. Withholding tax
Withholding tax (WHT) is also the seller's liability, deducted at source at the Land Department before the seller receives any proceeds. For a private individual seller, it is calculated using the Land Department's appraised value, divided by the number of years held, then run through Thailand's personal income tax progressive rate table. The resulting annual figure is multiplied back by years held to arrive at the total WHT due. This calculation is done by Land Department staff on the day.
For a corporate seller, WHT is a flat 1% of the registered sale value.
As a buyer, you do not pay WHT - but understanding it matters because sellers sometimes try to recover it through the negotiated price.
Worked numeric example: buying a 5 million baht condo in Bangkok
Assume:
- Sale price and registered value: 5,000,000 THB (indicative figure, as of 2026)
- Seller is an individual who has owned the unit for 2 years (SBT applies, not stamp duty)
- Buyer and seller agree to split the transfer fee; buyer pays SBT in full as part of a 'free transfer' negotiation
| Cost item | Rate | Amount (THB) | Paid by |
|---|---|---|---|
| Transfer fee (buyer's share) | 1% | 50,000 | Buyer |
| Specific Business Tax | 3.3% | 165,000 | Buyer (by agreement) |
| Stamp duty | Not applicable | 0 | - |
| Withholding tax | Progressive (individual) | Est. 70,000-120,000 | Seller |
| Total buyer transaction tax cost | 215,000 |
All figures are indicative and for illustration only. WHT is shown as a range because it depends on the seller's years of ownership and the Land Department's appraised value, not the contract price. Always ask your lawyer to request the exact WHT calculation before signing.
As a percentage of the purchase price, the buyer in this example pays roughly 4.3% in transaction taxes and fees, not counting legal fees, sinking fund (a one-time reserve fund paid to the condominium juristic person - the legally registered body that manages the building), and common-area fee prepayments.
What do I pay every year once I own the apartment?
Land and building tax
Thailand introduced an annual Land and Building Tax under the Land and Building Tax Act B.E. 2562 (2019), which replaced older house and land taxes. For residential property used as a primary residence, the rate is low - as low as 0.02% per year on the official appraised value for properties appraised below 10 million THB, rising to 0.1% for higher-value residential properties. The tax is assessed by the local administrative authority (municipality or district office) each year.
For a condo appraised at 5,000,000 THB used as a primary residence: annual tax is approximately 1,000 THB at the 0.02% rate. This is a minor cost.
However, if you are a non-resident foreigner who does not register the unit as a primary residence, the property may be classified as vacant or for investment use, and higher rates can apply - up to 0.3% for non-residential use. Verify the classification with your juristic person or a Thai tax adviser, because misclassification can increase your annual bill significantly.
Common-area fees (management fees)
These are not a tax, but they are the real recurring financial obligation for condo owners. The juristic person (the building management entity created under the Condominium Act) charges a monthly or annual common-area maintenance fee based on your unit's floor area. In Bangkok and Phuket, market-rate fees range from roughly 40 THB to over 100 THB per square metre per month, as of 2026 per market estimates.
For a 50 sqm unit at 60 THB/sqm/month, this is 3,000 THB per month or 36,000 THB per year. This typically exceeds your annual land and building tax by a large margin.
At purchase, you also pay a sinking fund - a one-time contribution to the building's capital reserve, typically 500-700 THB per sqm for new builds, used for major future repairs. This is not a tax but is a mandatory upfront cost.
How is rental income taxed in Thailand?
If you rent out your Thai condo, Thailand levies income tax on that rental income regardless of whether you are resident in Thailand or not.
For non-resident foreign owners:
Rental income sourced in Thailand is subject to Thai personal income tax. If you do not file a Thai tax return, the tenant or the paying agent is required to withhold 15% of the gross rental payment and remit it to the Revenue Department. This is the standard withholding rate for non-residents on passive income; verify the current rate with a Thai tax adviser, as rates can be adjusted.
If you do file a Thai personal income tax return (Form PND 90 or PND 91, filed by 31 March of the following year), you can claim allowable deductions against gross rental income - Thai law allows either a 30% standard deduction on rental income from buildings or actual documented expenses, whichever you choose. The net income is then taxed at progressive personal income tax rates, starting at 5% for the lowest bracket (above the exempt threshold) up to 35% for income exceeding 5,000,000 THB per year, as of 2026 under the Revenue Code.
Home-country tax exposure:
Most international buyers must also declare Thai rental income in their country of tax residence. Thailand has double-taxation agreements (DTAs) with over 60 countries. A DTA can prevent you from being taxed twice on the same income, but the mechanics differ by country and by treaty. You must consult a qualified tax adviser in your own country - this guide cannot give country-specific tax advice and does not do so.
What taxes apply when I sell my Thai apartment?
On exit, the same Land Department fee structure applies in reverse - but now you are the seller, so withholding tax and either SBT or stamp duty are your liabilities.
- If you have owned the unit for fewer than 5 years: you pay SBT at 3.3% plus withholding tax (progressive individual scale).
- If you have owned for 5 or more years: you pay stamp duty at 0.5% plus withholding tax.
- The transfer fee (2%) is shared with the buyer by negotiation.
Capital gains as such are not separately taxed in Thailand for individuals - gains are embedded in the withholding tax calculation, which uses appraised value rather than your original purchase price. This means the WHT system does not perfectly track your actual profit, but it also means no separate capital gains return is required in Thailand. Your home country may levy capital gains tax on the gain; again, verify with your own adviser.
Comparison table
The table below shows the tax and fee exposure across three common buyer scenarios as of 2026. All figures are indicative.
| Cost item | New-build condo, developer seller | Resale under 5 years ownership | Resale over 5 years ownership |
|---|---|---|---|
| Transfer fee | 2% (often developer-paid or split) | 2% (negotiated split) | 2% (negotiated split) |
| SBT | 3.3% (seller/developer; often absorbed by developer) | 3.3% (seller; negotiable) | Not applicable |
| Stamp duty | Not applicable | Not applicable | 0.5% (seller) |
| Withholding tax | 1% of registered value (corporate seller) | Progressive individual scale | Progressive individual scale |
| Annual land/building tax | 0.02%-0.1% of appraised value | 0.02%-0.1% of appraised value | 0.02%-0.1% of appraised value |
| Common-area fee | 40-100+ THB/sqm/month | 40-100+ THB/sqm/month | 40-100+ THB/sqm/month |
| Sinking fund (one-time) | 500-700 THB/sqm typical | Rarely charged again at resale | Rarely charged again at resale |
| Rental income tax | 15% WHT or progressive PIT if filing | 15% WHT or progressive PIT if filing | 15% WHT or progressive PIT if filing |
Risks and mistakes
1. Assuming the developer's 'free transfer' deal eliminates all costs
When a developer advertises 'free transfer fees', this typically covers only the 1% transfer fee on the developer's side. You still pay your 1% share and, depending on the agreement, possibly SBT. Read the sale and purchase agreement line by line before signing.
2. Not verifying the registered value before transfer day
The Land Department uses its own appraised value, not necessarily your contract price. If the appraised value is higher than your purchase price, your transfer fee calculation will be higher than you expected. Ask your lawyer to check the current Land Department appraised value for the specific unit before you sign.
3. Sending money from abroad incorrectly
Foreign buyers of Thai condominiums are required to bring purchase funds from outside Thailand in a foreign currency. The receiving Thai bank issues a Foreign Exchange Transaction (FET) form - also called a Thor Tor 3 form - documenting the inward transfer. You must present this FET form at the Land Department to prove the funds originated abroad, as required by the Condominium Act for foreign ownership registration. If you transfer Thai baht locally or fail to get the FET form, you may not be able to register the title in your name.
4. Misclassifying the property's use for land and building tax
If your unit sits vacant for extended periods and is not registered as a primary address, the municipality may classify it at a higher tax rate. In extreme cases, properties left vacant for multiple consecutive years face surcharges under the Land and Building Tax Act. Check with the juristic person annually.
5. Ignoring home-country tax obligations
Thailand's tax treaties reduce double taxation but do not eliminate your filing obligations abroad. Many buyers believe that paying Thai withholding tax on rental income closes the matter globally. It does not. Failure to declare Thai-sourced income in your home country can result in penalties that far exceed the original tax liability.
6. Relying on verbal agreements for cost-sharing
The allocation of transfer fee, SBT, and withholding tax between buyer and seller is not set by law for all parties - it is negotiated. Verbal agreements are not enforceable at the Land Department. Every cost-sharing arrangement must appear in the sale and purchase agreement.
7. Using the wrong legal structure without tax advice
Some buyers consider purchasing through a Thai company to hold property. Company structures have their own tax implications including corporate income tax, VAT registration thresholds, and annual audit requirements. This guide does not cover company structures because the tax exposure is materially different and requires specialist advice specific to your situation.
FAQ
How much tax do I pay as a foreigner buying a condo in Thailand?
As a buyer, your direct tax and fee liability is typically the transfer fee (1% of registered value if split equally with the seller) plus any SBT or stamp duty you agree to absorb. On a 5,000,000 THB purchase with a standard cost-sharing arrangement where you absorb SBT, you pay roughly 4-4.5% of the purchase price in transaction costs at the Land Department.
Is there a capital gains tax in Thailand for foreign property buyers?
Thailand does not levy a separate capital gains tax on individuals for property sales. The gain is indirectly captured through the withholding tax calculation, which uses the Land Department's appraised value and years of ownership. Your home country may separately tax the capital gain - verify with your own tax adviser.
What is the FET form and why does a foreigner need it?
The FET form (Foreign Exchange Transaction form, also called Thor Tor 3) is issued by a Thai commercial bank when you receive a foreign currency remittance into a Thai bank account. It documents that the funds came from abroad. The Condominium Act requires you to present an FET form when registering a condo unit in a foreign name at the Land Department. Without it, the transfer cannot be completed under the foreign-ownership quota.
Do I pay Thai tax on rental income from my Thai apartment if I live abroad?
Yes. Thailand taxes income sourced in Thailand regardless of where the recipient lives. As a non-resident, expect either a 15% withholding tax on gross rental receipts or a filing obligation under Thai personal income tax rules. You may also have a separate filing obligation in your country of residence. The two obligations run in parallel; a double-taxation agreement may provide relief - check with advisers in both countries.
Who pays the withholding tax when selling a Thai property?
Withholding tax on a property sale is the seller's liability, deducted at the Land Department on transfer day before the seller receives proceeds. If you are buying, you do not pay it directly. If you are selling, the Land Department calculates it for you based on the appraised value and your years of ownership, and it is deducted automatically from the transaction.
What is the annual property tax rate for a condo in Thailand in 2026?
Under the Land and Building Tax Act B.E. 2562, residential properties used as a primary residence are taxed at 0.02% of the official appraised value for the first 10,000,000 THB of value, rising progressively for higher values, up to 0.1%. For properties not registered as a primary residence or left vacant, higher rates can apply. Verify your unit's tax classification with the local district office or your juristic person.
What is a sinking fund and do I have to pay it?
A sinking fund is a one-time capital reserve contribution paid to the condominium juristic person at purchase. It is held to fund major future repairs - roof replacement, elevator maintenance, and similar capital works. For new builds, it is typically 500-700 THB per square metre of your unit, paid on transfer day. It is not a government tax but it is mandatory under the Condominium Act and cannot be avoided.
Can SBT and stamp duty both apply to the same transaction?
No. They are mutually exclusive. SBT at 3.3% applies when the seller held the property for fewer than 5 years. Stamp duty at 0.5% applies when the seller held for 5 years or more (and meets the primary-residence condition). The Land Department determines which applies based on the title deed history.
Should I use a Thai company to buy property to reduce taxes?
Using a company to hold Thai residential property involves corporate income tax, annual audit costs, potential VAT obligations, and significant legal compliance requirements. For most foreign buyers of a single condo unit, a company structure adds cost and complexity rather than reducing it. This is a decision that requires a qualified Thai tax lawyer reviewing your specific facts.
What documents do I need ready for the Land Department on transfer day?
You need: your original passport (and a copy), your FET form from the remitting bank, the signed sale and purchase agreement, the title deed (chanote), and any power of attorney documents if you cannot attend in person. Your lawyer should prepare a full checklist specific to your transaction.
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.