Editorial
Tax When Buying an Apartment in Thailand: 2026 Guide
By THAI.ESTATE Editorial Team15 min read
Foreign buyers often ask one question first: how much tax do I actually pay when buying an apartment in Thailand? The short answer is that transaction taxes and fees typically add 4% to 6.3% on top of the purchase price, depending on how long the seller has owned the unit and which tax applies. You do not pay all of these costs alone - some are split with the seller by convention, and the split is negotiable.
This guide covers every charge you will see at the Land Department office, the recurring costs you pay during ownership, the tax position on rental income, and the withholding tax mechanics when you sell. All figures are marked as indicative and reflect the legal position as of 2026.
Quick answer
- Transfer fee: 2% of the appraised value (the Land Department's assessed figure, often below market price). Conventionally split 50/50 between buyer and seller, so you often pay 1%.
- Specific Business Tax (SBT): 3.3% of the higher of sale price or appraised value, paid if the seller has owned the unit for fewer than five years. If SBT applies, stamp duty does not.
- Stamp duty: 0.5% of the higher of sale price or appraised value, paid only when the seller has owned the unit for five years or more and SBT does not apply.
- Withholding tax (WHT): Calculated on a graduated personal income tax scale for individual sellers, or at 1% of the appraised value for corporate sellers. The seller pays this, but it affects your negotiation.
- Annual land and building tax: Low for residential property - 0.02% to 0.1% of the appraised value per year depending on use. Verified rate: confirm the current band with your lawyer.
- Home-country tax exposure: You very likely must declare the purchase and any income or gain abroad. A tax adviser in your own country is mandatory.
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
At the moment of transfer at the Land Department, four possible charges arise. Not all apply at the same time.
Transfer fee is always due. It is 2% of the appraised value. On a unit where the Land Department appraised value is THB 3,000,000, the total fee is THB 60,000. The market convention is for buyer and seller to split this equally, so your share is typically THB 30,000. This split is not required by law - it is negotiable.
Specific Business Tax (SBT) at 3.3% applies when the seller is a company, or when an individual seller has held the title for fewer than five years. SBT is calculated on the higher of the registered sale price or the appraised value. The seller is legally responsible for SBT, but in practice the cost is often shared or negotiated into the final price. On an appraised value of THB 3,000,000, SBT would be THB 99,000.
Stamp duty at 0.5% applies when an individual seller has held the title for five years or more and SBT does not apply. On the same THB 3,000,000 appraised value, stamp duty is THB 15,000. SBT and stamp duty are mutually exclusive.
Withholding tax (WHT) is always deducted from the seller's proceeds at the time of transfer. For an individual seller, the Land Department calculates WHT using a graduated schedule based on the appraised value and the number of years of ownership - the exact amount varies per transaction. For a corporate seller, WHT is 1% of the appraised value. Because WHT reduces what the seller receives, it directly affects how much room the seller has to negotiate on price. You are not legally liable for WHT, but you should understand it.
Worked numeric example (indicative figures, as of 2026)
Assume you buy a resale condo unit from an individual seller who has owned it for three years. The agreed sale price is THB 5,000,000. The Land Department appraised value is THB 4,200,000.
Because the seller has owned the unit for fewer than five years, SBT applies (not stamp duty).
| Charge | Rate | Calculated on | Total amount | Who pays (convention) |
|---|---|---|---|---|
| Transfer fee | 2% | THB 4,200,000 appraised | THB 84,000 | Split 50/50: you pay THB 42,000 |
| Specific Business Tax | 3.3% | THB 5,000,000 (higher of sale/appraised) | THB 165,000 | Seller pays; sometimes negotiated |
| Stamp duty | 0.5% | Not applicable (SBT applies) | THB 0 | - |
| Withholding tax | Graduated (individual) | THB 4,200,000 appraised + years held | Varies; verify with lawyer | Seller pays |
| Your direct cost at transfer | THB 42,000 | Transfer fee share |
If you also agree to share SBT equally, your cost rises by THB 82,500, bringing your total transaction charge to approximately THB 124,500, or about 2.5% of the purchase price. This is indicative. The actual split depends on what you negotiate.
Additionally, budget for legal fees (typically THB 30,000 to THB 80,000 for a straightforward condo purchase, per market estimates) and a due diligence search at the Land Department to confirm the title deed (chanote - meaning a full-title freehold certificate, the strongest form of Thai title) and any encumbrances.
What is the annual land and building tax on a condo in Thailand?
Thailand introduced the Land and Building Tax Act in 2019, replacing older annual taxes. As of 2026, residential property used as the owner's primary residence is taxed at low rates - starting at 0.02% of the appraised value per year for properties appraised below THB 10,000,000, rising in bands for higher values. For a condo appraised at THB 5,000,000 used as a primary home, the annual tax would be around THB 1,000 per year - a negligible figure. For property held as a secondary home or investment, the rate band is higher (up to 0.1% as of 2026 rates - verify the current rate with your lawyer, as bands are reviewed periodically). This is a very low annual tax by international standards.
The juristic person fee (the common-area management fund for the condominium building, sometimes called the CAM fee or management fee) is your real recurring cost. This is not a government tax - it is a private charge set by the condominium's juristic person (the legal body that manages the building). Rates vary widely by building, but market estimates for 2026 suggest THB 40 to THB 120 per square metre per month in most markets, with luxury Bangkok and Phuket buildings ranging higher. On a 50 sqm unit at THB 80/sqm, the monthly fee is THB 4,000 - or THB 48,000 per year.
The sinking fund is a one-time payment collected at purchase (and sometimes topped up later by resolution of the building owners). It covers major future repairs. A typical figure is THB 500 to THB 1,000 per square metre, paid once at the point of transfer. This is not a government tax either, but it appears on your completion statement.
How is rental income from my Thai condo taxed?
If you rent out your Thai condo, the rental income is Thai-sourced income. Under Thai law, non-residents who earn income from property in Thailand are subject to Thai personal income tax on that income. The standard approach for a non-resident individual is a flat withholding at the source if a Thai business acts as your agent, or a self-assessment filing if you receive rents directly.
For individuals, rental income is taxed under the Thai personal income tax schedule after an allowable deduction. Under Section 40(5) of the Revenue Code (income from property), a standard deduction of 30% of gross rental income is allowed for residential property before the progressive tax rate applies. The progressive rates start at 5% and rise to 35% for income above THB 5,000,000 per year. For most foreign owners receiving modest rental income from a single condo, the effective rate after the 30% deduction is low, but you should file a Thai tax return each year you receive rental income.
If a Thai property management company collects rent on your behalf, they may be required to withhold 5% of the gross rental amount and remit it to the Revenue Department. Keep records of all withholding certificates - these offset your annual tax liability.
Home-country declaration: In most countries, rental income from overseas property must also be declared locally. Many countries have double-taxation agreements (DTAs) with Thailand that allow you to credit Thai tax paid against your home-country liability. However, the rules differ by country, and some DTAs with Thailand have specific carve-outs. A tax adviser in your own country is not optional.
What withholding tax applies when I sell my Thai condo?
When you sell, you become the seller and the withholding tax calculation applies to you. As an individual seller, the Land Department calculates WHT using a formula based on:
- The appraised value of the property.
- The number of years you have owned it (rounded up).
- A deduction schedule and then a graduated personal income tax rate.
The Land Department staff perform this calculation at the counter. It is not based on your actual profit - it is based on the appraised value and holding period. You cannot deduct renovation costs or buying costs from this calculation under the standard WHT procedure.
If you hold through a Thai company (which some buyers do, though there are strict legal requirements and risks), the corporate WHT rate at transfer is 1% of the appraised value, and corporate income tax applies on actual profit.
SBT at 3.3% will apply to you as seller if you have owned the unit for fewer than five years. Holding for five years or more saves 2.8 percentage points (SBT 3.3% is replaced by stamp duty 0.5%).
Comparison table
| Cost item | Rate | Who legally pays | Negotiable split? | When due |
|---|---|---|---|---|
| Transfer fee | 2% of appraised value | Shared by law between parties | Yes - often 50/50 | At Land Dept transfer |
| Specific Business Tax | 3.3% of higher of sale/appraised | Seller | Often negotiated | At Land Dept transfer |
| Stamp duty | 0.5% of higher of sale/appraised | Seller | Sometimes negotiated | At Land Dept transfer (if SBT not due) |
| Withholding tax | Graduated (individual) or 1% (company) | Seller | No - legal obligation of seller | At Land Dept transfer |
| Annual land and building tax | 0.02%-0.1% of appraised value | Owner | Not applicable | Annually |
| Juristic person (CAM) fee | THB 40-120/sqm/month (market estimate) | Owner | Partly (negotiated at building level) | Monthly |
| Sinking fund | THB 500-1,000/sqm (market estimate) | Buyer at purchase | Rarely | At transfer |
| Legal/due diligence fees | THB 30,000-80,000 (market estimate) | Buyer | Yes | Before/at transfer |
Risks and mistakes
Accepting verbal cost splits without a written agreement. The convention of splitting the transfer fee 50/50 is a market norm, not a legal requirement. If your sale and purchase agreement (SPA) does not state clearly who pays what, the seller may demand a different split at the Land Department counter. Have every cost allocation written into the SPA.
Ignoring the difference between sale price and appraised value. Thai taxes are calculated on the higher of the two. If you register the transfer at a price lower than the appraised value, the appraised value is used. If you register at market price which is higher than the appraised value, that higher figure applies for SBT and stamp duty. Understand which is higher before you sign.
Assuming a new-build purchase has no SBT. A developer selling new units is typically a company. Corporate sellers always pay SBT (3.3%), regardless of holding period. Budget for this from the start.
Not checking the foreign ownership quota. A Thai condominium building can have no more than 49% of its total unit area held by foreign nationals, under the Condominium Act. If you attempt to buy into a building already at or near quota, the Land Department will reject the transfer. Confirm the remaining foreign quota before you exchange contracts.
Forgetting the FET requirement. FET stands for Foreign Exchange Transaction. To hold a condo freehold as a foreigner, you must prove that the purchase funds were transferred from abroad in foreign currency and converted to Thai Baht in Thailand. Your bank provides an FET form (sometimes called a TT3 or credit advice letter). Without it, the Land Department will not register the transfer in your name. Keep the FET documentation for every payment, including stage payments on new builds.
Not filing a Thai tax return when renting. Some foreign owners assume that because they are non-resident, they have no Thai tax obligations. Thai law taxes Thai-sourced income regardless of your residence status. Failure to file can result in penalties and interest.
Neglecting home-country tax disclosure. Owning and renting property abroad triggers reporting obligations in most countries - capital gains rules, foreign property reporting forms, and income declarations. The consequences of non-disclosure in your home country can be severe. Get a local adviser before you complete.
Underestimating total transaction costs. Buyers who budget only for the property price often arrive at the Land Department underprepared. A realistic budget should include the transfer fee share, potential SBT share, sinking fund, legal fees, and the FET bank processing charge. In total, budget for 3% to 6% above the purchase price as a safe indicative buffer (as of 2026).
FAQ
What is the total tax I pay when buying a condo in Thailand as a foreigner?
Your direct, unavoidable cost as buyer is your share of the 2% transfer fee, typically 1% if split with the seller. You may also agree to share Specific Business Tax (3.3%) or pay a sinking fund. Adding legal fees and other charges, budget for 3% to 6% above the purchase price as an indicative total cost buffer.
Do I pay stamp duty or Specific Business Tax in Thailand?
You do not pay both. If the seller has owned the unit for fewer than five years, SBT at 3.3% applies and stamp duty does not. If the seller has owned it for five years or more, stamp duty at 0.5% applies instead. SBT is the seller's legal obligation, though it is often negotiated into the deal.
What is the appraised value and why does it matter for my taxes?
The appraised value is the Land Department's official assessed figure for the property. It is often lower than the market price. Thai transfer taxes are calculated on the higher of the registered sale price or the appraised value. Knowing both figures before signing lets you calculate your exact tax exposure.
How is withholding tax calculated when I eventually sell my Thai condo?
The Land Department applies a formula using the appraised value, the number of years of ownership (rounded up), a standard deduction, and the graduated personal income tax schedule. The result is not based on your actual profit. The longer you hold, the lower the effective withholding tax rate per year of ownership in the formula. Your lawyer can run the calculation for your specific situation.
Do I need to pay tax in Thailand on rental income from my condo?
Yes. Rental income sourced in Thailand is taxable in Thailand for both residents and non-residents. A 30% standard deduction applies to residential rental income under the Revenue Code, and progressive personal income tax rates then apply to the net amount. You should file an annual Thai tax return and keep withholding certificates from any property management company.
What is the FET form and why is it essential for foreign buyers?
FET stands for Foreign Exchange Transaction. Your Thai bank issues this document when you transfer money from abroad and convert it to Thai Baht. The Land Department requires proof of an FET-compliant transfer to register a condo unit in a foreigner's name under the Condominium Act. Without it, the transfer cannot be completed in your name.
What is the foreign ownership quota for Thai condominiums?
Under the Condominium Act, foreign nationals can collectively hold no more than 49% of the total sellable floor area in any condominium building. The remaining 51% must be held by Thai nationals or Thai juristic persons. Before exchanging contracts, ask the developer or juristic person for the current foreign quota figures in writing.
Is the annual land and building tax in Thailand high for a foreign condo owner?
No. For a condo used as a primary residence, the annual rate starts at 0.02% of the appraised value. On a THB 5,000,000 appraised unit, that is approximately THB 1,000 per year. For secondary or investment property, the rate is higher but still low by international comparison - up to 0.1% in 2026 bands. Verify the current rate applicable to your ownership situation with a local lawyer.
What happens if I buy into a condo building that is already at the 49% foreign quota?
The Land Department will refuse to register the transfer of title to you. You will have paid a deposit and possibly signed a contract for a unit you cannot legally own as a foreigner. Always verify the remaining foreign quota in writing before paying any deposit.
Do I need to declare my Thai property purchase and rental income in my home country?
In most countries, yes. Overseas property ownership, rental income from abroad, and capital gains on foreign property all trigger reporting obligations in the owner's country of residence or citizenship. Many countries have double-taxation agreements with Thailand that prevent paying the same tax twice, but you must still file the correct returns. A tax adviser qualified in your home country is essential.
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.