Editorial
Taxes for Foreign Property Owners in Thailand: 2026 Guide
By THAI.ESTATE Editorial Team15 min read
Foreign buyers in Thailand pay several distinct taxes and fees, and the total cost depends on which stage of ownership you are in: purchase, holding, renting, or selling. The headline figure most buyers quote - a 2% transfer fee - covers only one item at the Land Department desk. The real transaction cost stack is closer to 4-7% of the registered price when all charges are included, and rental income carries its own Thai tax obligations on top.
This guide takes you through every charge, lifecycle stage by lifecycle stage, with a worked example on a concrete condo price so you can model your own deal.
Quick answer
- Transfer fee: 2% of the registered price, split by agreement (often 50/50 seller-buyer)
- Specific Business Tax (SBT): 3.3% of registered price, paid by the seller - but sometimes negotiated onto the buyer; applies when the seller has held the property for fewer than 5 years
- Stamp duty: 0.5% of registered price - replaces SBT when SBT does not apply; the two are mutually exclusive
- Withholding tax on sale: paid by the seller, calculated on either the registered price or the assessed value (whichever is higher); rate varies with years of ownership and whether the seller is an individual or company
- Annual Land and Building Tax: 0.02% to 0.3% of the official appraised value for residential property (rates as of 2026 under the Land and Building Tax Act B.E. 2562)
- Rental income tax for non-residents: a flat 15% withholding tax on gross rental income paid to a foreign individual with no Thai tax residence, or progressive personal income tax rates if you file; verify the current rate and your treaty status
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
When title (chanote - the highest-grade Thai land title, equivalent to a freehold certificate) transfers at the Land Department, four charges can arise. Each one is calculated on the registered price or the official appraised value, whichever is higher.
1. Transfer fee (2%) This is the base fee for registering ownership. It is always 2% of the transaction value used by the Land Department. Custom in Thailand is to split this 50/50 between buyer and seller, so you typically pay 1%. Always agree the split in writing before signing.
2. Specific Business Tax - SBT (3.3% including municipal surcharge) SBT applies when the seller has owned the property for fewer than 5 years (the exact threshold can be 5 years from the date of the title transfer, so confirm with a Thai lawyer). If SBT applies, stamp duty does not. SBT is legally the seller's liability, but in practice some developers or sellers negotiate it onto the buyer in a new-project sale.
3. Stamp duty (0.5%) Stamp duty applies only when SBT does not - typically when the seller has held the property for 5 years or more. It is 0.5% of the registered price, again legally payable by the seller.
4. Withholding tax (WHT) The Land Department collects WHT from the seller at the point of transfer. For an individual seller, it is calculated using the official appraised value, the number of years of ownership, and a progressive rate table. For a company seller it is a flat 1% of the higher of the registered price or appraised value. As a buyer you do not pay WHT directly, but it affects your negotiation: sellers who face a high WHT bill sometimes attempt to reduce the declared price, which creates legal risk for you.
Worked numeric example - indicative figures as of 2026
Assume you buy a freehold condo unit in Chiang Mai for a registered price of THB 5,000,000 (approximately USD 135,000 at indicative 2026 rates). The seller has owned the unit for 2 years, so SBT applies.
| Charge | Rate | Who pays | Indicative amount (THB) |
|---|---|---|---|
| Transfer fee (buyer half) | 1% | Buyer | 50,000 |
| Transfer fee (seller half) | 1% | Seller | 50,000 |
| Specific Business Tax | 3.3% | Seller (check your contract) | 165,000 |
| Stamp duty | 0% | Not applicable - SBT applies | 0 |
| Withholding tax | Variable (see below) | Seller | Estimated 50,000-120,000 |
| Buyer total at desk | 50,000 | ||
| Seller total at desk | 265,000-335,000 |
All figures are indicative and exclude legal fees (typically THB 20,000-80,000 for a standard condo), translation costs, and any agent commission. Always ask your Thai lawyer for a deal-specific cost sheet before signing.
If the seller held the same unit for 6 years, SBT would not apply. Stamp duty of 0.5% (THB 25,000) would replace the 3.3% SBT, saving the seller THB 140,000. That saving sometimes feeds back into the negotiated price.
What is the annual Land and Building Tax for a foreign condo owner?
Thailand introduced a recurring Land and Building Tax under the Land and Building Tax Act B.E. 2562 (2019). Before that, the country had no meaningful annual property tax for residential owners.
For residential use, the tax rate is applied to the official appraised value (set by the Treasury Department, not the market price) in brackets. As of 2026:
- Appraised value up to THB 50 million: 0.02% per year
- Appraised value THB 50-75 million: 0.03% per year
- Appraised value THB 75-100 million: 0.05% per year
- Appraised value over THB 100 million: 0.1% per year
For a condo with an official appraised value of THB 4,000,000, the annual tax would be THB 800 per year - a negligible sum. Verify current rates with your juristic person (the building's management company, legally responsible for common-area administration under Thai condominium law) because the Treasury appraisal cycle and any temporary reductions can change the effective bill.
If the unit is vacant and classified as unused land or an empty building for 3 consecutive years, a higher punitive rate applies (up to 0.3% for residential, stepping up over time). Keep your unit actively registered as a personal residence to avoid this classification.
What are the real recurring costs - annual fees versus tax?
For most foreign condo owners, the Land and Building Tax is trivial. The real recurring cost is the common-area maintenance fee charged by the juristic person. This is not a government tax; it is a contractual charge for building upkeep, security, swimming pool and shared services.
Rates vary widely. In Phuket and Bangkok premium buildings, common fees of THB 50-120 per square metre per month are typical (per market estimates, 2026). On a 50 sq m unit, that is THB 2,500-6,000 per month, or THB 30,000-72,000 per year - far more than your Land and Building Tax bill.
Separate from monthly fees, most buildings collect a sinking fund - a one-time payment at purchase, held in reserve for major building repairs. This is paid once (typically THB 400-800 per sq m at purchase) and is not a recurring tax, but factor it into your purchase cost.
How is Thai rental income taxed for foreign owners?
If you rent out your Thai condo and you are not a Thai tax resident (generally defined as spending 180 days or more in Thailand per calendar year), your rental income is still subject to Thai tax when it arises from a Thai source.
For non-residents receiving rental income from Thailand, the standard mechanism is a 15% withholding tax on gross rental income, deducted by the payer. If you manage the property through an agent who collects rent and remits it to you abroad, that agent should withhold and remit the tax. In practice, many informal arrangements do not withhold correctly, creating compliance risk for you.
If you are a Thai tax resident for a given year, you file a Thai personal income tax return and apply progressive rates (0% to 35% on net income after allowable deductions). Rental income has a standard 30% expense deduction allowed before you calculate net income, which reduces the effective rate.
Thailand has double-taxation agreements (DTAs) with over 60 countries as of 2026. A DTA may allow you to credit Thai tax paid against your home-country liability, but the exact mechanics differ by treaty. You must declare this income in your home country as well, and consult a tax adviser based there. This guide cannot give country-specific advice on that obligation.
What withholding tax do I pay when I sell my Thai property?
When you sell (exit), you are in the seller's position. The Land Department calculates your WHT at the desk on the transfer date. The calculation uses:
- The official appraised value (not necessarily what you agreed with the buyer)
- Your number of years of ownership (each full year reduces the taxable base)
- A progressive rate table set by the Revenue Department
For an individual seller, the Revenue Department formula first calculates a 'deemed income per year' by dividing the appraised value by the years held (capped at a maximum factor). It then applies marginal personal income tax rates to that per-year figure and multiplies back by the years held. The result can range from roughly 1-5% of the appraised value in practice (indicative only - your actual figure depends on the appraised value and years held). There is no separate Thai capital gains tax category; the gain is treated as income.
For a company seller (for example, a Thai limited company holding the land), WHT is 1% of the higher of the registered price or appraised value.
You cannot avoid or reduce WHT by under-declaring the price. The Land Department uses its own appraised value as a floor, so under-declaring only creates legal risk without reducing the tax bill in most cases.
Comparison table
| Tax or fee | Rate | Who pays | When | Basis |
|---|---|---|---|---|
| Transfer fee | 2% (often split 50/50) | Buyer and seller | At Land Department | Registered price or appraised value |
| Specific Business Tax | 3.3% | Seller (check contract) | At Land Department; when held under 5 years | Registered or appraised value (higher) |
| Stamp duty | 0.5% | Seller | At Land Department; when SBT does not apply | Registered price |
| Seller withholding tax | Variable (approx 1-5% in practice, indicative) | Seller | At Land Department | Appraised value x years formula |
| Land and Building Tax | 0.02%-0.1% residential | Owner | Annual, billed by local authority | Official appraised value |
| Common-area maintenance fee | THB 50-120/sq m/month (market estimate) | Owner | Monthly | Unit size |
| Sinking fund | THB 400-800/sq m (one-time, market estimate) | Buyer | At purchase | Unit size |
| Rental income WHT (non-resident) | 15% of gross (verify current rate) | Owner (withheld by payer) | When rent is received | Gross rental income |
Risks and mistakes
Under-declaring the purchase price. Some sellers propose using a lower figure on the Land Department form to reduce WHT and SBT. This is a criminal offence under Thai law. The Land Department has its own appraised values; if your declared price is below that floor, they use the floor anyway. You gain nothing and take on legal exposure.
Assuming the seller pays everything. SBT, stamp duty and seller WHT are legally the seller's charges, but any of them can be shifted to the buyer by contract. Read every clause of the sale and purchase agreement before signing. Ask your Thai lawyer to mark up every fee and who bears it.
Not verifying the chanote. Before any payment, your lawyer must check the title at the Land Department. A chanote is reliable, but older title types (Nor Sor 3 Gor, Sor Por Kor) carry encumbrance and boundary risks. Never skip this step.
Ignoring home-country tax obligations. Thai WHT and Thai rental tax do not replace your home-country filing obligations. Most countries tax their residents or citizens on worldwide income. Failure to declare Thai rental income or a Thai property sale at home can result in penalties that dwarf the Thai tax itself.
Overlooking the juristic person accounts. Before you buy a resale condo, request the building's financial statements. Buildings with large unpaid common-fee arrears or an underfunded sinking fund face sudden special assessments. You inherit the building's financial health, not just the unit.
Assuming a DTA eliminates your Thai tax. Double-taxation treaties reduce double taxation; they rarely eliminate it. Thailand has the right to tax Thai-source income at the Thai level. The treaty determines whether you can offset that against home-country tax. You still need to file and pay at least one jurisdiction's tax in most cases.
Letting rental income arrive without withholding. If you rent informally through a local agent who does not withhold, you are still legally liable for the Thai tax. The obligation does not disappear because the payer forgot. Regularize the arrangement with a properly structured management agreement.
FAQ
What is the total cost of buying a condo in Thailand as a foreigner?
For a buyer, plan for the 1% share of the transfer fee plus any portion of SBT or stamp duty negotiated into your contract, plus legal fees and any agent commission. On a THB 5,000,000 condo in a deal where the buyer pays only the transfer fee share, the buyer's out-of-pocket transaction cost is roughly THB 50,000 plus legal fees of THB 20,000-80,000. Total buyer costs in that scenario are around 1.5-2.5% of the purchase price. If you agree to absorb SBT as well, add another 3.3%, bringing your share close to 4.8-5.8%.
Do I pay capital gains tax when I sell property in Thailand?
Thailand does not have a separate capital gains tax. Gains from selling property are treated as personal income and taxed through the withholding tax mechanism at the Land Department desk. The effective rate depends on the official appraised value and how many years you held the property. Longer ownership generally reduces the WHT bill.
Is there an annual property tax in Thailand?
Yes. The Land and Building Tax Act (B.E. 2562) introduced a recurring annual tax. For residential property used as a personal residence, the rate on the official appraised value starts at 0.02% per year. On a typical mid-range condo with an appraised value of THB 4-6 million, the annual bill is usually below THB 2,000 per year.
Can I deduct expenses from Thai rental income?
If you file a Thai personal income tax return as a tax resident, you can claim a standard 30% expense deduction on rental income before applying progressive rates. If you are a non-resident subject to 15% withholding tax on gross income, deductions do not apply to that calculation. Consult a Thai tax accountant for your specific situation.
Does Thailand have a double-taxation treaty with my country?
Thailand has DTAs with over 60 countries as of 2026, including most EU member states, the UK, the US, Japan, China, Australia, Singapore, and India. A DTA usually specifies which country has the right to tax rental income and capital gains, and provides mechanisms to avoid being taxed twice. Check the Revenue Department of Thailand's official list for your country and get advice from a tax professional in your home country.
Who pays Specific Business Tax - the buyer or the seller?
Legally, SBT is the seller's obligation. However, sale contracts in Thailand are privately negotiated and can shift this cost to the buyer. In developer pre-sales, the developer sometimes states in the contract that the buyer pays SBT. Read your contract carefully and, if SBT is shifted to you, factor 3.3% into your total cost.
What happens to the tax if I hold the property in a Thai company?
A Thai limited company can own land (condos in the foreign quota follow different rules). If the company sells, WHT is 1% of the higher of the registered price or appraised value. The company also pays corporate income tax on the net profit from the sale. Company structures involve annual accounting and audit obligations and their own costs. This strategy requires specialist Thai legal and tax advice - the structure must be genuine and not solely a tax or ownership workaround.
How is rental income taxed if I receive it outside Thailand?
Thai-source income (rent from a Thai property) is taxable in Thailand regardless of where you receive the payment. The 15% withholding tax applies to non-residents on gross rental income. Moving the bank account offshore does not eliminate the Thai obligation. It also does not eliminate your home-country obligation. Declare both, and use any applicable DTA credit.
What is the sinking fund and is it a tax?
The sinking fund is not a government tax. It is a one-time reserve payment collected by the condo juristic person (the building management entity) at the point of purchase. It is held to fund major future repairs - lifts, roof, pool structure. Typical rates are THB 400-800 per square metre (market estimates, 2026). You pay it once at purchase; it is not refundable if you sell.
Are there any tax benefits to buying property in Thailand as a foreigner?
Thailand does not offer investment visas or tax breaks tied specifically to property purchase as of 2026. Some long-term resident visa programs have separate tax incentives (verify current program terms with an immigration lawyer), but these are not automatic with a property purchase. The Land and Building Tax rate for personally-used residential property is very low, which is a structural advantage compared to many European markets.
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.