Editorial
Taxes Foreigners Pay When Buying Property in Thailand 2026
By THAI.ESTATE Editorial Team15 min read
Foreign buyers pay four main government fees at a Thai property transfer: transfer fee, either Specific Business Tax (SBT) or stamp duty, and withholding tax. On top of those, you carry annual land and building tax during ownership, and withholding tax again when you sell. This guide walks through every stage - purchase, ownership, rental income, and exit - with indicative numbers so you know the real cost before you commit.
Thailand does not have a buyer-side stamp duty in the Western sense. Most transaction costs are split by custom between buyer and seller, but the split is negotiable. Understanding who pays what - and why - protects your budget and your negotiating position.
Quick answer
- Transfer fee: 2% of the registered value, typically split 50/50 (1% each) by custom, though this is negotiable
- Specific Business Tax (SBT): 3.3% of the registered or appraised value (whichever is higher), paid when the seller has owned the property for fewer than 5 years - usually a seller cost but sometimes negotiated onto the buyer
- Stamp duty: 0.5% of the registered value, applies only when SBT does not - these two are mutually exclusive
- Withholding tax: deducted at source at transfer; the rate depends on whether the seller is a company or an individual - again a seller cost but part of the total transaction math
- Annual land and building tax: 0.02% to 0.3% of the appraised value for residential use (as of 2026 under the Land and Building Tax Act B.E. 2562)
- Rental income tax: non-resident foreign individuals are subject to Thai withholding tax on Thai-sourced rental income, typically at 15% on gross rent, though actual liability depends on your filing method
- Exit withholding tax: calculated on a sliding scale based on the seller's appraised value and years of ownership - verify the current rate table with your Thai legal adviser
Options and scenarios
What taxes do I pay when buying a condo in Thailand as a foreign individual?
Foreign individuals can legally own a condominium unit (an apartment in a building that holds a condominium license) in freehold under the Condominium Act, provided foreign ownership in the building does not exceed 49% of total sellable area. This is the only direct freehold option available to most foreigners.
At transfer, the Land Department registers the transaction and collects fees simultaneously. The fees are calculated on the appraised value (the Land Department's own valuation, which is often lower than the market price) or the declared sale price, whichever is higher.
Here is the cost stack for a hypothetical condo purchase at a declared price of THB 5,000,000 (indicative figures, as of 2026):
Transfer fee: 2% x THB 5,000,000 = THB 100,000 (by custom, buyer pays 1% = THB 50,000)
SBT scenario (seller owned less than 5 years): 3.3% x THB 5,000,000 = THB 165,000 (seller cost by custom, but verify in your contract)
Stamp duty scenario (seller owned 5+ years, SBT not applicable): 0.5% x THB 5,000,000 = THB 25,000 (seller cost by custom)
Withholding tax (individual seller, 10 years ownership, appraised value THB 4,500,000): calculated on the appraised value using a progressive deduction formula based on years owned - this is the seller's liability, deducted at transfer. For a rough market estimate on a mid-range unit, budget THB 30,000 to THB 120,000 on the seller's side. Your lawyer will compute the exact figure from the Land Department tables.
Indicative buyer out-of-pocket at transfer (THB 5,000,000 condo, SBT scenario):
| Cost item | Who pays by custom | Indicative amount (THB) |
|---|---|---|
| Transfer fee (buyer's half) | Buyer | 50,000 |
| SBT | Seller | 165,000 |
| Withholding tax | Seller | 30,000 to 120,000 (estimate) |
| Legal / due diligence fees | Buyer | 30,000 to 60,000 (market estimate) |
| Total buyer cash at transfer | ~80,000 to 110,000 | |
| Total transaction cost (all parties) | ~275,000 to 350,000 |
All figures are indicative and dated as of 2026. Appraised values differ by location; always ask your lawyer for the current Land Department appraisal for your specific unit.
What taxes do I pay when buying land or a house in Thailand?
Most foreigners cannot hold land title directly in Thailand under the Land Code. Common structures include a long-term lease (up to 30 years, sometimes with contractual renewal options) or ownership through a Thai limited company - each structure carries different tax treatment. If you buy a house via leasehold or company structure, the same transfer fees and SBT or stamp duty apply at the Land Department, calculated on the land and structure values separately.
For a 30-year lease registration on land, the registration fee is 1% of the total lease value. This is a separate instrument and does not grant ownership of the land itself - your lawyer must explain the legal limitations before you commit.
How does the specific business tax differ from stamp duty?
Specific Business Tax (SBT) at 3.3% applies when the seller is a company or when an individual seller has held the property for fewer than 5 years (counted from the date of acquisition as registered at the Land Department). When SBT applies, stamp duty is waived.
Stamp duty at 0.5% applies only when the seller is an individual who has held the property for 5 or more years and is not required to pay SBT. Stamp duty is always lower than SBT, which is why buyers should check the seller's ownership duration before finalizing the price.
This distinction matters to you as a buyer because sellers in an SBT situation sometimes try to share that cost. Read your sale and purchase agreement carefully.
What is the annual tax I pay while owning Thai property?
The Land and Building Tax Act B.E. 2562 (2019) replaced the old house and land tax and local development tax. Rates as of 2026:
- Primary residence (owner's name on the house registration document, appraised value up to THB 50,000,000): 0.02% per year
- Secondary residence / non-primary residential use: 0.02% to 0.1% per year, depending on appraised value brackets
- Vacant or unused land: 0.3% to 0.7% per year, with a 0.3% surcharge added every 3 years of vacancy (capped at 3% total)
- Commercial use: 0.3% to 0.7% per year
For a condominium with a Land Department appraised value of THB 3,000,000 used as a secondary residence, the annual land and building tax is approximately THB 600 to THB 3,000 per year - a very small amount. The more significant recurring cost in practice is the common area fee (also called maintenance fee or management fee), which runs at THB 30 to THB 80 per square meter per month in most mid-range buildings (market estimates, 2026). On a 50 sq m unit, that is THB 1,500 to THB 4,000 per month.
You also pay a sinking fund (a one-time capital reserve contribution for major building repairs) at purchase, typically THB 300 to THB 700 per square meter, paid to the juristic person (the building management entity established under the Condominium Act).
How is rental income taxed in Thailand for foreign owners?
If you rent out your Thai property and do not live in Thailand, your Thai-sourced rental income is subject to Thai tax. For non-residents receiving rental income, a withholding tax of 15% is typically deducted by the tenant or agent and remitted to the Revenue Department. This is a withholding mechanism, not necessarily the final liability.
If you are a Thai tax resident (you stay more than 180 days in Thailand in a calendar year), you must file an annual personal income tax return and declare worldwide income sourced to Thailand. Thai personal income tax is progressive, from 5% to 35%, with an allowance system that reduces the taxable base.
Thailand has double taxation agreements (DTAs) with over 60 countries (verify the current list with the Thai Revenue Department). These agreements prevent the same income from being taxed twice. However, you will almost certainly need to declare Thai rental income in your home country as well. The DTA determines which country has primary taxing rights and how relief is calculated. You must consult a qualified tax adviser in your home country - this guide cannot give country-specific advice and does not attempt to do so.
Critical 2024/2025 rule change: Thailand's Revenue Department updated its interpretation of remittance rules in 2024. Foreign-sourced income remitted to Thailand in the same tax year it is earned is now treated as assessable income for Thai tax residents. If you are a Thai tax resident and remit funds from abroad, take specific tax advice on this point before doing so.
What tax do I pay when I sell Thai property?
When you sell, the withholding tax is deducted at the Land Department at the moment of transfer. You are now in the seller's position. The calculation for individual sellers uses the Land Department appraised value (not the market price), a deduction table based on years of ownership, and a progressive rate schedule. The result is withheld and remitted to the Revenue Department before you receive net proceeds.
If SBT applies (ownership under 5 years), you also pay 3.3% SBT plus the withholding tax. If you have owned for 5 or more years, stamp duty at 0.5% applies instead and your withholding tax is generally lower because the deduction allowance is higher.
Your lawyer or the Land Department officer will calculate the exact withholding tax for your case using the official formula. Ask for this estimate before you sign any sale agreement, so you know your net proceeds.
Comparison table
| Tax or fee | Rate / amount | Who pays (by custom) | Applies when |
|---|---|---|---|
| Transfer fee | 2% of registered value | Split 50/50 buyer/seller (negotiable) | Every transfer |
| Specific Business Tax (SBT) | 3.3% of registered or appraised value (higher) | Seller (negotiable) | Seller is company, or individual owned under 5 years |
| Stamp duty | 0.5% of registered value | Seller (negotiable) | Individual seller, owned 5+ years, SBT not due |
| Withholding tax at sale | Progressive, based on appraised value and years owned | Seller | Every transfer (deducted at Land Department) |
| Land and building tax (annual) | 0.02% to 0.7% of appraised value | Owner | Every year of ownership |
| Common area fee (monthly) | THB 30 to THB 80 per sq m (market estimate) | Owner | Every month, condo buildings |
| Sinking fund (one-time) | THB 300 to THB 700 per sq m (market estimate) | Buyer at purchase | At first purchase from developer |
| Rental withholding tax | 15% of gross rent (non-resident) | Tenant deducts, remits to Revenue Department | When property is rented |
| Lease registration fee | 1% of total lease value | Negotiable | When registering a long-term lease at Land Department |
All rates and estimates are as of 2026. Verify current figures with a licensed Thai lawyer and the Thai Revenue Department before transacting.
Risks and mistakes
Accepting the declared price without checking the appraised value. If the Land Department appraised value is higher than the declared sale price, fees and taxes are calculated on the appraised value. Buyers sometimes receive a surprise bill at transfer. Ask your lawyer to obtain the current Land Department appraisal before you sign.
Assuming the customary 50/50 split on transfer fee is binding. It is not. It is a market convention, not law. Your sale and purchase agreement governs. Read it. If the contract states the buyer pays all transfer costs, you pay all transfer costs.
Ignoring SBT versus stamp duty. A seller who has owned for less than 5 years will owe SBT at 3.3%. Some sellers try to pass this cost to buyers, inflating your transaction cost by a significant margin on a multi-million baht purchase. Always confirm the seller's ownership start date.
Confusing withholding tax with income tax. The withholding deducted at transfer is an advance payment against the seller's income tax liability. It is not the same as the final tax. For a foreign seller, the Revenue Department may assess additional tax if the withholding does not cover the full liability.
Forgetting home-country tax obligations. Most countries require you to declare foreign assets and income. Capital gains on Thai property sold may be taxable in your home country even if lightly taxed in Thailand. Double taxation treaty provisions vary. Do not assume Thai taxation ends your obligation.
Paying funds directly to a developer or seller without a clear paper trail. Thailand does not operate escrow accounts for property buyers in the traditional sense. Your protection comes from the sale and purchase agreement, the reservation agreement, and staged payment terms tied to title transfer milestones. Ensure every payment is documented and linked to contractual conditions.
Missing the sinking fund at handover. First buyers from a developer pay the sinking fund to the juristic person at unit handover, not at contract signing. Budget for this separately - it is not reflected in the headline unit price.
Underestimating legal fees. A proper due diligence review, title search (chanote - the full freehold title deed in Thailand, formally called Nor Sor 4 Jor), and contract review by a qualified Thai lawyer costs THB 30,000 to THB 80,000 for a standard condo purchase (market estimate, 2026). This is not optional for a foreign buyer.
FAQ
Do foreigners pay more tax than Thai nationals when buying property in Thailand?
No. The government fees (transfer fee, SBT or stamp duty, withholding tax, annual land and building tax) are the same regardless of the buyer's nationality. Foreign buyers face the same rate schedule as Thai nationals at the Land Department.
What is a chanote and why does it matter for tax purposes?
A chanote (Nor Sor 4 Jor) is the strongest form of Thai land title - a full freehold title with GPS-surveyed boundaries. Taxes and fees at the Land Department are calculated on the appraised value of the land and structure shown in the Land Department's system. Without a chanote, the land may not be precisely demarcated, which can cause discrepancies in the assessed value.
Can I deduct Thai property costs from my home-country taxes?
This depends entirely on your home country's tax law and any applicable double taxation agreement with Thailand. This guide does not give country-specific advice. Consult a tax adviser qualified in your home jurisdiction.
Is the 3.3% Specific Business Tax always the seller's cost?
By market custom, yes - but not by law. The sale and purchase agreement is the legal document. If it allocates SBT to the buyer, the buyer pays. Always read and negotiate the contract before signing.
How is withholding tax calculated when I sell a condo in Thailand?
For individual sellers, the Land Department uses the official appraised value, applies a deduction based on the number of years you have owned the property, and then applies a progressive tax rate to the remaining amount. The resulting figure is withheld at transfer. Ask your lawyer to run this calculation before you agree a sale price, so you know your net proceeds.
Does Thailand tax my worldwide income if I live there?
If you spend more than 180 days in Thailand in a calendar year, you are a Thai tax resident and must declare Thai-sourced income. As of the 2024 Revenue Department guidance, foreign-sourced income remitted to Thailand in the same year it is earned is also assessable. Thailand does not currently tax worldwide income of tax residents in the way some countries do, but the rules are evolving. Take current advice from a Thai tax professional.
What is the annual land and building tax for a typical condo?
For a condo used as a secondary residence with a Land Department appraised value of THB 3,000,000, the annual land and building tax is in the range of THB 600 to THB 3,000 (as of 2026 rates). The exact figure depends on the appraised value bracket and how the property is classified.
Do I pay VAT when buying a new condo from a developer in Thailand?
Developers pay VAT (7%) on new construction sales, and this is typically factored into the unit price. You do not pay VAT as a separate line item at the Land Department transfer. However, SBT (3.3%) applies to developer sales instead of stamp duty, and the developer pays this. Confirm with your developer which costs are included in the headline price.
How much should I budget in total transaction costs as a buyer?
For a typical condo purchase from a secondary-market seller (SBT scenario), budget 2% to 3% of the purchase price as your total out-of-pocket transaction cost, covering your half of the transfer fee, legal fees, and minor administrative costs. If you negotiate to cover additional costs, the figure rises. Always get a written fee breakdown from your lawyer before transfer day.
Are there any property taxes paid to local authorities in Thailand?
The annual land and building tax is administered by the local authority (municipal office or sub-district office depending on location) and collected locally. You will receive a notice. For most residential condos, the amount is small. Commercial or vacant property owners face higher rates.
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.