Editorial
Thai Property Tax for Foreigners: Full 2026 Guide
By THAI.ESTATE Editorial Team15 min read
Foreign buyers of Thai property pay several distinct taxes and fees across three life stages: purchase, ownership, and sale. The amounts are set by law, are largely predictable, and are manageable if you know what to expect before you sign anything. This guide walks you through every levy in plain numbers, with a worked example on a concrete purchase price.
The short answer: at purchase you typically pay between 2% and 6.3% of the registered value in government fees, depending on whether the seller owes Specific Business Tax or Stamp Duty. During ownership you pay a modest annual Land and Building Tax plus monthly common-area fees. At sale, a withholding tax is deducted at source. Rental income earned in Thailand is taxable in Thailand for both residents and non-residents.
Quick answer
- Transfer fee: 2% of the registered value, split by custom (often 50/50 buyer and seller, but negotiable)
- Specific Business Tax (SBT): 3.3% of the higher of registered or appraised value, paid by the seller if the property is sold within 5 years of acquisition
- Stamp Duty: 0.5% of the registered value, applies only when SBT does not apply - the two are mutually exclusive
- Withholding Tax at sale: deducted at the Land Office from the seller's proceeds; for individuals the rate is calculated on a progressive scale against the appraised value and the number of years held
- Annual Land and Building Tax: capped at 0.3% of the appraised value for residential property used as a second home or investment property (as of 2026, under the Land and Building Tax Act B.E. 2562)
- Rental income tax: non-resident foreign owners earning Thai-source rental income pay Personal Income Tax at progressive rates (up to 35%) on net income after allowable deductions, or may face a flat withholding rate depending on the arrangement - verify the current rate with a Thai tax adviser
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
At the Land Office on transfer day, four potential levies apply. Not all four apply to every transaction.
1. Transfer Fee
The Transfer Fee is 2% of the registered value. Registered value is the Land Department's assessed price, which is often lower than the market price. By long-standing market custom, buyer and seller each pay 1% - but this is a negotiating point, not a legal requirement. You should clarify who pays what in the Sale and Purchase Agreement.
2. Specific Business Tax (SBT)
SBT is 3.3% of the sale price or appraised value, whichever is higher, and applies when the seller has owned the property for fewer than 5 years. It is legally the seller's cost, but some sellers pass it on in negotiation. When SBT applies, Stamp Duty does not.
3. Stamp Duty
Stamp Duty is 0.5% of the registered value and applies only when SBT does not (seller has owned the property for 5 years or more, or transferred it to a heir). Again, legally the seller's cost, but often shared or passed on.
4. Withholding Tax at purchase
This is withheld from the seller's proceeds at the Land Office. For individual sellers, it is calculated using a progressive formula: (appraised value / years owned) x number of years owned, then tax is applied at progressive Personal Income Tax rates. As a buyer, you do not pay this tax - but you should understand it because it affects the net proceeds a seller expects, and therefore the price negotiation.
Worked example: buying a condo at THB 5,000,000
Assume: registered (appraised) value is THB 4,000,000. Market purchase price is THB 5,000,000. Seller has owned the unit for 3 years (SBT applies).
All figures below are indicative as of 2026 and based on the registered/appraised value as calculated at the Land Office.
| Cost item | Who pays | Calculation | Indicative amount (THB) |
|---|---|---|---|
| Transfer Fee (buyer share, 50/50 custom) | Buyer | 1% x 4,000,000 | 40,000 |
| Transfer Fee (seller share, 50/50 custom) | Seller | 1% x 4,000,000 | 40,000 |
| Specific Business Tax | Seller (verify in contract) | 3.3% x 5,000,000 | 165,000 |
| Stamp Duty | Not applicable (SBT applies) | - | 0 |
| Withholding Tax | Seller (deducted at Land Office) | Progressive rate on appraised value / 3 years held | Variable |
| Buyer's total Land Office cost | Buyer | approx. THB 40,000 |
In this example, the buyer's direct Land Office outlay is approximately THB 40,000 if the 50/50 Transfer Fee split is agreed. If the buyer agrees to cover all Transfer Fee, that rises to THB 80,000. SBT and Withholding Tax fall on the seller unless negotiated otherwise.
Important: the registered (appraised) value is set by the Land Department and is reviewed periodically. It is often below the actual market price. All Land Office taxes are calculated on this official value, not on your purchase price, unless the purchase price is higher - in which case SBT uses the higher figure.
What do I pay while I own the property?
Annual Land and Building Tax
Thailand replaced the old House and Land Tax with the Land and Building Tax Act, effective 2020. For residential property that is not your primary registered residence, the annual rate is up to 0.3% of the official appraised value. For most foreign-owned condos (held as investment or secondary homes), the practical rate in 2026 is typically 0.02% to 0.1% depending on the appraised value band - verify the current band rates with your local Land Office or a tax adviser, as the bands are subject to government adjustment.
For a condo with an appraised value of THB 4,000,000, the annual Land and Building Tax is likely in the range of THB 800 to THB 4,000 per year at current indicative rates. This is a very low recurring cost.
Common-area fees (juristic person fees)
A juristic person is the management body of a condominium building, equivalent to a homeowners' association. Common-area fees (also called maintenance fees or CAM fees) are charged monthly or annually by the juristic person for the upkeep of shared facilities - lifts, pool, lobby, security. These are not taxes; they are contractual charges. In Bangkok and resort areas, market estimates for 2026 range from THB 40 to THB 150 per square metre per month, depending on the building's facilities and location. For a 40-square-metre unit, that is THB 1,600 to THB 6,000 per month.
The sinking fund is a one-time charge paid at purchase (and sometimes topped up later) to cover major future repairs. Market practice puts this at THB 400 to THB 800 per square metre at the time of purchase.
What tax do I pay on rental income from a Thai property?
If you earn rental income from a Thai property, that income is Thai-source income and is taxable in Thailand regardless of your residency status. The key points:
- Thai tax residents (present in Thailand 180 days or more in a calendar year) pay Personal Income Tax on net rental income at progressive rates from 5% up to 35% after allowable deductions.
- Non-residents earning Thai-source income are also subject to Thai Personal Income Tax. In practice, many non-resident landlords with a local management agent have tax withheld by the payer at a flat rate. Verify the current withholding rate applicable to your arrangement with a registered Thai tax adviser.
- Deductions allowed against rental income include a standard expense deduction (50% of gross rental income, up to a ceiling set by the Revenue Department - verify the current ceiling) plus personal allowances if applicable.
- You are required to file an annual Personal Income Tax return (PND 90 or PND 91) if you have Thai-source income above the filing threshold.
Home-country exposure: most countries tax their residents on worldwide income. If you live in Europe, the Middle East, or elsewhere, you will almost certainly need to declare Thai rental income in your home country. Thailand has double-taxation treaties with more than 60 countries. These treaties determine which country has primary taxing rights and how credit or exemption is applied. You must take advice from a tax professional in your home country - the rules differ by country and the THAI.ESTATE Editorial Team cannot give country-specific tax advice.
What tax does the seller pay when I sell my Thai property?
When you eventually sell, you become the seller. The taxes work as follows:
Withholding Tax for individual sellers
The Land Office withholds tax from your proceeds at the point of transfer. The calculation uses the official appraised value (not necessarily your sale price) and the number of years you have held the property. The formula divides the appraised value by the years held to get a 'yearly income' figure, applies progressive Personal Income Tax rates to that figure, then multiplies back by the years held. The result is deducted from proceeds before you receive them.
Because the calculation uses appraised value (often lower than market value), the effective tax burden is frequently lower than buyers expect. However, the exact amount must be calculated case by case at the Land Office or with a Thai tax adviser in advance.
SBT or Stamp Duty (as seller)
If you sell within 5 years of acquisition, you owe SBT at 3.3%. If you sell after 5 years, you owe Stamp Duty at 0.5%. These are legally your costs as the seller.
Transfer Fee (as seller)
By custom you pay 50% of the 2% Transfer Fee, but this is negotiable with your buyer.
Comparison table
| Tax or fee | Trigger | Legal burden | Indicative rate (as of 2026) | Negotiable between parties? |
|---|---|---|---|---|
| Transfer Fee | Every transfer at Land Office | Shared (2% total) | 2% of registered value | Yes, common to split 50/50 |
| Specific Business Tax | Seller owned fewer than 5 years | Seller | 3.3% of sale price or appraised value (higher) | Sometimes passed to buyer in contract |
| Stamp Duty | Seller owned 5+ years (SBT not applicable) | Seller | 0.5% of registered value | Sometimes passed to buyer in contract |
| Withholding Tax at sale | Every sale, individual seller | Seller | Progressive formula on appraised value / years held | No (legal obligation of seller) |
| Annual Land and Building Tax | Ownership of property | Owner | Up to 0.3% of appraised value (residential non-primary) | No |
| Common-area fee | Ownership of condo unit | Owner (contractual) | THB 40-150 per sqm per month (market estimate) | Not in standard cases |
| Sinking fund | Purchase of new or resale condo | Buyer (one-time) | THB 400-800 per sqm (market estimate) | Rarely |
| Personal Income Tax on rental | Earning rental income | Landlord | Progressive 5-35% on net income after deductions | No |
Risks and mistakes
Assuming the seller pays everything
By law, SBT and Withholding Tax are the seller's costs. In practice, some developers and private sellers negotiate to shift part of these costs to the buyer by adjusting the headline price or inserting clauses in the contract. Read every cost-allocation clause carefully before signing.
Using the market price instead of the appraised value for tax estimates
Most Land Office taxes use the official appraised value, not your purchase price. This can be lower than market price, making your tax estimate lower than expected. However, SBT is calculated on whichever is higher - appraised or actual sale price. Confusing these two figures leads to incorrect budget planning.
Ignoring home-country tax obligations
Buying in Thailand does not exempt you from declaring the asset or income at home. Failure to report foreign assets or foreign rental income to your home tax authority can result in penalties that far exceed the Thai tax itself. Always consult a tax adviser in your country of residence before completing the purchase.
Forgetting the sinking fund and common-area fees in your budget
These are not taxes, but they are mandatory costs. A buyer who budgets only for the Land Office fees and ignores the sinking fund (payable on transfer day) and the first months of common-area fees can face a shortfall on completion day.
Relying on verbal cost-split agreements
If you and the seller agree that costs will be split in a particular way, this must be written into the Sale and Purchase Agreement. Verbal agreements at the Land Office have no legal standing.
Not filing a Thai tax return on rental income
Many foreign landlords who rent out their Thai property through an agent assume the agent handles all tax. Agents typically withhold and remit tax, but the filing obligation for an annual return may still rest with you. Non-filing can create penalties even if the underlying tax has been paid. Engage a registered Thai accountant if you earn rental income.
Underestimating the total transaction cost stack
First-time buyers often budget 1-2% for transaction costs. In reality, when Transfer Fee, legal fees, sinking fund, and potential partial SBT coverage are combined, the buyer's total out-of-pocket on transfer day can reach 3-5% of the purchase price in common scenarios. Budget conservatively.
FAQ
Do foreigners pay higher property taxes than Thai nationals in Thailand?
No. The tax rates at the Land Office and the annual Land and Building Tax apply equally to Thai nationals and foreign buyers. There is no foreigner surcharge in the Thai tax code for property transactions.
Can I avoid Specific Business Tax by holding the property for 5 years before selling?
Generally yes. SBT applies when the seller has owned the property for fewer than 5 years. After 5 full years of ownership, SBT no longer applies and the lower Stamp Duty (0.5%) applies instead. The 5-year clock typically runs from the date of transfer registration at the Land Office.
What is the Foreign Exchange Transaction (FET) form and does it affect my taxes?
A Foreign Exchange Transaction (FET) form - sometimes called a Thor.Tor.3 document - is a record issued by a Thai bank confirming that foreign currency was converted into Thai Baht and transferred into Thailand for the purpose of buying a condominium. It is not a tax document itself, but it is required by the Condominium Act for a foreign buyer to register ownership. It also serves as evidence if you later repatriate sale proceeds abroad. Keep every FET form for the full period of ownership.
Is annual Land and Building Tax in Thailand expensive for foreign condo owners?
For most foreign-owned residential condos in 2026, the annual Land and Building Tax is very low in absolute terms - often a few hundred to a few thousand Baht per year. The high rates (up to 3% for unused land) apply to undeveloped plots. Residential property held as a non-primary home is taxed at a much lower rate. The common-area fee is typically a larger recurring cost than this tax.
Do I need a Thai tax identification number as a foreign property owner?
Yes, if you earn Thai-source income (such as rental income) or if you sell a property and need to receive proceeds. A Thai tax identification number (TIN) is issued by the Revenue Department. Your lawyer or accountant can assist with the registration process.
How does Thailand tax rental income if my tenant is a company?
If the tenant paying your rent is a Thai company, the company is typically required to withhold tax from the rent payment at the time of payment and remit it to the Revenue Department. The rate depends on the type of income and the agreement structure - verify the current withholding rate with a Thai tax adviser. This withheld amount is a credit against your annual Personal Income Tax liability.
Are there double-taxation treaties between Thailand and my home country?
Thailand has double-taxation agreements with more than 60 countries, including most European Union member states, the United Kingdom, China, Japan, Australia, and others. These treaties generally prevent the same income from being taxed in full by both countries, either by granting exemption or tax credit. The specific rules vary by treaty. Your home-country tax adviser must review the applicable treaty for your situation.
What happens if I do not pay the annual Land and Building Tax?
Under the Land and Building Tax Act B.E. 2562, late payment attracts surcharges and, if unpaid for an extended period, can lead to enforcement action including asset seizure. In practice, for condominium units the juristic person or building management often tracks this and notifies owners. Do not assume no bill means no tax is owed - check annually with the local district office.
Who pays the transfer fee: buyer or seller?
Legally, the Transfer Fee is a shared obligation. The current rate is 2% of the registered value total. Market custom in Thailand is to split this 50/50, so each party pays 1%. However, in a buyer's market some sellers offer to cover the full transfer fee. The allocation must be agreed in writing in the Sale and Purchase Agreement before the Land Office appointment.
Do I pay tax when I inherit a Thai property?
Thailand enacted an Inheritance Tax law effective 2016. As of 2026, inheritance tax applies to assets exceeding THB 100 million per beneficiary from a single estate. Below this threshold, no inheritance tax is due. For most residential property transactions, the threshold is not reached. Transfer fees still apply at the Land Office when ownership is transferred to an heir. Verify the current threshold and rates with a Thai lawyer, as tax law can change.
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.