Editorial
Thai Property Tax for Foreigners: Full 2026 Cost Guide
By THAI.ESTATE Editorial Team15 min read
Foreign buyers in Thailand pay several distinct taxes and fees across four lifecycle stages: purchase, ownership, rental income, and sale. The total transaction cost at purchase typically adds 4% to 7% on top of the agreed price, depending on the seller's tax position. Annual holding costs are low. Rental income tax applies if you earn rent, and a withholding tax is deducted at source when you eventually sell.
This guide sets out every charge in plain terms, shows you a worked example on a concrete indicative price, and flags the common mistakes that cost foreign buyers money.
Quick answer
- Transfer fee: 2% of the registered value, split by negotiation (often 50/50 with the seller, but verify each deal)
- Specific Business Tax (SBT): 3.3% of appraised or sale value (whichever is higher), paid by the seller if the property has been held for fewer than 5 years - sometimes passed to the buyer in negotiation
- Stamp duty: 0.5% of registered value, applies only when SBT does not apply; not charged on the same transaction as SBT
- Withholding tax at purchase: deducted from the seller's proceeds at the land office - not your cost as a buyer, but affects the net price a seller will accept
- Annual land and building tax: very low for residential property - 0.02% to 0.1% of appraised value depending on use type (as of 2026, under the Land and Building Tax Act B.E. 2562)
- Rental income tax for non-residents: Thai-sourced rental income is generally subject to withholding tax at 15% flat if paid to a non-resident, or progressive personal income tax rates if you file as a Thai tax resident - verify current rates with a Thai tax adviser
- Exit withholding tax: calculated on a formula using the appraised value, years of ownership, and a depreciation schedule - deducted at the land office on the day of transfer
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
When you buy a condominium (the most common route for foreigners, since the Condominium Act B.E. 2522 allows foreign freehold ownership of up to 49% of a building's total unit area), you pay the following at the land office on transfer day.
Transfer fee
The land department charges 2% of the registered value. In practice, the registered value is the land department's appraised value, which is often lower than the actual sale price. You and the seller negotiate who pays. A 50/50 split is common in new-build developer sales, but resale deals vary. As of 2026, the government has occasionally offered temporary reductions on transfer fees to stimulate the market - confirm the current rate before signing.
Specific Business Tax (SBT) vs stamp duty
SBT of 3.3% (3% tax plus a 10% municipal surcharge on that 3%) applies when the seller has owned the unit for fewer than 5 years, or when the seller is a juristic person (a company). SBT is the seller's liability but is commonly negotiated into the price or split.
Stamp duty of 0.5% applies only when SBT does not. If SBT applies, stamp duty is waived. You will not pay both.
Withholding tax (seller's liability)
The land office withholds income tax from the seller's proceeds on the day of transfer. For individual sellers, the calculation uses the appraised value, years of ownership, and a government depreciation table - it is effectively a progressive tax on notional income from the sale. For juristic-person sellers, it is a flat 1% of the registered price or appraised value (whichever is higher). This is the seller's obligation, not yours, but it affects the seller's net and therefore the price they quote you.
FET requirement for foreign buyers
If you pay for a condo from overseas in foreign currency, your Thai bank must issue you a Foreign Exchange Transaction certificate (FET, also called a Thor.Tor.3 or FET form). This document proves that the funds came from abroad, which is required to register foreign ownership at the land office and to repatriate the funds later when you sell. Keep every FET certificate permanently.
Worked numeric example: indicative purchase cost stack
Assume you buy a Bangkok condominium at a sale price of THB 5,000,000 (approximately USD 135,000 / EUR 125,000 at indicative 2026 exchange rates). Appraised value is THB 4,200,000 (the land department's figure, which is often lower).
All figures below are indicative and for illustration only, as of 2026. Actual amounts depend on the specific appraised value, negotiated split, and whether promotional fee reductions are in effect.
Transfer fee: 2% of THB 4,200,000 = THB 84,000 (if you pay 50%, your share is THB 42,000)
SBT (seller held property less than 5 years): 3.3% of THB 5,000,000 (higher of sale or appraised) = THB 165,000 - seller's liability, but verify your negotiated terms
Stamp duty: not applicable because SBT applies in this scenario
Withholding tax on seller: calculated by the land office formula - varies; for illustration, assume the seller's land-office withholding is THB 50,000 to THB 100,000 depending on years of ownership
Your direct purchase costs (conservative estimate, 50/50 transfer fee split):
- Your share of transfer fee: THB 42,000
- Legal review and title check (independent lawyer): THB 20,000 to THB 40,000 (market estimates)
- Total direct buyer transaction cost: approximately THB 62,000 to THB 82,000, or 1.2% to 1.6% of purchase price
If you negotiate to pay all transfer fees and SBT (some developers require this in new-build contracts):
- Transfer fee: THB 84,000
- SBT: THB 165,000
- Legal: THB 30,000
- Total: approximately THB 279,000, or about 5.6% of purchase price
The range of 1.2% to 5.6% illustrates why the fee-split negotiation matters. Read your sale and purchase agreement carefully before signing.
What annual taxes do I pay as a foreign property owner in Thailand?
Land and building tax
Thailand replaced the old house and land tax and local development tax with the Land and Building Tax Act in 2020 (B.E. 2562). Under this law, the tax rate depends on the property's use category:
- Owner-occupied residential use (your primary residence registered on the blue house registration book, tabien baan): 0.02% to 0.1% of the appraised value, with a meaningful exemption threshold for primary residences (verify the current threshold, as it has been adjusted periodically)
- Residential property not used as primary residence (a condo you leave vacant or use as a holiday home): 0.02% to 0.1%, with a different exemption structure
- Vacant or unused land: higher progressive rates, up to 3%, escalating every 3 years of disuse
For a condo with an appraised value of THB 4,200,000 used as a secondary residence, the annual land and building tax is roughly THB 840 to THB 4,200 per year at the 0.02% to 0.1% range. This is a genuinely low recurring cost by international standards.
Common-area fees (juristic person fees)
For condominiums, the real recurring cost is not tax - it is the common-area management fee charged by the juristic person (the legal entity that manages the building under the Condominium Act). This fee covers security, cleaning, pool maintenance, lifts, and shared utilities. In 2026, market estimates range from THB 30 to THB 80 per square metre per month for Bangkok and resort-area condos. On a 50 sq m unit, that is THB 1,500 to THB 4,000 per month (THB 18,000 to THB 48,000 per year).
There is also a one-time sinking fund payment at purchase. A sinking fund is a reserve contribution for major future repairs to the building's structure and shared systems. Market rates are typically THB 400 to THB 800 per square metre, paid once at the time of initial registration.
How is rental income from Thai property taxed for foreigners?
If you rent out your Thai property, the rental income has Thai-source tax implications regardless of where you live.
Non-residents receiving rental income
Rental income paid to a non-resident is generally subject to Thai withholding tax at 15% of the gross rental amount. The tenant or the property management company is responsible for withholding and remitting this tax to the Revenue Department. If the withholding is not done correctly, you may still owe the tax.
If you file as a Thai tax resident
If you spend 180 days or more in Thailand in a tax year, you are considered a Thai tax resident for that year. Rental income is then assessed under personal income tax at progressive rates from 5% to 35% (as of 2026 - verify the current brackets). You may deduct a standard 30% of rental income as an expense allowance before applying rates, plus your personal allowance.
Foreign tax exposure
Most countries require you to declare worldwide income, including Thai rental income. Thailand has double-taxation treaties with many countries. The treaty may allow you to offset tax paid in Thailand against your home-country liability. A tax adviser in your home country is essential for this calculation - this guide does not give country-specific tax advice and rates change.
What taxes apply when I sell my Thai property?
Withholding tax at sale
When you sell, the land office calculates and deducts withholding tax from your proceeds on the transfer day. For individual sellers, the formula is:
- Start with the higher of the appraised value or sale price
- Apply a depreciation deduction based on the type of property and years of ownership (from a government table)
- Divide by the number of years of ownership to get an annual income figure
- Apply progressive personal income tax rates to that annual figure
- Multiply the result by the number of years of ownership
The land office does this calculation for you. The effective rate depends heavily on how long you have owned the property and the appraised value. Holding for more years generally reduces the effective rate. You should ask a Thai lawyer to estimate your exit tax before you commit to a sale price.
SBT at exit
If you have owned the property for fewer than 5 years (or if ownership is through a company), SBT of 3.3% applies again on your exit. This is now your cost as the seller. Budget for it in your net proceeds calculation.
Capital gains tax
Thailand does not have a standalone capital gains tax. The withholding tax described above effectively functions as the equivalent, applied at the land office.
Repatriation of sale proceeds
To repatriate the proceeds of a condo sale abroad, you need your original FET certificates to prove the original purchase funds came from overseas. Without them, repatriation can be restricted. Banks typically allow repatriation up to the original inward amount documented by FET.
Comparison table
| Tax or fee | Stage | Who pays | Indicative rate (as of 2026) | Basis |
|---|---|---|---|---|
| Transfer fee | Purchase | Buyer and/or seller (negotiated) | 2% | Land department appraised value |
| Specific Business Tax (SBT) | Purchase / Sale | Seller (negotiable) | 3.3% | Higher of sale price or appraised value |
| Stamp duty | Purchase / Sale | Seller (negotiable) | 0.5% | Registered value (only if SBT does not apply) |
| Seller withholding tax | Purchase (from seller proceeds) | Seller | Progressive formula | Appraised value, years owned |
| Sinking fund | Purchase (new build) | Buyer | THB 400-800 per sq m, one-time | Per square metre, paid once |
| Land and building tax | Annual ownership | Owner | 0.02%-0.1% (residential) | Government appraised value |
| Common-area fee | Annual ownership | Owner | THB 30-80 per sq m per month | Per square metre, monthly |
| Rental income withholding tax | Rental income | Tenant / agent withholds | 15% (non-resident) | Gross rental payment |
| Exit withholding tax | Sale | Seller (you) | Progressive formula | Appraised value, years owned |
| SBT at exit | Sale (under 5 years held) | Seller (you) | 3.3% | Higher of sale price or appraised value |
Risks and mistakes
Agreeing to pay all seller taxes without calculating the total
Some developers and private sellers ask buyers to cover transfer fees and SBT. On a THB 5,000,000 purchase, that adds roughly THB 250,000. Read every clause of the sale agreement before signing.
Losing FET certificates
The Foreign Exchange Transaction certificate is a permanent document. If you lose it, repatriating sale proceeds later becomes complicated and sometimes restricted. Store originals and scans securely.
Using the appraised value versus the sale price incorrectly
SBT and certain other charges are based on whichever is higher: the sale price or the appraised value. Do not assume the appraised value is always lower.
Not budgeting for exit SBT if you sell early
Buyers who plan to sell within 5 years often forget that SBT of 3.3% applies again on exit. This reduces your net proceeds significantly on a short-term hold.
Ignoring home-country tax obligations
Thailand may withhold tax on your rental income or sale proceeds, but your home country may also want to tax the same income. Without a tax adviser at home, you risk penalties for non-declaration. Double-taxation treaties reduce but do not always eliminate the overlap.
Relying on verbal developer promises about fee splits
Fee-split agreements must be in the sale and purchase contract. A verbal promise by a sales agent is not enforceable at the land office.
Not verifying the chanote title deed
A chanote (full title deed, the highest form of Thai land title) is the only acceptable title for freehold condo purchases. Other documents such as Nor Sor 3 Gor are lower-grade titles. Verify the title type with an independent lawyer before paying any deposit.
Assuming tax rates have not changed
The Thai government has adjusted transfer fees, SBT exemptions, and land and building tax thresholds multiple times. Always verify current rates with the land department or a Thai lawyer in the same week as your transfer.
FAQ
Do foreigners pay capital gains tax in Thailand?
Thailand does not have a standalone capital gains tax. When you sell, withholding tax is deducted at the land office using a formula based on the appraised value and years of ownership. The effective rate varies. In your home country, you may also owe capital gains tax on the same profit - check with a local adviser.
What is the transfer fee and who pays it in Thailand?
The transfer fee is 2% of the land department's appraised value of the property. It is legally payable by the parties as agreed. In practice, buyers and sellers often split it 50/50, but this is negotiable. New-build developers sometimes require the buyer to pay all of it.
What is Specific Business Tax (SBT) and does it affect me as a buyer?
SBT is 3.3% of the higher of the sale price or appraised value. It is triggered when the seller has owned the property for fewer than 5 years. It is the seller's tax liability, but sellers may negotiate for the buyer to share or cover it. Read your contract carefully.
How much is the annual property tax in Thailand for a foreign-owned condo?
Under the Land and Building Tax Act (B.E. 2562), residential property used as a secondary home is taxed at 0.02% to 0.1% of the government appraised value per year. On a unit appraised at THB 4,200,000, the annual tax is roughly THB 840 to THB 4,200. This is one of the lowest recurring property tax burdens in Southeast Asia.
Do I pay tax on rental income from my Thai condo?
Yes. If you are a non-resident, rental income from Thai property is generally subject to 15% withholding tax at source. If you are a Thai tax resident (180 or more days in Thailand in the tax year), progressive personal income tax rates of 5% to 35% apply. A 30% standard expense deduction is available before applying rates. Verify current rates with a Thai tax adviser.
What is the FET certificate and why is it critical for foreign buyers?
A Foreign Exchange Transaction (FET) certificate, also called a Thor.Tor.3 form, is issued by a Thai bank when you transfer foreign currency into Thailand to buy property. It proves the funds came from abroad. You need it to register foreign ownership of a condo and to repatriate the sale proceeds when you sell. Keep every FET certificate permanently.
What is the sinking fund and do I have to pay it?
The sinking fund is a one-time reserve contribution paid by the buyer at the time of registration. It covers the building's future major repairs (roof, lifts, structural works). Market rates range from THB 400 to THB 800 per square metre. It is not a tax - it is held by the building's juristic person for capital maintenance.
If I sell my condo within 2 years, what extra taxes apply?
If you sell within 5 years of purchase (or as a company seller), SBT of 3.3% applies. The withholding tax formula also tends to produce a higher effective rate for short ownership periods because the appraised income is divided by fewer years. Selling quickly is tax-inefficient in Thailand.
Does Thailand tax me on money I bring in from abroad to buy property?
No. Transferring foreign currency to Thailand for a property purchase is not itself a taxable event. However, you must ensure the bank issues you an FET certificate for the amount, and the funds must be transferred directly from abroad in foreign currency - not converted before transfer.
Do I need to file a Thai tax return as a foreign property owner?
If you earn rental income in Thailand, you have a filing obligation with the Thai Revenue Department, whether or not withholding tax was already deducted. If you do not earn Thai-source income and are not a Thai tax resident, you generally do not need to file. Consult a Thai tax adviser for your specific situation.
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.