Editorial
Thailand Property Transfer Costs for Foreigners: 2026 Guide
By THAI.ESTATE Editorial Team15 min read
When you buy or sell property in Thailand as a foreigner, you pay a stack of government fees and taxes at the Land Office on transfer day. The total typically runs between 2% and 7% of the registered sale price, depending on the property type, how long the seller has owned it, and which fees each party agrees to cover. Understanding every line item before you sign a reservation agreement protects your budget and your negotiating position.
This guide covers every fee at purchase, during ownership, on rental income, and at exit. It includes a worked numeric example on an indicative purchase price so you can see the full cost stack as a single number.
Quick answer
- Transfer fee: 2% of the registered value, split by negotiation (often 50/50 buyer-seller or fully buyer)
- Specific Business Tax (SBT): 3.3% of the appraised or sale price (whichever is higher), paid by the seller when ownership is under 5 years
- Stamp duty: 0.5% - applies only when SBT does NOT apply (ownership over 5 years)
- Withholding tax (WHT): paid by the seller; calculated on a progressive scale against the appraised value and years of ownership
- Annual land and building tax: 0.02%-0.3% of the official appraised value for residential use (as of 2026)
- Common-area maintenance fees (condominiums): the real recurring cost, typically 40-80 THB per square metre per month at market estimates
- Rental income tax: non-resident foreign owners must file and pay Thai withholding or personal income tax on Thai-source rental income
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
Four government charges apply at the Land Department (Land Office) on transfer day. Each charge has a defined base and a defined payer, although the actual split is almost always a matter of contract negotiation between buyer and seller.
1. Transfer fee
The transfer fee is 2% of the Land Office's official appraised value (or the declared sale price if higher, in practice). This fee goes to the government and is mandatory. Custom in Thailand is for buyer and seller to split it equally at 1% each, but in a buyer's market you may negotiate for the seller to absorb more. Always confirm the split in your sale and purchase agreement.
2. Specific Business Tax (SBT)
SBT is charged at 3.3% (3% SBT plus 0.1% local tax) of the appraised value or sale price, whichever is higher. It applies when the seller has owned the property for fewer than 5 years, or when the seller is a company. It is legally the seller's obligation, but sellers in Thailand routinely pass it to the buyer in negotiations - especially in new-developer projects. Confirm in writing who pays SBT before you sign anything.
3. Stamp duty
Stamp duty at 0.5% replaces SBT when the seller has held the property for 5 years or more and is not a corporate entity. You cannot owe both SBT and stamp duty on the same transaction. In practice, stamp duty is the cheaper outcome for the seller, which is why holding period matters.
4. Withholding tax (WHT)
WHT is the seller's tax on the gain (or deemed gain) from the sale. The Land Office calculates it on the official appraised value using the number of years the property was held and a progressive rate table. The seller pays this on the day of transfer. As a buyer, you do not pay it directly - but in practice some sellers negotiate for the buyer to cover it as part of the price. Market estimates put WHT for a private individual seller at roughly 1%-3% of the appraised value depending on hold period, though the actual formula is progressive and you should ask your lawyer to calculate the exact figure for any specific transaction.
Who actually pays what at the Land Office?
The legal assignment of each fee is clear. The commercial negotiation is often different. As a foreign buyer you should know both:
- Transfer fee: legally shared; commonly split 50/50 or negotiated
- SBT or stamp duty: legally the seller's; often negotiated to buyer in new-project sales
- WHT: legally the seller's; rarely passed to buyer in resale, but watch developer contracts
For new off-plan condominiums, developer contracts in Thailand very frequently state that the buyer pays the full transfer fee (2%) plus SBT (3.3%), making the buyer's closing cost up to 5.3% of the registered price before other charges. Read the developer's purchase agreement clause by clause.
Worked numeric example: indicative condo purchase at 5,000,000 THB
All figures below are indicative as of 2026 and assume the registered price equals the Land Office appraised value. Real transactions may differ.
Scenario: You buy a resale condominium unit. The agreed price is 5,000,000 THB. The seller has owned the unit for 3 years (SBT applies). You negotiate: buyer pays transfer fee 100%, buyer pays SBT 100%, seller pays WHT.
| Fee | Rate | Amount (THB) | Paid by |
|---|---|---|---|
| Transfer fee | 2% | 100,000 | Buyer (negotiated) |
| SBT | 3.3% | 165,000 | Buyer (negotiated) |
| Stamp duty | N/A (SBT applies) | 0 | N/A |
| WHT | ~1.5% indicative | ~75,000 | Seller |
| Total buyer closing cost | ~5.3% | ~265,000 | You |
If the seller had owned the unit for 6 years, SBT would be replaced by stamp duty at 0.5% (25,000 THB), reducing your total closing cost to approximately 2.5% (125,000 THB) under the same negotiation assumption. Holding period is a material variable - always ask.
What do I pay during ownership?
Annual land and building tax
Thailand's Land and Building Tax Act (effective from 2020) replaced the old house and land tax. For residential property used as a primary residence, the rate is 0.02% per year on the official appraised value up to 50,000,000 THB, rising in tiers above that. For residential property that is NOT a primary residence (including most foreign-owned condos), the rate is 0.02%-0.1% on the appraised value, with exact tiers verified annually by your local municipality. For vacant or unused land, rates are higher. Verify the current rate applicable to your specific property with the local municipality or your property manager, as rates and exemptions can be adjusted.
For a condominium appraised at 5,000,000 THB used as a non-primary residence, indicative annual tax is 1,000-5,000 THB per year - a minor cost compared to maintenance fees.
Common-area maintenance fees (CAM fees)
These are the real recurring cost of owning a condo in Thailand. Market estimates for 2026 range from 40 THB to over 100 THB per square metre per month depending on the project's facilities, location, and juristic person (the legal management body of a condominium building) management quality. A 50 sqm unit in a mid-range Bangkok or Phuket project might carry a CAM fee of 2,500-4,000 THB per month (30,000-48,000 THB per year).
Separate from CAM fees, most new condominiums collect a sinking fund (a one-time capital reserve for major building repairs) at purchase. This is typically 500-1,000 THB per sqm, paid once by the buyer at transfer. On a 50 sqm unit, that is 25,000-50,000 THB. Budget for it.
What tax do I pay on rental income from Thai property?
If you earn rental income from a property in Thailand, Thailand taxes that income regardless of your residency status, because it is Thai-source income. The rules for a non-resident foreign owner work as follows (as of 2026, Thai Revenue Code):
- Rental income from Thai property is subject to Thai personal income tax (PIT) on a progressive scale: 5% from 150,001-300,000 THB, rising to 35% above 5,000,000 THB
- Non-residents who do not have a Thai tax identification number and whose income is paid by a Thai entity may have withholding tax deducted at source at 15% as a flat rate
- You are permitted to deduct either actual expenses or a standard deduction of 30% of gross rental income before calculating tax
- Filing a Thai personal income tax return is required if your Thai-source income exceeds 120,000 THB per year (verify current threshold)
- A property management company that collects rent on your behalf is legally required to withhold and remit tax; confirm with your manager that they are compliant
Home-country tax exposure: Most countries tax their residents on worldwide income. If you declare Thai rental income in your home country, a double-taxation treaty (DTT) may credit Thai tax paid against your home-country liability. Thailand has DTTs with over 60 countries as of 2026. You must consult a qualified tax adviser in your own country - this guide does not provide country-specific tax advice and rates vary widely.
What tax do I pay when I sell Thai property?
At exit, the seller's WHT is deducted and remitted by the Land Office at the moment of transfer. As the foreign seller, the Land Office withholds the tax before you receive the net proceeds. You should:
- Request the WHT calculation sheet from the Land Office or your lawyer before transfer day so there are no surprises
- Budget for the SBT at 3.3% if you sell within 5 years of purchase
- Check your home-country capital gains tax rules - Thai WHT may or may not be fully creditable abroad
Foreign Exchange Transaction (FET) documentation matters at exit. When you originally brought funds into Thailand to purchase the property, you should have received a FET form (also called a Thor.Tor.3 or equivalent bank foreign-exchange confirmation). This document proves the funds came from abroad and is required by Thai law to repatriate the sale proceeds. Without it, the Thai bank may block the outward transfer. Keep all FET documentation from the original purchase.
Comparison table
| Fee or cost | Rate / amount | Who pays (legally) | Typical negotiation outcome |
|---|---|---|---|
| Transfer fee | 2% of appraised value | Shared buyer/seller | 50/50 split or buyer absorbs all in new projects |
| Specific Business Tax (SBT) | 3.3% (ownership under 5 years) | Seller | Often shifted to buyer in developer contracts |
| Stamp duty | 0.5% (ownership 5+ years) | Seller | Usually remains with seller |
| Withholding tax (WHT) | Progressive, ~1-3% indicative | Seller | Stays with seller in most resale deals |
| Sinking fund (condo) | 500-1,000 THB per sqm (one-time) | Buyer | Paid by buyer at transfer |
| Annual land and building tax | 0.02%-0.1% of appraised value | Owner | Owner pays annually |
| Common-area maintenance fee | 40-100+ THB per sqm per month | Owner | Owner pays monthly |
| Thai rental income tax | Progressive PIT or 15% WHT flat | Owner / tenant withholds | Depends on rental structure |
Risks and mistakes
1. Trusting the developer's 'we cover everything' claim
Some developer promotional packages advertise that they 'pay all transfer fees.' Read the purchase agreement. Often this means the developer pays only the transfer fee (2%) while you still owe SBT (3.3%), which is a larger amount. Verify every fee in writing.
2. Registering at an artificially low price
Some sellers suggest declaring a price lower than the actual sale price at the Land Office to reduce taxes. This is tax evasion under Thai law. It also reduces your documented cost basis, increasing your apparent capital gain when you sell, and may invalidate financing or legal documents. Do not agree to it.
3. Not keeping FET documentation
Many foreign buyers lose or discard the FET form from their original wire transfer. When they sell, they cannot repatriate proceeds. Treat this document as irreplaceable from day one.
4. Assuming 50/50 split is standard
The 50/50 transfer-fee split is a custom, not a law. In a strong seller's market or in new-project sales, buyers routinely absorb 100% of the transfer fee and SBT. Know your position before you negotiate.
5. Overlooking the sinking fund
First-time buyers often budget only for the purchase price and miss the sinking fund payment due at transfer. On a 70 sqm unit, this can be 35,000-70,000 THB payable on the same day as the transfer fee.
6. Ignoring home-country tax obligations
Thai tax compliance does not end your obligations. Your home country may require you to declare Thai rental income, capital gains, and assets. Non-disclosure can result in penalties far exceeding the original Thai tax. Engage a tax adviser in your country before you purchase.
7. Misunderstanding 'appraised value' versus 'sale price'
All Land Office fees are calculated on the higher of the official Land Department appraised value or the declared sale price. The appraised value is set by the government and may be lower than the market price. This is usually favourable for tax calculation, but confirm the current appraised value for your specific unit before budgeting.
FAQ
What is the total transfer cost I should budget when buying a Thai condo as a foreigner?
Budget 2% to 5.3% of the registered price as a buyer, depending on what the seller agrees to pass to you. In new developer projects where you absorb both the transfer fee and SBT, the total is commonly around 5.3%. In resale deals where you split only the transfer fee, your cost is approximately 1%. The sinking fund (one-time, around 500-1,000 THB per sqm) is additional.
Is the transfer fee different for land, houses, or villas compared to condominiums?
The transfer fee rate (2%) is the same for all property types registered at the Land Office. SBT, stamp duty, and WHT rules also apply the same way. The main practical difference for foreigners is that you cannot own freehold land in Thailand as a foreign individual, so detached houses are typically purchased via a Thai company structure or on a long-term lease (leasehold). Transaction costs for those structures involve additional legal and registration fees not covered by the standard transfer-fee schedule.
Does a foreigner pay capital gains tax in Thailand when selling property?
Thailand does not have a separate capital gains tax. Instead, the gain on a property sale is taxed through the withholding tax (WHT) mechanism, calculated by the Land Office based on the appraised value and the number of years of ownership. The WHT is deducted at the Land Office on transfer day and is the seller's liability. You will also need to check whether your home country taxes the capital gain separately.
What happens to my rental income tax if I use a property management company?
If a Thai-registered property management company collects rent from a Thai-resident tenant on your behalf, the company is typically required to withhold tax at 5% on the rent it collects as a business expense deduction - and you as the foreign owner may owe additional tax when filing a return. Arrangements vary significantly. Have your Thai accountant or lawyer review the specific rental contract and confirm the withholding mechanism before you sign management agreements.
Is stamp duty or SBT better for me as a buyer?
From a buyer's perspective, stamp duty (0.5%) is far cheaper than SBT (3.3%). However, which one applies depends entirely on how long the seller has owned the property - not on your preference. If you are considering two similar units and one seller has held for over 5 years, the SBT-versus-stamp-duty difference on a 5,000,000 THB unit is 140,000 THB. Holding period is a material financial variable in any resale purchase.
Can I deduct Thai transfer costs from my tax in my home country?
This depends entirely on the tax rules of your home country. Some countries allow you to add acquisition costs (including transfer taxes paid) to your cost basis, reducing a future capital gain. Others treat them as non-deductible. This guide cannot advise on home-country tax treatment. Consult a qualified adviser in your country.
What is a FET form and why does it matter at the transfer stage?
A FET form (Foreign Exchange Transaction form, sometimes called a Thor.Tor.3 confirmation) is issued by a Thai bank when foreign currency arrives from abroad and is converted to Thai baht. Thai law requires this document to prove that the funds used to purchase a condominium originated outside Thailand, which is a condition of foreign ownership under the Condominium Act. At the sale stage, the same document is required to repatriate sale proceeds abroad. Keep every FET form from every inbound transfer related to your property purchase.
Do I pay annual property tax in Thailand even if the condo is empty?
Yes. The Land and Building Tax is assessed on the property regardless of occupancy, at a rate that may be higher for vacant or unused properties than for occupied residential use. As of 2026, unused residential property can attract rates up to 0.3% of the appraised value per year. Keeping a property vacant long-term increases the annual tax burden relative to using it as a residence.
Are there any taxes specific to foreign buyers that Thai nationals do not pay?
The Land Office fees (transfer fee, SBT/stamp duty, WHT) are the same for Thai and foreign buyers and sellers. Thailand does not impose a foreign-buyer surcharge comparable to those in Singapore or Australia. However, foreign ownership of condominiums is capped at 49% of units in any building under the Condominium Act, and foreign ownership of land is generally prohibited. These legal restrictions shape which transaction structures are available to you, not the tax rates.
Should I hire a lawyer for a Thai property transfer?
Yes, for any amount of money. A lawyer who specialises in Thai property will check the title deed (a chanote is the highest-grade freehold title in Thailand, representing full ownership rights), verify the condominium's foreign ownership quota, review the purchase agreement fee-allocation clauses, calculate the WHT in advance, and accompany you to the Land Office. Legal fees in Thailand for a standard condo transfer are typically 15,000-50,000 THB depending on property value and complexity - a small cost relative to the transaction.
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.