Editorial
Thailand Transfer Fee Discount 2027: Who Qualifies and What You Pay
By THAI.ESTATE Editorial Team14 min read
Foreign buyers of Thai property face a straightforward reality in 2026 and through mid-2027: a reduced transfer fee of 0.01% exists, but the price cap and use restrictions mean most international buyers in Bangkok and Phuket will not qualify. If your purchase price is at or below 7 million baht, you are a Thai national or permanent resident, and the property is your primary residence, the discount applies. If any one of those conditions fails, you pay the standard rates.
This guide explains exactly how the fee structure works, who qualifies, what the full transaction cost stack looks like at three indicative price points, and what risks arise when buyers assume they qualify without checking.
Quick answer
- Thailand reduced the transfer fee from 2% to 0.01% and the mortgage registration fee from 1% to 0.01% for qualifying purchases, valid until 30 June 2027
- The cap is 7 million baht assessed value - properties above this threshold pay standard rates
- The discount applies to residential use (primary residence), not investment purchases or properties used as rental assets
- Most foreign buyers do not qualify: the benefit is designed for Thai nationals and targets the domestic market; foreign freehold condo buyers face additional citizenship and use-type scrutiny
- Standard transfer costs without the discount: 2% transfer fee + 0.5% stamp duty (or 3.3% Specific Business Tax in place of stamp duty, depending on how long the seller has held the title) + 1% withholding tax (indicative; actual withholding tax on seller is progressive)
- First-half 2026 residential sales rose 35% year-on-year, per Money and Banking Magazine, July 2026 - the market is active and prices in the 3-10 million baht band are under upward pressure
Options and scenarios
Scenario 1: You buy a condo under 7 million baht and you are a Thai national
This is the scenario the policy targets. The transfer fee drops to 0.01% of the assessed value (the Land Department's own valuation, which is typically below market price). The mortgage registration fee also drops to 0.01% if you use a Thai bank loan. Total official fees at closing can fall to negligible amounts on the government side, though agent fees, legal fees, and sinking fund (a one-time reserve fund contribution collected by the juristic person - the building's management company) still apply.
Scenario 2: You are a foreign national buying a condo under 7 million baht
This is the threshold question most buyers ask. The discount was designed with Thai citizens as the primary beneficiary. Foreign nationals in a freehold condo purchase may not satisfy the 'primary residence' or citizenship criteria. In practice, the Land Department officer processes the transfer at the standard 2% rate for most foreign-name freehold condo transactions regardless of price. Do not assume the 0.01% rate applies to your purchase without written confirmation from a licensed Thai lawyer who has reviewed your specific title and use case.
Scenario 3: You buy above 7 million baht (the typical foreign buyer profile)
Per Thaiger, July 2026, many high-value condos and houses in Bangkok and Phuket exceed the 7 million baht threshold, so the discount does not apply at all. You pay standard rates. This is the most common scenario for international buyers in prime areas. Demand in the 3-10 million baht segment remains the strongest band in the market (per Money and Banking Magazine, July 2026), meaning a large share of foreign buyers sit near the threshold - some just below it, many just above it.
Scenario 4: You buy via a Thai company structure (villa or land)
Foreign nationals cannot own land (including a landed villa) in their own name under the Land Code. Some buyers use a Thai limited company. Company-owned property transfers use commercial rates and do not qualify for the residential discount at all. This scenario is increasingly scrutinized by Thai authorities and carries significant legal risk. A qualified Thai lawyer is required.
Scenario 5: You buy off-plan and pay the transfer in a future year
The current discount runs to 30 June 2027. If your project completes and you transfer title before that date, and you meet all other criteria, the policy may apply. If completion slips beyond June 2027, you will pay whatever rate is in force at that time. Do not build the discount into your financial model unless you have a contractually fixed transfer date before the deadline.
Comparison table
| Fee item | Standard rate (most foreign buyers) | Discounted rate (qualifying purchases only) | Who bears the cost |
|---|---|---|---|
| Transfer fee | 2% of assessed value | 0.01% of assessed value | Split by negotiation (commonly 50/50 developer-buyer or 100% buyer for resale) |
| Specific Business Tax (SBT) | 3.3% of sale price or assessed value (whichever is higher) | Not discounted - still 3.3% if applicable | Legally the seller's liability; often negotiated |
| Stamp duty | 0.5% of assessed or sale value | Not applicable if SBT applies | Seller's liability; negotiated |
| Withholding tax | Progressive scale applied to seller's gain (commonly 1-3% of sale price as a practical estimate for condos; verify the current rate) | Not discounted | Seller's legal obligation; often absorbed in price |
| Mortgage registration fee | 1% of loan amount | 0.01% of loan amount (qualifying only) | Borrower (buyer) |
| Common area / management fee | Varies by building; typically 40-80 baht per sq m per month in Bangkok and Phuket (market estimates, 2026) | No change | Owner |
| Sinking fund | One-time payment at transfer; typically 500-700 baht per sq m (market estimates, 2026) | No change | Buyer |
Worked numeric example (indicative, as of 2026)
To make the cost stack concrete, consider two indicative purchases: a 6.5 million baht condo (just under the threshold) and a 9 million baht condo (above the threshold). All figures below are indicative and marked as estimates for illustration purposes. Assessed value at the Land Department is often 10-20% below market price; this example uses assessed value equal to 80% of purchase price as a conservative estimate.
Purchase A: 6.5 million baht condo, assessed at 5.2 million baht
Scenario: foreign buyer, standard rates apply (discount assumed not to apply).
- Transfer fee (2% of 5.2M): 104,000 baht
- SBT at 3.3% (if seller held title under 5 years, applied to higher of sale price or assessed): 214,500 baht (based on 6.5M)
- Withholding tax (seller's cost, often absorbed in negotiation): variable; use 1% of sale price as a rough check figure: 65,000 baht
- Stamp duty: not applicable if SBT applies
- Sinking fund (600 baht per sq m x 50 sq m example): 30,000 baht
- Legal fee (market estimate): 30,000 to 60,000 baht
- Total indicative buyer-side transaction costs: approximately 170,000 to 230,000 baht (transfer fee + sinking fund + legal; excludes seller-side taxes unless negotiated onto buyer)
- Total transaction cost stack including seller-side items if absorbed by buyer: approximately 400,000 to 450,000 baht, or roughly 6-7% of purchase price
Purchase B: 9 million baht condo, assessed at 7.2 million baht
Scenario: foreign buyer, above threshold, standard rates apply.
- Transfer fee (2% of 7.2M): 144,000 baht
- SBT at 3.3% (of 9M): 297,000 baht
- Withholding tax (1% of 9M as check figure): 90,000 baht
- Sinking fund (600 baht x 60 sq m example): 36,000 baht
- Legal fee: 40,000 to 80,000 baht
- Total indicative cost stack: approximately 570,000 to 650,000 baht, or roughly 6-7% of purchase price
The percentage cost is similar at both price points when seller-side taxes are absorbed into the deal. The 7 million baht threshold matters more for Thai buyers who genuinely receive the 0.01% rate, saving them up to 130,000+ baht on transfer fees alone.
Rental income and annual ownership costs
Once you own, two further tax categories apply.
Annual land and building tax is assessed by local authorities on the assessed value of the property. For residential property owned by an individual, the rate is low - under 0.3% of assessed value for most categories (verify the current rate, as the Revenue Department updates brackets). On a 6.5 million baht condo with a 5.2 million baht assessed value, the annual tax is typically a few thousand baht. This is not a significant cost for most foreign owners.
Rental income tax for non-residents is more material. If you rent out the property and you are not a Thai tax resident (that is, you spend fewer than 180 days per year in Thailand), Thailand taxes rental income at a flat withholding rate applied to gross rent. The practical mechanism: a tenant or property manager is required to withhold and remit the tax to the Revenue Department. The applicable rate for non-residents on rental income - verify the current rate with a Thai tax adviser, as rates and deductible allowances change. As a general guide, Thai personal income tax on rental income uses a progressive scale with a standard deduction for rental property expenses, and non-residents are assessed on Thailand-sourced income.
Home-country exposure is a separate obligation. Most countries require you to declare foreign rental income regardless of what you pay in Thailand. Double-taxation treaties between Thailand and many countries (including the UK, Germany, Japan, and Australia, among others) exist and may reduce or credit Thai taxes against your home-country liability. The terms vary by treaty. You must consult a qualified tax adviser in your own country. This guide does not give country-specific tax advice.
Risks and mistakes
Assuming the discount applies without checking. The most common mistake is signing a sales contract that allocates fees based on the 0.01% rate, then arriving at the Land Department to find standard rates apply. Always get written legal confirmation before signing.
Ignoring assessed value versus purchase price. Transfer fees and some taxes use the Land Department's assessed value, not your purchase price. The assessed value can be significantly lower, which reduces your transfer fee but may not reduce SBT (which uses the higher of the two values). Understand which base applies to each fee.
Confusing SBT and stamp duty. These are mutually exclusive. SBT at 3.3% applies when the seller has held the title for fewer than 5 years (and in some other conditions). Stamp duty at 0.5% applies when SBT does not. The seller's holding period determines which one you encounter. On a new developer purchase, SBT almost always applies.
Treating seller-side taxes as purely the seller's problem. Legally, withholding tax and SBT are the seller's liability. In practice, the negotiation of who pays what at the Land Department is part of every deal. Developers sometimes advertise 'free transfer' meaning they absorb those costs - read the contract carefully to confirm what that covers.
Underestimating recurring costs. Common area management fees (typically 40-80 baht per square metre per month in Bangkok and Phuket, per 2026 market estimates) are the real ongoing cost of condo ownership. On a 60 sq m unit, that is 2,400 to 4,800 baht per month, or 29,000 to 58,000 baht per year. Factor this into your yield calculation before you buy.
Off-plan transfer date risk. If you are buying off-plan and counting on the discount, a project delay beyond June 2027 eliminates the benefit. Developers rarely offer price adjustments to compensate.
Not budgeting legal fees. A qualified Thai property lawyer (not a sales agent) is essential. Budget 30,000 to 80,000 baht for legal review and Land Department attendance. This is not optional for a foreign buyer.
FAQ
What is the Thailand transfer fee discount and when does it end?
Thailand reduced the Land Department transfer fee from 2% to 0.01% and the mortgage registration fee from 1% to 0.01% for qualifying residential purchases. The measure runs until 30 June 2027. Properties must be assessed at or below 7 million baht and must meet residential use criteria.
Do foreign buyers qualify for the 0.01% transfer fee in Thailand?
In most cases, no. The discount was designed for Thai nationals purchasing a primary residence. Foreign freehold condo buyers typically do not meet the citizenship and use-type requirements. Even if your purchase price is below 7 million baht, the Land Department will likely apply standard rates (2% transfer fee) to a foreign-name transfer. Confirm with a licensed Thai lawyer before signing.
What is the standard transfer fee for a foreign buyer in Thailand in 2026?
The standard transfer fee is 2% of the Land Department's assessed value (which is typically below market price). In addition, either Specific Business Tax at 3.3% (if the seller held the property under 5 years) or stamp duty at 0.5% applies. Withholding tax is also payable, calculated on a progressive scale applied to the seller's gain. Total transaction costs typically stack to 5-7% of purchase price, including legal and sinking fund.
What is the 7 million baht threshold and how is it calculated?
The 7 million baht cap refers to the Land Department's assessed value of the property, not the purchase price. Because assessed values are often 10-20% below market price, a property sold at 8 million baht might have an assessed value below 7 million baht - but this does not automatically trigger the discount for a foreign buyer, since the other eligibility criteria (citizenship, residential use) must also be met.
What is Specific Business Tax and when does it apply?
Specific Business Tax (SBT) is a 3.3% levy on the sale price or assessed value (whichever is higher) of a property sold within 5 years of the seller acquiring it. It replaces stamp duty when it applies. On most new developer sales, SBT applies because the developer sells soon after construction. SBT is legally the seller's cost but is often negotiated as part of the deal structure.
What does 'assessed value' mean at the Thai Land Department?
The Land Department sets its own official valuation (assessed value) for every registered property. This figure is used to calculate transfer fees and some taxes. It is typically lower than the market price. The gap between assessed value and purchase price means your transfer fee base (2% of assessed value) is lower than 2% of what you actually paid.
What annual taxes do I pay as a foreign property owner in Thailand?
The main annual tax is the land and building tax, assessed by local authorities on the assessed value of your property. For residential property, the rate is low - typically well under 0.3% of assessed value for individual owners; verify the current rate. On a mid-range condo, this is often a few thousand baht per year. The larger recurring cost is the common area management fee charged by the juristic person (the building's management company), which runs 40-80 baht per square metre per month in Bangkok and Phuket (market estimates, 2026).
Do I pay tax on rental income from my Thai property if I live abroad?
Yes. Thailand taxes rental income earned from Thai property by non-residents. The practical mechanism is withholding at source: the tenant or manager withholds and remits the tax to the Revenue Department. You must also declare foreign rental income in your home country; double-taxation treaties may provide relief. Always consult a tax adviser in your own country. This guide does not give country-specific tax advice.
What happens to the discount if my off-plan project is delayed past June 2027?
If your title transfer does not occur before 30 June 2027, you lose access to the discount entirely and pay standard rates. Do not assume a developer will compensate you for the difference. If the discount is material to your financial model, factor in the risk of delay before signing.
What is a sinking fund and do I have to pay it?
A sinking fund is a one-time reserve fund contribution collected by the juristic person (building management company) at the time of title transfer. It covers future major repairs and capital expenditure for the building. It is typically 500-700 baht per square metre in Bangkok and Phuket (market estimates, 2026) and is paid once by the buyer at closing. It is separate from the monthly common area management fee.
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