Editorial
Who Pays the Transfer Fee on a Thailand Condo: 2026 Guide
By THAI.ESTATE Editorial Team16 min read
When you buy a condominium in Thailand, the transfer fee is technically the seller's responsibility under Thai law - but in practice, the two parties almost always split it or negotiate who pays what. Understanding who pays which cost, and why the answer varies by developer and seller type, can save you several percentage points on a transaction that may be worth millions of baht.
This guide covers every tax and fee in the full transaction lifecycle: purchase costs, annual ownership costs, rental income tax, and the costs you face when you sell. All figures are indicative and referenced as of 2026. Verify current rates with a licensed Thai lawyer before you commit.
Quick answer
- The transfer fee is 2% of the registered value (the Land Department's assessed value, not always the sale price), paid at the Land Department on transfer day
- By custom, buyers and sellers often split the transfer fee 50/50, but this is negotiable - nothing in Thai law forces either party to pay it
- The seller pays either Specific Business Tax (SBT) at 3.3% or Stamp Duty at 0.5%, depending on how long they have owned the property - not both
- The seller also pays withholding tax (WHT), calculated on a sliding scale against the assessed value and the number of years owned
- At purchase, your real out-of-pocket transaction costs typically land between 3% and 6% of the purchase price when all fees are combined
- Annual ownership costs are dominated by common-area fees (maintenance fees), not government taxes - the Land and Building Tax on a residential condo is low, often under a few thousand baht per year for most foreign-owned units
Options and scenarios
What is the transfer fee and who is legally required to pay it?
The transfer fee in Thailand is set at 2% of the Land Department's assessed (appraised) value of the property. The Land Department calculates its own assessed value, which is sometimes lower than the market sale price. The fee is collected at the Land Department office on the day the title deed (a chanote - a full-ownership title, the strongest form of title in Thailand) is transferred from seller to buyer.
The Land Code and the Condominium Act (the primary laws governing condominiums and the transfer of condominium units to foreign nationals) do not assign the transfer fee exclusively to either party. Thai law simply requires that it be paid before transfer is registered. In practice, the party who pays is determined by contract.
In the secondary market (resale condos), the most common arrangement is a 50/50 split: the buyer pays 1% of the assessed value, and the seller pays 1%. Some sellers, especially private individuals, ask the buyer to cover the full 2%. Some buyers, negotiating hard, get the seller to pay all of it. Read every draft sale and purchase agreement carefully - the fee allocation clause is always there.
In the primary market (buying directly from a developer), the developer's standard contract usually states which fees are 'developer-paid' and which fall to the buyer. Many developers absorb the full transfer fee or split it as a promotional offer, particularly in slow market periods. Treat any such offer as a negotiating point, not a fixed rule.
What other taxes apply at the point of sale?
Beyond the transfer fee, three more government charges apply on the day of transfer. Two of them fall mainly on the seller.
Specific Business Tax (SBT): Applied at 3.3% of the appraised value or the sale price, whichever is higher, when the seller has owned the property for fewer than five years. SBT includes a 10% local surcharge built into the 3.3% rate. This is a significant cost for sellers who bought recently.
Stamp Duty: Applied at 0.5% of the registered value only when SBT does not apply - that is, when the seller has owned the property for five years or more, or when the seller is an individual (not a company) who has held the property longer than that threshold. SBT and Stamp Duty are mutually exclusive. You pay one or the other, never both.
Withholding Tax (WHT): The seller pays withholding tax, which is deducted at the Land Department on transfer day. For individual sellers, the calculation is based on the appraised value, the number of years the property has been held, and a progressive rate schedule set by the Revenue Department. For company sellers, a flat 1% of the appraised value or sale price (whichever is higher) applies. The WHT for individual sellers is often the largest single cost in the seller's stack - for a property held only one or two years, it can exceed 5% of the assessed value.
As a buyer, you do not pay SBT, Stamp Duty, or the seller's WHT directly. However, in practice, some sellers price these costs into the asking price or negotiate for the buyer to 'share' SBT. Know what you are agreeing to.
Worked numeric example (indicative, as of 2026)
Assume you buy a resale condo in Chiang Mai or Bangkok at a sale price of THB 5,000,000 (approximately USD 135,000 at indicative 2026 exchange rates). The Land Department appraised value is THB 4,500,000 (a realistic scenario where the appraised value is below the market price). The seller has owned the property for three years.
Seller's costs (indicative):
- Specific Business Tax: 3.3% x THB 5,000,000 (higher of sale price or appraised value) = THB 165,000
- Withholding Tax: variable by formula, but indicatively THB 80,000 to THB 150,000 for a three-year hold at this value (market estimate - verify with a Thai accountant)
- Transfer fee (seller's half if split): 1% x THB 4,500,000 = THB 45,000
- Seller total (indicative): roughly THB 290,000 to THB 360,000, or approximately 5.8% to 7.2% of sale price
Buyer's costs (indicative):
- Transfer fee (buyer's half if split): 1% x THB 4,500,000 = THB 45,000
- Legal/due diligence fees (independent Thai lawyer): roughly THB 15,000 to THB 50,000 depending on scope
- Sinking fund (on a new unit from developer this would be a one-time fund, but on resale it is sometimes charged): THB 0 to THB 20,000 depending on the juristic person's rules
- Buyer total (indicative): THB 60,000 to THB 115,000, or roughly 1.2% to 2.3% of sale price
If the seller negotiates the buyer to pay the full transfer fee, the buyer's cost rises to roughly THB 105,000 to THB 160,000, or 2.1% to 3.2%.
These are indicative figures. Actual WHT depends on the Revenue Department's formula applied to verified ownership years and appraised value. Always ask your lawyer to produce the full cost schedule before you sign.
Annual ownership costs: what do you actually pay each year?
Land and Building Tax (LBT): Thailand's annual property tax, introduced under the Land and Building Tax Act B.E. 2562 (2019) and effective from 2020, applies to all property owners including foreign condo owners. For residential property where the owner does not live in it permanently (which applies to most foreign investors), the rate is 0.02% per year on appraised values up to THB 50 million, rising in steps above that threshold. On a THB 5,000,000 appraised value, annual LBT is roughly THB 1,000 - negligible for most buyers.
If you use the property as your primary registered residence (in practice rare for non-residents), a higher exemption threshold applies and the effective tax is even lower or zero.
Common-area fees (maintenance fees): These are not a government tax. They are a monthly fee set by the juristic person (the management body of the condominium, equivalent to a homeowners' association) to cover shared costs: lifts, pool, security, cleaning, and building insurance. Rates vary widely. In Bangkok's central areas, THB 40 to THB 100 per square metre per month is typical (market estimates, 2026). For a 40 sqm studio, that means THB 1,600 to THB 4,000 per month (THB 19,200 to THB 48,000 per year). This is your dominant recurring cost, not government tax.
Sinking fund: A one-time reserve fund contribution paid when you first acquire a new unit (from a developer). It covers major future repairs (roof, lifts). Typical rates are THB 400 to THB 600 per sqm as a one-off payment, not an annual charge. On resale, it is not usually charged again, but check the juristic person's rules.
Rental income: what tax do you pay?
If you rent out your Thai condo, rental income is taxable in Thailand under the Revenue Code. The practical treatment depends on your tax status:
Non-resident rental income: If you are a non-resident (you spend fewer than 180 days in Thailand in a tax year), income from Thai property is still Thai-source income and is subject to Thai tax. For individuals, the withholding tax rate on rental income paid by a tenant or managed by an agent is typically 5% withheld at source (verify the current rate with a Thai accountant, as thresholds and allowable deductions affect the net liability). You may be entitled to deduct 30% of gross rental income as a standard deduction for expenses under Thai personal income tax rules, but if filing a full personal income tax return in Thailand, progressive rates apply.
In practice, many small landlords with foreign-managed properties do not file Thai tax returns and no WHT is deducted because the tenant is also foreign and unaware of the obligation. This creates a compliance risk. If you hire a Thai property management company, they are required to withhold and remit tax.
Home-country tax: Most countries require you to declare foreign rental income. Double-taxation treaties (DTAs) exist between Thailand and many countries (including the UK, Germany, France, Australia, and others - verify whether your country has a DTA with Thailand). These treaties generally allow you to offset Thai tax paid against your home-country liability. You must consult a qualified tax adviser in your home country. The THAI.ESTATE Editorial Team cannot give country-specific tax advice and you should not rely on any source that does so without knowing your full tax situation.
Exit costs: what do you pay when you sell?
When you sell, you move from buyer to seller and the costs described above for sellers now apply to you:
- SBT at 3.3% (if you have owned fewer than five years) or Stamp Duty at 0.5% (if five years or more)
- WHT on a progressive individual formula based on appraised value and years held
- Transfer fee: your share per the sale agreement (likely 1% if split)
If you sell after a short hold period (one to two years), the combined SBT plus WHT can easily exceed 8% to 10% of the registered value. Factor this into your return calculations before you buy.
For capital gains specifically: Thailand does not have a separate capital gains tax for individuals. The gain on sale is effectively captured through the WHT mechanism. For company sellers, the gain is subject to corporate income tax.
Comparison table
| Cost item | Who pays | Rate or amount | Trigger |
|---|---|---|---|
| Transfer fee | Negotiated (often split 50/50) | 2% of appraised value | On every transfer at Land Department |
| Specific Business Tax (SBT) | Seller | 3.3% of higher of sale price or appraised value | Seller owned property fewer than 5 years |
| Stamp Duty | Seller | 0.5% of registered value | Seller owned 5+ years (replaces SBT) |
| Withholding Tax (individual) | Seller | Progressive formula on appraised value | Every sale by an individual |
| Withholding Tax (company seller) | Seller | 1% of higher of sale price or appraised value | Every sale by a company |
| Land and Building Tax | Owner (annual) | 0.02% p.a. up to THB 50m appraised value | Annual, on non-primary-residence condos |
| Common-area fees | Owner (monthly) | Typically THB 40-100 per sqm per month | Ongoing, set by juristic person |
| Sinking fund | Buyer (new units) | Typically THB 400-600 per sqm, one-off | First purchase from developer only |
| Legal / due diligence fee | Buyer | THB 15,000-50,000 (market estimate) | Optional but strongly advised |
Risks and mistakes
Accepting the developer's cost schedule without independent review. Developer contracts are written to favour the developer. Some charge the buyer 100% of the transfer fee as standard. Read the fee clause and negotiate.
Confusing appraised value with sale price. The Land Department's appraised value and your agreed sale price are often different numbers. SBT and WHT can be calculated on whichever is higher. If you pay THB 7 million for a unit with an appraised value of THB 5 million, SBT is still charged on THB 7 million. Model your costs on the higher number.
Ignoring the seller's WHT when you become the seller. Foreign buyers who plan to resell within a few years routinely underestimate their exit tax. A three-year hold at a higher price can produce a WHT bill that absorbs much of the paper gain.
Not getting an independent Thai lawyer. The developer's lawyer or agent acts for the developer, not for you. An independent lawyer (fee typically THB 15,000 to THB 50,000) checks the title, the foreign ownership quota (the Condominium Act requires that foreign nationals collectively hold no more than 49% of the total unit area in any condominium building), and the fee allocation in your contract.
Ignoring home-country tax obligations. Thai tax compliance is only half the picture. If you are a tax resident in the UK, Germany, France, the US, or elsewhere, you are generally required to report Thai rental income and any capital gain. Failure to do so creates liability at home, not in Thailand. Engage a tax adviser in your home country before you buy.
Assuming common-area fees are fixed. The juristic person's general meeting can vote to increase common-area fees. In older buildings with rising maintenance costs, fees can double over ten years. Ask for the last three years of fee history and the building's reserve fund balance before you sign.
Using the Foreign Exchange Transaction (FET) form carelessly. A FET form (also called a Thor Tor 3) is a document issued by a Thai bank confirming that foreign currency was remitted into Thailand and converted to baht specifically for the purchase of a condominium. Foreign buyers must show this form at the Land Department to register ownership. Losing this document makes future resale or repatriation of funds more difficult. Keep it permanently.
FAQ
Who legally pays the transfer fee on a condo in Thailand?
Thai law does not assign the transfer fee to either party exclusively. It must be paid at the Land Department before transfer is registered, but the sale and purchase agreement determines who actually pays. Custom in the secondary market is a 50/50 split, but you can negotiate any arrangement.
What is the transfer fee rate in Thailand?
The transfer fee is 2% of the Land Department's appraised value of the property. This appraised value may be lower than your agreed sale price. As of 2026, verify the current rate with the Land Department or your lawyer, as the government has occasionally offered temporary reductions on low-value transactions in past years.
What is the difference between Specific Business Tax and Stamp Duty on a Thai condo sale?
Specific Business Tax (SBT) at 3.3% applies when the seller has owned the property for fewer than five years. Stamp Duty at 0.5% applies when the seller has owned for five years or more. You pay one or the other, never both. The seller pays whichever applies.
Do I pay capital gains tax in Thailand when I sell my condo?
Thailand does not have a standalone capital gains tax for individual sellers. The gain is effectively captured through the withholding tax mechanism, which is calculated on a formula using the appraised value and the number of years held. For company sellers, the gain is subject to corporate income tax.
What is the Land and Building Tax on a foreign-owned condo?
For a non-primary-residence residential condo, the rate is 0.02% per year on appraised values up to THB 50 million (as of 2026). On a unit with a THB 5 million appraised value, this is roughly THB 1,000 per year. Verify the current rate and threshold with a Thai accountant, as the government reviews these figures periodically.
What is a FET form and why does it matter?
A FET form (Foreign Exchange Transaction form, sometimes called a Thor Tor 3) is issued by a Thai bank when foreign currency is remitted into Thailand and converted to baht. Foreign nationals must present this form at the Land Department to register condo ownership. Keep this document permanently. Without it, you may face difficulties when you sell or try to repatriate funds.
Do I need to pay tax in Thailand on rental income from my condo?
Yes. Rental income from Thai property is Thai-source income and is taxable in Thailand regardless of whether you are resident or non-resident. For non-residents, withholding tax may apply at source. You should also declare this income in your home country. Double-taxation treaties between Thailand and many countries help avoid being taxed twice on the same income. Engage a tax adviser in your home country.
What is the 49% foreign ownership quota for Thai condos?
The Condominium Act limits foreign nationals collectively to a maximum of 49% of the total unit area in any registered condominium building. When this quota is full in a specific building, foreign nationals cannot legally purchase additional units in that building in the foreign freehold category. Always ask the developer or seller to confirm the current foreign ownership percentage before you proceed.
What are common-area fees and who sets them?
Common-area fees (also called maintenance fees) are monthly charges set by the juristic person - the management body of the condominium - to cover shared costs such as lifts, pools, security, and cleaning. They are not a government tax. Typical rates in Bangkok range from THB 40 to THB 100 per sqm per month (market estimates, 2026). The juristic person's annual general meeting can vote to change the rate.
Can the seller pass SBT on to the buyer in the contract?
Yes, as a contractual matter. Some sellers, particularly developers, include clauses asking the buyer to absorb SBT or share it. This is negotiable. Read the draft contract carefully and ask your independent lawyer to flag any non-standard fee-allocation clauses before you sign.
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.