Editorial
Who Pays the Transfer Fee on a Thailand Condo: 2026 Guide
By THAI.ESTATE Editorial Team13 min read
When you buy a condominium in Thailand, the transfer fee is almost always split 50/50 between buyer and seller - but that is a convention, not a law. The Land Code and the Condominium Act set the rates; they do not assign who pays. Everything is negotiable, and in a buyer's market you may pay nothing at all toward the transfer fee.
This guide covers every tax and government fee that applies at purchase, during ownership, on rental income, and at the point of sale. At least one worked numeric example shows you what the full cost stack looks like on a concrete indicative price.
Quick answer
- Transfer fee: 2% of the officially registered value, conventionally split 50/50 (so 1% each), as of 2026
- Specific Business Tax (SBT): 3.3% of the registered value or appraised value (whichever is higher), paid by the seller if the property is sold within 5 years of acquisition - but sellers routinely pass some or all of this cost to buyers in negotiation
- Stamp duty: 0.5% of the registered value, applies only when SBT does NOT apply; also a seller liability by law but negotiable
- Withholding tax: deducted at the land office from the seller's proceeds; the buyer does not pay this directly, but it affects your net price negotiation
- Annual land and building tax: low for residential use, generally 0.02%-0.1% of the appraised value for private residential property
- Foreign buyers must check home-country tax obligations separately - double-taxation treaties exist but vary; consult a tax adviser in your country
Options and scenarios
Who actually pays what at the land office?
All fees and taxes are collected at the land office on the day of title transfer (the Thai land title that proves full ownership is called a chanote - a Nor Sor 4 Jor document). Four separate charges arise:
1. Transfer fee The rate is 2% of the value registered with the land office (called the 'appraised value' or 'assessed value', set by the Treasury Department - it is often below actual market price). By convention in Thailand, buyer and seller split this equally, so each pays 1%. However, nothing in Thai law forces this split. In project launches or slow markets, developers sometimes absorb the full 2%. In resale deals, you negotiate.
2. Specific Business Tax (SBT) SBT is 3.3% (3% tax plus 0.1% municipal surcharge, as of 2026 - verify the current rate). It applies when the seller has owned the unit for fewer than 5 years, or when the property was not used as the seller's primary registered residence. SBT is legally a seller's liability. In practice, many sellers list prices 'SBT included' and expect the buyer to pay it, especially in developer new-build sales. Always clarify in writing whose obligation SBT is before you sign a purchase agreement.
3. Stamp duty Stamp duty is 0.5% of the registered value. It applies only when SBT does NOT apply - the two do not stack. This is also the seller's liability by law but negotiable.
4. Withholding tax (WHT) Withholding tax is deducted from the seller's payment at the land office. The rate for individuals is progressive, calculated on the appraised value, number of years held, and the seller's income bracket. For companies the rate is a flat percentage. This is entirely the seller's cost - but it can influence how aggressively the seller negotiates price or fee allocation. You as buyer do not hand over this money, but you should understand it exists.
Worked numeric example (indicative, as of 2026)
Assume you buy a Bangkok condominium. The agreed purchase price is THB 5,000,000. The land office appraised value is THB 4,200,000 (a typical scenario where official appraisal is below market price). The seller has owned the unit for 3 years, so SBT applies.
All figures below are indicative and use 2026 convention:
- Transfer fee: 2% x THB 4,200,000 = THB 84,000. Split 50/50: buyer pays THB 42,000, seller pays THB 42,000
- SBT: 3.3% x THB 4,200,000 = THB 138,600. Seller's legal obligation. If negotiated to buyer: THB 138,600. If seller absorbs: THB 0 to buyer
- Withholding tax: paid by seller at land office; the buyer does not pay this
- Stamp duty: not applicable here because SBT applies
Buyer's minimum cost at land office (split convention, SBT on seller): THB 42,000, which is roughly 0.84% of the appraised value or about 0.84% of the purchase price
Buyer's maximum cost at land office (if buyer absorbs all SBT too): THB 42,000 + THB 138,600 = THB 180,600, roughly 3.6% of the appraised value
In addition, you will pay your agent's commission if applicable (typically 3%-5% of sale price, paid by the seller in standard Thai practice but again negotiable), a lawyer's due-diligence fee (market estimates: THB 15,000-40,000 for a straightforward condo purchase), and a Foreign Exchange Transaction (FET) letter fee at your bank (the FET letter - also called a Thor Tor 3 - is the document proving you transferred foreign currency into Thailand, which is required for foreigners to be registered as condo owners and to repatriate proceeds later).
During ownership: what do you pay each year?
Annual land and building tax Thailand introduced the Land and Building Tax Act in 2019, replacing the older house and land tax. For residential property where you are not the primary occupant (common for foreign condo owners who live abroad most of the year), the rate is 0.02% per year on the first THB 50,000,000 of appraised value, rising in bands above that threshold (as of 2026 - verify current bands with a Thai tax adviser). On a THB 5,000,000 appraised unit, this is approximately THB 1,000 per year - a modest sum.
If the property is rented out, it is classified as commercial use and the rate rises. The rate for commercial/rental use is 0.3% up to certain thresholds (verify the current rate). On the same THB 5,000,000 appraised value that is approximately THB 15,000 per year - still low by international standards.
Condominium common-area fees (CAM fees) This is the largest recurring cost most foreign condo owners actually feel. The common-area maintenance fee (sometimes called the juristic person fee - the juristic person is the legal body that manages the building, equivalent to a homeowners' association) is set by the building and collected monthly or quarterly. Rates in Bangkok typically range from THB 30 to THB 80 per square metre per month, as of 2026 per market estimates. For a 50 sqm unit that is THB 1,500-4,000 per month (THB 18,000-48,000 per year).
Separately, most buildings collect a sinking fund at the time of purchase. The sinking fund is a one-time capital reserve paid into the building's maintenance fund for major future repairs (lifts, roof, pool). Rates per market estimates: THB 300-700 per square metre, paid once at transfer. On a 50 sqm unit: THB 15,000-35,000.
Rental income: what tax do you owe in Thailand?
If you are a foreign individual who is not tax-resident in Thailand (generally meaning you spend fewer than 180 days per calendar year in Thailand), and you earn rental income from a Thai condominium, Thailand has the right to tax that income under its domestic law.
Thai law requires rental income from Thai property to be declared and taxed in Thailand regardless of your residency. The tenant or your property manager is in theory required to withhold tax at source if you are a non-resident. In practice, private landlords frequently do not withhold, but non-compliance carries risk.
Thai personal income tax on rental income for non-residents is assessed at progressive rates from 5% to 35% (verify the current bracket structure). Non-residents may deduct a standard expense allowance of 30% of gross rental income before applying rates (as of 2026 - verify with a Thai tax adviser).
Critically: you may also owe tax on the same rental income in your home country. Thailand has double-taxation agreements (DTAs) with many countries. Whether and how a DTA reduces your liability depends on your specific country and personal situation. A tax adviser qualified in your home country is not optional - it is mandatory.
At sale: what withholding tax applies?
When you eventually sell, the withholding tax on your gain is calculated and deducted by the land office before you receive proceeds. For individual sellers, the calculation uses the government appraised value, not your actual sale price, and applies a depreciation table based on how long you have held the property. The resulting withholding tax is then computed at progressive personal income tax rates.
Because the withholding tax is calculated on the appraised value rather than your real profit, you may pay withholding tax even in a situation where you sold at a loss relative to your original price. This is a known asymmetry in the Thai system.
Repatriation of sale proceeds requires the original FET letter (Foreign Exchange Transaction record) that was issued when you first brought money in. Keep this document permanently. Without it, your bank may not remit the proceeds abroad.
Comparison table
| Fee or Tax | Rate (as of 2026) | Who pays by law | Who pays in practice |
|---|---|---|---|
| Transfer fee | 2% of appraised value | No legal assignment | Conventionally 50/50 buyer and seller |
| Specific Business Tax (SBT) | 3.3% of appraised or sale value (higher of two) | Seller | Often negotiated; developer deals may pass to buyer |
| Stamp duty | 0.5% of appraised value (only if no SBT) | Seller | Negotiable |
| Withholding tax at sale | Progressive (individual); flat % (company) | Seller | Seller only; not transferable |
| Annual land and building tax | 0.02%-0.1% residential; 0.3% rental (indicative) | Owner | Owner |
| Common-area fee (CAM) | THB 30-80 per sqm per month (market estimate) | Owner | Owner |
| Sinking fund | THB 300-700 per sqm, one-time at purchase | Buyer at transfer | Buyer |
| Rental income tax (non-resident) | Progressive up to 35%, after 30% expense deduction | Non-resident owner | Non-resident owner |
Risks and mistakes
Not fixing fee allocation in the purchase agreement If your contract says nothing about who pays SBT or the transfer fee, you are likely to face a dispute at the land office. Specify every fee allocation in writing before you sign anything.
Assuming the appraised value equals the purchase price Taxes are calculated on the government appraised value, which can differ substantially from what you paid. This matters both ways: lower appraisal reduces your transfer fee, but at resale it also constrains your withholding tax calculation to a figure that may not reflect your real profit or loss.
Not keeping your FET letter The Foreign Exchange Transaction letter (Thor Tor 3) is issued once by your Thai bank when you receive the international transfer. If you lose it, repatriating sale proceeds becomes difficult and potentially blocked. Store it with your title deed.
Assuming the conventional 50/50 split is fixed In a developer presale or a slow secondary market, you can often negotiate the transfer fee entirely onto the seller. If you do not ask, you will not get it.
Ignoring home-country tax obligations Thailand taxing your rental income or capital gain does not automatically exempt you at home. Many buyers discover a second tax bill only when filing returns in their country of residence. Engage a tax adviser in your home country before you buy, not after.
Using appraised value as a proxy for market value The Treasury Department appraised value is updated periodically but often lags the real market. Do not use it as your sole reference for whether you are paying a fair price.
Confusing stamp duty and SBT These two charges are mutually exclusive. SBT applies when the seller held the property under 5 years (or it was not their primary residence). Stamp duty applies when SBT does not. You will never pay both on the same transaction.
FAQ
What is the transfer fee when buying a condo in Thailand?
The transfer fee is 2% of the government appraised value of the unit, collected at the land office on the day the title transfers. Convention is that buyer and seller each pay 1%, but this is negotiable and should be specified in your contract.
Does the buyer always pay half the transfer fee?
No. The 50/50 split is a market convention in Thailand, not a legal rule. In new-build developer sales and softer markets, sellers or developers sometimes absorb the full 2%. Always negotiate and put the agreed split in writing.
What is Specific Business Tax and who pays it?
Specific Business Tax (SBT) is 3.3% of the higher of the sale price or appraised value. It applies when the seller has owned the property for fewer than 5 years, or when it was not registered as their primary residence. By law it is the seller's tax, but sellers frequently pass it to buyers in price negotiations, particularly in developer sales.
When does stamp duty apply instead of SBT?
Stamp duty (0.5%) applies when SBT does not - meaning the seller has owned the property for at least 5 years and it was their registered primary residence. The two charges never apply to the same transaction at the same time.
What is withholding tax at a Thai property sale and who pays it?
Withholding tax is deducted from the seller's proceeds by the land office at the time of transfer. It is calculated progressively on the government appraised value, adjusted for years of ownership. The buyer does not pay this tax, but should understand it affects the seller's net proceeds and therefore negotiation dynamics.
What annual taxes do I pay as a foreign condo owner in Thailand?
The main government tax is the annual land and building tax, which for residential use is approximately 0.02% of the appraised value per year on values up to THB 50,000,000 (verify current thresholds). If you rent the unit out, the rate rises, roughly to 0.3% of appraised value. These rates are low by international standards. Your larger recurring cost is the condominium common-area maintenance fee, set by the building management.
Do I pay Thai tax on rental income from my condo if I live abroad?
Yes. Thai law taxes rental income from Thai-located property even if you are not resident in Thailand. Non-residents may apply a 30% standard expense deduction before calculating tax at progressive rates. You may also owe tax in your home country on the same income; a double-taxation agreement may reduce double-payment, but you need a qualified tax adviser in your home country to confirm.
What is a sinking fund and do I pay it as the buyer?
A sinking fund is a one-time capital reserve contributed at the point of purchase. The money goes to the building's juristic person (the management body) to cover future major repairs. It is typically charged per square metre of the unit. The buyer pays it once, at title transfer. It is not a recurring fee.
What is an FET letter and why does it matter for foreign buyers?
A Foreign Exchange Transaction letter (sometimes called a Thor Tor 3) is issued by a Thai bank when you receive an international wire transfer into Thailand for property purchase. It proves the funds entered Thailand as foreign currency, which is a legal requirement for a foreigner to be registered as the owner of a condominium unit. It also enables you to repatriate the sale proceeds when you sell. Keep it permanently alongside your title documents.
Can I negotiate all fees when buying a Thai condo?
You can negotiate the allocation of the transfer fee and, in resale deals, the SBT. Withholding tax is the seller's statutory obligation and cannot be passed to the buyer contractually in any recognised form. Annual taxes and common-area fees are set by law and building management respectively and are not negotiable at the point of purchase.
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.