Editorial
Who Pays the Transfer Fee on a Thailand Condo: 2026 Guide
By THAI.ESTATE Editorial Team14 min read
When you buy a condo in Thailand, the transfer fee is usually split 50/50 between buyer and seller - but this is a negotiated convention, not a legal requirement. The Land Code and Condominium Act do not assign the fee to either party. Everything is open to negotiation before you sign, and the final split should be written into your Sale and Purchase Agreement.
This guide walks you through every government fee and tax that arises at a Thai condo transfer in 2026, shows you who conventionally pays what, and gives you a worked numeric example so you can budget accurately before you commit.
Quick answer
- Transfer fee: 2% of the appraised (government-assessed) value, conventionally split 50/50 - buyer and seller each pay 1%
- Specific Business Tax (SBT): 3.3% of the higher of appraised or declared sale price, paid by the seller if the property is sold within 5 years of acquisition
- Stamp duty: 0.5% of the higher of appraised or declared price, paid by the seller - but only when SBT does not apply
- Withholding tax: deducted at the Land Office from the seller's proceeds; the rate depends on whether the seller is an individual or a company
- Buyer's real recurring cost after purchase: annual Land and Building Tax plus monthly common-area (juristic-person) fees
- All rates cited are as of 2026; verify current rates with a licensed Thai lawyer before you sign
Options and scenarios
What is the transfer fee and who actually pays it?
The transfer fee is collected by the Land Department at the moment of title registration. It equals 2% of the government appraised value of the unit - not necessarily the price you agreed with the seller. The appraised value is a figure set periodically by the Treasury Department; it is often lower than the market price, sometimes significantly so.
By long-standing market convention in Thailand, buyer and seller each pay half: 1% each. However, in a buyer's market or when you are negotiating with a motivated seller, it is common to ask the seller to cover the full 2%. In developer pre-sales for new projects, some developers absorb the full transfer fee as a sales incentive. Read every promotional clause carefully and confirm the arrangement is in the contract before you sign.
Specific Business Tax versus Stamp Duty - which applies?
Only one of these two taxes applies to any given transaction.
Specific Business Tax (SBT) at 3.3% (comprising 3% SBT plus a 10% local surcharge, totalling 3.3%) applies when the seller has owned the property for fewer than 5 years, or when the seller's name has been registered for fewer than 5 years on the title deed (chanote - the highest-grade Thai land title document). SBT is calculated on whichever is higher: the appraised value or the declared sale price.
Stamp duty at 0.5% applies only when SBT does not apply - meaning the seller has held the property for 5 years or more, and has been registered on the chanote for the same period. You cannot be charged both.
Both SBT and stamp duty are legally the seller's liability. In practice, however, some sellers negotiate to pass part or all of these costs to the buyer, particularly in a strong seller's market. This is legally permitted because the law does not forbid private cost-sharing agreements. Always clarify in writing who pays what before you sign the Sale and Purchase Agreement.
Withholding tax on the seller - why it matters to you as a buyer
Withholding tax is deducted at the Land Office from the sale proceeds. The seller pays it, but you need to understand the mechanics because it affects the net amount the seller receives and can influence price negotiations.
For individual sellers, withholding tax is calculated using a progressive formula based on the appraised value, the number of years of ownership, and a statutory deduction schedule. The effective rate varies widely - from roughly 1% to over 10% of the appraised value depending on holding period and value. For corporate sellers, the rate is a flat 1% of the higher of appraised or declared price.
These calculations are performed by Land Office officials at the point of transfer. Your Thai lawyer or licensed agent can produce a pre-transfer estimate based on the appraised value of your specific unit.
Annual Land and Building Tax during ownership
Once you own the condo, you pay Land and Building Tax annually. For residential property owned by individuals and used as a primary residence, the rate as of 2026 is 0.02% of the appraised value up to 50 million THB, rising in steps above that threshold. For residential property that is not your primary residence (a common situation for foreign buyers who live outside Thailand), the rate is 0.02% to 0.1% depending on appraised value band.
For most foreign-owned condos in the sub-10 million THB appraised range, annual Land and Building Tax is a modest four-figure THB amount. Verify the current rates with your local District Office (Ampur) or a Thai tax adviser, as the government has the authority to adjust these bands.
Common-area fees: the real recurring cost
The juristic-person fee (also called the common-area maintenance fee or CAM fee) is not a government tax - it is a fee paid to the condominium's management entity (the 'juristic person', a legal body established under the Condominium Act to manage shared areas). It is charged per square metre of your unit, typically monthly or quarterly.
In 2026, market rates range from roughly 30 THB to 120 THB per square metre per month, depending on location, building quality and facilities. For a 50 sqm unit in a mid-range Bangkok or Phuket project at 60 THB/sqm, this equals 3,000 THB per month or 36,000 THB per year.
At purchase, you also pay a sinking fund - a one-time capital contribution to the building's long-term repair and maintenance reserve. Typical sinking fund rates run from 400 THB to 700 THB per square metre, paid once at transfer.
Rental income tax for foreign owners
If you rent out your Thai condo and you are a non-resident (you spend fewer than 180 days per year in Thailand), rental income sourced in Thailand is subject to Thai Personal Income Tax at progressive rates ranging from 5% to 35%, after allowable deductions. The tax is withheld by the tenant or paid directly by you via self-assessment. A flat deduction of 30% of gross rental income is allowed under current rules as a deemed expense before you apply the progressive schedule.
Critically, most countries require you to declare foreign-sourced rental income in your home country as well. Thailand has double-taxation treaties (DTAs) with over 60 countries as of 2026. A DTA may give you credit for tax paid in Thailand against your home-country liability, but the mechanics differ by country. You must consult a tax adviser in your own country - this guide cannot and does not give country-specific tax advice.
Exit: withholding tax mechanics when you sell
When you eventually sell your condo, the same withholding tax framework that applied to your seller now applies to you. The Land Office deducts the withholding tax from your proceeds before you leave the building. You cannot avoid this deduction at source. You receive the net amount after the Land Office has made the calculation and collected the funds.
If SBT applies (you sell within 5 years), the seller pays 3.3% SBT instead of 0.5% stamp duty. Both SBT and stamp duty are in addition to withholding tax - they are separate line items collected at the same time.
Plan your holding period accordingly. Selling after 5 years eliminates SBT and reduces the total transaction cost on exit.
Worked numeric example
All figures below are indicative, based on a hypothetical condo unit in Chiang Mai or a secondary Bangkok location, and are dated as of 2026. Use them for planning only - your actual figures will depend on the government appraised value of your specific unit.
Scenario: You buy a resale condo for an agreed price of 5,000,000 THB. The government appraised value is 4,200,000 THB (a common situation where appraised value is below market price).
At purchase (indicative transaction costs):
- Transfer fee (2% of appraised value 4,200,000): 84,000 THB total
- Buyer pays (50% convention): 42,000 THB
- Seller pays (50% convention): 42,000 THB
- SBT at 3.3% (if seller owned under 5 years, calculated on 5,000,000 as declared price is higher): 165,000 THB - paid by seller
- Stamp duty: does not apply (SBT applies instead)
- Seller withholding tax: calculated by Land Office formula - estimate 50,000 to 100,000 THB depending on holding period - paid by seller
- Sinking fund (600 THB/sqm x 50 sqm): 30,000 THB - paid by buyer
- Total buyer's government fees at transfer: approximately 42,000 THB + 30,000 THB sinking fund = 72,000 THB (roughly 1.4% of purchase price)
- Total seller's costs at transfer: approximately 42,000 THB + 165,000 THB + 75,000 THB withholding tax (mid-estimate) = 282,000 THB (roughly 5.6% of purchase price)
Add your Thai lawyer's fee (typically 15,000 to 50,000 THB for a straightforward condo transaction) and any translation or due-diligence costs. These are not government fees but are real transaction costs.
Comparison table
| Cost item | Who pays (convention) | Rate or amount | Applies when |
|---|---|---|---|
| Transfer fee | Split 50/50 buyer and seller | 2% of appraised value | Every transfer |
| Specific Business Tax (SBT) | Seller | 3.3% of higher of appraised or sale price | Seller owned less than 5 years |
| Stamp duty | Seller | 0.5% of higher of appraised or sale price | Seller owned 5 years or more |
| Withholding tax | Seller (deducted at Land Office) | Progressive formula (individual) or 1% flat (company) | Every transfer |
| Sinking fund | Buyer (one-time at transfer) | 400 to 700 THB per sqm (indicative) | New or resale, on first transfer to you |
| Juristic-person (common-area) fee | Buyer (ongoing) | 30 to 120 THB per sqm per month (indicative) | Every month of ownership |
| Annual Land and Building Tax | Owner (you, annually) | 0.02% to 0.1% of appraised value (residential) | Every year of ownership |
| Rental income tax | Owner (you, as income arises) | 5% to 35% progressive after 30% deduction | When you earn rental income |
Risks and mistakes
Not reading the Sale and Purchase Agreement on cost allocation. Market convention is a starting point, not a legal rule. If the contract says the buyer pays all transfer fees and taxes, that is what governs. Read every clause before you sign.
Relying on the declared sale price to estimate fees. Transfer fee and SBT are calculated on whichever is higher - appraised value or declared price. Ask your lawyer to obtain the current appraised value of the unit from the Land Department before you finalise your budget.
Assuming the sinking fund is a minor cost. On a large unit in a high-quality building, the sinking fund can exceed 50,000 THB. Confirm the rate in the project's condominium regulations before signing.
Ignoring home-country tax obligations. Thai withholding tax deducted at the Land Office does not automatically discharge your tax obligations elsewhere. Declare income and gains according to your country's rules.
Treating verbal promises on fee-sharing as binding. Get every agreed cost-split in writing in the Sale and Purchase Agreement, with specific THB amounts or percentages where possible.
Not verifying the foreign quota. As a foreign national, you can own a freehold condo only if the building's foreign ownership quota - capped at 49% of total floor area under the Condominium Act - is not already full. Check quota availability before you transfer funds.
Not obtaining an FET letter for funds brought in from abroad. FET stands for Foreign Exchange Transaction. When a foreign buyer remits money from overseas to purchase a Thai condo, the receiving Thai bank must issue an FET letter (also called a Thor.Tor.3 or FET confirmation). This document proves the funds entered Thailand as foreign currency and is required at the Land Office to register title in a foreign buyer's name. Without it, the transfer cannot proceed.
FAQ
Who pays the transfer fee on a Thailand condo, buyer or seller?
By market convention, buyer and seller each pay half of the 2% transfer fee - 1% each. This is not required by law and can be negotiated differently. Confirm the split in your Sale and Purchase Agreement.
What is the transfer fee based on - the sale price or the appraised value?
The transfer fee is calculated on the government appraised value set by the Treasury Department, not on your agreed sale price. The appraised value is often lower than the market price, so your transfer fee may be smaller than you expect.
What is Specific Business Tax and does the buyer pay it?
Specific Business Tax (SBT) at 3.3% applies when the seller has owned the property for fewer than 5 years. It is legally the seller's liability. Some sellers negotiate to pass part of this cost to buyers, but this must be agreed in writing. SBT and stamp duty do not both apply - only one applies per transaction.
Can I negotiate the fee split with the seller?
Yes. All fee-splitting arrangements are negotiable before you sign. In a buyer's market, sellers sometimes agree to cover the full transfer fee. New developer projects sometimes advertise zero transfer fee promotions. Verify what is in the contract, not just in marketing materials.
Do I pay any tax when I rent out my condo?
Yes. Rental income from Thai property is subject to Thai Personal Income Tax for the owner, whether resident or non-resident. Non-residents are taxed on Thailand-sourced income. The progressive rates run from 5% to 35% after a deemed 30% expense deduction. You may also have obligations in your home country - consult a local tax adviser.
What happens at the Land Office on transfer day?
Both buyer and seller (or their authorised representatives with a notarised power of attorney) attend the Land Office. Officials calculate and collect all fees, taxes and withholding tax at that point. The buyer pays the transfer fee (buyer's share) and sinking fund advance. The seller pays the withholding tax, SBT or stamp duty, and seller's share of transfer fee. Title is registered in the buyer's name on the same day.
What is an FET letter and why does the buyer need it?
FET stands for Foreign Exchange Transaction. When you transfer money from abroad to a Thai bank account to fund your condo purchase, your receiving Thai bank issues an FET letter confirming the funds entered Thailand as foreign currency. The Land Office requires this letter to register a condo title in a foreign buyer's name. Without it, the transfer cannot proceed. Request it from your bank as soon as the funds arrive.
Is stamp duty the same as the transfer fee?
No. These are two separate charges. The transfer fee (2% of appraised value) applies to every transaction. Stamp duty (0.5%) is an additional tax paid by the seller - but only when SBT does not apply. You can think of it as: SBT or stamp duty (one or the other), plus the transfer fee, plus withholding tax.
Are there any annual taxes I need to pay as a foreign condo owner?
Yes. You pay the annual Land and Building Tax, calculated as a percentage of the government appraised value. For a residential condo not used as your primary residence, the rate in 2026 is between 0.02% and 0.1% depending on the appraised value band. On most sub-10 million THB units, this is a small annual amount. Verify current rates with a Thai tax adviser.
What is the sinking fund and do I pay it at every transfer?
The sinking fund is a one-time capital payment to the building's long-term maintenance reserve, collected when you first register ownership of a unit. If you buy a resale unit, the original buyer already paid the sinking fund to the developer; you may negotiate whether a top-up is required. Check the condominium's financial statements and regulations before you sign.
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