Thailand Property Taxes and Transfer Fees Before You Buy or Sell
Buying or selling property in Thailand involves more than agreeing on a sale price. At the Land Office, buyers and sellers may need to pay transfer registration fees, withholding tax, specific business tax, stamp duty, mortgage registration fees, lease registration fees, and other transaction-related costs.
The exact amount depends on the property type, seller type, official appraised value, declared sale price, holding period, mortgage amount, contract terms, and whether any temporary government fee reduction applies. For Bangkok condos, houses, land, commercial buildings, warehouses, factories, and investment properties, these costs should be checked before signing a reservation agreement or sale and purchase agreement.
Important: This guide is for general real estate planning only. Hero Realtor is a real estate agency, not a tax adviser, lawyer, accountant, bank, or government authority. Always confirm the final tax and fee calculation with the Department of Lands, the relevant Land Office, the Revenue Department, your lawyer, or a qualified tax professional before transferring money or signing binding documents.
Quick Summary of Property Transfer Costs in Thailand
| Cost | Typical rate or basis | Usually paid by | Important note |
|---|---|---|---|
| Transfer registration fee | Normally 2% of the official appraised value | Negotiable; often shared by buyer and seller | Temporary reductions may apply only to eligible transactions. |
| Mortgage registration fee | Normally 1% of the registered mortgage amount, subject to the applicable legal ceiling | Usually buyer or borrower | Check whether a current government reduction applies. |
| Withholding tax | Individual sellers: Land Office calculation using appraised value and holding period; company sellers: generally 1% of the higher of sale price or appraised value | Seller | This is collected at transfer and is different from the transfer fee. |
| Specific business tax | 3.3% of the higher of the declared sale price or official appraised value where applicable | Seller | Often applies to commercial or profit-seeking sales, company sales, developer sales, and many sales within five years. |
| Stamp duty | Generally 0.5% of the higher of the declared sale price or official appraised value | Seller | Stamp duty and specific business tax are normally not both charged on the same property sale. |
| Lease registration fee | Generally 1% registration fee plus 0.1% stamp duty on total rent and any lease premium where applicable | Negotiable | Leases longer than three years should be registered to be enforceable beyond three years. |
| Annual land and building tax | Depends on the use category, exemptions, and official appraised value | Owner or possessor assessed by the local authority | This is an annual ownership cost, not only a transfer-day cost. |
What Has Changed From Older Thailand Property Tax Advice?
Older Thailand property articles sometimes describe the system as having almost no annual property tax and a simple transfer-cost structure. That is no longer a complete description. Thailand now has an annual Land and Building Tax system, while transaction costs can vary depending on specific business tax, stamp duty, withholding tax, mortgage registration, the seller’s circumstances, and temporary government measures.
Buyers and sellers should review the official Department of Lands guidance on registration fees, taxes, and duties and use the calculation issued by the Land Office handling the transfer as the final authority.
Transfer Registration Fee
The standard transfer registration fee for a property sale is generally 2% of the official appraised value. In many resale transactions, the buyer and seller agree to share this fee equally, but a 50/50 split is not mandatory for every private transaction. The sale agreement should clearly state who pays the fee and whether the agreed purchase price includes or excludes Land Office costs.
For condominiums, houses, land, and commercial property, do not calculate the transaction using only the advertised or agreed selling price. Some fees use the official appraised value, while other taxes use the higher of the appraised value and declared sale price.
Temporary transfer and mortgage fee reductions
Thailand periodically introduces temporary reductions for qualifying residential transactions. The previous measure reduced qualifying transfer and mortgage registration fees to 0.01% for certain residential properties and condominium units where the sale price and official appraised value did not exceed THB 7 million. It applied only to qualifying Thai natural-person buyers and expired on 30 June 2026.
On 30 June 2026, the Cabinet approved a follow-on residential fee-reduction measure. However, the effective period, detailed conditions, eligible property types, buyer qualifications, price limits, and registration requirements must be confirmed under the implementing regulations and with the Land Office at the time of transfer. Review the current Royal Thai Government announcement on the 2026 residential fee-reduction measure and do not assume that a transaction automatically qualifies.
Mortgage Registration Fee
If the buyer finances the purchase through a Thai mortgage and registers the mortgage at the Land Office, a separate mortgage registration fee normally applies. It is generally calculated from the registered mortgage amount and is usually paid by the buyer or borrower.
The property transfer fee and mortgage registration fee are separate charges. Where a temporary reduction applies, the mortgage may need to be registered at the same time as the eligible transfer and may be subject to buyer nationality, property type, price, loan amount, and other conditions.
Withholding Tax on a Property Sale
Withholding tax is normally a seller-side cost collected at the Land Office. The calculation differs depending on whether the seller is an individual or a juristic person.
Individual seller
For an individual seller, withholding tax is generally calculated using the official appraised value, the number of years the property has been held, the statutory expense deduction for the holding period, and the applicable progressive personal income tax rates.
Two sellers transferring properties at the same price can therefore pay different withholding tax if they acquired the properties in different years or under different circumstances.
Company or juristic-person seller
For a company or registered juristic person, withholding tax is generally 1% of the higher of the declared sale price or official appraised value.
Sellers should request a Land Office estimate before accepting a net-price offer, particularly for high-value property, inherited property, company-owned property, or property held for a short period.
Specific Business Tax
Specific Business Tax, commonly called SBT, applies to certain transfers of immovable property made in a commercial or profit-seeking manner. Where it applies, the combined rate is generally 3.3% of the higher of the declared sale price or official appraised value.
Situations where SBT commonly applies
- The seller is a property developer or business operator selling real estate.
- The seller is a company or juristic person holding or selling the property as part of its business.
- The property is sold within five years of acquisition and no statutory exception applies.
- The property was developed, subdivided, or marketed in a manner indicating a commercial or profit-seeking sale.
Situations where an exception may apply
- The property has been held for more than five years and the transaction does not otherwise meet the commercial-sale criteria.
- The property was acquired by inheritance.
- The seller used the property as a principal residence and met the required house-registration conditions.
- The transaction falls within another statutory exemption.
Because SBT can be substantially higher than stamp duty, the seller should confirm the expected tax treatment before agreeing to a net selling price.
Stamp Duty
Stamp duty is generally relevant when a property sale is not subject to specific business tax. It is normally charged at 0.5% of the higher of the declared sale price or official appraised value.
Specific business tax and stamp duty are generally mutually exclusive for the same sale. The final classification depends on the seller, holding period, property history, house-registration status, and other transaction facts.
Lease Registration Fees
For buyers or tenants using a long-term lease instead of freehold ownership, registration expenses should also be included in the budget. A lease of immovable property for more than three years must generally be made in writing and registered with the competent official to be enforceable beyond three years.
The general registration fee is 1% and stamp duty is generally 0.1%, calculated from the total rent over the registered lease term and any lease premium or key money where applicable.
This is particularly important for long residential leases, villa leases, land leases, commercial leases, office leases, warehouse leases, and factory leases.
Annual Land and Building Tax
Annual Land and Building Tax is not a transfer-day fee, but it remains an important ownership cost. It applies to land, buildings, and condominium units and is assessed according to the property’s actual use, official appraised value, and available exemptions.
Common categories include residential, agricultural, commercial or industrial use, and vacant or unused property. Bangkok owners can review the Bangkok Metropolitan Administration Land and Building Tax information and check official appraised values through the Treasury Department property valuation system.
Before purchasing land, a warehouse, factory, commercial building, shophouse, house, or investment condominium, ask whether any annual tax remains unpaid and how the current tax year will be allocated between buyer and seller.
Who Normally Pays Each Cost?
| Cost | Common commercial practice | What the contract should state |
|---|---|---|
| Transfer fee | Often shared equally, but negotiable | State the exact percentage or amount paid by each party. |
| Withholding tax | Usually seller | State that the seller is responsible unless expressly agreed otherwise. |
| Specific business tax or stamp duty | Usually seller | State who bears the tax and any reassessment. |
| Mortgage registration fee | Usually buyer or borrower | Confirm buyer responsibility when financing is used. |
| Legal fees | Each party normally pays its own adviser | State any agreed contribution to the other party’s legal costs. |
| Agent commission | Depends on the agency agreement | State the payer, rate, VAT treatment, and payment trigger. |
| Outstanding common fees or annual property tax | Normally cleared by the seller before transfer | Require evidence that pre-transfer liabilities have been settled. |
Costs Buyers Should Budget For
- Reservation deposit: Confirm whether it is refundable if due diligence, finance, foreign quota, or transfer conditions fail.
- Transfer-fee share: State the agreed allocation clearly in the contract.
- Mortgage registration fee: Applies if the buyer registers a mortgage.
- Bank costs: These may include valuation, loan processing, insurance, legal documentation, and cashier’s cheque fees.
- Legal due diligence: Strongly recommended for foreign buyers, company buyers, land, commercial property, and high-value transactions.
- Condominium juristic-person costs: Check common fees, sinking fund, debt-free documentation, renovation deposits, and move-in requirements.
- Future ownership costs: Include annual land and building tax, common fees, insurance, maintenance, and tax on rental income where applicable.
Costs Sellers Should Budget For
- Withholding tax: Calculated at the Land Office according to the seller type and official rules.
- Specific business tax or stamp duty: Confirm which one applies before accepting an offer.
- Transfer-fee share: Include any part the seller agrees to pay.
- Outstanding common fees: Condominium sellers normally need to obtain a debt-free certificate.
- Mortgage discharge: Coordinate bank release documents and timing if the property is mortgaged.
- Agent commission: Confirm the commission rate, VAT, payment date, and payment trigger.
- Repair or handover costs: Include any work agreed in the sale contract.
Special Notes for Foreign Condominium Buyers
For foreigners purchasing a freehold condominium, taxes and transfer fees are only part of the process. The condominium must have available foreign ownership quota, and the condominium juristic person must issue the required foreign proportion confirmation and debt-free documents.
The buyer should also confirm the bank documentation required for the foreign-currency remittance before transferring funds. Incorrect or incomplete remittance evidence can delay or prevent a foreign freehold transfer.
Before paying a non-refundable deposit, confirm:
- The unit can legally be transferred under the foreign ownership quota.
- The seller can provide the condominium title and identification documents.
- The juristic person can issue the foreign quota confirmation and debt-free certificate.
- The receiving bank can issue the required foreign-exchange documentation.
- The contract explains what happens if the quota, finance, due diligence, or transfer documentation fails.
Example: Why Specific Business Tax and Stamp Duty Matter
Assume a resale condominium is transferred for THB 10 million and its official appraised value is also THB 10 million. If specific business tax applies, the SBT may be approximately THB 330,000 before withholding tax and transfer-fee sharing. If SBT does not apply and stamp duty applies instead, the stamp duty may be approximately THB 50,000.
This simplified example does not include withholding tax, mortgage fees, legal expenses, agent commission, annual ownership costs, or temporary fee reductions. It illustrates why the seller’s holding period and tax classification can materially affect the net proceeds.
Documents to Request Before Signing
- Copy of the title deed or condominium title deed
- Seller identification or company-registration documents
- Power of attorney if a party will not attend the Land Office personally
- Official appraised value or preliminary Land Office estimate
- Expected tax and registration-fee calculation
- Condominium foreign quota confirmation and debt-free certificate where applicable
- Evidence of common fees, sinking fund, utilities, and other outstanding payments
- Mortgage-release documents if the property is mortgaged
- Annual land and building tax payment evidence where applicable
- A written agreement stating who pays each fee, tax, and outstanding liability
Common Mistakes to Avoid
- Assuming the 2% transfer fee is the only government cost.
- Forgetting that SBT and stamp duty depend on the seller and transaction circumstances.
- Using only the selling price and ignoring the official appraised value.
- Assuming the parties must always divide all costs equally.
- Assuming that an expired or newly announced fee-reduction measure automatically applies.
- Paying a deposit before confirming foreign quota, financing, due diligence, and transfer documents.
- Ignoring annual land and building tax after the purchase.
- Failing to allocate unpaid common fees, local taxes, and reassessed costs in the sale agreement.
Frequently Asked Questions
Is the property transfer fee in Thailand always 2%?
The standard rate is generally 2% of the official appraised value. A temporary reduction may apply only where the transaction satisfies all current legal conditions and the Land Office confirms eligibility.
Who normally pays the transfer fee?
Many resale transactions divide the fee between buyer and seller, but the allocation is negotiable. The sale agreement should state the agreed split.
Does the seller pay both specific business tax and stamp duty?
Normally no. If specific business tax applies, stamp duty is generally not collected for the same property sale. If SBT does not apply, stamp duty may apply instead.
Is withholding tax the same as capital gains tax?
Thailand collects withholding income tax at the Land Office when property is transferred. The calculation differs between individual and juristic-person sellers and should not be treated as a simple flat capital-gains tax.
Do foreign buyers pay different transfer taxes?
The principal Land Office fees and taxes normally depend on the transaction, seller type, property value, and applicable rules rather than nationality alone. However, foreign condominium buyers have additional foreign-quota and remittance-document requirements.
Is there an annual property tax in Thailand?
Yes. Thailand has an annual Land and Building Tax. The amount depends on property use, appraised value, exemptions, and the local authority’s assessment.
Final Advice Before Buying or Selling
Before buying or selling property in Thailand, calculate the full transaction cost rather than focusing only on the advertised price. Buyers should budget for transfer-fee sharing, mortgage registration, legal checks, banking costs, condominium charges, and future ownership expenses. Sellers should estimate withholding tax, specific business tax or stamp duty, transfer-fee sharing, mortgage discharge, outstanding expenses, and agent commission before agreeing to a net selling price.
Hero Realtor can help buyers and sellers compare Bangkok condominiums, houses, land, commercial buildings, office spaces, warehouses, and factories. Final tax, fee, legal, financing, and transfer requirements should always be confirmed with the relevant authority and qualified professionals.
To discuss buying or selling property in Bangkok, please contact Hero Realtor through our contact page.
