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 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 the reservation agreement or sale and purchase agreement.

 

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 based on the registered mortgage amount	Usually buyer or borrower	Check whether a current government reduction applies to your transaction.
Withholding tax	Individual sellers: Land Office calculation using appraised value and holding period; company sellers: usually 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 sale price or official appraised value where applicable	Seller	Often applies to commercial/profit-seeking sales, developer sales, company sales, and many sales within five years.
Stamp duty	0.5% equivalent, generally charged when specific business tax does not apply	Seller	Stamp duty and specific business tax are normally not both charged on the same sale.
Lease registration fee	1% registration fee plus 0.1% stamp duty for qualifying registered long leases	Negotiable	Leases longer than 3 years should be registered to be enforceable beyond 3 years.
Annual land and building tax	Depends on use category and official appraised value	Owner or possessor as assessed by local authority	This is an annual ownership cost, not only a sale-day cost.

What Changed From Older Property Tax Advice?

Older Thailand property articles often describe the system as having almost no annual property tax and a simple flat transfer structure. That is no longer a complete picture. Thailand now has an annual Land and Building Tax system, and the actual transaction cost can vary depending on whether the sale triggers specific business tax, stamp duty, withholding tax, mortgage registration, or temporary government fee relief.

 

For transfer planning, buyers and sellers should check the official Department of Lands fee, tax, and duty guidance and use the Land Office calculation 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, buyer and seller agree to split this cost equally, but the law does not force every private contract to use a 50/50 split. The sale agreement should clearly state who pays the transfer fee and whether the agreed price is inclusive or exclusive of Land Office costs.

 

For condominiums, houses, land, and commercial property, do not rely only on the advertised price. Ask for the official appraised value because some Land Office fees and taxes use the appraised value, while others use the higher of appraised value and declared sale price.

Temporary transfer-fee reductions

Thailand sometimes announces temporary fee reductions for eligible transactions. For example, a government announcement reported that from 22 April 2025 to 30 June 2026, certain residential property and condominium transfers with both sale price and official appraised value not exceeding THB 7 million may qualify for a reduced transfer fee and mortgage registration fee of 0.01%, but only for qualifying Thai natural-person buyers and qualifying transactions.

 

This type of measure is temporary and condition-based. Foreign buyers, company buyers, commercial transactions, higher-value properties, and transactions outside the announced period may not qualify. Always ask the Land Office to confirm current eligibility before budgeting.

Mortgage Registration Fee

If the buyer finances the purchase with a Thai mortgage and registers the mortgage at the Land Office, a mortgage registration fee normally applies based on the registered mortgage amount. In practice, this cost is usually paid by the buyer or borrower because it relates to the buyer’s loan.

 

When budgeting, buyers should separate the property transfer fee from the mortgage registration fee. They are different charges. If a temporary government reduction applies, the reduced mortgage fee may require the mortgage to be registered at the same time as the transfer and may be subject to buyer, price, property, and loan-value conditions.

Withholding Tax on Property Sale

Withholding tax is one of the most misunderstood costs in a Thai property sale. It is usually a seller-side cost collected at the Land Office, but the calculation differs depending on whether the seller is an individual or a juristic person.

Individual seller

For an individual seller, the Land Office calculation generally uses the official appraised value, the number of years the property has been held, and a statutory expense deduction percentage based on the holding period. The result is then calculated using progressive personal income tax rates.

 

This is why two sellers selling at the same price may pay different withholding tax if they bought the property in different years or have different ownership histories.

Company seller

For a company or registered juristic person selling property, withholding tax is generally calculated at 1% of the higher of the declared sale price or official appraised value.

 

Because withholding tax can materially affect the seller’s net proceeds, sellers should request a Land Office estimate before accepting an offer, especially 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 sales of immovable property made in a commercial or profit-seeking manner. The Department of Lands guidance identifies several situations where a property sale can be treated as subject to SBT, including developer sales, sales of property held by juristic persons for business purposes, and sales made within five years of acquisition unless an exception applies.

 

Where SBT applies, the rate is generally 3.3% of the higher of the official appraised value or the declared sale price. This includes the local tax component.

Common cases where SBT may apply

• The seller is a developer or business operator selling real estate.
• The seller is a company or juristic person holding the property as part of its business.
• The property is sold within five years of acquisition.
• The property was developed, divided, or marketed in a way that indicates commercial or profit-seeking sale.

Common cases where SBT may not apply

• The property is sold after more than five years of ownership and does not otherwise fall under commercial/profit-seeking criteria.
• The property was acquired by inheritance.
• The seller used the property as a principal residence and had their name in the house registration for the required period, subject to the official rules.
• The transfer falls within another official exemption category.

Because SBT can be much higher than stamp duty, sellers should check this point before setting the net selling price.

Stamp Duty

Stamp duty is normally relevant when a property sale is not subject to specific business tax. In many normal resale situations where SBT does not apply, stamp duty is charged at the equivalent of 0.5%.

 

Stamp duty and SBT are normally mutually exclusive for a property sale. If SBT is charged, stamp duty is generally exempt for that transaction. Sellers should still confirm the final position with the Land Office because the actual classification depends on the seller, property history, and transaction facts.

Lease Registration Fees

For buyers or tenants using a long lease instead of freehold ownership, lease registration costs should also be considered. Under Department of Lands guidance, a lease longer than 3 years should be made in writing and registered with the competent official; otherwise, enforcement is generally limited to 3 years.

 

For a registered lease, the official guidance lists a lease registration fee of 1% and lease stamp duty of 0.1%, calculated from rent over the lease term and any lease premium or key money where applicable.

 

This is especially 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 is still important for buyers and investors. The tax is collected by local authorities and applies to land, buildings, and condominium units based on use category and official appraised value.

 

Common use categories include residential use, agricultural use, other use such as commercial or industrial use, and vacant or unused property. Bangkok property owners can review the Bangkok Metropolitan Administration’s Land and Building Tax information page and check official appraised values through the Treasury Department valuation system.

 

Before buying land, a warehouse, a commercial building, a factory, a shophouse, or an investment condo, ask whether any land and building tax is unpaid and how the current year’s tax will be allocated between buyer and seller.

Who Pays Which Fees: Buyer or Seller?

In Thailand, the legal taxpayer and the commercial payment agreement are not always the same. Some costs are legally seller-side taxes, while others are negotiated in the contract.

 

Cost	Common commercial practice	What to write in the contract
Transfer fee	Often split 50/50, but negotiable	State the exact split and whether a temporary reduction changes the agreed payment.
Withholding tax	Usually seller	State that seller is responsible unless parties agree otherwise.
SBT or stamp duty	Usually seller	Confirm whether SBT or stamp duty is expected and who pays any reassessment.
Mortgage registration fee	Usually buyer or borrower	Confirm buyer responsibility if buyer uses financing.
Legal fees	Each party usually pays their own adviser	State if one party agrees to contribute to the other party’s legal cost.
Agent commission	Depends on agency agreement	State commission payer, amount, VAT if any, and payment trigger.
Outstanding common fees or land tax	Usually cleared before transfer	State seller obligation to clear pre-transfer liabilities and provide evidence.

Costs Buyers Should Budget For

• Reservation deposit: Confirm whether it is refundable if due diligence, financing, foreign quota, or transfer conditions fail.
• Transfer fee share: Often negotiated as 50/50, but the contract should be clear.
• Mortgage registration fee: Applies if the buyer registers a mortgage.
• Bank costs: Valuation fee, loan processing fee, insurance, bank legal fee, and cashier’s cheque fee may apply.
• Legal due diligence: Strongly recommended for purchases, foreign buyers, company buyers, land, commercial property, or high-value transactions.
• Condo juristic person fees: Check common area fees, sinking fund, debt-free certificate fee, renovation deposit, and move-in rules.
• Annual ownership costs: Land and building tax, common fees, insurance, maintenance, and rental-income tax if the property is rented out.

Costs Sellers Should Budget For

• Withholding tax: Calculated at the Land Office based on seller type and official rules.
• SBT or stamp duty: Check which one applies before accepting an offer.
• Transfer fee share: If the seller agrees to split or pay the transfer fee.
• Outstanding common fees: Condo sellers usually need a debt-free certificate from the condominium juristic person.
• Mortgage discharge: If the property is mortgaged, coordinate bank release documents and timing before transfer.
• Agent commission: Confirm the commission rate, VAT if any, and payment trigger in the agency agreement.
• Repairs or handover costs: If agreed in the sale contract.

Special Notes for Foreign Condo Buyers

For foreign buyers purchasing a freehold condominium in Thailand, taxes and transfer fees are only one part of the transfer process. The building must have available foreign ownership quota, and the condominium juristic person must issue a foreign proportion confirmation letter for the Department of Lands transfer process.

 

Foreign buyers should also confirm the required bank documentation for foreign currency remittance before sending money. A late or incorrect remittance document can delay or block a freehold condominium transfer even when the buyer has enough funds.

Before paying a non-refundable deposit, confirm:

• The unit is legally available under foreign quota.
• The seller can provide condominium title documents.
• The juristic person can issue the required foreign quota and debt-free documents.
• Your bank can issue the required foreign exchange documentation.
• The contract clearly states what happens if foreign quota or transfer documentation fails.

Example: Why SBT vs Stamp Duty Matters

Assume a resale condo is transferred at THB 10 million and the official appraised value is also THB 10 million. If SBT applies, the SBT alone may be around THB 330,000 before withholding tax and transfer fee sharing. If SBT does not apply and stamp duty applies instead, stamp duty may be around THB 50,000.

 

This example is simplified and does not calculate withholding tax, mortgage fee, legal fees, agent commission, or any temporary fee reduction. The point is that the seller’s ownership history and tax classification can materially change the net result.

Documents to Request Before Signing

• Copy of title deed or condominium title deed
• Seller identification or company registration documents
• Power of attorney, if any party will not attend the Land Office personally
• Official appraised value or Land Office estimate
• Expected Land Office tax and fee calculation
• Condo debt-free certificate and foreign quota letter where applicable
• Evidence of common area fee, sinking fund, and utility payment status
• Mortgage release documents if the property is mortgaged
• Land and building tax payment evidence for land, house, commercial, or investment property
• Clear written agreement on who pays each fee and tax

Common Mistakes to Avoid

• Assuming the transfer fee is always the only government cost.
• Forgetting that SBT and stamp duty depend on the seller and transaction facts.
• Using the sale price only and ignoring the official appraised value.
• Assuming the buyer and seller must always split costs 50/50.
• Not checking whether a temporary government fee reduction actually applies.
• Paying a deposit before confirming foreign quota, mortgage approval, or Land Office documents.
• Ignoring annual land and building tax after purchase.
• Not stating in the contract who pays unpaid common fees, land tax, or reassessed transfer costs.

Frequently Asked Questions

Is the Thailand property transfer fee always 2%?

The standard transfer registration fee is generally 2% of the official appraised value, but temporary reductions may apply to eligible transactions. Always check current Land Office rules before transfer.

Who normally pays the transfer fee in Thailand?

In many resale transactions, buyer and seller split the transfer fee, but this is negotiable. The sale contract should state the agreed split clearly.

Do sellers pay both specific business tax and stamp duty?

Usually no. If specific business tax applies, stamp duty is generally exempt for that transaction. 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. For individual sellers, the calculation uses the official rules based on appraised value and holding period. For company sellers, withholding tax is generally 1% of the higher of sale price or appraised value.

Do foreigners pay different transfer taxes when buying a condo?

The main Land Office fees and taxes are generally linked to the transaction, seller type, property value, and tax rules rather than nationality alone. However, foreign buyers must also satisfy foreign condominium ownership and fund-remittance documentation requirements.

Is there annual property tax in Thailand?

Yes. Thailand has annual Land and Building Tax. The amount depends on property use, official appraised value, exemptions, and local assessment.

Final Advice Before Buying or Selling

Before buying or selling property in Thailand, calculate the full transaction cost, not only the advertised price. Buyers should budget for transfer fee sharing, mortgage registration, legal checks, bank fees, common fees, and future ownership costs. Sellers should estimate withholding tax, SBT or stamp duty, transfer fee sharing, mortgage release, outstanding fees, and agent commission before agreeing to a net selling price.

 

Hero Realtor can help buyers and sellers compare Bangkok condos, houses, land, commercial buildings, offices, warehouses, and investment properties. For final tax, fee, and legal confirmation, always check with the Land Office, Revenue Department, lawyer, bank, and qualified tax adviser before transfer.

 

To discuss buying or selling property in Bangkok, please contact Hero Realtor through our contact page.