Taxes and Fees When Buying Property in Thailand: Transfer Fee, Stamp Duty and Holding Costs

What's Mainly Due on Transfer Day

• Transfer fee: typically 2% of the appraised value, paid at the Land Office on registration — the biggest single item
• Stamp duty: about 0.5%, charged as an alternative to SBT below, not on top of it
• Specific business tax (SBT): about 3.3%, charged when the seller resells having held under 5 years (or not meeting the registered-residence condition); when SBT applies, stamp duty is not also charged
• Withholding tax: an individual seller pays on a progressive basis, a company at a fixed rate, withheld by the Land Office

Note: the tax base is usually the Land Office appraised value or the sale price, whichever is higher — subject to the Land Office.

Who Pays and How It's Split

• Set by contract: the law doesn't force who bears which item; buyer and seller state the split in the contract
• Common practice: the transfer fee is often split 50/50, while SBT and withholding tax usually fall on the seller — but the contract governs
• Off-plan from a developer: the developer may require the buyer to bear all or part of the transfer fee — check before signing
• Clarify who pays before the deposit: this directly affects your true total cost — don't discover extra costs on transfer day

Holding Costs After You Buy

• Common area (management) fee: condos charge per square metre of built area per month, varying with the project's tier
• Sinking fund: usually a one-off at handover, for major common-area maintenance
• Land and building tax: Thailand levies an annual tax on land and buildings by use and appraised value — own-use, rental and vacant differ; rates are low but note them
• Utilities: paid on use; for rentals, factor in vacancy costs

Taxes When You Later Sell

• The transfer taxes run again: selling also involves the transfer fee, stamp duty or SBT, and withholding tax
• Holding 5+ years saves more: reselling after 5 years (or meeting the registered-residence condition) applies stamp duty instead of the 3.3% SBT — a lower cost
• Repatriating funds: a foreign seller's proceeds must be remitted out compliantly — keep the original FET and transaction records to ease the outflow

A Simple Way to Total It Up

• Purchase budget = price + your share of transfer taxes + legal fees + furniture/fit-out (if needed)
• Holding cost = management fee + sinking fund + property tax + utilities (+ management and vacancy if renting)
• Exit cost = transfer taxes on sale + withholding tax; longer holding saves on some of it
• Factor all of these into returns — don't look at gross rent alone; pair with the mortgage guide for the maths

FAQ

How much tax and fees do I pay buying property in Thailand?

There's no single figure — it depends on the 5-year holding point and the contract split. The core transfer-day items are: transfer fee about 2% of appraised value, stamp duty 0.5% or (if the seller has held under 5 years) SBT about 3.3% (the two don't stack), plus the seller's withholding tax. Roughly, total transaction taxes usually come to a few percent of the deal, set by the tax base (appraised or sale price, whichever higher) and the split. There are also legal fees and, during ownership, management fees, sinking fund and property tax. Clarify the fee list and split before the deposit; exact amounts are subject to the Land Department and Revenue Department's current rules.

Does the buyer or seller pay the transfer fee and taxes?

It's agreed in the contract — the law doesn't force who bears which item. In practice the transfer fee is often split 50/50, while SBT and withholding tax usually fall on the seller, but that's just convention and the contract governs. When buying off-plan from a developer, the developer may require the buyer to bear all or part of the transfer fee. So before paying a deposit, get "who pays each item" written into or clarified in the contract — it directly affects your true total cost and avoids discovering extra costs on transfer day. Subject to the contract and Land Department rules.

What annual costs come with owning Thai property?

Four main types: first, the common area (management) fee, charged per square metre per month on condos, higher for premium projects; second, the sinking fund, usually a one-off at handover for major common maintenance; third, the land and building tax, an annual tax by use and appraised value (own-use, rental and vacant differ; overall low); fourth, utilities. If you rent it out, add management costs and vacancy. Include all of these when working out investment returns — don't look at gross rent alone. Rates are subject to Thailand's tax authorities' current rules.

Need Help?

TaiHuBang offers cost estimation and compliant support for Thai property transactions: a transfer-tax list and split consultation, holding-cost estimates, guidance on sale taxes and repatriating funds, and accountant and lawyer referral. We only provide consulting and process support, with professional tax conclusions verified against the Revenue Department, Land Department and a licensed accountant; this article is not investment or tax advice. See tax services and legal consulting, or submit an enquiry and an advisor will reply within 24 hours.