Thailand · Legal & Tax
Thailand property taxes & transfer fees.
A buyer’s cost guide for 2026.
The four taxes and fees every foreign buyer should understand before transacting Thai property: the Land Department transfer fee, Specific Business Tax or stamp duty, withholding tax on sale, and the annual land and building tax. Plus rental income tax for cashflow investors.
01 The Thailand Property Taxes & Transfer Fees Thesis
Why thailand property taxes & transfer fees merits institutional attention.
- 01
Four Headline Charges
Transfer fee, SBT or stamp duty, withholding tax and the annual land & building tax — these are the four costs every buyer should model.
- 02
Hold-Period Matters
Specific Business Tax (3.3%) only applies if the seller holds for under five years. Cross the five-year line and stamp duty of 0.5% applies instead.
- 03
After-Tax Yield Is the Real Yield
Always model net-of-tax cashflow. Rental income is progressive PIT; hotel-managed programmes may settle net of withholding.
- 04
Closing-Cost Split
Transfer fee splits are negotiated, not automatic. The SPA should specify exactly who pays which line item.
Thailand Property Taxes & Transfer Fees · Market Signals
Of appraised value, payable at the Land Department on registration.
Sales within 5 years of acquisition (inclusive of municipal surcharge).
Replaces SBT when held for more than 5 years.
Low-rate annual holding tax on residential property.
Charge 1 · Transfer Fee
Land Department transfer fee.
Land Department transfer fee.
The statutory transfer fee is 2% of the appraised value of the property, payable to the Land Department at registration of the transfer. Appraised value is set by the government and is generally below market price.
Market practice varies on who pays. The most common arrangements are: 50/50 split, seller pays in full, or buyer pays in full. The split must be explicit in the Sale and Purchase Agreement (SPA) — Land Department staff do not enforce a default.
This article is general information, not tax advice. Thai tax rates, exemptions and Land Department practice can change; always confirm current rates with a licensed Thai tax adviser and conveyancer before transacting.
Charge 2 · SBT or Stamp Duty
Specific Business Tax or stamp duty.
Specific Business Tax or stamp duty.
If the seller has held the property for less than five years, Specific Business Tax of 3.3% applies (3.0% SBT plus 0.3% municipal tax) on the higher of appraised value or actual sale price. SBT is a seller-side tax.
If the seller has held for more than five years, or the property has been registered as a primary residence, SBT does not apply and stamp duty of 0.5% applies instead.
This is one of the largest cost variables in a Thai resale and a meaningful planning point for exit timing — see the Exit Strategies for Foreign Investors cornerstone.
Charge 3 · Withholding Tax on Sale
Withholding tax on sale.
Withholding tax on sale.
On a sale, withholding tax is calculated at the Land Department using a statutory formula. For an individual seller, the calculation is based on appraised value and length of ownership and is then assessed against the progressive Thai personal income tax rates. For a juristic (company) seller, the withholding rate is 1% of the higher of appraised value or sale price.
The buyer typically withholds and remits this amount to the Land Department at registration. The seller can later reconcile through their Thai personal or corporate tax filing.
This article is general information, not tax advice. Thai tax rates, exemptions and Land Department practice can change; always confirm current rates with a licensed Thai tax adviser and conveyancer before transacting.
Charge 4 · Annual Land & Building Tax
Annual land and building tax.
Annual land and building tax.
The Land and Buildings Tax Act introduced a tiered annual holding tax on real estate. For residential property the rates are low — typically a small fraction of a percent of appraised value — with exemptions or reductions for primary residences and lower-value properties.
Investment properties and second homes are taxed on the standard residential schedule. Confirm the current bracketed rate with a licensed Thai tax adviser before underwriting; the schedule is subject to periodic adjustment.
Charge 5 · Rental Income Tax
Rental income tax for foreign owners.
Rental income tax for foreign owners.
Rental income earned by an individual owner is subject to Thai personal income tax on a progressive scale, after permitted expense deductions. Owners can elect either a standard deduction (typically 30%) or actual documented expenses, whichever produces the better outcome.
Hotel-managed and resort programmes frequently distribute returns net of withholding. Always underwrite the after-tax yield — this is the figure modelled in the net yield underwriting method.
Section 6 · Buyer Cost Model
Total transaction cost model.
Total transaction cost model.
A working transaction-cost model for a typical Thai property purchase includes:
- Transfer fee — 2% of appraised value (negotiated split).
- Stamp duty (if held >5 years on sale) — 0.5%.
- SBT (if held <5 years on sale) — 3.3%.
- Withholding tax — formula-based.
- Legal & due diligence — typically THB 80,000–250,000 depending on complexity.
- Sinking fund & common-area charges (condos) — one-off and annual.
- Foreign exchange remittance — required for foreign freehold condo registration under the Condominium Act.
For the wider foreign-buyer framework see Foreign Ownership Thailand and Can Foreigners Buy Property in Thailand?.
Investor Questions
Thailand Property Taxes & Transfer Fees, frequently asked questions.
Q01What is the standard property transfer fee in Thailand?
The statutory transfer fee at the Land Department is 2% of the appraised value of the property. It is commonly negotiated and frequently split 50/50 between buyer and seller, although market practice varies by project and developer. Always confirm split arrangements in the sale and purchase agreement.
Q02When does Specific Business Tax (SBT) apply on a Thai property sale?
Specific Business Tax of 3.3% (inclusive of municipal tax) applies to the seller when a property is sold within five years of acquisition. If held for more than five years (or used as a registered primary residence), SBT does not apply and stamp duty of 0.5% applies instead.
Q03What is the annual land and building tax in Thailand?
Under the Land and Buildings Tax Act, residential property is taxed annually on a tiered basis. Rates are low — typically a small fraction of a percent of appraised value — and exemptions or reductions apply for primary residences and lower-value properties. Investment and second-home properties are taxed at the standard residential schedule.
Q04How is rental income taxed for foreign property owners in Thailand?
Rental income is subject to Thai personal income tax on a progressive scale, after permitted expense deductions (typically a 30% standard deduction or actual documented expenses). Hotel-managed and resort programmes may pay rental returns net of withholding; investors should always model the after-tax yield, not the gross.
Q05What withholding tax applies when a foreign owner sells Thai property?
On sale, withholding tax is computed at the Land Department using a statutory formula based on appraised value and length of ownership. For an individual seller it is calculated against the progressive personal income tax rates. The buyer typically withholds and remits this amount at the time of transfer.
Reader Q&A
Investor Questions & Answers
Ask a question about Thailand Property Taxes & Transfer Fees. Approved questions are published below with Core Investments’ response.
Loading questions…
Ask a question
Questions are reviewed before publication. Your email is never shown publicly.
Sources & References
Where this research draws its data (3)
Sources & References
Where this research draws its data (3)
Core Investments cites only published institutional sources. Figures referenced on this page are drawn from, or cross-checked against, the institutions listed below. For our editorial standards and source-vetting process, see our research methodology.
- [1]
Real Estate Information Center (REIC), Government Housing Bank
Thailand Housing Market Reports. Transfers, Supply & Foreign Condominium Transfers · 2024
https://www.reic.or.th/ → - [2]
Bank of Thailand
Monetary Policy Report · 2024
https://www.bot.or.th/en/our-roles/monetary-policy/MPC-publication.html → - [3]
Sources last reviewed 2026-06-14
Disclosures
Important information (1)
Disclosures
Important information (1)
Legal ownership disclaimer
Property ownership structures, regulations and legal frameworks may change over time. Investors should obtain independent legal advice regarding ownership structures, taxation, residency implications and regulatory compliance before proceeding with any transaction.
Share this research
Direct Access
Speak with Frank about thailand property taxes & transfer fees.
Request a confidential Thai property cost briefing — full transaction cost model, hold-period scenarios, and after-tax yield underwriting for your specific investment.
- Frank Satar
- Chief Founder & Research Director
- Australia
- +61 494 651 747
- Thailand / WhatsApp
- +66 65 551 3269
© Core Investments Research | Frank Satar
Research produced by Core Investments. Reproduction or redistribution without written permission is prohibited.