Thailand property taxes & transfer fees.
A buyer’s cost guide for 2026.

Thailand's transaction taxes are not difficult, but they are routinely misquoted. Buyers receive different numbers from different agents, different developers and different lawyers. This article exists so you arrive at the Land Office knowing exactly what you will pay, who pays it and when.

A first-time foreign buyer in Bangkok budgets two percent for transaction costs based on a friend's anecdote. On the day of transfer she discovers a different cost structure, a different allocation between buyer and seller, and a withholding obligation she did not know existed. Nothing was hidden. She simply was not given a single, honest cost map. This article is that map.

Every Thai property transaction involves up to four items: the Land Department transfer fee, Specific Business Tax or stamp duty, withholding tax on sale and the annual land and building tax. For cashflow investors, add personal income tax on rental income. Once you understand the four, you can model any deal in minutes.

A 30 to 90 basis point difference between assumed and actual transaction cost can swing your net yield meaningfully over a five-year hold. Pricing this correctly at the modelling stage is part of investment hygiene, not paperwork.

• Each tax explained in plain English.
• Who customarily pays which line.
• How the five-year SBT threshold affects exit timing.
• How rental income tax interacts with structure choice.

Use the cost table to update your underwriting template before you make your next offer. What this means for you. Accurate cost modelling is one of the few free sources of alpha in property investment.

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.

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.

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.

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.

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.

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?.