What it really costs to own a condo in Thailand
Updated · ZODIAC Co., Ltd.
Beyond the purchase price, a Thai condominium owner pays a one-off sinking fund contribution at handover, monthly common area fees based on unit size, a small annual land and building tax, utilities, insurance and, if the unit is let, management and income tax. In most Phuket buildings the common area fee is the largest recurring item, so ask for the building's actual fee schedule before you buy.
One-off costs at handover
When a new condominium is transferred, the buyer usually pays several items on top of the price. The exact list is in the sale agreement and the building's regulations, and it is worth reading both before you sign rather than at the Land Office.
The largest one-off item for new buildings is the sinking fund, a reserve for major repairs and replacements, charged once per square metre of unit area. Developers also commonly collect six or twelve months of common area fees in advance, together with meter deposits for electricity and water. Government transfer charges, discussed in our taxes guide, are shared according to the contract.
- Sinking fund: a one-off contribution per square metre, set by the developer.
- Common area fees paid in advance, often for 6 to 12 months.
- Electricity and water meter deposits and connection charges.
- Your share of transfer fee, specific business tax or stamp duty, as agreed.
- Legal fees for due diligence and representation at transfer, if you use a lawyer.
Common area fees
Every registered condominium has a juristic person, the owners' corporation, which maintains shared parts of the building: lobbies, lifts, pools, gyms, gardens, security and cleaning. Its budget is funded by common area fees, charged monthly or annually per square metre of unit area and approved at the owners' general meeting. Resort buildings with large pools, spas and 24-hour staffing charge more than simple residential blocks, and branded residences with hotel-level services charge more again.
Fees are a matter of the building's budget, so they can go up. Ask to see the latest approved budget and the last two years' accounts. For illustration only: a 40 square metre unit in a building charging THB 70 per square metre per month would pay THB 2,800 a month, or THB 33,600 a year. Your actual rate will differ, and that is exactly why you should get it in writing.
Unpaid fees are a charge that follows the unit. The Land Office will not register a resale without a letter from the juristic person confirming there are no arrears, and the Condominium Act allows surcharges on late payment.
When comparing buildings, look beyond the headline rate. A higher fee in a well-run building with a healthy reserve fund can cost you less over time than a low fee in a building that later needs a special levy for repairs. Minutes of recent owners' meetings are a good guide to how the building is managed.
Land and building tax
The annual land and building tax for residential property that is not your registered primary residence is 0.02% of the appraised value up to THB 50 million, rising in bands to 0.1% above THB 100 million. On a unit appraised at THB 5 million, that is THB 1,000 a year. The bill comes from the local administrative organisation or municipality, usually payable by the end of April, although in 2026 the deadline was extended to June. Exemptions for a primary residence depend on house registration and ownership conditions. If a unit is used commercially, for example run as a licensed short-stay business, higher commercial rates starting at 0.3% may apply.
Utilities, internet and insurance
Electricity is billed by the Provincial Electricity Authority on a sliding tariff, and in Phuket air-conditioning is the main driver of cost. Water is billed per cubic metre, sometimes through the building. Internet contracts are inexpensive by international standards. A vacant unit still incurs small standing charges.
The juristic person insures the building structure and common areas, but the contents of your unit and your liability as owner are your responsibility. Contents cover is cheap relative to the value it protects, especially if the unit is let furnished.
Ask the building whether electricity is metered directly by the utility or resold through the juristic person, as the rate can differ.
If you let the unit
Letting brings its own costs. Rental agents typically charge a commission on long-term lets, and full management, including cleaning, check-ins, maintenance and reporting, is charged as a percentage of rental income. Furniture and appliances wear faster in rented units and need replacing periodically.
Rental income is taxable in Thailand. Individual owners can deduct a standard 30% of gross rent or actual documented expenses when filing a return, and rent paid by a Thai company is usually subject to withholding tax, 15% for non-residents. Short-term letting under 30 days in a condominium is generally not lawful without a hotel licence; see our rental licensing guide before relying on holiday-let income.
Maintenance inside the unit
Everything inside your walls is yours to maintain. In a tropical climate, air-conditioning units need regular cleaning and eventual replacement, humidity affects furniture and fittings, and sea air is hard on metal. A realistic owner sets aside money every year for servicing and repairs rather than treating the unit as maintenance-free because the building is new.
Hidden or overlooked costs
Several smaller costs catch new owners by surprise. Building regulations often require owners to use approved contractors for renovation work, sometimes with a deposit against damage to common areas. Keys, access cards and parking stickers can carry replacement fees. If you are abroad for long periods, you may need to pay someone to air the unit, run the air-conditioning and check for leaks during the rainy season.
There are also costs of administration: a Thai tax identification number and an accountant or adviser if you file a rental income return, currency conversion costs when you transfer money for bills, and legal fees for a Thai will. None of these is large on its own, but together they are part of the true cost of ownership.
Costs when you sell
Selling brings the transaction taxes back into play. As a seller you pay individual withholding tax, calculated on the appraised value and years of ownership, and either 3.3% specific business tax if you sell within five years without an exemption, or 0.5% stamp duty. The transfer fee split is negotiated with the buyer. Agents' commission on resale is usually charged to the seller. You will also need your FET forms to repatriate proceeds in foreign currency.
Building your annual budget
A simple way to estimate the annual cost of owning is to add the common area fee, land and building tax, utilities when you are away, insurance and a maintenance allowance, then add management and tax if you let. Divide by the price to see the percentage of value you spend each year. That number is also what separates gross from net rental yield.
In our Phuket catalogue, condominium projects start from a median of about THB 6.2 million, and the median smallest unit size across those projects is 46 square metres, so fee rates per square metre have a noticeable effect on the monthly bill. When comparing two buildings, compare their fee rates and facilities side by side with the price.