Thailand property taxes and transfer fees: the 2026 guide
Updated · ZODIAC Co., Ltd.
When a condominium or house is transferred in Thailand, the Land Office collects a 2% transfer fee, either 3.3% specific business tax or 0.5% stamp duty, and withholding tax from the seller. Together these usually come to roughly 3% to 6% or more of the value, split between buyer and seller as the contract says. Owners then pay an annual land and building tax, which for residential property is low.
The four charges at transfer
Every sale registered at a Thai Land Office triggers the same set of government charges. The law does not fix who pays each one; that is a matter for the sale agreement. In the Phuket new-build market it is common for developers to split the transfer fee with the buyer and to bear their own business and income taxes, but this varies, so read the costs clause before you sign.
- Transfer fee: 2% of the official appraised value set by the Treasury Department.
- Specific business tax (SBT): 3.3% of the higher of the appraised value and the registered sale price, payable where the seller is a business or has owned the property for less than five years.
- Stamp duty: 0.5% of the higher of the appraised value and the registered price, payable only when SBT is not due.
- Withholding tax: income tax on the seller, collected at transfer. For companies it is 1% of the higher of the appraised value and the registered price; for individuals it is calculated on the appraised value using a progressive scale that depends on the years of ownership.
Specific business tax or stamp duty
SBT and stamp duty never apply together. A developer selling new units is carrying on a business and pays SBT. An individual seller pays SBT if they sell within five years of acquisition, unless an exemption applies; a common one is having had their name in the house registration of the property for at least one year before the sale. Property received by inheritance is also generally exempt. Where SBT is not due, 0.5% stamp duty applies instead.
For a buyer this matters mainly in resales, because a seller facing 3.3% SBT may try to price it in or ask the buyer to share it. Knowing when the seller acquired the unit helps you negotiate.
Withholding tax on the seller
Withholding tax is the seller's income tax on the sale and is collected by the Land Office at transfer. For a company it is a flat 1% of the higher of appraised value and sale price. For an individual it is computed on the appraised value: the Revenue Department's method deducts a percentage for expenses that depends on how many years the property has been held, divides the result by the years held, applies the progressive personal income tax rates to that annual figure and multiplies back. The result is often a modest percentage of the price, but it varies, so ask the Land Office or your lawyer for an estimate before agreeing a split.
The 0.01% fee cut: who it is for
You may read that Thailand has cut transfer and mortgage fees to 0.01%. That is true, but the measure is limited. The cabinet first approved it in 2025 and on 30 June 2026 extended it to 30 June 2027. It applies only to Thai individual buyers, and only where the price, the appraised value and any mortgage are each no more than THB 7 million. Foreign buyers pay the standard 2% transfer fee and, where relevant, the standard 1% mortgage registration fee.
A worked example
Take a hypothetical new condominium bought from a developer for THB 6,000,000, with an official appraised value of THB 4,500,000. The figures are illustrative; the appraised value of a real unit comes from the Treasury Department's schedule, and the split depends on your contract.
The transfer fee is 2% of THB 4,500,000, or THB 90,000. Because the seller is a developer, SBT applies at 3.3% of the higher figure, THB 6,000,000, which is THB 198,000, and stamp duty does not apply. Corporate withholding tax is 1% of THB 6,000,000, or THB 60,000. Total government charges are THB 348,000, about 5.8% of the price. If the contract splits only the transfer fee equally and leaves SBT and withholding tax with the developer, the buyer's share is THB 45,000.
Beyond government charges, a new condominium buyer usually pays a one-off sinking fund contribution and several months of common area fees in advance at handover, and utility connection deposits. These are set by the developer and the building's regulations.
Leases, superficies and mortgages
Registering a lease costs 1% of the total rent for the whole term plus 0.1% stamp duty on the same amount. A THB 20 million prepaid 30-year land lease would therefore cost THB 200,000 plus THB 20,000 to register. Registration of superficies and usufruct rights attracts fees that depend on whether money is paid for the right; your lawyer will confirm the figure with the Land Office.
Mortgage registration costs 1% of the loan amount at standard rates, though very few foreign buyers finance through Thai banks.
Annual land and building tax
Under the Land and Building Tax Act, owners pay an annual tax to the local administration based on the appraised value. For residential property that is not the owner's registered primary residence, the rates in 2026 are 0.02% up to THB 50 million of value, 0.03% from THB 50 to 75 million, 0.05% from THB 75 to 100 million and 0.1% above THB 100 million. On a unit appraised at THB 4.5 million, 0.02% is THB 900 a year.
A registered primary residence enjoys exemptions, but they depend on house registration and ownership conditions, so many foreign holiday-home owners pay the standard residential rate. Property used commercially, which can include accommodation run as a business, may be assessed at commercial rates that start at 0.3%. Pandemic-era reductions have ended, and 2026 bills are being issued at full rates.
Taxes while you rent the property out
Rental income from Thai property is taxable in Thailand whether or not you are resident. If a Thai company pays you rent, it generally withholds 5% for residents and 15% for non-residents. Individuals can file a Thai personal income tax return and claim either a standard deduction of 30% of gross rent or actual documented expenses, crediting any withholding tax. You need a Thai tax identification number to file. Your home country may also tax the income, so check the double tax treaty with your adviser.
If you are a Thai tax resident, spending 180 days or more in Thailand in a calendar year, you are also taxed on foreign income brought into Thailand under the rules in force since 1 January 2024, unless an exemption such as certain LTR visa categories applies. A draft relief for income remitted within two years had not become law as of September 2026.
Taxes when you sell
When you later sell, you become the seller in the calculations above: SBT if you sell within five years without an exemption, otherwise stamp duty, plus individual withholding tax. Keep your purchase documents and FET evidence, because you will need them to repatriate sale proceeds in foreign currency.