The 2% transfer fee is the headline tax on Thai property transactions. It is paid in cash (typically cashier’s cheque) to the Department of Lands at the moment of transfer. The mechanics are straightforward in principle but include several details that affect what foreign buyers actually pay — particularly the 2025–2026 stimulus that reduced the rate for Thai nationals only.
This article covers the rate, how it’s calculated, who pays it, and what to negotiate.
The rate and the base
The Department of Lands collects a transfer fee equal to 2% of the appraised value when ownership of land or condominium units changes hands. This applies to:
- Sale and purchase
- Gift transfers (with limited family exemptions)
- Court-ordered transfers
- Most other change-of-ownership transactions
The base is the appraised value as recorded in the Treasury Department’s database, not the sale price agreed between the parties. For most resale transactions the sale price exceeds the appraised value (because appraised values typically run 30–50% below market). The Land Office officer uses whichever is higher of appraised vs declared sale price for tax calculation — so the 2% is calculated on the higher figure.
For developer sales of new-build property, the contract price typically exceeds the appraised value, so the 2% is on the contract price.
The 2025–2026 stimulus — Thai-only
In 2024 the government introduced a stimulus measure cutting the transfer fee from 2% to 0.01% on residential property under THB 7M. The mortgage registration fee was simultaneously cut from 1% to 0.01% on the same threshold. The measure has been extended into 2025 and is in force through 30 June 2026 as of current reporting.
The reduced rate applies only to Thai nationals. The Royal Decree restricts the benefit to Thai citizens purchasing residential property for personal residential use. Foreign buyers — including foreigners married to Thai nationals where the foreign spouse is the registered buyer — pay the full 2%.
Some brokerage marketing has implied foreigners may also benefit on units under THB 7M. This is incorrect. Practitioners (Nishimura & Asahi, FRANK Legal & Tax) have confirmed the Thai-only restriction. The safe planning assumption is that you pay 2%; if the Land Office officer applies a reduction, treat it as a bonus.
Who customarily pays
By customary practice, the transfer fee is split 50/50 between buyer and seller. This is the default expectation in resale transactions when the SPA is silent.
In practice, the split varies:
- Resale transactions most often honor the 50/50 split, often after some negotiation
- New-build developer SPAs commonly push the full 2% onto the buyer — this is part of the headline price negotiation
- Distress or motivated-seller deals sometimes shift more of the fee to the buyer in exchange for price reduction
- Off-plan with payment-schedule incentives may have the developer absorb the fee as a marketing concession
The customary split is the default, not the rule. The SPA controls. Be explicit in the contract about who pays the transfer fee — leaving it to “customary practice” creates room for dispute on transfer day.
Calculation examples
Example 1 — Resale Phuket condo, 10M THB sale price, 7M THB appraised value
- Higher of appraised vs sale price: THB 10M (sale price)
- Transfer fee: 2% × 10M = THB 200,000
- 50/50 split: THB 100,000 each
Example 2 — Off-plan Phuket condo, 12M THB contract price, 8M THB appraised value, buyer pays full
- Higher of appraised vs sale price: THB 12M (contract price)
- Transfer fee: 2% × 12M = THB 240,000
- Full to buyer: THB 240,000
Example 3 — Phuket villa land transfer to Thai-majority company, 25M THB
- Higher of appraised vs sale price: THB 25M
- Transfer fee: 2% × 25M = THB 500,000
- 50/50 split: THB 250,000 each
Example 4 — Resale condo 6M THB to Thai national (stimulus applies)
- Higher of appraised vs sale price: THB 6M
- Transfer fee with stimulus: 0.01% × 6M = THB 600
- 50/50 split: THB 300 each
- (For a foreign buyer of the same unit: 2% × 6M = THB 120,000)
The stimulus produces a meaningful real cost difference for Thai-national resale transactions. For a foreign buyer, this asymmetry is permanent for now.
What gets bundled with the transfer fee
On transfer day, the buyer typically pays at the Land Office:
- Transfer fee buyer-share
- Lease registration fee (1% of total rent) if leasehold
- Stamp duty 0.1% on lease if leasehold
- Foreign-quota verification fee (small, condo-specific)
- Various small administrative fees
Total Land Office fees for a typical foreign-buyer condo transfer (50/50 split with seller): THB 100,000–150,000 per THB 10M of property value.
For full tax breakdown including SBT, stamp duty, and withholding tax (all customarily seller’s): Taxes and fees when buying property in Thailand — full 2026 breakdown.
The mortgage registration fee — same Thai-only stimulus
Alongside the transfer fee, the standard 1% mortgage registration fee was cut to 0.01% under the same 2025–2026 stimulus, with the same Thai-only restriction. Foreign buyers obtaining the (rare) Thai bank mortgage on a foreign-eligible condo pay the full 1%.
For most foreign buyers this is academic — Thai banks rarely lend to foreigners for residential property — but it’s part of the same Royal Decree.
Negotiation in the SPA
The transfer fee allocation is one of the easier items to negotiate in the SPA. Three patterns:
1. 50/50 split (default). Most reasonable, matches custom, easy to explain.
2. Buyer pays full (developer SPA). Common in new-build; can sometimes be negotiated to 50/50 or to seller paying part as price reduction.
3. Seller pays full (motivated seller, distress, structured incentive). Less common; appears when the seller has reasons to want a clean fast close.
For foreign buyers, the realistic ask in negotiation:
- For resale: insist on 50/50 unless the price reflects you paying more
- For off-plan from a developer: try to negotiate down to 50/50; if the developer holds firm, factor 2% into your total cost
- For distressed or motivated seller: ask for seller-pays-full as part of a clean offer
Disputes on transfer day
Disputes about the transfer fee allocation occasionally erupt at the Land Office when the SPA is silent or vague. The Land Office officer doesn’t take sides — they collect the fee, and how it’s split between the parties is the parties’ problem to resolve.
If you arrive at the Land Office without clarity on who pays the fee, expect:
- A 30-minute negotiation in the corridor
- Pressure to “just pay it and resolve later”
- Risk of transfer being delayed if neither party will pay
The fix is to be explicit in the SPA. The cost of clarity in the contract is zero; the cost of resolving disputes at the Land Office is real (delayed transfer, frayed relations, extra trip if rescheduled).
What this means for buyers in 2026
Three rules:
-
Budget the full 2% as a foreign buyer. Don’t underwrite the 0.01% stimulus — it’s not for you.
-
Negotiate the split in the SPA, not on transfer day. Be explicit about who pays. Default to 50/50 for resale; push back against 100% buyer for developer SPAs where the price hasn’t been reduced to compensate.
-
Pay the buyer-share via cashier’s cheque made to the Land Office. Arrange the cheque the day before transfer. Don’t bring cash for property-scale amounts.
For broader tax context: Taxes and fees when buying property in Thailand — full 2026 breakdown. For the Land Office process: Land Office transfer day in Thailand — what actually happens. For withholding tax (the seller’s biggest tax): Withholding tax on property sale in Thailand — how the Land Office calculates it. For the SPA negotiation: Sale and Purchase Agreement (SPA) for property in Thailand — what foreigners need to know.