Thailand’s property tax regime has three layers: one-time taxes paid at the Land Office on transfer day, an annual tax on ownership (the Land and Building Tax Act 2019), and income tax on rental and sale proceeds. None of the rates are unusually high by international standards, but the calculation methods are non-obvious and the customary buyer/seller splits are negotiable but not always negotiated.
This article is the itemized total: it rolls all three layers into what a foreign buyer actually pays on a sample THB 10M Phuket condo. For the mechanics behind any single line item, follow the links into the dedicated article.
What taxes do you pay when you buy property in Thailand?
At purchase, a foreign buyer’s transaction taxes and fees typically run 4–7% of the property value, split between buyer and seller by custom (not by law). All transaction taxes are calculated on the higher of the appraised value (set by the Treasury Department) or the declared sale price — appraised values run 30–50% below market, so for most resale transactions the declared sale price is the basis, while for developer sales the contract price is almost always higher than the appraised value.
How much is the transfer fee, and does the 2025–2026 stimulus apply to foreign buyers?
The transfer fee is 2% of the higher of appraised or sale price for a foreign buyer — the 2025–2026 stimulus that cuts it to 0.01% on residential property under THB 7M, in force through 30 June 2026 as of current reporting, is restricted to Thai nationals. By customary practice the fee is split 50/50 buyer/seller, but new-build developer SPAs in Phuket commonly push the full 2% onto the buyer. Full mechanics, negotiation tactics, and worked examples: Property transfer fees in Thailand — the 2% rule and the Thai-only stimulus.
When do you owe Specific Business Tax instead of stamp duty?
You owe Specific Business Tax (SBT) when the seller has held the property under five years or holds it via a juristic person; otherwise stamp duty applies instead. SBT is 3% plus a 10% municipal surcharge on the SBT, for an effective 3.3% of the higher of appraised or sale price. Stamp duty, which applies when SBT doesn’t, is 0.5%. The two are mutually exclusive — never both. The 5-year clock has narrow exemptions: no SBT if the seller’s name was on the tabien baan (house registration) for more than one year and they held the property more than five years, or if the transfer is to a statutory heir. Both taxes are the seller’s by every customary convention — a buyer asked to pay either should refuse or recalculate the offer.
How much withholding tax does the seller pay at transfer?
For most resale transactions the Land Office collects withholding tax (WHT) in the 1–4% range of appraised value from an individual seller, or a flat 1% from a company seller. The individual calculation runs the appraised value through a statutory cost-deduction table (by ownership years) and the progressive income tax brackets; full step-by-step math: Withholding tax on property sale in Thailand — how the Land Office calculates it. WHT is the seller’s tax by all customary conventions.
Who customarily pays which purchase-day tax?
| Item | Customary payer | Negotiable? |
|---|---|---|
| Transfer fee 2% | Buyer + seller, 50/50 | Yes — often shifted entirely to buyer in developer SPAs |
| SBT 3.3% | Seller | Rarely shifted |
| Stamp duty 0.5% | Seller | Rarely shifted |
| Withholding tax | Seller | Rarely shifted |
Verify the split in your sale and purchase agreement before signing. If the contract is silent on a tax, the customary split is the default but disputes happen on transfer day.
What does a real Land Office transfer cost, buyer and seller?
For a THB 10M resale Phuket condo where the seller held for 7 years, the buyer’s Land Office cost lands at THB 100,000 and the seller’s at roughly THB 350,000:
| Item | Rate | Amount | Customary payer |
|---|---|---|---|
| Transfer fee | 2% × 10M | 200,000 | 100,000 each (split) |
| SBT | n/a (seller held >5 years) | 0 | — |
| Stamp duty | 0.5% × 10M | 50,000 | Seller |
| Withholding tax (estimate) | ~2% effective | ~200,000 | Seller |
| Buyer total at Land Office | 100,000 | ||
| Seller total at Land Office | 350,000 |
For an off-plan purchase from a developer, the buyer typically absorbs the full 2% transfer fee and adds the sinking fund and first-year common area maintenance (CAM) — see “commonly forgotten costs” below.
What annual tax do you pay after buying?
You pay the Land and Building Tax, roughly 0.02% of appraised value per year for most foreign-owned Phuket condos — about THB 2,000 per year on a THB 10M unit. Most foreign-owned condos fall in the no-exemption second-home band, which rises in tiers to 0.10% above THB 100M appraised value; the primary-residence exemption (first THB 50M free) rarely applies to foreign owners because it requires tabien baan registration. Notices arrive from the local tessaban in the first quarter of the year, payable by April; non-payment attracts surcharges and eventually a lien. 2026 is the first full-rate year — no Cabinet decree reduction is in force as of the early-year filing window; verify locally before final figures. Full rate table and exemption mechanics: Annual property tax in Thailand — the Land and Building Tax Act 2019.
How is rental income taxed if you let the property out?
Rental income is taxed at Thailand’s progressive personal income tax rates (0–35%) on the net after a 30% standard deduction, whether you’re a Thai tax resident or not. Foreign owners file mid-year (PND.94, due 30 September) and annually (PND.90, due 31 March the following year). A Thai juristic-person tenant withholds 5% when paying a resident individual landlord; a non-resident landlord instead faces 15% withholding under Section 50(3), regardless of tenant type — either amount is a credit against the final bill, not the final tax itself. Pure residential rental is VAT-exempt; short-term, service-heavy rental requires VAT registration once gross revenue exceeds THB 1.8M per year. Full mechanics and worked examples: Rental income tax for foreign property owners in Thailand.
How is the gain taxed when you sell?
For an individual seller, Thailand has no separate capital gains tax — the withholding tax collected at the Land Office on transfer is the de facto final tax on the gain, typically 1–4% of appraised value. An individual may elect to aggregate the sale into their annual PND.90 if it would lower their tax, but for most foreign sellers the Land Office WHT already exceeds what aggregation would yield. For a company seller, the gain is ordinary corporate income taxed at 20% corporate income tax (CIT), with the 1% Land Office WHT creditable against the final CIT. A primary-residence exemption exists for individuals who reinvest sale proceeds into a new primary residence within one year, but the conditions (continuous tabien baan registration, qualifying replacement property) rarely fit foreign buyers’ situations. Full mechanics and the company-vs-individual comparison: Capital gains on property sale in Thailand — what foreigners actually pay.
What costs do buyers in Phuket commonly forget to budget for?
Five items routinely get missed in budget spreadsheets: common area maintenance, the sinking fund, utility transfers, the debt-free certificate, and FET bank fees.
| Cost | Typical range | Notes |
|---|---|---|
| Common Area Maintenance (CAM) | 50–80 THB/sqm/month for standard projects, higher for branded/luxury | Billed annually upfront by the juristic person; non-payment leads to liens. Get the current rate from the project — see Property management fees in Phuket — what to expect for short-term and long-term rental |
| Sinking fund | 500–800 THB/sqm one-off | Collected at purchase or first transfer; non-refundable |
| Utility transfer (water + electric meters) | 2,000–10,000 THB combined | Some buildings add a key/access card fee |
| Debt-free certificate from juristic | 500–2,000 THB | Required for resale; small but mandatory |
| FET bank fees | ~0.25% of inbound transfer | Charged by the receiving Thai bank; needed for condo registration |
On a THB 10M Phuket condo of 80 sqm, the first-year ancillaries alone (sinking fund + CAM + utility setup) come to roughly THB 105,000–170,000, separate from transaction taxes.
What’s the total cost of buying property in Thailand as a foreigner?
For a typical THB 10M resale Phuket condo with the customary split honored, budget roughly 2.3–3.0% of the price above the sale price in buyer-side taxes and ancillaries:
| Bucket | Amount |
|---|---|
| Transfer fee buyer share | 100,000 |
| Sinking fund | 50,000–80,000 |
| First-year CAM | 50,000–80,000 |
| Utility setup | 5,000–10,000 |
| FET bank fees | ~25,000 |
| Total above sale price | 230,000–295,000 (2.3–3.0%) |
For new-build developer purchases where the buyer absorbs the full 2% transfer fee instead of the 50/50 split, add another THB 100,000–200,000 — pushing the total toward 3.3–5.0%. Then add the annual Land and Building Tax (~0.02% of appraised value), CAM, and any rental income tax going forward.
