Property taxes and buying costs in Thailand

A buyer in Thailand should budget roughly 1% to 2% of the price for taxes and fees at the Land Office, plus the building's sinking fund, legal fees and the cost of moving money. The heavier taxes at transfer fall on the seller by default. The word that matters is default: Thai law sets the rates, and the contract sets who pays. Read the cost clause before you pay a reservation fee.

The four charges at the Land Office

Every sale of a condominium, house or land is completed at the Land Office, and four charges can arise on the day.

Specific business tax and stamp duty never apply together. Specific business tax is charged when the seller is a company, which includes every developer, or an individual who has owned for less than five years. The rate is 3% plus a municipal surcharge of one tenth, which makes 3.3%. There is one exemption for individuals: a seller whose name has been on the household registration of the property for at least a year. Where specific business tax does not apply, stamp duty of 0.5% does.

Withholding tax is collected from the seller's proceeds and paid over at the Land Office. A company pays 1% of the appraised value or the price, whichever is higher. An individual's bill is calculated on the appraised value alone, in five steps: deduct a standard allowance that depends on the years of ownership (92% after one year, falling to 50% from the eighth year), divide the remainder by the years held, apply the personal income tax scale, then multiply back by the years held. The result is capped at 20% of the price.

A worked example on a THB 20 million condominium

Assume a new unit bought from a developer for THB 20,000,000, and assume the appraised value equals the price to keep the arithmetic simple. In practice the two can differ, and the appraised value is the one the Land Office uses for the transfer fee.

On an even split of the transfer fee the buyer pays THB 200,000, which is 1% of the price. If the developer's contract passes the whole fee to the buyer, the figure is THB 400,000, or 2%.

Now take the same unit as a resale from an individual who has owned it for six years. Specific business tax falls away and stamp duty of THB 100,000 replaces it. On the method above, the seller's withholding tax comes to THB 1,235,000: the appraised value less a 60% allowance leaves THB 8,000,000, which is THB 1,333,333 for each of six years, taxed at THB 205,833 a year. The transfer fee is still THB 400,000. The total is THB 1,735,000, of which the seller bears THB 1,335,000 by default before any share of the transfer fee.

Two lessons follow. A seller's tax bill can be larger than a buyer expects, so some sellers quote prices net of tax and try to move those costs to you. And the result changes with the seller's status and holding period, so ask for a written breakdown from your lawyer or the Land Office before the transfer date.

Costs that sit outside the Land Office

A condominium purchase carries charges that are not taxes.

• Sinking fund. A one-off contribution to the building's capital reserve, charged per square metre and paid to the juristic person at the first transfer from the developer.
• Common-area fee. The monthly common-area fee, also per square metre, is often collected for an initial period in advance.
• Legal fees. An independent lawyer for contract review, title search and attendance at the Land Office. See title deeds and due diligence.
• Currency and bank charges. A foreign buyer of a freehold condominium must remit the price from abroad in foreign currency and collect a Foreign Exchange Transaction Form. The exchange rate margin often costs more than the bank fee. See sending money to Thailand.
• Utility deposits and furniture. Small against the price, but due on handover.

Sinking fund and common-area rates are set building by building. Ask for both figures in baht per square metre and check them against the juristic person's audited accounts on a resale.

Leasehold: registration instead of transfer

A villa bought on a registered lease does not attract the 2% transfer fee on the land. Instead the lease is registered at 1% of the total rent over the term, plus stamp duty of 0.1%. On a 30-year lease with THB 20,000,000 of rent paid up front, that is THB 200,000 plus THB 20,000. The cost is often shared between landowner and tenant, again by contract. If the building is transferred to you separately, the transfer of the building carries its own fees. See buying a villa in Thailand for the structure.

Annual holding costs

Land and building tax. Owners on 1 January are liable for the year. Residential property that is not the owner's registered main home is taxed on appraised value in bands:

On an appraised value of THB 20 million the bill is THB 4,000 a year. The local authority issues the assessment early in the year and payment is due by the end of April. These rates have applied since the tax began in 2020, well below the statutory ceiling of 0.3% for residential use. Property used commercially, which can include a unit let on a commercial basis, is assessed on a different scale, so check how your district classifies a rented unit. See land and building tax.

Common-area fee. This is the larger recurring cost. As an illustration only, a 100 sqm unit charged THB 100 per sqm a month would pay THB 120,000 a year. Substitute your building's actual rate.

Sinking fund top-ups. When the reserve runs down, co-owners can vote for a further contribution. Older buildings that need lifts, facades or pools replaced are the usual cases.

Insurance, utilities and management. Contents insurance, electricity, water and, if you let the unit, an agent's fee and income tax. See rental income and tax.

What to check before you sign

1. The clause that splits the transfer fee, and any wording that makes the price net of the seller's taxes.
2. The appraised value, from the Land Office or your lawyer.
3. The seller's status and holding period, which decide between specific business tax and stamp duty.
4. The sinking fund and common-area rates in baht per square metre, and how many months are payable in advance.
5. On a lease, who pays the registration fee and whether the building is transferred separately.

Rates and incentives change by royal decree and ministerial announcement, and local Land Offices differ in practice. These are the rates in force in November 2026. Take independent legal and tax advice on your own transaction. When you come to sell, the same taxes apply from the other side: see selling property and repatriating funds.