# Property taxes and buying costs in Thailand

Source: https://www.thailandpropertyinvestor.com/guides/property-taxes-and-buying-costs
Updated: 2026-11-14
Publisher: Thailand Property Investor (Omnia Capital Group)

## The short answer

Budget about 1% to 2% of the price in statutory costs as a buyer, plus the building's sinking fund and legal fees. The transfer fee is 2% of the Land Department appraised value and is split by contract. The seller normally bears specific business tax of 3.3% (or stamp duty of 0.5% where that tax does not apply) and withholding tax. Once you own, land and building tax on a second home starts at 0.02% of appraised value a year, and a condominium charges a monthly common-area fee.

## Key points

- The transfer fee is 2% of the Land Department appraised value, and the sale contract decides how buyer and seller share it.
- Specific business tax of 3.3% applies when the seller is a company or an individual who has held for under five years, and stamp duty of 0.5% applies only when it does not.
- Withholding tax is 1% for a corporate seller and a sliding calculation for an individual, and it is the seller's cost by default.
- On a new THB 20 million condominium bought from a developer, the buyer's statutory cost is THB 200,000 on an even split of the transfer fee and THB 400,000 if the developer passes on the whole fee.
- Registering a lease costs 1% of the total rent over the term plus 0.1% stamp duty.
- Annual land and building tax on residential property that is not your registered main home is 0.02% of appraised value up to THB 50 million, rising in bands to 0.1% above THB 100 million.

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](https://www.thailandpropertyinvestor.com/glossary/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](https://www.thailandpropertyinvestor.com/glossary/land-office), and four charges can arise on the day.

| Charge | Rate | Calculated on | Who normally pays |
|---|---|---|---|
| [Transfer fee](https://www.thailandpropertyinvestor.com/glossary/transfer-fee) | 2% | Land Department [appraised value](https://www.thailandpropertyinvestor.com/glossary/appraised-value) | Split by contract, often half each |
| [Specific business tax](https://www.thailandpropertyinvestor.com/glossary/specific-business-tax) | 3.3% | Appraised value or price, whichever is higher | Seller |
| [Stamp duty](https://www.thailandpropertyinvestor.com/glossary/stamp-duty) | 0.5% | Appraised value or price, whichever is higher | Seller |
| [Withholding tax](https://www.thailandpropertyinvestor.com/glossary/withholding-tax) | 1% for a company, a sliding calculation for an individual | See below | Seller |

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.

| Charge | Calculation | Amount (THB) | Default payer |
|---|---|---|---|
| Transfer fee | 2% of 20,000,000 | 400,000 | Shared by contract |
| Specific business tax | 3.3% of 20,000,000 | 660,000 | Developer |
| Withholding tax | 1% of 20,000,000 | 200,000 | Developer |
| Stamp duty | Not charged, because specific business tax applies | 0 | Not applicable |
| Total paid at the Land Office | | 1,260,000 | |

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](https://www.thailandpropertyinvestor.com/glossary/juristic-person) at the first transfer from the developer.
- **Common-area fee.** The monthly [common-area fee](https://www.thailandpropertyinvestor.com/glossary/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](https://www.thailandpropertyinvestor.com/guides/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](https://www.thailandpropertyinvestor.com/glossary/foreign-exchange-transaction-form). The exchange rate margin often costs more than the bank fee. See [sending money to Thailand](https://www.thailandpropertyinvestor.com/guides/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](https://www.thailandpropertyinvestor.com/glossary/leasehold) 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](https://www.thailandpropertyinvestor.com/guides/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:

| Appraised value | Rate |
|---|---|
| Up to THB 50 million | 0.02% |
| THB 50 million to 75 million | 0.03% |
| THB 75 million to 100 million | 0.05% |
| Above THB 100 million | 0.1% |

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](https://www.thailandpropertyinvestor.com/glossary/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](https://www.thailandpropertyinvestor.com/guides/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](https://www.thailandpropertyinvestor.com/guides/selling-property-and-repatriating-funds).

## Questions

### Who pays the transfer fee in Thailand?

The law does not fix it. The sale and purchase agreement does. An even split between buyer and seller is common on resales, and developers often pass half or all of the 2% to the buyer. Read the clause before you sign the reservation, because it is hard to renegotiate later.

### Is there a stamp duty for foreign buyers or a second-home surcharge?

No. Thailand does not charge a buyer's surcharge based on nationality or the number of homes owned. The rates at transfer are the same for Thai and foreign buyers. A temporary cut in transfer and mortgage fees to 0.01%, running to 30 June 2027, applies to Thai buyers only.

### What is the appraised value and why does it matter?

It is the official value the Land Department uses for the property, and it can differ from the price you agree. The transfer fee is charged on the appraised value. Specific business tax and stamp duty are charged on the appraised value or the contract price, whichever is higher. Ask the Land Office or your lawyer for the figure before completion.

### How much is land and building tax on a holiday condominium?

Small. A unit that is not your registered main home is taxed at 0.02% of appraised value up to THB 50 million, which is THB 4,000 a year on an appraised value of THB 20 million. The local authority sends the assessment early in the year and payment is due by the end of April.

### Can I be asked to pay the seller's taxes?

Yes, by contract. Some sellers quote a price net of all taxes, which shifts specific business tax and withholding tax to the buyer. On a resale held for under five years that can add more than 4% to your cost. Ask for the split in writing and price the offer on the total you will pay.

## Sources

- [Forvis Mazars Thailand, taxes on selling properties in Thailand (transfer fee, SBT, stamp duty, withholding tax method, lease registration)](https://forvismazars.com/th/en/content/download/554264/file/Thailand%20Property%20Taxes%20-%202014.pdf)
- [Siam Legal, Thailand property taxes](https://www.siam-legal.com/realestate/thailand-property-taxes.php)
- [PwC Thailand tax summary, corporate other taxes (specific business tax, land and building tax), reviewed 24 August 2026](https://taxsummaries.pwc.com/thailand/corporate/other-taxes)
- [Forvis Mazars Thailand, Land and Building Tax Act rates and exemptions](https://forvismazars.com/th/en/insights/doing-business-in-thailand/tax/new-land-and-building-tax-act-in-2019)
- [Tilleke & Gibbins, land and building tax rates maintained since 2020](https://www.tilleke.com/insights/no-change-for-thailands-land-and-building-tax-rates-for-2022/10/)
- [ThaiLawOnline, transfer and mortgage fee reduction to 0.01% for Thai buyers to 30 June 2027](https://www.thailawonline.com/th/thailand-condo-foreign-ownership-quota/)