Taxes and Fees for Foreigners Buying or Selling Property in Thailand: Complete Legal Guide (2026 Update)

Quick Summary:

Property transactions in Thailand involve four mandatory transfer costs settled at the Land Department:

• Transfer Fee (2%): Customarily split 50/50 between buyer and seller.

• Specific Business Tax (3.3%): Paid by the seller if held under 5 years.

• Stamp Duty (0.5%): Paid by the seller only if exempt from Specific Business Tax.

• Withholding Tax (1%–35%): Borne by the seller (progressive rate for individuals; fixed 1% for companies).

When buying or selling real estate in Thailand—specifically freehold condominiums or leasehold properties—foreign nationals must settle several mandatory government fees and taxes at the local Land Department. Understanding how these liabilities are calculated and allocated in the Sales and Purchase Agreement (SPA) prevents unexpected closing expenses on transfer day.

Mandatory Government Transfer Fees and Taxes

The Thai Department of Lands levies four distinct types of statutory fees and taxes upon ownership transfer.

Ownership Registration Fees

Standard Transfer Fee Calculation

The standard transfer fee is set at 2% of the official government appraised value determined by the Treasury Department or the registered sales contract price, whichever is higher.

Allocation and Payment Custom

Standard commercial practice in Thailand splits this 2% fee equally between the buyer and the seller (1% each), though the final split depends entirely on mutual agreement documented in the signed contract.

Government Stimulus Exceptions

The Thai Cabinet periodically approves temporary fee relief measures reducing transfer fees to 0.01% for residential units valued up to THB 7 million. Note that stimulus reductions generally require the buyer to hold Thai nationality; foreign quota transfers typically pay the standard 2% rate unless explicit ministerial notifications state otherwise.

Seller Property Taxes: SBT vs. Stamp Duty

Sellers are subject to either Specific Business Tax (SBT) or Stamp Duty—never both on the same transaction.

Specific Business Tax (SBT)

Tax Rate and Calculation

Specific Business Tax is levied at 3.3% (consisting of 3.0% principal tax plus a 0.3% local municipal surcharge) calculated against the higher of the appraised value or the actual selling price.

The 5-Year Ownership Rule

SBT applies if the seller has owned the property for less than 5 full years from the original acquisition date recorded on the title deed. (An exception exists if the seller’s name was listed on the official household registration booklet /Tabien Baan/ for at least 1 continuous year prior to transfer).

Stamp Duty

Exemption Criteria

Stamp Duty applies only when the transaction is exempt from Specific Business Tax (such as when an individual seller has held the property for 5 years or more).

Stamp Duty Rate

The tax is levied at 0.5% of the higher value between the official assessed appraisal and the contractual sales price, paid by the seller.

Withholding Tax (WHT) Requirements

Withholding Tax is mandatory and collected directly by the Land Department officer before issuing the updated title deed (Chanote).

Individual Sellers (Natural Persons)

Appraised Tax Base

For individual sellers, Withholding Tax is calculated strictly on the Treasury Department appraised value, regardless of the declared sales price.

Progressive Income Tax Tiers

The calculation allows a statutory expense deduction (ranging from 50% to 92% based on the number of holding years under Revenue Department schedules). The remaining net base is divided by holding years, assessed under progressive personal income tax brackets (5% up to 35%), and multiplied back by the holding years.Annual Tax Credit Rights

Annual Tax Credit Rights

Taxes withheld at the Land Office can be declared as prepaid tax credits when filing annual personal income tax returns in Thailand.

Corporate Sellers (Legal Entities)

Fixed Corporate Rate

When a corporate entity sells real estate, Withholding Tax is calculated at a fixed flat rate of 1% of the registered selling price or official appraisal value, whichever is higher.

Summary of Property Transfer Taxes and Cost Allocation

Transfer Cost Breakdown by Category

Transfer Fee

• Standard Rate: 2.0%
• Calculation Base: Calculated from the Treasury Department appraised value or the actual agreed sales price (whichever is higher).
• Standard Responsibility: Customarily split equally between buyer and seller (1.0% each), unless agreed otherwise in the sales agreement.

Specific Business Tax – SBT

• Standard Rate: 3.3% (includes 0.3% local municipal tax component).
• Calculation Base: Calculated on the higher value between the official appraisal and the sales price.
• Standard Responsibility: Paid by the seller when holding the property for less than 5 years.

Stamp Duty

• Standard Rate: 0.5%

• Calculation Base: Calculated on the higher value between the official appraisal and the sales price.
• Standard Responsibility: Borne exclusively by the seller only if the transaction qualifies for exemption from Specific Business Tax (SBT).

Withholding Tax for Individual Sellers

• Standard Rate: Progressive income tax rates ranging from 5% up to 35%.

• Calculation Base: Calculated strictly using the official government appraised value after applying standard statutory expense deductions based on holding duration.

• Standard Responsibility: Borne directly by the individual seller at the Land Department.

Withholding Tax for Corporate Sellers

• Standard Rate: Fixed flat rate of 1.0%.

• Calculation Base: Calculated against the registered selling price or the appraised value (whichever is higher).

• Standard Responsibility: Paid directly by the corporate seller entity.

Professional Recommendations for Foreign Buyers and Sellers

Due to the complex progressive formula for individual withholding tax and shifting municipal assessments, foreign parties should take practical precautions prior to closing:

Contractual Fee Clarification

• Review the Sales and Purchase Agreement (SPA) to ensure explicit contractual clauses dictate which party covers the Transfer Fee, Withholding Tax, and SBT/Stamp Duty.

• Do not rely on verbal agreements; terms like “all transfer fees split equally” should clarify whether that includes seller withholding and business taxes.

Legal Due Diligence

• Request an official closing cost statement from an independent conveyancing lawyer or the relevant Land Department branch prior to execution.

• Ensure original Foreign Exchange Transaction (FET) documentation is fully matched to the final transfer figures to secure title registration.