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Stamp Duty and Property Taxes When Buying a Condo in Thailand: Exact Figures for 2026
When purchasing a condominium in Phuket for 6 million THB, you will pay the Thai government anywhere from 120,000 to 330,000 THB — depending on who is selling and how long they have owned the property. That is nearly a threefold difference. Understanding Thailand's property tax structure is not an accounting exercise — it is a direct path to saving tens of thousands of baht.
Thailand applies four main charges to real estate transactions: transfer fee, stamp duty, specific business tax (SBT), and withholding tax. For a foreign buyer, the critical question is which of these fall on you and which fall on the seller. Thai law does not prescribe who pays — the contract does. That means everything comes down to negotiation.
Quick Answer
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Transfer fee — 2% of the appraised value as assessed by the Department of Lands
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Stamp duty — 0.5% of the registered or appraised value (whichever is higher). Applies when the seller has owned the property for more than 5 years
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Specific business tax (SBT) — 3.3% of the registered or appraised value. Replaces stamp duty when the seller has owned the property for fewer than 5 years
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Withholding tax — for individuals, calculated on a progressive scale from 5% to 35% of the appraised value; for companies, a flat 1%
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Foreign nationals may hold a condo on freehold title only when the foreign ownership quota in the project does not exceed 49%
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The typical transfer fee when buying a condo for 6 million THB in Phuket is approximately 120,000 THB (2% of the cadastral appraisal)
Scenarios and Options
Scenario 1: Buying a New Condo from a Developer
The developer is a legal entity. In the majority of transactions on the Phuket and Bangkok markets, the developer covers the transfer fee of 2% in full, or splits it 50/50 with the buyer. Stamp duty of 0.5% is typically paid by the seller. Withholding tax of 1% also falls on the seller's side. The buyer's total cost: from 0% to 1% of the purchase price.
Scenario 2: Buying Resale from an Individual (Owned More Than 5 Years)
The seller pays stamp duty at 0.5% and withholding tax on a progressive scale. The transfer fee of 2% is commonly split equally, or falls entirely on the buyer — this depends on what is agreed in the contract. SBT does not apply in this case.
Scenario 3: Resale Property (Owned Fewer Than 5 Years)
Stamp duty does not apply — it is replaced by specific business tax at 3.3%, which significantly increases the seller's tax burden. For the buyer, the picture remains the same: the primary cost is their share of the transfer fee.
Scenario 4: Earning Rental Income
A foreign condo owner who rents out their property is required to pay income tax in Thailand. The rate is progressive, ranging from 5% to 35% under the Revenue Code. A standard expense deduction of 30% of gross rental income is available. International investors should consult a local tax adviser to understand treaty obligations applicable to their country of residence.
Comparison Table
| Tax / Fee | Rate | Who Pays (typically) | When It Applies |
|---|---|---|---|
| Transfer fee | 2% of appraised value | 50/50 split or buyer | Every transaction |
| Stamp duty | 0.5% | Seller | Ownership over 5 years |
| Specific business tax | 3.3% | Seller | Ownership under 5 years |
| Withholding tax — individual | 5–35% progressive | Seller | Every transaction |
| Withholding tax — company | 1% flat | Seller | Every transaction |
| Rental income tax | 5–35% progressive | Owner / landlord | Annually on income |
| Land and Building Tax | 0.02% (residential, under 50M THB) | Owner | Annually |
Main Risks and Mistakes
1. Not knowing the cadastral appraisal value. Taxes are calculated not on the contract price, but on the Department of Lands appraised value — if it is higher. Request the cadastral appraisal before signing anything. It can differ from the market price by 20–40% in either direction.
2. Leaving tax allocation unspecified in the contract. Thai law does not determine who pays the transfer fee — the contract does. If the agreement contains no clear clause on expenses and taxes, you may end up covering everything. Always review this section before signing.
3. Overlooking the 49% foreign quota. If the foreign ownership quota in a condominium has already been filled, freehold registration is not possible. The Land Office will refuse to process the transfer. Verify the quota through a qualified lawyer before paying any deposit.
4. Ignoring rental income tax obligations. Many foreign owners rent out their condo through a management company but never file a declaration with the Revenue Department. Penalties can reach 200% of the unpaid tax amount.
5. Not transferring funds through a Thai bank. To register freehold ownership in a foreigner's name, the Land Office requires a Foreign Exchange Transaction (FET) form — a document from a Thai bank confirming that foreign currency was remitted from abroad. Without this document, ownership cannot be transferred.
Pre-Transaction Checklist
- Obtain the cadastral appraisal from the Department of Lands
- Confirm the foreign ownership quota is below 49%
- Specify the allocation of all taxes and fees in the sale and purchase agreement
- Transfer funds via international wire to a Thai bank account
- Obtain the FET form from the Thai bank
- Engage an independent lawyer for full due diligence
- Clarify the seller's status: individual or company, and the length of ownership
FAQ
What is stamp duty when buying a condo in Thailand?
Stamp duty is a government fee of 0.5% of the registered or appraised value, whichever is higher. It applies when the seller has owned the property for more than 5 years. If the ownership period is under 5 years, specific business tax of 3.3% applies instead.
Does a foreign buyer pay stamp duty?
In most cases, stamp duty is paid by the seller. However, the parties may agree otherwise in the contract. Always check the expenses clause before signing.
What is the total tax cost when buying a condo in Phuket?
For the buyer: typically 1% to 2% of the property value (transfer fee). For the seller: 1.5% to 6%+, depending on length of ownership and legal status.
Is rental income from a Thai condo taxable?
Yes. Rental income is subject to progressive income tax from 5% to 35%, with a standard deduction of 30% of gross rental income available for residential property.
What is the FET form and why is it required?
The Foreign Exchange Transaction (FET) form is issued by a Thai bank to confirm that foreign currency was transferred into Thailand from abroad. Without this document, the Land Office will not register freehold title in a foreign buyer's name. It is a mandatory requirement, not a formality.
Can I reduce my tax burden when reselling a condo?
Yes. If you sell after holding the property for more than 5 years, specific business tax (3.3%) is replaced by stamp duty (0.5%). The difference of 2.8% on a 10 million THB property equals 280,000 THB in savings — a meaningful incentive for long-term investors.
What annual taxes does a condo owner pay?
Since 2020, Thailand has applied the Land and Building Tax. For residential property valued at up to 50 million THB, the rate is 0.02% of the appraised value. For a condo worth 6 million THB, that amounts to approximately 1,200 THB per year.
The key principle in Thai real estate: tax and fee allocation is always a matter of negotiation. Before signing any document, engage a qualified local lawyer to verify the property, check the foreign quota, and review all contract terms. On a transaction above 5 million THB, skipping legal due diligence is never a saving — it is a liability.
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