Thailand Property Taxes in 2026: 7 Payments Every Buyer Must Know

A foreign buyer purchasing a condominium in Phuket for 10 million baht can expect to pay between 350,000 and 650,000 baht in government fees and taxes on top of the purchase price. That near-twofold gap is not a rounding error — it depends on who is selling, how long they have owned the property, and what is written into the contract.

Most international buyers discover the true tax burden only after signing the reservation agreement. That is a costly mistake. Below, every charge is broken down with figures, formulas, and real purchase scenarios so you can plan accurately before committing.

Quick Answer

• Transfer Fee — 2% of the government-appraised value. Typically split 50/50 between buyer and seller.

• Specific Business Tax (SBT) — 3.3% of the sale price or appraised value, whichever is higher. Paid by the seller when ownership is under 5 years.

• Stamp Duty — 0.5% of the sale price or appraised value. Applied only when SBT does not apply.

• Withholding Tax (WHT) — 1% to 5% calculated progressively based on appraised value and years of ownership. Deducted from the seller at registration.

• Common Area Maintenance Fee (CAM) — a one-time charge of 500–800 baht per sqm at handover, plus ongoing annual maintenance.

• Sinking Fund — a one-time contribution of 500–1,000 baht per sqm into the building's capital reserve.

• Rental Income Tax — progressive rates from 5% to 35% for those earning rental income in Thailand.

Scenarios and Options

Scenario 1: Buying a New Development Directly from a Developer

Purchasing a new condominium off-plan or at launch from a developer offers the most predictable tax structure. The developer is a legal entity that has owned the unit for under 5 years, meaning SBT at 3.3% applies automatically.

In practice, most Phuket developers either absorb the Transfer Fee and SBT or split them with the buyer. The critical point: how taxes are distributed must be stated in the Sale and Purchase Agreement (SPA). Review this clause before paying any deposit — one paragraph can shift hundreds of thousands of baht in liability.

A typical buyer's cost breakdown on an 8 million baht, 45 sqm unit:

• Transfer Fee (buyer's 50% share): 80,000 baht
• CAM Fee (45 sqm × 700 baht): 31,500 baht
• Sinking Fund (45 sqm × 700 baht): 31,500 baht
• Total buyer cost: approximately 143,000 baht

Scenario 2: Buying Resale Property from an Individual

The secondary market introduces more variables. If the seller has owned the property for more than 5 years, SBT is waived and replaced by Stamp Duty at 0.5%. Withholding Tax is then calculated on a progressive scale, with larger deductions granted for longer ownership periods.

The standard practice on the resale market is a 50/50 split of all taxes, but this is entirely negotiable. In Phuket's competitive 2026 market, sellers increasingly push to transfer the full tax burden to the buyer — always read the SPA with a licensed Thai lawyer.

Scenario 3: Purchasing Through a Thai Company

Some investors acquire villas or land plots through a registered Thai company. Corporate Withholding Tax is 1%, which appears attractive at first glance. However, the company itself is then subject to 20% corporate income tax on profit and must maintain full audited accounts. Annual company upkeep — auditing, filings, and compliance — typically runs 30,000–80,000 baht per year. This structure requires careful long-term cost modelling before committing.

Scenario 4: Earning Rental Income

Rental income from Thai property is subject to Thailand's Personal Income Tax (PIT) on a progressive scale. Current 2026 rates:

• Up to 150,000 baht — 0%
• 150,001–300,000 baht — 5%
• 300,001–500,000 baht — 10%
• 500,001–750,000 baht — 15%
• 750,001–1,000,000 baht — 20%
• 1,000,001–2,000,000 baht — 25%
• 2,000,001–5,000,000 baht — 30%
• Above 5,000,000 baht — 35%

Investors should verify whether a Double Tax Agreement (DTA) exists between Thailand and their home country. Thailand has signed DTAs with over 60 nations. Tax paid in Thailand may be credited against home-country obligations — but the mechanics vary by jurisdiction, so specialist advice from a cross-border tax lawyer is essential.

Comparison Table

Main Risks and Mistakes

1. Not reading the SPA tax allocation clause. Every Thai Sale and Purchase Agreement contains a section specifying which party bears which costs. A single paragraph can shift 200,000–300,000 baht of liability on a 10 million baht unit. Always have this reviewed by an independent Thai lawyer before signing.

2. Confusing appraised value with market price. The Land Department calculates Transfer Fee from the government-appraised value, which is often below the actual sale price. SBT, however, is assessed on whichever is higher — appraised or actual sale price. Buyers who overlook this underestimate their tax exposure.

3. Skipping the annual rental income tax return. Even when a property management company withholds tax at source, foreign landlords are still legally required to file Form PND 90 with the Thai Revenue Department by March 31 each year. Non-compliance carries penalties.

4. Using informal fund transfer channels. To register a condominium in a foreigner's name, the Land Department requires a Foreign Exchange Transaction Form (FETF) — documentary proof that foreign currency was remitted through a Thai bank. Without this form, registration will be refused. There are no workarounds.

5. Overlooking the Land and Building Tax. In force since 2020, this annual tax applies to all property owners. For residential property up to 50 million baht used as a primary residence, the rate is 0.02%. For investment properties without registered residency, expect 0.02–0.1% depending on value.

6. Ignoring cross-border tax planning. Double taxation on rental income is a real issue for buyers who earn income in multiple jurisdictions. Understanding how the relevant DTA operates — and whether credits apply — requires professional advice specific to your nationality and residency status.

FAQ

What is the total tax cost for a foreign buyer purchasing a condo in Thailand? For the buyer directly, typically 1% to 3% of the property value — covering the buyer's share of Transfer Fee, CAM, and Sinking Fund. The exact figure depends on contract terms and unit size.

Does the buyer pay Withholding Tax? No. Withholding Tax is legally the seller's liability. It is deducted by the Land Department at the point of title registration.

Is there an annual property tax in Thailand? Yes. The Land and Building Tax ranges from 0.02% to 0.3% of government-appraised value depending on property type and how it is used.

Is rental income taxed in Thailand? Yes. Rental income from Thai property is subject to progressive Personal Income Tax at rates between 5% and 35%.

Can I offset Thai taxes against my home-country tax obligations? This depends on whether a Double Tax Agreement exists between Thailand and your country of tax residence. Where a DTA applies, Thai taxes paid can typically be credited. Consult a qualified cross-border tax advisor for your specific situation.

What taxes apply when selling Thai property? The seller pays Withholding Tax (calculated progressively) plus either SBT at 3.3% (if owned under 5 years) or Stamp Duty at 0.5% (if owned over 5 years). The seller typically also covers half of the Transfer Fee.

Can the Withholding Tax base be reduced? WHT is calculated from the Land Department's appraised value, with a depreciation allowance based on years of ownership. The longer the ownership period, the larger the deduction — which reduces the effective WHT liability.

What taxes apply when gifting property in Thailand? Gifting triggers Transfer Fee at 2% and Stamp Duty at 0.5% based on appraised value. Reduced rates may apply for direct-line family transfers (parent to child), subject to Land Department assessment.

Do I need a Thai Tax Identification Number (TIN)? Yes, if you earn any income in Thailand. A TIN is required to file a tax return, claim deductions, and remain compliant with Thai Revenue Department regulations.

The most important rule for any investor: calculate the full cost of ownership before signing — not after. Factor in all one-time fees, annual taxes, and professional advisory costs. That is the only way to arrive at a realistic net yield, rather than the headline number from a developer's brochure.

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