Thailand Condo Taxes for Foreign Buyers: Full Breakdown 2026

A foreigner purchasing a Bangkok condo for 5 million baht will pay between 100,000 and 250,000 baht in taxes and fees at the point of transaction. The exact amount depends on who the seller is, how long they have held the property, and how the deal is structured. Getting these numbers wrong can cost buyers tens of thousands of baht every year.

Thailand applies the same tax rates to both Thai nationals and foreigners. There is no separate foreign-buyer tax schedule. However, non-residents face additional obligations: a higher withholding tax rate on sale, a requirement to file income tax declarations on rental earnings, and the need to consider any applicable double taxation agreement. Below is a full breakdown with real figures.

Quick Answer

• Transfer Fee - 2% of the Land Department's 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), payable when the seller has owned the property for fewer than 5 years.
• Stamp Duty - 0.5% of the sale or appraised value. Applied only when SBT does not apply.
• Withholding Tax on sale - For non-resident individuals, a flat rate of 15% of the full sale price (Revenue Code, Section 50). For tax residents of Thailand, a progressive scale from 0% to 35% applies.
• Rental income tax - Progressive scale from 0% to 35%. The first 150,000 baht of annual income is tax-exempt for residents.
• Annual Land and Building Tax - 0.02% to 0.1% of appraised value for residential property. Properties valued under 50 million baht used as a primary residence by a Thai-resident owner are effectively exempt.

Scenarios and Options

Scenario 1: Buying a New-Build Condo for Personal Use

You purchase a unit for 4 million baht directly from a developer. Typical cost distribution on a primary sale:

• Transfer Fee: 2% = 80,000 baht. Developers often absorb this fee as part of a promotional offer.
• SBT: paid by the developer, since the sale is their core business activity.
• Withholding Tax: paid by the developer as the selling party.

Your minimum tax outlay at purchase: 0 to 80,000 baht. Annual property tax going forward: approximately 800 baht per year (0.02% of 4 million baht).

Scenario 2: Buying a Resale Condo and Renting It Out

You purchase a unit for 6 million baht from an individual who has owned it for 3 years, then rent it out at 25,000 baht per month.

At purchase:

• Transfer Fee (your share): 60,000 baht (1% of 6 million)
• SBT (seller's share): 198,000 baht (3.3%) - affects negotiation leverage
• Withholding Tax (seller's liability): calculated progressively if the seller is a Thai tax resident

Annually:

• Rental income: 300,000 baht per year
• Income tax (non-resident rate): withheld at source by a corporate tenant or property management company at 15% = 45,000 baht
• If your tenant is a private individual, you must file your own declaration using form PND 90 or PND 91

Scenario 3: Reselling After 2 Years at a Profit

You sell a condo originally purchased for 5 million baht at 7 million baht, having held it for 2 years.

• Transfer Fee: 140,000 baht (2% of 7 million appraised value)
• SBT: 231,000 baht (3.3% of 7 million, ownership under 5 years)
• Withholding Tax (you as non-resident): 1,050,000 baht (15% of 7 million full sale price)

Total tax burden at sale: approximately 1.42 million baht. Net profit after all costs: roughly 580,000 baht instead of the headline gain of 2 million. This is precisely why short-term condo flipping by non-residents is economically inefficient in Thailand.

Comparison Table

Main Risks and Mistakes

1. Misunderstanding how withholding tax is calculated. Non-residents pay a flat 15% on the total sale price, not on the profit. A Thai tax resident (180+ days per year in-country) is taxed on a progressive scale with deductions, which is almost always more favourable. Establishing tax residency before selling can save hundreds of thousands of baht.

2. Ignoring applicable double taxation agreements (DTAs). Thailand has signed DTAs with dozens of countries. Under these agreements, tax paid in Thailand can often be credited against your home-country tax liability. Without a Certificate of Tax Payment issued by the Thai Revenue Department, you may end up paying tax twice in both jurisdictions.

3. Not checking the Land Department's appraised value in advance. The Treasury Department maintains its own assessed valuations that may differ significantly from the market price. Both Transfer Fee and SBT are calculated from whichever is higher - the contract price or the official appraisal. Always verify the appraised value on the Treasury Department website (treasury.go.th) before signing.

4. Receiving rental income informally. Many foreign owners collect rent in cash and do not declare it. Since 2024, Thailand has strengthened enforcement around foreign-sourced income transferred into the country under its Foreign Income Tax amendment. Bank transfers from tenants are straightforward to trace and are monitored accordingly.

5. Assuming the 50/50 Transfer Fee split is mandatory. It is not. The split is entirely a matter of negotiation. In some developer sales, the fee is passed fully to the buyer; in others, the developer covers it entirely. Read the contract carefully before signing.

6. Overlooking depreciation deductions that apply only to residents. When calculating withholding tax for a Thai tax resident, the Revenue Department applies a deduction for each year of ownership. Non-residents receive no such deductions. The full sale price is the tax base, regardless of how long the property was held.

FAQ

What tax does a foreigner pay when buying a condo in Thailand? The primary cost is the Transfer Fee at 2% of the appraised value, usually split with the seller. There are no other mandatory taxes owed by the buyer at purchase.

Is there an annual property tax in Thailand? Yes. The Land and Building Tax has been in effect since 2020. For residential property, rates range from 0.02% to 0.1% of the appraised value. On a 5 million baht condo, this works out to roughly 1,000 to 5,000 baht per year.

What is the rental income tax rate for non-residents? Non-residents pay 15% of gross rental income as withholding tax. When rent is paid by a corporate tenant or property management company, this is withheld at source before the funds reach the owner.

Can withholding tax on a sale be reduced? Yes, if you become a Thai tax resident by spending 180 or more days in Thailand during the tax year before the sale. The progressive scale with ownership deductions applies instead of the flat 15%, and the saving can reach 5% to 10% of the transaction value.

What is Specific Business Tax and when does it apply? SBT of 3.3% is levied on the seller when the property has been owned for fewer than 5 years. Once ownership passes the 5-year mark, SBT no longer applies and is replaced by Stamp Duty at 0.5%.

When is the annual property tax due? Municipal offices issue notices in January or February. Payment is due by April of the same year. Instalments are available when the liability exceeds 3,000 baht.

Is there a separate capital gains tax in Thailand? No. Thailand does not have a standalone capital gains tax. Gains from property sales are folded into general income and collected through withholding tax at the point of Land Department registration.

Does freehold vs. leasehold affect the tax treatment? Both ownership structures are subject to the same Transfer Fee rate and income tax rules. The key difference is the tax base: for leasehold, the Transfer Fee is calculated on the total lease payments across the full lease term, rather than on the market value of the property.

Does a foreign buyer need a Thai Tax Identification Number? Yes. Filing a tax return requires a TIN (Tax Identification Number), obtainable from the local Revenue Department office with a valid passport and proof of a Thailand address.

Understanding Thailand's tax framework is the foundation of any sound investment decision here. The central takeaway for non-residents is clear: short-term resale of condos is deeply inefficient due to the flat 15% withholding tax applied to the entire sale price. The optimal approach is long-term ownership with rental income, combined with tax residency planning before any eventual sale.

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