Who Pays the Transfer Fee When Buying Property in Thailand (2026 Guide)

When buying or selling property in Thailand, one question consistently catches foreign buyers off guard: who actually pays the transfer fee? Unlike many countries with fixed rules, Thailand leaves this open to negotiation. The result is a market-driven convention that can cost you tens of thousands of baht if you walk in unprepared.

The transfer fee is set at 2% of the Land Department's assessed (cadastral) value - not the contract price. That assessed value is typically 30-50% lower than the actual market price, which means the real fee is often smaller than buyers expect. But after the 2024 cadastral revaluation, that gap has narrowed in popular areas like Phuket and Bangkok's central districts.

Understanding how this fee is allocated - and what other taxes come with it - is essential before you sign anything or hand over a deposit.

Quick Answer

• Transfer fee is 2% of the cadastral assessed value, paid at the Land Department on the day of title transfer
• On the primary market (new developments), developers in Phuket and Bangkok frequently absorb 100% of the transfer fee as part of promotional offers
• On the secondary market (resale), the standard split is 50% buyer, 50% seller - though everything is negotiable
• Alongside the transfer fee, the seller also pays either Stamp Duty (0.5%) or Specific Business Tax (3.3%), plus withholding tax
• The allocation of all fees must be agreed in writing in the sale-purchase contract before any deposit is paid
• The cadastral base was updated in 2024, raising assessed values in high-demand zones - so recalculate if you are using older figures

Scenarios and Options

Scenario 1 - Buying a Condo from a Developer (New Build)

When a developer transfers a completed unit, both parties attend the Land Department together. The transfer fee of 2% technically falls on the buyer by default - but in 2025 and 2026, major developers across Phuket and Bangkok have been running promotions where they cover this cost entirely.

The critical point: any promise to cover fees must appear in your contract. Verbal assurances from the sales team carry no legal weight in Thailand. Stamp Duty (0.5%) and withholding tax on the first sale are the developer's responsibility. As a buyer, you should expect to pay only the transfer fee and registration costs unless your contract states otherwise.

Scenario 2 - Buying on the Resale Market

On the secondary market, everything is negotiable, but the widely accepted convention across Phuket, Samui, and Bangkok is:

• Transfer fee (2%) - split evenly, 1% each
• Specific Business Tax (3.3%) - paid by the seller (applies if the seller has owned the property for fewer than 5 years)
• Stamp Duty (0.5%) - paid by the seller (applies instead of SBT if ownership exceeds 5 years)
• Withholding tax - paid by the seller, calculated on a progressive scale based on years of ownership

In a seller's market - which describes Phuket's sub-10 million baht segment in 2026 - sellers may push buyers to cover the full transfer fee. Budget for this possibility rather than assuming a 50/50 split.

Scenario 3 - Buying a Villa Through a Thai Company

When a property is held by a Thai company and transferred via a share sale rather than a direct title transfer, no transfer fee applies at all - the land itself does not change hands on paper, only the company's shareholders change.

However, this structure carries significant legal risk. The Land Department has intensified scrutiny of nominee shareholder arrangements in recent years. Withholding tax on the share sale is 1% of the sale price or the assessed asset value, whichever is higher. Always engage independent legal counsel before proceeding with this route.

Main Risks and Mistakes

1. Not locking in the fee split before paying a deposit. In Thailand, deposits are typically non-refundable. If you hand over 100,000 baht and later discover the seller expects you to cover all taxes, you have very little leverage. Agree in writing before any money changes hands.

2. Confusing cadastral value with market price. The transfer fee is calculated on the Land Department's assessed figure - not what you paid. A condo purchased for 8 million baht may carry a cadastral value of 5 million, making the transfer fee 100,000 baht rather than 160,000. After the 2024 revaluation, check current figures; the gap has closed in many areas.

3. Overlooking the seller's withholding tax when negotiating. If the seller is an individual who has owned the property for two years, their withholding tax can reach 5-35% of the cadastral value divided by years of ownership. A seller facing a large tax bill may be less willing to reduce the price - or may push costs toward the buyer. Understanding their tax position strengthens your negotiation.

4. Failing to check the title deed for encumbrances. Mortgages, liens, and easements are all recorded on the Chanote title document. If an encumbrance exists, the Land Department will not complete the transfer - and any fees already paid are lost. Always verify the title is clear before the transaction date.

5. Accepting a 'standard' arrangement without independent legal review. An agent may tell you 'everyone does it this way.' That may be true on average - but in your specific deal, agreeing to pay the full transfer fee in exchange for a price reduction could be the smarter financial move. A qualified property lawyer can model both scenarios for you.

FAQ

Who is legally required to pay the transfer fee in Thailand? Thailand's law does not assign the fee to either party. The Land Department requires payment before completing the registration, but the contract between buyer and seller determines who pays.

Can the transfer fee be paid from a foreign bank account? Payment is made in Thai baht, in cash or cashier's cheque, at the Land Department on the day of transfer. Funds must be converted in advance. Foreign buyers purchasing a condo in their own name will also need a Foreign Exchange Transaction (FET) certificate - formerly known as a TT3 form - confirming that foreign currency was remitted into Thailand.

What is the transfer fee on land purchases? The same 2% of cadastral value applies. Note that foreigners cannot hold freehold title to land in Thailand directly - ownership structures include long-term leasehold or a registered Thai company, each with distinct legal implications.

How can I find out the cadastral value before completing a purchase? Visit the local Land Department office with the Chanote title number. Assessed values are also searchable through the Thai Treasury Department website (treasury.go.th). The service is free.

Are there any transfer fee reductions in 2026? The Thai government has periodically reduced transfer fees to 1% or even 0.01% for properties below a certain value threshold. A scheme covering properties up to 7 million baht was active in 2024-2025. Confirm the current status of any government scheme at the time of your transaction, as these programmes change frequently.

Is there a fee for registering a long-term lease (leasehold)? Yes. Registering a leasehold of more than three years at the Land Department incurs a fee of 1% of the total lease value over the full term, plus Stamp Duty of 0.1%.

What happens if the contract does not specify who pays? The Land Department treats both parties as jointly liable. In practice, the transaction simply stalls until the parties reach agreement. This is an avoidable delay - cover it in the contract.

How does the transfer fee affect investment returns? For a condo purchased at 5 million baht with a cadastral value of 3.5 million, the transfer fee is 70,000 baht - approximately 1.4% of the actual purchase price. At a typical rental yield of 5-7% per year, that cost is recovered in roughly three to four months of rental income.

Before signing any contract or paying any deposit, request a written breakdown of all transaction costs from the seller or developer: transfer fee, Stamp Duty or Specific Business Tax, and withholding tax. Cross-check the cadastral value at the Land Department and build the final number into your acquisition budget. The cost of a qualified property lawyer at this stage is far smaller than the cost of getting it wrong.

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