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All Costs When Buying Property in Thailand: Exact Figures for 2026
For a condo priced at 5 million baht, a foreign buyer can expect to pay between 150,000 and 350,000 baht on top of the purchase price. That sum covers transfer fees, taxes, and legal services - and most buyers only learn about it after the deal is already in motion.
Thailand does not hide its rates. They are spelled out in the Revenue Code and the Land Code, and published on the Department of Lands website. The real challenge is that costs are allocated between buyer and seller differently in every transaction. Without a clear map of who pays what, you risk overpaying or facing last-minute surprises at the Land Office.
This article breaks down every mandatory payment involved in buying, owning, and renting out property in Thailand - with exact rates and calculation formulas.
Quick Answer
- Transfer Fee - 2% of the appraised value
- Specific Business Tax (SBT) - 3.3% if the seller owned for less than 5 years, or Stamp Duty of 0.5% if longer
- Withholding Tax - 1% to 35% depending on the seller's status and holding period
- Legal fees - 30,000 to 100,000 baht
- Annual Land and Building Tax - 0.02% to 0.7% of appraised value
- Rental income tax - progressive scale up to 35% for residents
Scenarios and Options
Scenario 1: Buying a New-Build Condo from a Developer
When purchasing directly from a developer, the buyer's out-of-pocket closing costs are typically the lowest of the three scenarios. Most developers absorb the Specific Business Tax and often agree to split the Transfer Fee equally - meaning each party pays 1% of the appraised value instead of the statutory 2%.
Example for a condo priced at 5 million baht:
- Transfer Fee (buyer's share): 50,000 baht
- Sinking Fund (one-time capital reserve): 500-800 baht per sqm
- Common Area Maintenance Fee: 40-80 baht per sqm per month
- Legal due diligence: 30,000-50,000 baht
- Total additional buyer costs: approximately 150,000-250,000 baht
Scenario 2: Buying a Resale Condo
Resale transactions are more complex. The allocation of taxes between buyer and seller is a matter of negotiation, but there are established market norms. If the seller has held the property for fewer than 5 years, they typically pay Specific Business Tax at 3.3%. If the holding period exceeds 5 years, a Stamp Duty of 0.5% applies instead.
Withholding Tax for individual sellers is calculated using a progressive formula based on the appraised value and the number of years of ownership. The Land Office computes this automatically on the day of registration.
Example for a condo priced at 8 million baht, individual seller, held for 3 years:
- Transfer Fee (full or split 50/50): 160,000 baht (2%)
- SBT (typically paid by seller): 264,000 baht (3.3%)
- Withholding Tax (paid by seller): calculated individually at the Land Office
- Legal fees for buyer: 50,000-100,000 baht
Scenario 3: Buying a Villa Through a Thai Company
Foreigners cannot own land in Thailand in their own name. One legal structure is to register a Thai limited company that holds the land title. This adds a layer of corporate costs on top of the standard transfer taxes.
Additional annual costs when using a Thai company structure:
- Company registration: 30,000-50,000 baht (one-time)
- Annual accounting and audit: 15,000-40,000 baht
- Annual reporting and compliance: 10,000-20,000 baht
This structure requires ongoing governance, proper shareholder arrangements, and regular filings. Legal counsel from day one is not optional - it is essential.
Comparison Table: Buyer Costs by Property Type
| Parameter | New-Build Condo | Resale Condo | Villa via Thai Company |
|---|---|---|---|
| Transfer Fee | 1% (split with developer) | 1-2% (negotiated) | 2% |
| SBT or Stamp Duty | Paid by developer | 0.5-3.3% (usually seller) | 0.5-3.3% |
| Withholding Tax | Paid by developer | Paid by seller | Paid by seller |
| Legal Fees | 30,000-50,000 baht | 50,000-100,000 baht | 80,000-150,000 baht |
| Annual Corporate Costs | None | None | 25,000-60,000 baht |
| Total Additional Buyer Costs | 3-5% of purchase price | 4-7% of purchase price | 6-10% of purchase price |
Main Risks and Mistakes
1. Ignoring the appraised value. All taxes in Thailand are calculated on the Department of Lands appraised value - not the agreed contract price. In popular areas of Phuket and Bangkok, market prices often exceed appraised values by 30-50%, which actually works in the buyer's favor. However, if the appraised value is higher than the contract price, taxes are calculated on whichever figure is greater.
2. No written agreement on tax allocation. The Sale and Purchase Agreement must clearly state which party is responsible for each tax. Verbal arrangements hold no weight at the Land Office. If it is not written down, it does not exist.
3. Forgetting the annual ownership tax. Thailand's Land and Building Tax Act has been in effect since 2020. For residential property valued under 50 million baht, the annual rate is 0.02% of the appraised value. Above 50 million baht, the rate rises to 0.1%. Commercial property is taxed at up to 0.7%. A primary residence where the owner is registered and the value does not exceed 50 million baht is exempt.
4. Double taxation on rental income. Thailand has tax treaties with many countries that prevent the same income from being taxed twice. Rental income from Thai property is taxable in Thailand. If you are a tax resident in a country that has a Double Taxation Agreement (DTA) with Thailand, taxes paid locally can often be credited against your home-country liability. Check the specific DTA applicable to your country of residence and consult a qualified cross-border tax advisor.
5. Foreign Exchange Transaction Form (FETF) for condo registration. To register a condominium in the name of a foreign individual, the purchase funds must be transferred from abroad through a Thai bank in foreign currency, and the bank must issue a Foreign Exchange Transaction Form. Without this document, the Land Office will not complete the registration. The transfer amount must be at least equal to the purchase price of the unit.
6. FETF and company purchases. The FETF requirement applies specifically to condo registration in a foreign individual's name. When purchasing through a Thai company, the FETF is not formally required - but all incoming international transfers still need to be properly documented for banking and compliance purposes.
FAQ
What is the total tax burden for a foreigner buying a condo in Thailand?
On the primary market, the buyer typically pays 1-2% of the appraised value in Transfer Fee. On the secondary market, the buyer's total closing cost is usually 3-7% of the purchase price, depending on negotiations with the seller.
Is there an annual property tax in Thailand?
Yes. The Land and Building Tax Act has been in force since 2020. For residential property valued up to 50 million baht, the annual rate is 0.02% of the appraised value. Primary residences where the owner is registered are exempt up to that threshold.
How is rental income taxed in Thailand?
Under the progressive personal income tax scale, rates run from 0% to 35%. Non-residents are taxed only on income sourced in Thailand. The tax year follows the calendar year, and returns must be filed by March 31.
Is there a capital gains tax in Thailand?
There is no standalone capital gains tax. Profit from property sales is addressed through Withholding Tax and, when the holding period is under 5 years, Specific Business Tax at 3.3%. The Withholding Tax rate depends on the seller's holding period and the appraised value.
Can I offset Thai taxes against taxes in my home country?
This depends on whether your country of residence has a Double Taxation Agreement with Thailand. Under most DTAs, taxes paid in Thailand on Thai-sourced income can be credited against your home-country tax liability. You will need an official tax payment receipt issued by the Thai Revenue Department to claim the credit.
What costs does the seller typically bear?
The seller generally pays Specific Business Tax (3.3%) or Stamp Duty (0.5%), as well as Withholding Tax. The Transfer Fee is most commonly split 50/50, but this is a negotiating point.
How much does legal representation cost?
Fees range from 30,000 to 150,000 baht depending on complexity. A standalone due diligence review of title documents typically costs 15,000-40,000 baht separately. For villa purchases through a Thai company, cutting corners on legal fees is a serious risk.
Every percentage point matters when you are committing several million baht to a single asset. Calculating the full cost of acquisition before signing any agreement is not caution - it is the baseline standard for professional property investment in Thailand.
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