Transfer Fee When Buying a Condo in Thailand: Who Pays and How Much in 2026
When you register a condominium in Thailand, the Land Department levies a transfer fee of 2% of the appraised value. Thai law does not specify which party must cover this cost. It is a matter of negotiation, and the outcome depends on the type of transaction, current market conditions, and the relative leverage of each party.
On the primary market, developers in Phuket and Bangkok typically absorb the transfer fee themselves or split it equally with the buyer. On the secondary (resale) market, the dynamic shifts: sellers usually cover income-related taxes, while the transfer fee often falls on the buyer. That said, there is no universal rule. Every contract must spell out who pays what.
This guide breaks down all scenarios, figures, and potential pitfalls so you know exactly what you are paying for when buying a condo in Thailand in 2026.
Quick Answer
- Transfer fee is 2% of the appraised value assigned by the Land Department, not the contract price
- The appraised value is typically 10-30% below market price, which reduces the actual tax burden
- On the primary market, developers often split the transfer fee 50/50 with the buyer, or absorb it entirely
- On the secondary market, the buyer most commonly pays the full transfer fee
- Beyond the transfer fee, there are three additional taxes on property transfers: stamp duty, Specific Business Tax (SBT), and withholding tax
- All taxes and fees are paid on the day of registration at the Land Department office, by cashier's cheque or cash
Scenarios and Options
Scenario 1: Buying from a Developer (Primary Market)
Most developers in Phuket and Bangkok include a clear tax allocation clause in their standard sale and purchase agreements. The typical arrangement is buyer pays 1%, developer pays 1%. During promotional campaigns or early off-plan sales, the developer may cover the full 2% as a sales incentive. This is a legitimate negotiating point worth raising before signing.
Important distinction: stamp duty (0.5%) and Specific Business Tax (3.3%) on new-build sales fall entirely on the developer. The buyer does not incur withholding tax because they are receiving an asset, not realising income.
Scenario 2: Buying on the Resale Market
The distribution here is more flexible. Standard market practice looks like this:
- Transfer fee (2%) - paid by the buyer
- Withholding tax - paid by the seller, calculated on a progressive scale based on appraised value and years of ownership
- Specific Business Tax (3.3%) - paid by the seller if they have owned the property for less than 5 years
- Stamp duty (0.5%) - paid by the seller if SBT does not apply (ownership of 5 years or more)
Note that SBT and stamp duty are mutually exclusive. Only one applies to any given transaction.
All of the above is negotiable. In a buyer's market (high supply, low demand), a motivated seller may agree to cover the transfer fee entirely. In a hot market, buyers often absorb the full amount themselves.
Scenario 3: Purchasing Through a Corporate Entity
When a condo is registered in the name of a Thai company (uncommon for condominiums but relevant for villa structures), the tax profile changes. Withholding tax is calculated differently: a corporate seller pays 1% of the appraised or contract value, whichever is higher. An individual seller pays on a progressive personal income tax scale, which may produce a higher or lower liability depending on circumstances. The transfer fee itself remains 2% regardless of the ownership structure.
Comparison Table: Transfer Costs by Transaction Type
| Cost Item | Primary Market | Resale Under 5 Years | Resale Over 5 Years |
|---|---|---|---|
| Transfer Fee (2%) | 50/50 or developer covers | Usually buyer | Usually buyer |
| Specific Business Tax (3.3%) | Developer | Seller | Not applicable |
| Stamp Duty (0.5%) | Not applicable | Not applicable | Seller |
| Withholding Tax | Developer | Seller | Seller |
| Total Buyer Cost (approx.) | 0% to 1% | ~2% | ~2% |
| Total Seller Cost (approx.) | 3.3% to 4.3% | 3.3% to 5.3% | 0.5% to 2.5% |
How the Appraised Value Is Calculated
The Land Department uses its own valuation system, updated every four years. The most recent revision was completed in 2024. This assessed value is consistently lower than market prices. For condominiums in Bangkok's Sukhumvit area, the gap typically ranges from 15-25%. In Phuket, it is usually 10-20% below the transaction price.
In practical terms: if you buy a condo for 5 million baht, the appraised value might be set at 4 million baht. The transfer fee would therefore be 80,000 baht (approximately 2,200 USD), not 100,000 baht.
One important rule applies when a contract price is deliberately set below the appraised value (which sometimes occurs in related-party transactions): the Land Department will always use whichever figure is higher.
Main Risks and Mistakes
1. Failing to document tax allocation in the contract. Verbal agreements carry no legal weight in Thailand. If the contract does not contain a specific clause stating who pays the transfer fee, the seller can claim on registration day that it is the buyer's responsibility. Always insist on a dedicated 'Tax and Fee Allocation' section in writing.
2. Confusing appraised value with contract price. Many buyers estimate their tax exposure using the purchase price. This almost always overstates the actual cost. Before signing anything, ask your agent or lawyer to obtain the current Land Department assessed value for the specific unit.
3. Arriving at registration without sufficient funds. Every tax and fee is payable in full on the day of registration at the Land Office. There are no instalment options. If you are transferring funds from overseas, bank transfers typically take 3-5 business days - plan accordingly and ensure baht-denominated funds are available in advance.
4. Ignoring Specific Business Tax on resale. If you buy a condo and sell within three years, SBT of 3.3% of the appraised value will apply to you as seller. This materially reduces your net return. Holding the property for more than five years replaces SBT with stamp duty at just 0.5% - a significant difference in exit costs.
5. Understating the contract price to reduce taxes. Some sellers propose recording a lower value in the agreement to minimise their tax bill. This is illegal under Thai law and can result in penalties. It is also largely ineffective, since the Land Department will apply the appraised value if it is higher than the stated contract price.
FAQ
Who is legally required to pay the transfer fee in Thailand?
Thai law does not assign this obligation to either party. The transfer fee is a registration charge for the transfer of title, and both parties may agree to any allocation they choose. In practice, this should always be formalised in the sale and purchase agreement.
Can the transfer fee be waived?
No. The 2% transfer fee is a mandatory government charge. The Land Department will not process the registration until it has been paid in full.
Is the transfer fee calculated on the contract price or the appraised value?
On the Land Department's appraised value. If the contract price is higher than the appraised value, the lower appraised figure is used. If the contract price is lower, the department uses the higher of the two.
What other costs does a condo buyer typically face?
Beyond the transfer fee, buyers should budget for legal fees (typically 30,000 to 80,000 baht), a one-time sinking fund contribution (calculated per square metre), and ongoing monthly common area maintenance fees. These are separate from taxes but must be factored into total acquisition costs.
Is the transfer fee the same for foreign and Thai buyers?
Yes. The rate is a flat 2% regardless of nationality. There are no additional surcharges for foreign buyers purchasing freehold condominiums within the foreign ownership quota.
When exactly is the transfer fee paid?
On the day of title registration at the Land Department office. Payment is made on-site by cashier's cheque from a Thai bank. Some offices also accept cash in baht.
How does the transfer fee affect investment returns?
On a 5 million baht condo, the transfer fee is roughly 80,000 to 100,000 baht. For a property generating 5-7% annual rental yield, this equates to approximately 3 to 4 months of rental income. Over a long holding period of five or more years, the impact on total returns is modest.
What happens if the seller refuses to pay their agreed share on registration day?
If the allocation is written into the contract, a refusal constitutes a breach of contract. The buyer has the right to withdraw from the transaction and claim return of the deposit. This is precisely why a clearly worded, lawyer-reviewed contract in English or Thai is non-negotiable.
Are there any tax relief programmes for buyers in 2026?
The Thai government has previously introduced temporary reductions - in 2024, the transfer fee was cut to 1% for properties appraised below 7 million baht. Whether any comparable measures are in effect in 2026 should be confirmed with a qualified Thai property lawyer before proceeding, as such programmes are enacted by separate cabinet resolutions and can change with little notice.
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