Withholding Tax on Thai Property Sales: Exact Calculations for 2026

When you sell a condominium in Phuket or a villa in Pattaya, the Thai Land Department withholds tax directly from the transaction proceeds at the moment of title transfer. The seller walks away with less than the contract price states. Exactly how much less depends on three factors: how long you have owned the property, the Land Department's appraised value, and whether the seller is an individual or a corporate entity.

For individual sellers, withholding tax is calculated on a progressive scale ranging from 5% to 35%, adjusted by the number of years of ownership. Corporate sellers pay a flat 1% of the appraised or registered value, whichever is higher. Crucially, this withholding is not a final tax - it is credited against the seller's annual income tax return. Beyond withholding tax, sellers also face a transfer fee, plus either Specific Business Tax (SBT) or Stamp Duty depending on how long the property was held. The combined tax burden at the point of sale can reach 6.3% or more of the property's assessed value.

Quick Answer

• Withholding tax for individuals - progressive scale from 5% to 35%, with the taxable base reduced proportionally by years of ownership
• Withholding tax for companies - flat 1% of the Land Department's appraised value
• Transfer fee - standard 2% of appraised value, typically split 50/50 between buyer and seller
• Specific Business Tax (SBT) - 3.3% if the property is sold within 5 years of purchase
• Stamp Duty - 0.5% when SBT does not apply (ownership exceeding 5 years)
• All taxes are collected and paid at the Land Office on the day title transfer is registered - there is no deferred payment mechanism

Scenarios and Options

Scenario 1: Individual Selling a Condo After 3 Years

A foreign buyer purchased an apartment in Bangkok for 5,000,000 THB and sells it three years later for 6,000,000 THB. The Land Department's appraised value is 5,200,000 THB.

Withholding tax is calculated as follows: the appraised value is divided by the number of years of ownership (minimum one year). This yields 5,200,000 / 3 = 1,733,333 THB as the annualised taxable income. The progressive rate schedule under the Revenue Code (Section 50) is then applied. The first 300,000 THB is taxed at 5%, with rates rising above that threshold. The resulting annual tax figure is then multiplied back by 3.

In practice, the withholding tax in this case totals approximately 150,000 to 180,000 THB. Adding SBT at 3.3% of appraised value (171,600 THB) and the seller's half of the transfer fee (52,000 THB), the total tax outlay reaches roughly 370,000 to 400,000 THB, representing around 6.5 to 7% of the appraised value.

Scenario 2: Corporate Seller (Thai Company)

A Thai-registered company sells a Phuket villa with a Land Department appraised value of 15,000,000 THB. Withholding tax is a straightforward 1%, or 150,000 THB. If the company has owned the property for fewer than 5 years, SBT at 3.3% adds another 495,000 THB. Transfer fee at 2% adds 300,000 THB. The combined cost comes to approximately 945,000 THB, or 6.3% of appraised value.

An important nuance: for companies, the 1% withholding tax is an advance payment against the standard 20% corporate income tax on profits. The actual gain from the sale will be taxed at the full corporate rate when the annual accounts are filed, but the 1% already withheld is credited against that liability.

Scenario 3: Individual Selling After 6 Years of Ownership

Holding for more than 5 years replaces SBT with Stamp Duty at 0.5%, generating meaningful savings. On a property with an appraised value of 10,000,000 THB, the difference between SBT (330,000 THB) and Stamp Duty (50,000 THB) is 280,000 THB. The withholding tax base is also lower: dividing by 6 years produces a smaller annual figure, pushing the calculation into lower brackets on the progressive scale.

The practical conclusion: selling after 5 years of ownership saves the seller 3 to 4 percentage points of the property's appraised value compared with an earlier exit.

Comparison Table

Main Risks and Mistakes

1. Understating the contract price. The Land Department uses its own appraised value, not the contract price. If the declared price is below the appraised value, taxes are still calculated on the appraisal. If the contract price is higher than the appraisal, taxes are calculated on the contract price. Understating the sale price provides no tax saving and creates audit risk with the Revenue Department.

2. Miscounting years of ownership. The Land Department treats each started calendar year as a full year. A property purchased in December 2023 and sold in January 2026 counts as 3 years for withholding tax purposes, not 2 years and 1 month. This convention works in the seller's favour and should be factored into exit timing.

3. Ignoring double taxation treaty (DTT) benefits. Several countries have active double taxation agreements with Thailand. Withholding tax paid to the Thai Land Department can often be credited against the seller's income tax liability in their home country, provided the seller retains the original Land Department payment receipt with a certified translation. Confirm the DTT position with a qualified tax adviser before closing.

4. Confusing withholding tax with capital gains tax. Thailand does not levy a separate capital gains tax on property sales for individuals. Withholding tax is calculated on the full appraised value of the property, not on the profit. This is fundamentally different from European tax systems and frequently catches foreign sellers off guard.

5. Not budgeting for SBT on pre-sale flips. Investors who buy off-plan and sell within 1 to 2 years routinely overlook the 3.3% SBT in their financial models. On a 5,000,000 THB property, that is 165,000 THB that goes unaccounted, eroding projected returns significantly.

6. Selling without a Thai Tax ID Number. Foreign sellers must obtain a Tax Identification Number (TIN) from the local Revenue Department office before completing the transaction. The process takes 1 to 2 business days. Arriving at the Land Office without a TIN will delay or block the transfer.

FAQ

Who pays withholding tax - the buyer or the seller? Withholding tax is the seller's liability. The amount is deducted from the sale proceeds and paid directly to the Land Department on the day of title transfer.

Can withholding tax be refunded? Yes. If the final tax assessed on the seller's annual return is less than the amount withheld, the excess is refundable. Individual sellers file Form PND.90 or PND.91. Refunds typically take 3 to 6 months to process.

How is the Land Department's appraised value determined? The Land Department publishes its own valuation tables, updated every four years. The current tables are valid from 2024 through 2027. Appraised values are typically 20 to 40% below prevailing market prices.

Do the same rules apply to foreign sellers? Yes. Rates and calculation methods are identical for Thai nationals and foreigners. Tax residency status does not affect withholding tax on property sales.

Is it better to sell as an individual or through a company? For properties valued below 10,000,000 THB, the difference is marginal. For high-value assets above 20,000,000 THB, the individual's progressive rate (up to 35% on upper brackets) can substantially exceed the corporate 1%. However, company profits are subsequently subject to 20% corporate income tax, plus dividend withholding tax when funds are distributed to shareholders. The net outcome depends on the full ownership and exit structure.

How much does SBT actually cost compared to Stamp Duty? SBT at 3.3% applies during the first 5 years of ownership. Stamp Duty at 0.5% replaces it thereafter. The difference is 2.8 percentage points. On a 10,000,000 THB property, this translates to 280,000 THB in additional tax for an early exit.

Are renovation costs or capital improvements deductible? No. For individual sellers, withholding tax is calculated on the appraised value, not on profit. Renovation expenditures are not deductible from the withholding tax base.

Does withholding tax need to be paid if the sale is at a loss? Yes. Because withholding tax is calculated on the appraised value rather than the gain, it is owed even if the seller sells below their purchase price. This is one of the most important structural differences from capital gains tax regimes elsewhere.

Smart transaction planning can save a seller hundreds of thousands of baht. The key optimisation levers are: holding the property beyond the 5-year threshold, understanding the Land Department's appraisal methodology, and claiming any available DTT credits to avoid double taxation. Begin planning the tax side of a sale at least 6 months before the target closing date.

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