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Understanding Bangkok's property taxes is crucial for making informed investment decisions in the capital's real estate market.
The tax structure applies equally to all buyers regardless of nationality, with rates typically ranging from 2-6% of the property value depending on specific circumstances. Transfer fees, specific business tax or stamp duty, and withholding tax are the main components buyers need to budget for when purchasing property in Bangkok.
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Bangkok property buyers pay the same taxes regardless of nationality, with transfer fees at 2% of appraised value and either 3.3% specific business tax or 0.5% stamp duty.
Total upfront costs typically range from 3-6% of property value when including all taxes, fees, and legal expenses.
| Tax/Fee Type | Rate | Who Pays | When Applied |
|---|---|---|---|
| Transfer Fee | 2% of appraised value | Split 50/50 (negotiable) | All property sales |
| Specific Business Tax | 3.3% of higher value | Seller | Company sales or <5 years ownership |
| Stamp Duty | 0.5% of higher value | Seller | When SBT doesn't apply |
| Withholding Tax | 0-3% (individuals), 1% (companies) | Seller | All transfers |
| Legal Fees | THB 20,000-100,000+ | Buyer | Due diligence and registration |
| Annual Land Tax | 0.02-0.1% | Owner | Ongoing (exemptions apply) |
Are there different taxes for foreigners versus Thai citizens when buying property in Bangkok?
No, foreigners and Thai citizens pay exactly the same property taxes and fees when buying property in Bangkok.
As of September 2025, the Thai government applies identical tax rates, calculation methods, and payment responsibilities to all property buyers regardless of nationality or residency status. The transfer fee remains at 2% of the appraised value, specific business tax at 3.3%, and stamp duty at 0.5% for everyone.
The only differences arise from ownership restrictions rather than tax rates. While foreigners cannot own land directly and are limited to 49% ownership in condominium projects, the actual taxes paid during the purchase process remain identical to those paid by Thai citizens.
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What is the exact transfer fee rate charged by the Land Department, and how is it calculated?
The Land Department charges a transfer fee of exactly 2% of the official government-assessed (appraised) value of the property.
This fee is calculated using the appraised value set by the Land Department, which is updated every four years, rather than the actual transaction price. For example, if you purchase a condo for THB 8 million but the government-assessed value is THB 6 million, the transfer fee would be THB 120,000 (2% of THB 6 million).
In most resale transactions, this 2% fee is split equally between buyer and seller (1% each), though this arrangement is negotiable. For new developments, buyers typically pay a maximum of 1% while developers cover the remaining portion. The fee must be paid in cash at the Land Department office on the day of transfer.
The government-assessed value is often lower than market prices, especially in rapidly appreciating areas of Bangkok, which can result in lower transfer fees than expected.
How much is the specific business tax, and in which situations does it apply instead of stamp duty?
Specific business tax (SBT) is charged at 3.3% of the higher value between the actual sale price and the government-assessed value.
SBT applies in two main situations: when the property is sold by a company, or when sold by an individual who has owned the property for less than 5 years and has not used it as their primary residence for at least 1 year. This tax includes a 3% base rate plus a 0.3% municipal levy.
When SBT applies, stamp duty is automatically waived on the same transaction. For a THB 10 million property sale where SBT applies, the seller would pay THB 330,000 in specific business tax. Most property flippers and short-term investors in Bangkok will encounter SBT rather than stamp duty.
Companies holding property for investment always pay SBT upon sale, making this tax particularly relevant for foreign buyers using company structures for land ownership.
What is the rate of stamp duty in Bangkok, and when exactly does it need to be paid?
Stamp duty in Bangkok is 0.5% of the higher value between the registered sale price and the government-assessed value.
This tax applies only when specific business tax does not apply, typically when an individual seller has owned the property for 5 years or more, or has used it as their primary residence for at least 1 year. The seller is responsible for paying stamp duty, though contract terms can override this default arrangement.
Stamp duty must be paid at the Land Department office on the transfer date before ownership can be officially registered. For a THB 8 million condo where stamp duty applies instead of SBT, the total stamp duty would be THB 40,000.
Long-term property holders and owner-occupiers in Bangkok typically encounter stamp duty rather than the higher specific business tax rate.
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How is withholding tax calculated on a property purchase, and who is responsible for paying it?
Withholding tax calculation depends on whether the seller is an individual or a company, with the seller always responsible for payment.
For individual sellers, withholding tax uses a progressive scale based on the appraised value minus deductions tied to years of ownership, divided by years held, then taxed at Thailand's personal income tax rates. After deductions, this typically results in 0-3% of the property value. For company sellers, the rate is a flat 1% of the higher value between contract price and appraised value.
The Land Office collects withholding tax at the time of transfer and remits it to the Revenue Department. This tax serves as a credit against the seller's annual personal income tax or corporate income tax obligations. For a THB 10 million property sold by a company, the withholding tax would be THB 100,000.
Buyers need to ensure sellers have budgeted for this tax, as it's deducted from the seller's proceeds at closing and can affect negotiation dynamics.
Are these taxes based on the government-assessed value, the appraised value, or the actual transaction price?
Most Bangkok property taxes are calculated using the higher value between the government-assessed value and the actual transaction price.
The government-assessed value, set by the Land Department in four-year cycles, is often significantly lower than current market prices in Bangkok's rapidly appreciating districts. For specific business tax, stamp duty, and withholding tax calculations, authorities compare both values and apply the higher figure to ensure appropriate tax collection.
Only the transfer fee uses exclusively the government-assessed value, regardless of the actual sale price. This means if you purchase a property for THB 12 million but the assessed value is THB 8 million, you'll pay transfer fees on THB 8 million but specific business tax or stamp duty on THB 12 million.
This dual-value system helps prevent tax avoidance through artificially low reported sale prices while keeping transfer fees reasonable for buyers.
Do property type and ownership structure affect which taxes apply?
Yes, property type and ownership structure significantly influence tax obligations and rates in Bangkok real estate transactions.
| Property Type/Structure | Ownership Rules | Tax Implications |
|---|---|---|
| Condominium (Freehold) | Foreigners up to 49% of project | Standard taxes apply |
| House/Land (Direct) | Thai citizens only | Standard taxes apply |
| House/Land (Leasehold) | 30-year lease for foreigners | 1% lease registration + 0.1% duty |
| Company-Owned Property | Thai majority ownership required | SBT always applies on sale |
| Usufruct Rights | Lifetime use rights | Registration fees vary |
| Superficies Rights | Building rights on land | Separate registration process |
Company-owned properties always trigger specific business tax at 3.3% when sold, while leasehold arrangements have different registration costs. Foreign buyers using company structures for land ownership face additional compliance costs and potential future tax implications.
How are these taxes split between buyer and seller in practice, and is this negotiable?
Tax allocation between buyers and sellers follows customary practices but remains fully negotiable in Bangkok property transactions.
The standard arrangement allocates transfer fees 50/50 between parties, with sellers paying specific business tax or stamp duty plus withholding tax. In new developments, buyers typically pay maximum 1% transfer fees while developers cover the balance. However, market conditions, property desirability, and negotiation skills can shift these allocations.
Hot market conditions often favor sellers, who may demand buyers cover additional tax burdens. Conversely, in buyer's markets or for properties requiring quick sales, sellers frequently absorb more tax costs. Legal contracts must explicitly state tax responsibilities to avoid closing-day disputes.
Experienced Bangkok property investors always factor tax allocation into their initial price negotiations rather than treating it as a separate issue.
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What are the average additional legal or administrative fees beyond government taxes that buyers should expect?
Legal and administrative fees in Bangkok property purchases typically range from THB 25,000 to THB 120,000 depending on transaction complexity and service providers chosen.
Legal fees for due diligence, contract review, and registration assistance range from THB 20,000 to THB 100,000+ based on property value and law firm selection. Top-tier international firms charge higher rates but provide comprehensive English-language services, while local firms offer more competitive pricing.
Additional administrative costs include notary services (THB 2,000-5,000), document translation (THB 3,000-8,000), and power of attorney preparation for absent buyers (THB 5,000-10,000). Bank financing adds mortgage registration fees at 1% of loan amount plus legal review costs.
Property inspection services, title searches, and compliance verification can add THB 10,000-20,000 to total costs. Buyers should budget 0.5-1% of property value for these essential professional services in Bangkok transactions.
Are there any exemptions or reductions for first-time buyers, new projects, or specific locations in Bangkok?
Limited exemptions exist for Bangkok property buyers, with most benefits targeting first-time homebuyers and specific price ranges.
1. **Transfer Fee Reduction**: First-time homebuyers purchasing properties under THB 3 million may qualify for reduced transfer fees of 0.01% instead of the standard 2%, subject to Royal Gazette notifications and qualifying conditions.2. **Mortgage Registration Discount**: Selected bank loan programs offer reduced mortgage registration fees of 0.01% instead of 1% for qualifying first-time buyers or specific property types.3. **New Project Incentives**: Some developers absorb transfer fee costs for new condominium purchases, effectively providing savings of 1-2% to buyers.4. **Annual Tax Exemption**: Primary residences valued under THB 50 million are typically exempt from ongoing land and building tax obligations.5. **No Location-Based Benefits**: Bangkok does not offer special tax incentives based on district or area, unlike some provincial programs promoting rural development.These exemptions change frequently based on government economic policies, so buyers should verify current availability with their legal advisors during purchase negotiations.
What recurring property taxes or annual fees will apply after the purchase is completed?
Annual property ownership costs in Bangkok include land and building tax plus property-specific fees depending on the type of accommodation.
Land and Building Tax applies at rates of 0.02-0.1% annually based on government-assessed property values. Primary residences valued under THB 50 million are often exempt from this tax, while investment properties and higher-value homes face the full rate. For a THB 10 million investment condo, annual land tax would be approximately THB 2,000-10,000.
Condominium owners pay monthly maintenance fees ranging from THB 30-150 per square meter depending on building amenities and management quality. A 60-square-meter unit might cost THB 1,800-9,000 monthly. Housing estates charge separate community fees for shared facilities and security.
Property insurance, utilities setup, and periodic legal compliance reviews add THB 10,000-30,000 annually to ownership costs. Foreign owners using company structures face additional annual audit and compliance costs of THB 15,000-50,000 depending on company complexity.
How can I calculate the total tax and fee burden upfront to know the true purchase cost of a property in Bangkok?
Calculate total purchase costs by adding government taxes, professional fees, and financing costs to your base property price using current market rates.
Start with the higher value between contract price and government-assessed value as your tax calculation base. Add 2% transfer fee (typically split 50/50), either 3.3% specific business tax or 0.5% stamp duty depending on seller circumstances, and estimate withholding tax at 1-3%. Include legal fees (THB 20,000-100,000+), administrative costs (THB 5,000-20,000), and mortgage registration fees if financing (1% of loan amount).
For a THB 10 million Bangkok condo purchase example: Transfer fee THB 100,000 (split), SBT THB 330,000 (seller), legal fees THB 50,000 (buyer), miscellaneous THB 15,000 (buyer). Total buyer costs would be approximately THB 215,000 (2.15%) plus the seller's THB 330,000 burden that might be negotiated.
Request itemized cost breakdowns from legal advisors and negotiate tax responsibility allocation upfront to avoid closing surprises. Most Bangkok transactions result in total costs of 3-6% of property value when including all fees and taxes.
It's something we develop in our Bangkok property pack.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Understanding Bangkok's property tax structure is essential for making informed investment decisions in Thailand's capital city.
The equal treatment of foreign and Thai buyers, combined with predictable tax rates, makes Bangkok an accessible market for international property investors willing to navigate the administrative requirements.
Sources
- Samui Island Realty - Thailand Property Taxes and Fees
- CBRE Thailand - New Foreign Income Rules
- Samui For Sale - Real Property Transfer Taxes and Fees
- Siam Legal - Thailand Property Transfer Tax
- Benoit Partners - Thailand Property Transfer Fee
- BambooRoutes - Bangkok Property Taxes and Fees
- Thai Embassy - Property Tax in Thailand
- Siam Commercial Bank - Buying and Selling Property