Authored by the expert who managed and guided the team behind the Thailand Property Pack
Yes, the analysis of Chiang Mai's property market is included in our pack
Property taxes and fees in Chiang Mai can total 6-8% of your purchase price when buying real estate.
The exact amount depends on whether you're buying a condo, house with land, or vacant land, plus factors like property value, ownership structure, and how costs are split between buyer and seller. Understanding these expenses upfront helps you budget accurately and avoid surprises at closing.
If you want to go deeper, you can check our pack of documents related to the real estate market in Thailand, based on reliable facts and data, not opinions or rumors.
Property transfer fees in Chiang Mai include transfer fee (2%), specific business tax (3.3%) or stamp duty (0.5%), and withholding tax (1-15%), totaling 6-8% of purchase price.
Additional costs include common area fees for condos (30-80 THB per sqm monthly), sinking funds (300-800 THB per sqm), setup costs (20,000-50,000 THB), and professional fees (50,000-150,000 THB).
| Cost Category | Amount/Rate | Who Pays |
|---|---|---|
| Transfer Fee | 2% of appraised value | Negotiable (usually split) |
| Specific Business Tax | 3.3% of sale price | Seller (if owned <5 years) |
| Stamp Duty | 0.5% of appraised value | Buyer (if no business tax) |
| Withholding Tax | 1-15% of appraised value | Seller |
| Common Area Fee (Condos) | 30-80 THB per sqm/month | Owner (ongoing) |
| Sinking Fund (Condos) | 300-800 THB per sqm | Buyer (one-time) |
| Professional Services | 50,000-150,000 THB | Buyer |
What property type and size determine your total costs in Chiang Mai?
The type of property you buy in Chiang Mai directly affects your tax and fee calculations.
Condominiums are measured in square meters (sqm) and typically range from 30-150 sqm in Chiang Mai, with different fee structures compared to landed property. Houses with land use both sqm for the building and wah or rai for land measurement—1 wah equals 4 sqm, while 1 rai equals 400 sqm or 100 wah.
Land-only purchases follow different tax rules since there's no building value to assess separately. The Land Office treats condos, houses, and vacant land differently for transfer fee calculations, with condos often having additional juristic person fees that don't apply to standalone houses.
Property size affects not just the purchase price but also ongoing costs like common area maintenance fees for condos, which are calculated per sqm monthly.
Specify your exact property type and size in sqm, wah, or rai to get accurate cost projections.
How do agreed price versus appraised value affect your taxes in Chiang Mai?
Your actual purchase price and the Land Office appraised value determine different aspects of your property costs.
The agreed purchase price in THB is what you pay the seller and appears on your sales contract. The Land Office appraised value is the government's assessment used to calculate transfer fees, stamp duty, and withholding tax—this is often lower than market price.
Specific business tax at 3.3% applies to your actual sale price if the seller owned the property less than 5 years. Transfer fees and stamp duty use the appraised value, typically 2% and 0.5% respectively.
In Chiang Mai's current market, Land Office appraisals often run 10-20% below actual sale prices for condos and 15-30% below for houses. This gap can work in your favor for transfer costs but may affect mortgage lending if banks base loans on appraised values.
Always confirm both values before calculating your total acquisition costs.
What taxes apply to new developments versus resale properties in Chiang Mai?
New units from developers and resale properties have different tax implications in Chiang Mai.
| Property Status | Business Tax | Stamp Duty | Additional Notes |
|---|---|---|---|
| New from Developer | No business tax | 0.5% of appraised value | Developer may offer to cover some fees |
| Resale (owned <5 years) | 3.3% of sale price | Not applicable | Seller pays business tax |
| Resale (owned 5+ years) | No business tax | 0.5% of appraised value | Only stamp duty applies |
| Resale (principal residence 5+ years) | Exempt from business tax | 0.5% of appraised value | Seller must prove residence status |
| Company-owned resale | 3.3% of sale price | Not applicable | Always subject to business tax |
How does freehold versus leasehold ownership affect costs in Chiang Mai?
Ownership structure significantly impacts both upfront costs and ongoing expenses for property buyers in Chiang Mai.
Freehold ownership allows full legal ownership with standard transfer procedures and typical 2% transfer fees. All taxes and fees apply normally, with no additional lease documentation required at the Land Office.
Leasehold properties require registering the lease agreement at the Land Office, adding registration costs of 1% of total lease value plus 0.1% for each year of the lease term. For a 30-year lease on a 5 million THB property with 50,000 THB annual rent, registration costs approximately 65,000 THB.
Leasehold purchases still incur standard transfer fees on the property value, plus separate lease registration fees. Specify your lease term in years and total annual rent in THB to calculate exact registration costs.
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What different tax rates apply to individual versus company purchases in Chiang Mai?
The buyer and seller structure affects tax obligations and available exemptions in Chiang Mai property transactions.
Individual buyers purchasing from individual sellers benefit from the most favorable tax treatment, including potential withholding tax reductions if the seller qualifies for exemptions. Companies purchasing property face standard corporate tax rates without personal residence exemptions.
Sellers who are individuals may qualify for reduced withholding tax rates: 1% if selling their principal residence after 5+ years ownership, or standard rates of 2-15% depending on circumstances. Company sellers always face standard withholding tax rates without personal residence exemptions.
Foreign individuals can own condos under the Foreign Quota but must use Thai nominees or companies for land ownership, adding legal structure costs of 30,000-100,000 THB annually for company maintenance.
Specify whether you're buying as an individual or company, and confirm the seller's structure for accurate tax calculations.
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How do mortgage registrations impact your total costs in Chiang Mai?
Registering a mortgage at the Land Office adds specific fees to your property purchase costs.
Mortgage registration fee equals 1% of the loan amount registered with the Land Office. For a 3 million THB mortgage, you pay 30,000 THB registration fee. This fee is separate from bank processing fees and applies regardless of the actual loan amount you receive.
Banks typically require property insurance as loan security, adding 0.1-0.3% of property value annually. Legal fees for mortgage documentation range from 15,000-30,000 THB depending on loan complexity.
Some banks offer to cover mortgage registration fees as promotional incentives, particularly for high-value properties or preferred customers. Always confirm who pays registration costs before signing loan agreements.
Specify your exact loan amount in THB that will be registered at the Land Office for accurate fee calculations.
What are standard practices for splitting transfer costs in Chiang Mai?
Transfer cost allocation between buyer and seller varies by negotiation and market conditions in Chiang Mai.
Standard practice splits transfer fees (2% of appraised value) equally between buyer and seller, with each paying 1%. Specific business tax (3.3%) is always the seller's responsibility when applicable, while stamp duty (0.5%) typically falls to the buyer when there's no business tax.
Withholding tax rates vary from 1-15% of appraised value and are always the seller's obligation, though sellers often increase their asking price to offset this cost. In competitive markets, buyers sometimes agree to cover larger portions of transfer costs to strengthen their offers.
Popular cost-splitting arrangements include 50/50 for all fees, buyer pays all costs except withholding tax, or seller covers all transfer costs as a selling incentive. Always specify exact percentages for each fee type to avoid closing day disputes.
Current Chiang Mai market conditions favor buyers slightly, making 50/50 cost splits most common for standard transactions.
How do principal residence versus rental designation affect ongoing costs?
Your intended use of the property impacts both tax obligations and ongoing fee structures in Chiang Mai.
| Usage Type | Tax Benefits | Registration Requirements | Ongoing Obligations |
|---|---|---|---|
| Principal Residence | Reduced withholding tax when selling | Name on Tabien Baan (house registration) | Standard utility rates |
| Second Home | Standard tax rates | No special registration | Higher utility rates possible |
| Rental Property | Rental income tax obligations | Business license may be required | Withholding tax on rental income |
| Investment Hold | Capital gains tax when selling | No special requirements | Standard property taxes |
| Company Ownership | Corporate tax rates | Company registration updates | Annual company maintenance costs |
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What are typical condo common area fees and sinking fund costs in Chiang Mai?
Condo ownership in Chiang Mai includes ongoing monthly fees and one-time payments that vary by building quality and location.
Monthly common area fees range from 30-80 THB per sqm depending on building amenities and management quality. Budget developments charge 30-45 THB per sqm, mid-range projects cost 45-60 THB per sqm, while luxury condos with pools, gyms, and 24-hour security charge 60-80 THB per sqm monthly.
Sinking fund payments are one-time fees paid to the juristic person at ownership transfer, typically 300-800 THB per sqm. This fund covers major building repairs and replacements over time. A 60 sqm condo might require 18,000-48,000 THB sinking fund payment.
Some buildings charge additional special fees for parking spaces (1,000-3,000 THB monthly), premium amenities, or major renovations through special assessments. Always review the juristic person's financial statements before purchasing to understand fee stability and fund management.
Calculate monthly fees for your specific unit size to budget accurately for ongoing ownership costs.
What one-time setup costs should you budget for move-in in Chiang Mai?
Moving into your new Chiang Mai property requires several utility connections and administrative payments beyond the purchase price.
Essential setup costs you'll encounter include:
- Electricity meter deposit and connection: 2,000-5,000 THB depending on anticipated usage
- Water meter installation and deposit: 1,500-3,000 THB for standard residential connections
- Internet installation and equipment: 3,000-8,000 THB for fiber optic connections
- Parking permit registration: 500-2,000 THB for condos with managed parking
- Juristic person key deposits: 1,000-5,000 THB for building access cards and keys
Optional furniture packages from developers cost 150,000-500,000 THB for basic to premium furnishing, while custom furnishing typically runs 200,000-800,000 THB depending on property size and quality preferences. Security deposits for condos with concierge services add another 5,000-15,000 THB.
Budget 20,000-50,000 THB total for essential connections and deposits, plus furniture costs based on your preferences and timeline.
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What professional services and administrative costs are essential for Chiang Mai property purchases?
Professional services ensure legal compliance and protect your investment in Chiang Mai's complex property market.
| Service | Cost Range (THB) | Purpose |
|---|---|---|
| Legal representation | 30,000-80,000 | Contract review, Land Office procedures |
| Professional translation | 5,000-15,000 | Document translation and certification |
| Property due diligence | 10,000-25,000 | Title verification, encumbrance checks |
| Independent valuation | 8,000-20,000 | Market value confirmation |
| Real estate agent commission | 1-3% of purchase price | Property sourcing and negotiation |
| Document courier services | 2,000-5,000 | Secure document handling |
| Company setup (if needed) | 25,000-50,000 | Thai company formation for land ownership |
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 all property taxes and fees helps you budget accurately for your Chiang Mai real estate purchase.
Work with experienced local professionals to navigate the legal requirements and ensure proper cost allocation with sellers.
It's something we develop in our Thailand property pack.