Authored by the expert who managed and guided the team behind the Thailand Property Pack
Yes, the analysis of Phuket's property market is included in our pack
Property taxes and fees in Phuket can add 6-12% to your purchase price when buying real estate on the island. Understanding these costs is crucial for budgeting your property investment in one of Thailand's most popular destinations.
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 buyers in Phuket face multiple taxes and fees including a 2% transfer fee, 3.3% business tax or 0.5% stamp duty, withholding tax, annual property taxes, agent commissions of 3-5%, legal fees, and maintenance costs for condos.
The total cost typically ranges from 6-12% of the property value, with foreign buyers potentially facing additional charges for leasehold registration or condo quota compliance.
| Tax/Fee Type | Rate | Who Pays |
|---|---|---|
| Transfer Fee | 2% of assessed value | Usually split 50/50 |
| Business Tax (if <5 years ownership) | 3.3% of assessed value | Seller |
| Stamp Duty (if >5 years ownership) | 0.5% of registered value | Seller |
| Withholding Tax | 1% (company) / 0.5-3% (individual) | Seller |
| Agent Commission | 3-5% of sale price | Seller |
| Legal Fees | THB 40,000-250,000 | Buyer |
| Annual Property Tax | 0.3% (residential) / 1.2% (commercial) | Owner |
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
How much is the transfer fee when buying property in Phuket?
The transfer fee in Phuket is 2% of the government-assessed (appraised) value or the actual sale price, whichever is higher.
This fee is typically split 50/50 between the buyer and seller, meaning each party pays 1% of the property value. However, this arrangement can be negotiated as part of your purchase agreement.
The transfer fee is paid at the Land Department office during the property registration process. As of September 2025, this remains one of the mandatory costs that cannot be avoided when purchasing real estate in Phuket.
For a property valued at THB 10 million, the transfer fee would be THB 200,000, with each party paying THB 100,000 under the standard 50/50 split arrangement.
What percentage is the stamp duty and when does it apply instead of business tax?
Stamp duty in Phuket is 0.5% of the registered property value and only applies when specific business tax (SBT) does not.
Stamp duty is charged when the seller has owned the property for more than 5 years or when the property was inherited. If business tax applies (property held for less than 5 years), then stamp duty is not charged - you pay one or the other, never both.
The stamp duty is typically paid by the seller, though this can be negotiated in the sales contract. This tax is calculated based on the registered value of the property, which is usually the government-assessed value.
It's something we develop in our Thailand property pack.
What is the specific business tax rate and in which situations is it charged?
The specific business tax (SBT) rate in Phuket is 3.3% of the appraised value or sale price, whichever is higher.
SBT is charged when the seller has owned the property for less than 5 years, excluding inherited properties. This tax was introduced to discourage property speculation and short-term flipping in the Thai real estate market.
The 3.3% rate applies to all property types - residential, commercial, and land. If SBT is applicable, stamp duty is waived, so sellers only pay the higher SBT rate rather than both taxes.
For example, if you sell a THB 15 million villa that you've owned for 3 years, you would pay THB 495,000 in specific business tax. The buyer typically does not contribute to this tax.
How much is the withholding tax and how is it calculated for individuals versus companies?
Withholding tax rates differ significantly between individual and company sellers in Phuket's property market.
For company sellers, the withholding tax is a flat 1% of the higher value between the appraised value or actual sale price. This is straightforward and consistently applied across all commercial property transactions.
For individual sellers, the calculation is more complex, using a progressive scale based on income tax brackets and ownership period. The effective rate typically ranges from 0.5% to 3% for most standard transactions, depending on the seller's overall tax situation.
This withholding tax serves as an advance payment toward the seller's annual income tax obligations, whether personal or corporate. The final tax liability is reconciled during the annual tax filing process.
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What are the annual property tax rates for residential, commercial, and vacant land?
Annual property tax rates in Phuket vary based on how you use your property, with residential properties having the lowest rates.
| Property Type | Annual Tax Rate | Additional Notes |
|---|---|---|
| Residential Property | Up to 0.3% | Based on government-assessed value |
| Commercial Property | Up to 1.2% | Higher rate for business use |
| Vacant Land (unused) | Up to 1.2% initially | Increases by 0.3% every 3 years |
| Vacant Land (maximum) | Up to 3.0% | After prolonged non-development |
| Agricultural Land | Up to 0.15% | Lowest rate for farming use |
Are there any local municipality fees or charges to consider on top of national taxes?
Yes, some districts in Phuket impose additional local municipality fees on top of the national tax obligations.
These local fees are typically small, usually amounting to less than 10% of the specific business tax amount. They may appear as a "municipal tax" added to your business tax bill during property transfers.
The exact amount and application of these fees can vary by district within Phuket, so it's important to check with local authorities or your legal advisor about specific charges in your property's location.
While these additional costs are generally minor compared to the main taxes, they should still be factored into your overall budget calculations when purchasing property in Phuket.
What is the standard agent commission for property sales in Phuket?
Standard agent commissions in Phuket range from 3% to 5% of the property sale price, typically paid by the seller.
Most established real estate agencies charge within this 3-5% range, with the exact percentage often depending on the property type, price point, and services provided. Luxury properties or complex transactions may command higher commission rates.
Some new developments may offer commission rates up to 10% or provide additional bonuses to agents for special sales promotions, though this is less common in the resale market.
It's something we develop in our Thailand property pack.
As a buyer, you typically don't pay the agent commission directly, but it's important to understand that this cost is often factored into the property's asking price by sellers.
How much are the legal fees for contracts, due diligence, and registration?
Legal fees for property purchases in Phuket typically range from THB 40,000 to THB 250,000, depending on the complexity of your transaction.
Basic legal services including contract review, title searches, and registration assistance usually cost THB 40,000 to THB 80,000 for straightforward transactions. More complex deals involving corporate structures, leasehold arrangements, or extensive due diligence can reach THB 150,000 to THB 250,000.
These fees cover essential services such as verifying clear title, checking for encumbrances, reviewing sales contracts, ensuring proper documentation, and facilitating the transfer process at government offices.
Foreign buyers often require additional legal services for compliance with Thai property laws, which may increase the total legal cost by THB 20,000 to THB 50,000 depending on the complexity of ownership structures needed.
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What are the typical notary and administrative costs involved?
Notary and administrative costs in Phuket property transactions typically add THB 7,000 to THB 30,000 to your total expenses.
Notary fees for document authentication range from THB 2,000 to THB 10,000 per document, depending on the complexity and type of certification required. Foreign buyers often need more documents notarized, increasing these costs.
Administrative costs including registration fees, certificate issuance, and government processing typically add another THB 5,000 to THB 20,000 to your transaction costs. These cover mandatory government paperwork and official registrations.
Additional administrative expenses may include translation services for foreign buyers, which can cost THB 3,000 to THB 8,000 depending on the volume of documents requiring certified translation into Thai or English.
Are there recurring maintenance fees or sinking funds for condos or gated communities?
Condominiums and gated communities in Phuket charge monthly maintenance fees ranging from THB 30 to THB 80 per square meter, with most properties averaging around THB 50 per square meter.
These maintenance fees cover common area upkeep, security services, pool and gym maintenance, cleaning services, and general building management. Luxury developments typically charge higher rates due to premium amenities and services.
Sinking funds are one-time payments due at purchase, typically ranging from THB 500 to THB 1,500 per square meter. This fund is used for major capital expenses, building renovations, and significant repairs over the property's lifetime.
For a typical 60-square-meter condo, expect monthly maintenance fees of THB 1,800 to THB 4,800, plus a one-time sinking fund payment of THB 30,000 to THB 90,000 at the time of purchase.
Are there any special charges for foreigners, such as fees for leasehold registration or condo freehold quota?
Foreign buyers in Phuket face specific additional charges related to leasehold arrangements and condominium foreign ownership quotas.
Leasehold registration fees amount to 1.1% of the total lease amount for typical 30-year leases, with this cost usually split equally between the foreign lessee and Thai lessor. This applies when foreigners cannot own land directly and must lease it instead.
For condominiums, upgrading to foreign freehold ownership (within the building's 49% foreign quota) may require additional administrative fees ranging from THB 50,000 to THB 200,000, though some developments charge up to 2-3% of the property value for quota access.
It's something we develop in our Thailand property pack.
These charges are specific to foreign buyers and don't apply to Thai nationals, making it crucial to budget for these additional costs when calculating your total property investment in Phuket.
What other hidden costs or miscellaneous fees should a buyer or owner expect in Phuket?
Several additional costs can surprise property buyers in Phuket if not properly budgeted for during the purchase process.
1. **Title search and certificate fees:** THB 3,000 to THB 10,000 for professional title verification and obtaining necessary certificates2. **Government property valuation:** Required for tax calculations, typically THB 2,000 to THB 5,0003. **Surveyor fees:** THB 5,000 to THB 15,000 for boundary verification and property measurements4. **Utilities connection and deposits:** Electricity, water, and internet setup can cost THB 10,000 to THB 25,000 total5. **Property insurance:** Optional but recommended, ranging from THB 8,000 to THB 30,000 annually depending on coverage6. **Developer extras:** For new properties, furniture packages, upgrades, or transfer delay charges may apply7. **Currency transfer certification:** Foreign buyers may need proof of funds transfer, costing THB 2,000 to THB 5,000For foreign buyers, additional compliance documentation, extra notarization, and specialized legal services can add another THB 15,000 to THB 40,000 to the total transaction cost.
These miscellaneous costs typically add 1-2% to your total property purchase price, but proper planning can help avoid surprises during the closing process.
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 in Phuket is essential for making informed investment decisions on the island.
From transfer fees to ongoing maintenance costs, these expenses can significantly impact your total investment and should be carefully considered in your property purchase planning.
Sources
- Sunway Estates - Taxes and Transfer Fees
- Siam Legal - Transfer of Property in Thailand
- Thai Residential - Phuket Property Buying Hidden Costs
- Thai Residential - Fees and Taxes When Purchasing Phuket Real Estate
- Attorney in Phuket - Property Transfer Fees
- Siam Legal - Thailand Property Taxes
- Samui Island Realty - Thailand Property Taxes and Fees
- Lazudi - Property Tax and Fees in Thailand
- Phuket Realtor - Real Estate Agency Commissions in Thailand
- Thai Residential - Cost of Buying Property in Phuket 2025