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Everything you need to know before buying real estate is included in our Thailand Property Pack
Property taxes and fees in Thailand vary significantly based on ownership type, property usage, and transaction structure. Understanding these costs upfront helps you accurately calculate your total investment and ongoing expenses in the Thai real estate market.
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 Thailand face transfer fees of 2% of appraised value, plus either Specific Business Tax (3.3%) or Stamp Duty (0.5%) depending on the seller's circumstances.
Annual Land and Building Tax rates range from 0.02% to 0.7% based on property type and usage, while rental income is subject to withholding tax and personal income tax.
| Tax/Fee Type | Rate | When Applied |
|---|---|---|
| Transfer Fee | 2% of appraised value | All property transfers |
| Specific Business Tax | 3.3% | Seller owned property <5 years or not primary residence |
| Stamp Duty | 0.5% | When SBT doesn't apply |
| Land & Building Tax | 0.02%-0.7% | Annual property tax |
| Withholding Tax (Individual) | Progressive rates | Property sale proceeds |
| Withholding Tax (Company) | 1% | Company property sales |
| Mortgage Registration | 1% + 0.1% stamp | When registering mortgage |
Fact-checked and reviewed by our local expert
Attaya Suriyawonghae 🇹🇭
Real Estate Broker, Zest Real Estate
What type of property are you buying and how will you use it?
Property taxes in Thailand depend heavily on how you intend to use your property.
Owner-occupied residential properties benefit from the lowest Land and Building Tax rates at 0.02% to 0.03% of assessed value. If you're buying a condo or house to live in as your primary residence, you'll pay significantly less in annual taxes compared to investment properties.
Rental properties face higher tax rates of 0.02% to 0.1% for the first assessment bracket, with rates increasing for higher-value properties. Investment properties also generate rental income subject to personal income tax at progressive rates up to 35% for individuals, or corporate tax rates if owned through a company.
Commercial properties carry the highest Land and Building Tax burden at rates up to 0.7% of assessed value. Vacant land also faces higher rates, encouraging development and productive use of land resources.
Agricultural land enjoys preferential tax treatment with rates as low as 0.01% of assessed value, but foreign ownership restrictions apply to this category.
Does ownership structure affect your tax obligations?
Your tax obligations vary significantly based on whether you're buying freehold or leasehold, and whether parties are individuals, companies, Thai nationals, or foreigners.
Freehold ownership provides full property rights but comes with transfer fees of 2% of appraised value plus either Specific Business Tax (3.3%) or Stamp Duty (0.5%). Foreign individuals can own condo units freehold but face restrictions on land ownership.
Leasehold arrangements require registration fees of 1% of total lease payments plus 0.1% stamp duty. Long-term leases up to 30 years are common structures for foreign land access, though you're essentially renting rather than owning.
Company ownership structures, often used by foreigners to access land, face corporate tax rates and different withholding tax obligations. Companies pay 1% withholding tax on property sales compared to progressive rates for individuals.
Thai nationals enjoy full ownership rights without foreign restrictions, while foreign buyers must navigate specific legal structures and may face higher transaction costs through required legal arrangements.
How do purchase price and appraised value impact your taxes?
Tax calculations in Thailand use the official land office appraised value rather than your agreed purchase price, which can significantly impact your total costs.
The transfer fee of 2% applies to the appraised value, not the purchase price you negotiate with the seller. Land office appraisals often run 10-30% below market prices, potentially reducing your transfer costs.
Specific Business Tax of 3.3% and Stamp Duty of 0.5% also calculate based on appraised values. This creates situations where higher purchase prices don't necessarily translate to proportionally higher taxes.
Land and building values are assessed separately for tax purposes. The land component often carries higher per-square-meter values in prime locations, while building values may depreciate over time for tax assessment purposes.
It's something we develop in our Thailand property pack.
When do you pay Specific Business Tax versus Stamp Duty?
The choice between Specific Business Tax and Stamp Duty depends entirely on the seller's ownership history and residence status.
Specific Business Tax of 3.3% applies when the seller has owned the property for less than 5 years or when the property is not their primary residence. This higher rate affects most investment property transactions and quick resales.
Stamp Duty of 0.5% applies when the seller has owned the property for 5 years or more AND it serves as their primary residence. This significantly lower rate makes properties from long-term owner-occupiers more attractive to buyers.
Primary residence status requires the seller to have registered the address with local authorities and used it as their main dwelling. Investment properties and secondary homes don't qualify for the Stamp Duty rate regardless of ownership duration.
Buyers should verify the seller's ownership timeline and residence status during due diligence, as this single factor can mean the difference between paying 0.5% or 3.3% in transaction taxes.
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How are transfer charges typically split between buyers and sellers?
Transfer charge allocation is negotiable between parties, though market conventions exist for different transaction types.
| Fee Type | Typical Buyer Payment | Typical Seller Payment |
|---|---|---|
| Transfer Fee (2%) | 50% | 50% |
| Specific Business Tax (3.3%) | 0% | 100% |
| Stamp Duty (0.5%) | 0% | 100% |
| Withholding Tax | 0% | 100% |
| Mortgage Registration (1%) | 100% | 0% |
| Legal Fees | Each party pays own | Each party pays own |
| Agent Commission | Varies by agreement | Varies by agreement |
What withholding taxes apply to property sales?
Withholding tax obligations differ significantly between individual and company sellers, affecting net proceeds from property sales.
Individual sellers face progressive withholding tax rates based on their total annual income. Rates start at 5% for lower income brackets and can reach 35% for high earners, calculated on the capital gains portion of the sale.
Company sellers pay a flat 1% withholding tax on gross sale proceeds, regardless of the sale price or holding period. This predictable rate makes corporate ownership structures appealing for large property portfolios.
Capital gains calculations consider the original purchase price, improvement costs, and depreciation for tax purposes. Sellers who have owned properties for extended periods may face significant tax bills if property values have appreciated substantially.
Foreign sellers may face additional tax complications and should factor in potential double taxation issues between Thailand and their home countries when planning property sales.
What costs apply to mortgage and lease registrations?
Financing arrangements require separate registration fees and stamp duties beyond the basic property transfer costs.
Mortgage registrations cost 1% of the loan amount plus 0.1% stamp duty. For a 10 million THB mortgage, you'll pay 100,000 THB in registration fees plus 10,000 THB in stamps.
Lease registrations also require 1% of the total lease value plus 0.1% stamp duty. A 30-year lease worth 15 million THB total would cost 150,000 THB in registration fees plus 15,000 THB in stamps.
These costs are typically paid by the party benefiting from the registration - borrowers pay mortgage costs, while lessees pay lease registration costs.
Unregistered leases offer no legal protection against third parties, making registration essential for security despite the additional costs involved.
What special fees apply to condominium purchases?
Condominium ownership involves ongoing fees beyond the standard property taxes and transaction costs.
Monthly common area fees typically range from 40-80 THB per square meter depending on building amenities and management quality. A 60-square-meter unit might cost 2,400-4,800 THB monthly for building maintenance and services.
Sinking fund payments are one-time fees ranging from 500-1,500 THB per square meter, paid upon purchase to cover major building repairs and renovations. This represents 30,000-90,000 THB for a 60-square-meter unit.
Juristic person fees may apply for building administration, while some developments charge separate fees for amenities like fitness centers, pools, or security services.
These ongoing costs can add 5,000-8,000 THB monthly to your ownership expenses, significantly impacting rental yields and overall investment returns.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in Thailand versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How is the annual Land and Building Tax calculated?
Land and Building Tax replaced the old house and land tax system in 2020, creating a more progressive tax structure based on property values and usage.
| Property Usage | Tax Rate Range | Assessment Basis |
|---|---|---|
| Owner-occupied residential | 0.02% - 0.03% | Assessed value above 50M THB |
| Rental residential | 0.02% - 0.1% | Assessed value |
| Commercial properties | 0.3% - 0.7% | Assessed value |
| Agricultural land | 0.01% - 0.1% | Assessed value |
| Vacant land | 0.3% - 0.7% | Assessed value |
| Unused buildings | 0.3% - 0.7% | Assessed value |
What taxes apply to rental income from your property?
Rental income taxation in Thailand involves both withholding obligations and annual income tax calculations.
Corporate tenants must withhold 5% of rental payments and remit this to the Revenue Department. Individual tenants typically don't withhold taxes, leaving landlords responsible for declaring and paying income taxes annually.
Individual property owners pay personal income tax on rental income at progressive rates from 5% to 35%. Net rental income (after allowable deductions) combines with other income to determine your tax bracket.
Allowable deductions include property management fees, insurance premiums, maintenance costs, depreciation, and interest on property loans. These deductions can substantially reduce taxable rental income.
It's something we develop in our Thailand property pack.
What ongoing annual costs should you budget for property ownership?
Annual property ownership costs extend well beyond basic taxes and can significantly impact your investment returns.
1. **Property management fees:** Typically 8-12% of gross rental income for professional management services2. **Insurance premiums:** Fire and property insurance costs 0.1-0.3% of property value annually 3. **Maintenance and repairs:** Budget 1-3% of property value yearly for upkeep and improvements4. **Utilities deposits:** Initial deposits for electricity, water, and internet services5. **Juristic person fees:** For condos, ongoing building management and maintenance costs6. **Legal and accounting fees:** Annual tax filing and legal compliance costsTotal annual costs typically range from 3-8% of property value, varying significantly based on property type, location, and management intensity required.
Rental properties generate additional costs including tenant screening, vacancy periods, and higher wear-and-tear from occupant turnover.
How do exit taxes and fees affect your resale proceeds?
Property sales involve multiple taxes and fees that can substantially reduce your net proceeds, particularly for short-term holdings.
Capital gains tax applies to the profit portion of your sale, calculated as the difference between sale price and your original purchase price plus improvements. Individual sellers face progressive rates up to 35%, while companies pay corporate tax rates.
The same Specific Business Tax (3.3%) or Stamp Duty (0.5%) structure applies to your sale, with rates depending on your ownership duration and whether the property serves as your primary residence.
Real estate agent commissions typically range from 3-5% of sale price, split between buyer and seller agents. This represents a significant cost that reduces net proceeds regardless of capital gains.
Transfer fees of 2% of appraised value apply to the new buyer, but sellers often negotiate to cover portions of transfer costs to facilitate sales.
It's something we develop in our Thailand 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 Thailand's property tax structure is crucial for making informed investment decisions. The combination of transfer fees, ongoing taxes, and exit costs can significantly impact your returns, especially for shorter-term investments.
As of September 2025, Thailand's property market continues evolving with new regulations and tax structures. Staying current with legal requirements and tax obligations helps ensure compliance and optimize your investment strategy in the Thai real estate market.