What taxes and fees need to be paid when transferring ownership of a property in Thailand?

The main taxes and fees that need to be paid when transferring real estate in Thailand are as follows: 1. Transfer fee: 2% (the total purchase price of the property, generally half for the buyer and half for the seller) 2. Special business tax: 3.3% 3. Stamp duty: 0.5% 4. Personal income tax: depends on the property and the holder

The total transfer fee is around 4-6% of the total property price. Typically, transfer taxes and fees are paid 50% each by the buyer and seller.

Special business taxes can be reduced or exempted if the following conditions are met: 1. Special business taxes can be reduced or exempted if the owner has held the property for more than 5 years. 2. Owners whose household registration has been on the property for more than one year can be exempted from special business taxes.

• Transfer Fee

A transfer fee applies to freehold purchases and is equal to 2% of the official assessed value of the property. Closing costs are paid by either the buyer or the seller, depending on the terms agreed upon in the sales agreement. On the date when the real estate ownership is transferred, the transfer fee is paid to the local land office where the real estate is located.

• Lease registration fee

If the lease term is less than 3 years, lease registration is not required to be enforceable by law. Leases longer than 3 years and up to 30 years should be registered with the Land Department to ensure court enforcement. Currently, the lease registration fee is 1% of the rent for the entire lease period. This fee is usually agreed upon and shared equally by the lessor and the lessee.

• Special Business Tax (SBT)

Whether a company or an individual wants to sell real estate that they have held for less than 5 years, they must pay a specific sales tax. The tax rate is 3.3% of the sales price or the official assessed value of the property (whichever is greater, including municipal taxes).

• Stamp Duty

Stamp duty is levied differently depending on the legal document; stamp duty is only applicable when Special Business Tax (SBT) is not applicable.

• Withholding Tax (WHT)

If the seller is a company, the withholding tax is estimated at 1% of the official appraisal price from the Land Department or the contracted sales price (whichever is greater). Income earned by an individual from the sale of real estate, including condominium units, is subject to withholding tax in accordance with Thai tax law. The withholding tax is calculated at a progressive rate based on the official assessed value of the property.

Note: When you remit foreign currency into Thailand, the name of the payee and the buyer listed in the foreign exchange transaction form must be the same, the same as the name in the sales contract.

The total amount of money remitted must not be less than the net value of the condominium unit (in Thai Baht) as stated in the sales agreement.



In general, other costs of buying a house in Thailand include:

• Sinking Funds (also known as Building Maintenance Funds; one-time fees)
• Management Fee