Learn about property purchase taxes in Thailand in 2025: transfer fees, withholding tax, specific business tax, stamp duty, and annual land tax. Expert breakdown from DDA Real Estate for foreign buyers and investors.
| Tax Type | Typical Buyer Share | Annual Tax |
|---|---|---|
| Total One-Time Taxes | ≈1.5% of property price | <0.1% |
Thailand remains one of Asia’s most tax-efficient real estate markets — low transfer fees, minimal annual tax, and no foreign ownership surcharge.
Why Property Taxes in Thailand MatterWhether you’re purchasing a condo in Phuket, a villa on Samui, or an apartment in Bangkok, understanding how property taxes and transfer fees work is essential.
It ensures you plan your total investment budget accurately and avoid unpleasant surprises at the Land Department.
At DDA Real Estate, we believe that a clear understanding of local taxation transforms a good purchase into a smart investment.
When transferring ownership, four main taxes and fees apply:
| Tax / Fee | Rate | Who Usually Pays | Description |
|---|---|---|---|
| Transfer Fee | 2% of the registered (government appraised) value |
Often split 50/50 | Paid upon transfer at the Land Office; calculated from appraised, not market value. |
| Withholding Tax (WHT) | ~1% average | Seller | For individual sellers, WHT is calculated based on personal income tax brackets (up to 35%), but the Land Department uses a simplified formula that effectively equals around 1% of the registered value. For company sellers, it's fixed at 1%. |
| Specific Business Tax (SBT) | 3.3% (including municipal tax) | Seller | Applies if the property is sold within 5 years (unless exempt). |
| Stamp Duty | 0.5% | Seller | Applies only when SBT does not. |
Note: Always review your Sales & Purchase Agreement (SPA) — developers sometimes include transfer costs, while resale deals are often shared equally between buyer and seller.
Buying a condominium in Phuket for 6 million THB:
| Type | Rate | Approx. Amount |
|---|---|---|
| Transfer Fee | 2% | 120,000 THB |
| Withholding Tax | 1% | 60,000 THB |
| Total (Buyer’s Share ~1.5%) | — | ≈90,000 THB |
Pro Tip: Always budget an additional 2–3% of the purchase price to cover transfer costs, legal fees, and documentation.
Since 2020, Thailand applies a unified annual property tax:
| Property Type | Annual Rate (approx.) |
|---|---|
| Residential (owner-occupied) | 0.02–0.10% |
| Rental / Commercial | 0.30–0.70% |
| Vacant Land | 0.30–0.70% |
For most condominium owners, annual payments are negligible — around 1,000–5,000 THB/year, depending on the local municipality’s valuation.
Foreign buyers can own:
Lease registration fee: 1% of the total lease value (often split 50/50).
No transfer fee or Specific Business Tax applies because ownership isn’t changing hands.
Make sure your leasehold is registered at the Land Office — unregistered agreements provide no legal protection.
Thailand’s tax law allows reduced transfer fees for property transactions within immediate families. Transfers between spouses, parents and children, or among siblings (in certain cases) may qualify for exemptions or lower tax rates, provided the property is not part of a business transaction or inheritance dispute.
For example:
If a husband transfers a condominium to his Thai wife (or vice versa), the Land Department may charge only 0.5–1% in transfer fees instead of the standard 2%.
Such exemptions are assessed individually at the Land Office, based on relationship documents (marriage or birth certificates) and the property’s intended use (non-commercial).
Tip: Always bring certified translations of relationship documents if one of the parties is a foreign national — this ensures the reduced rate applies without delay.
To discourage short-term flipping, Thailand imposes the Specific Business Tax (3.3%) on properties sold within 5 years of purchase. However, long-term owners benefit from a full exemption if:
In this case, the seller only pays the stamp duty (0.5%), instead of SBT.
Example: A condominium purchased in 2018 for 5 million THB and sold in 2025 would qualify for SBT exemption. The seller would pay only ~25,000 THB (stamp duty) instead of 165,000 THB (SBT).
This rule especially benefits expats and long-term investors who hold their assets for capital appreciation rather than short-term trading.
Important: The seller must be registered as the legal owner in the property’s house book (Tabien Baan) to prove residential use.
When purchasing off-plan or newly built properties, buyers can often save significantly on taxes and registration fees. Many developers — particularly in Phuket, Samui, Bangkok, and Pattaya — run seasonal campaigns where they absorb or split the following costs:
For example: During pre-sale phases, developers may offer “zero transfer fee” promotions or “all-inclusive pricing,” where all government charges are included in the purchase price. This approach simplifies transactions and makes entry for foreign investors more predictable — no hidden extras at the Land Department.
Case in point: A developer in Bang Tao offered a 7-million-THB condominium with all taxes and registration costs fully covered, saving the buyer roughly 120,000 THB at handover.
Always check your Sales and Purchase Agreement (SPA) for clarity — promotional offers should be explicitly listed, as they are not automatically guaranteed by law.
Thailand’s property tax system rewards stable ownership and transparent, long-term investment. Strategic timing, proper documentation, and guidance from a professional agency like DDA Real Estate can make a significant difference in your net acquisition cost.
For investors planning to rent out their properties, DDA Real Estate’s legal partners assist in:
Efficient tax planning is key to sustainable income generation in Thailand’s rental market.
At DDA Real Estate, we work directly with Thailand’s top developers, lawyers, and banks to ensure your investment is fully compliant and tax-optimized. Our services include:
Investing with clarity and confidence begins with understanding the numbers — and having the right local partner by your side.
Read also: “Where It Is Better to Buy Real Estate in Thailand”, “Property investment in Thailand for foreigners”, “Which real estate in Thailand to choose”.
Thailand’s real estate market remains one of the most investor-friendly in Asia, offering low tax rates, stable regulations, and transparent procedures. With clear planning, property ownership here is not only legal and secure — it’s financially smart.
Contact DDA Real Estate for a tailored consultation on your property goals, tax structure, and investment opportunities across Phuket, Samui, and Bangkok.
Smart investors don’t guess — they calculate. Start your Thailand property journey with DDA Real Estate today.
