Thailand is a popular destination for international property investors drawn by relatively low entry prices, strong rental demand in tourist hubs such as Phuket and Koh Samui, and a cost of living that stretches rental yields further than in many Western markets. However, the legal framework for foreign ownership is restrictive — foreigners cannot own land in their own name — and understanding both the transaction cost structure and the permitted ownership vehicles is essential before entering the market.
This guide covers every cost a foreign investor should budget for, with indicative rates as of 2026 and a worked example based on a THB 10,000,000 (approximately US$280,000 / £220,000) condominium purchase — the most common entry point for foreign buyers.
Compliance note: Thai property regulations, transfer fee waivers, and tax rates are subject to change by Royal Decree. Specific Business Tax and transfer fee waivers have been introduced and withdrawn at various points in recent years. All figures are indicative as of mid-2026. Engage a Thailand-registered lawyer before committing to any transaction.
Summary of Buying Costs at a Glance
| Cost Item | Rate / Amount | On THB 10,000,000 (~US$280,000) |
|---|---|---|
| Transfer Fee | 2% of appraised value (typically shared) | ~THB 80,000–THB 100,000 |
| Specific Business Tax (SBT) | 3.3% (applies if selling within 5 years; paid by seller, may be negotiated) | N/A to buyer typically |
| Stamp Duty (alternative to SBT) | 0.5% (applies when SBT does not) | ~THB 25,000–THB 50,000 |
| Withholding Tax | Seller's liability; may affect negotiation | N/A to buyer |
| Legal / Conveyancing fees | THB 30,000–THB 80,000 | ~THB 50,000 |
| Title deed transfer / Land Office admin | THB 100–THB 500 | ~THB 200 |
| Real estate agent commission | 3–5% (paid by seller; varies) | Nil to buyer (typically) |
| Sinking fund (new developments) | THB 400–THB 700/sq m (one-off) | ~THB 32,000–THB 56,000 |
| Common area / maintenance fund | THB 35–THB 80/sq m/year | ~THB 28,000–THB 64,000/year |
| Currency conversion costs | 0.5–2.5% of transferred sum | ~THB 50,000–THB 250,000 |
| Annual property tax (Land and Buildings) | 0.01–0.3% of appraised value | ~THB 30,000–THB 100,000/year |
| Estimated total acquisition costs | ~4–8% of purchase price | ~THB 400,000–THB 800,000 |
1. Transfer Fee
Thailand's Land Department charges a transfer fee of 2% of the appraised (assessed) value of the property, not the actual sale price. The appraised value is set by the Treasury Department and is typically 20–40% below market price — which keeps the effective transfer fee lower than it appears on paper.
By convention, the transfer fee is split equally between buyer and seller (1% each), though this is negotiable. On a THB 10,000,000 condominium with an appraised value of THB 7,000,000, the total transfer fee would be approximately THB 140,000, with the buyer's share ~THB 70,000.
2. Specific Business Tax (SBT)
SBT is charged at 3.3% of the higher of the appraised or sale price and applies when the seller has owned the property for less than five years. This is the seller's liability, but it can indirectly affect buyers through pricing or negotiation.
If the seller has owned the property for more than five years, Stamp Duty of 0.5% applies instead of SBT — significantly lower. As a buyer, this distinction matters when negotiating the final sale price, as sellers with a large SBT liability may seek to recoup it.
3. Withholding Tax
The seller is required to pay withholding tax on the gain from the sale, calculated based on a complex formula using the appraised value, years of ownership, and a progressive rate schedule. This is not the buyer's direct cost, but sellers factor it into pricing. Understanding this helps in negotiations, particularly when buying from individual owners rather than developers.
4. Legal and Conveyancing Fees
Foreign buyers in Thailand should engage a Thai-registered lawyer, not merely rely on a developer's in-house team. The lawyer should:
- Conduct title deed verification at the Land Department (check for encumbrances, mortgages, disputes)
- Verify the condominium's foreign ownership quota has not been reached (maximum 49% of total floor area)
- Review the Sale and Purchase Agreement
- Oversee the fund transfer and remittance certificate process (crucial — see below)
- Attend the Land Department transfer with you or as your representative
Legal fees: THB 30,000–THB 80,000 for a straightforward condominium purchase. Complex cases (leasehold structures, land-holding companies) cost more. Some international law firms in Bangkok and Phuket charge higher rates.
5. Foreign Exchange Remittance Certificate (Thor Tor 3)
This is unique to Thailand and essential for foreign buyers of condominiums. To register title in a foreigner's name, you must demonstrate that the purchase funds were remitted from abroad in foreign currency and converted to Thai Baht by a Thai bank. The bank issues a Foreign Exchange Transaction Certificate (Thor Tor 3) which must be presented at the Land Department.
Failure to obtain the Thor Tor 3 means you cannot register freehold title in your name. The remittance must be in a foreign currency (not THB sent from an overseas account), and must cover the full purchase price. Allow adequate time for this process — typically 3–7 working days after funds arrive.
There is no direct fee for the certificate itself, but the bank will charge a currency conversion spread (see Section 7).
6. Sinking Fund and Maintenance Fees
For new condominium developments:
- Sinking fund: A one-off payment made at handover, typically THB 400–THB 700 per square metre of your unit. On a 80 sq m unit, this ranges from THB 32,000 to THB 56,000. The sinking fund is held by the condominium juristic person to cover major capital repairs.
- Common area maintenance fee: Charged annually (or monthly), typically THB 35–THB 80 per square metre per year. On an 80 sq m unit, annual fees run THB 2,800–THB 6,400 per month, or THB 33,600–THB 76,800 per year. Upscale developments in Phuket or Sukhumvit often charge higher rates.
7. Currency Conversion Costs
Currency conversion is one of the most significant and often overlooked costs for foreign buyers:
- Bank retail rate: 2–3% spread on the interbank rate
- Specialist FX brokers (Wise, OFX, etc.): 0.3–1% — recommended for transfers above THB 500,000
On a THB 10,000,000 purchase, switching from a bank (2.5%) to a specialist broker (0.5%) saves approximately THB 200,000 — a very material sum.
Crucially, the currency must be transferred to a Thai bank account in foreign currency (not THB) to obtain the Thor Tor 3 certificate. Work with your Thai bank and FX broker to structure this correctly.
8. Mortgage and Financing
Foreign nationals face significant obstacles obtaining mortgages from Thai banks:
- Most Thai banks will not lend to non-residents or non-work-permit holders. The exceptions are Bangkok Bank and a handful of others who lend to foreigners with Thai-sourced income.
- Overseas developer financing: Some developers offer in-house installment plans for off-plan purchases (20–30% deposit; balance over the construction period). Interest rates are typically higher than bank rates.
- Financing in your home country: Many investors refinance against existing assets in their home country and bring cash to Thailand — eliminating Thai mortgage costs entirely.
If a Thai mortgage is obtained, typical conditions: 60–70% LTV, 6–8% interest rate, 15–20 year term.
9. Ongoing Ownership Costs
Land and Buildings Tax
Thailand introduced the Land and Buildings Tax Act, which took effect in 2020. Rates vary by use:
- Residential (owner-occupied): 0.02–0.1% of appraised value. Properties with appraised value below THB 50 million pay the minimum rate.
- Rental / investment property: 0.01–0.3% of appraised value
- Commercial / agricultural land: Different rates apply
On a THB 10,000,000 property used as a rental investment, annual tax at 0.3% would be approximately THB 30,000. In practice, as the appraised value is below the market price, the actual liability is often lower.
Condominium Management Fees
Annual common area maintenance fees (as above): THB 33,000–THB 77,000 typically.
Property Insurance
Building insurance is often included within condominium service charges. Contents / personal property insurance for a furnished rental unit: approximately THB 8,000–THB 20,000 per year depending on coverage and furnishing value.
Personal Income Tax on Rental Income
Rental income earned from Thai property is subject to Thai income tax even for non-residents. The standard approach is to declare rental income and deduct a flat 30% expense allowance (for residential property), then apply progressive rates from 5% to 35%. Many small landlords are not compliant with this requirement; however, the trend toward enforcement is increasing.
10. Ownership Structures for Foreign Buyers
Foreign buyers in Thailand typically use one of two structures:
Condominium freehold: The only structure allowing outright ownership in a foreigner's name. Limited to 49% of the building's total floor area. This is the most straightforward route and what this guide's worked example assumes.
Long-term leasehold (30+30+30 years): For villas and houses (which require land). The land is leased; structures on it may be owned. Legal enforceability of renewal options is uncertain — professional advice is essential.
Thai company: Owning property through a Thai company is legally possible but subject to scrutiny — the use of nominee shareholders is illegal. Not recommended without specialist Thai corporate and property law advice.
11. Worked Example: THB 10,000,000 (~US$280,000) Condominium (Foreign Freehold, Cash Purchase)
| Cost Item | Amount (THB) |
|---|---|
| Purchase price | 10,000,000 |
| Transfer fee (buyer's 1% share of 2% on appraised value ~THB 7M) | 70,000 |
| Stamp Duty (0.5% if seller held 5+ years, on appraised value) | 35,000 |
| Legal fees | 50,000 |
| Land Department admin | 200 |
| Sinking fund (80 sq m × THB 500/sq m) | 40,000 |
| FX conversion (0.8% spread on USD transfer) | 80,000 |
| Total acquisition costs | 275,200 |
| Total as % of purchase price | ~2.8% |
Note: The relatively modest acquisition cost percentage reflects that stamp duty and transfer fee are based on appraised (not market) value. If including ongoing year-one costs (maintenance fees + tax), add approximately THB 80,000–THB 120,000.
How Global Investments Can Help
Purchasing property in Thailand as a foreign investor requires careful structuring — from ensuring the foreign quota is available in your chosen development to correctly routing your funds for the Thor Tor 3 certificate. Global Investments works with Thailand-qualified property lawyers and specialist advisers in Bangkok, Phuket, and Pattaya who guide foreign buyers through every step of the process. Contact our team to discuss your Thailand investment strategy.
This guide is for general information only and does not constitute financial, legal or tax advice. Programme rules, prices and tax rates change; verify current requirements with a qualified adviser before acting.