Selling Property in Thailand: Exit Strategies and Tax Implications for Foreign Investors

Thailand's property market attracts international investors primarily through its condominium sector, where foreigners may hold freehold title, and through long-term leasehold arrangements for houses and villas. Exiting a Thai investment requires an understanding of the tax structure at the Land Department, the conditions under which Specific Business Tax (SBT) applies, and the documentation needed to repatriate proceeds overseas.

This guide covers the full exit process for foreign property owners, with particular attention to tax calculation, the five-year holding threshold, and the Foreign Exchange Transaction form that enables international fund transfers.

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What Foreign Investors Can Sell

Before discussing the process, it is worth clarifying what foreign nationals can hold — and therefore sell — in Thailand:

• Freehold condominium units: Subject to the building's foreign ownership quota (maximum 49% of total floor area). These are the simplest and most commonly held foreign property assets.
• Leasehold interests: Typically 30-year leases on houses, villas, or commercial property. You can sell (assign) the remaining lease term, but the value naturally diminishes as expiry approaches.
• Company-held property: Some investors hold Thai property through a Thai limited company. Selling the property itself and selling the company shares are treated differently for tax purposes.

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The Selling Process

1. Agree a Sale Price

Engage a registered real estate agent or list on major Thai portals. Agent commissions typically run at 3–5% of the sale price, paid by the seller in most arrangements (though negotiable). There is no centralised MLS; using multiple agents is common.

2. Prepare Your Documents

For a freehold condominium, you will need:

• Chanote (title deed)
• Condominium unit ownership certificate
• Passport (seller and buyer)
• Foreign Exchange Transaction (FET/TT3) forms from the original purchase (see repatriation section)
• Corporate documents if held in a company

For a leasehold property, present the registered lease agreement and any assignment clauses.

3. Attend the Land Department

All property transfers in Thailand must be registered at the local Land Department office in the province where the property is located. Both buyer and seller (or authorised representatives under power of attorney) must attend in person, or send a duly authorised lawyer. Taxes and fees are calculated and paid at the Land Department on transfer day.

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Tax and Fees at the Land Department

Thailand's transfer-day costs are shared between buyer and seller and depend critically on how long the property has been held.

Withholding Tax (WHT)

The seller pays withholding tax, which is calculated as follows:

1. Start with the official appraised value set by the Treasury Department (often lower than the market price, but this is the legal calculation base).
2. Apply a standard deduction based on years of ownership (ranging from 50% deduction for one year of ownership down to 8% for eight or more years).
3. Apply progressive personal income tax rates to the resulting net amount.
4. Divide by the number of years held to determine the annual taxable amount, then multiply back — the effect is that longer ownership periods attract significantly lower WHT.

The result is then withheld and paid to the Revenue Department on the day of transfer. Your lawyer or the Land Department officer will calculate this for you; ask for the breakdown in writing.

Specific Business Tax (SBT): The Five-Year Rule

SBT of 3.3% (including local tax) applies when:

• The property is sold within five years of acquisition; or
• The seller is deemed to be conducting a property business (frequent sales, corporate sellers, etc.).

SBT is calculated on the higher of the actual sale price or the official appraised value. This is a significant cost — on a THB 5,000,000 (c. £115,000) property, SBT amounts to THB 165,000. Plan your holding period accordingly if you wish to avoid it.

If SBT applies, stamp duty is waived. If SBT does not apply (property held more than five years and personal use), stamp duty of 0.5% is levied instead.

Transfer Fee

A transfer fee of 2% of the official appraised value is payable on registration. By convention this is often split 50/50 between buyer and seller, though it is negotiable and some developers absorb the full cost in new-build sales. Confirm the agreed split in your sale contract.

Summary Table

Tax / Fee	Rate	Who Pays	Basis
Withholding Tax (WHT)	Progressive (see above)	Seller	Appraised value, years held
Specific Business Tax (SBT)	3.3%	Seller	Higher of sale/appraised value
Stamp Duty	0.5% (if no SBT)	Seller	Appraised or sale value
Transfer Fee	2%	Split (negotiable)	Official appraised value
Mortgage Discharge Fee	Bank-set	Seller	Outstanding balance

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Repatriating Proceeds: The FET Form

This is the most frequently misunderstood aspect of selling Thai property as a foreigner. Thai law permits the repatriation of foreign currency that was originally brought into Thailand — but you must be able to document that the funds came from abroad.

The mechanism is the Foreign Exchange Transaction form (FET), also known as a TT3 or Thor Thor 3. When you originally purchased the property and wired money into Thailand, the receiving Thai bank should have issued you an FET form confirming the inward remittance. This form is evidence that the funds originated overseas.

At the point of sale:

1. The buyer's Thai bank issues a new FET form when the buyer wires purchase funds into Thailand (for foreign buyers).
2. With the FET form, you can remit up to the equivalent amount abroad without Thai exchange control restrictions.
3. If the FET form is missing or the original purchase was funded from Thai baht income (Thai bank account), repatriation may be restricted to the amount evidenced by available FET documentation.

Practical advice: Locate your original FET forms from the time of purchase before the sale. If you cannot find them, your original Thai bank may be able to reissue records of the original inward transfer.

There is no Thai withholding tax on outbound remittances of property sale proceeds, provided exchange control documentation is in order.

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Selling a Leasehold Property

Leaseholds in Thailand are registered at the Land Department for a maximum initial term of 30 years, often with a contractual option to renew for further periods (though renewal options are not legally guaranteed and enforcement is uncertain).

When selling a leasehold:

• You are assigning the remaining lease term to the buyer.
• Value diminishes as expiry approaches — a lease with 10 years remaining will command significantly less than one with 28 years remaining.
• Some developers offer to cancel the existing lease and re-register a fresh 30-year lease for the buyer (at a fee); this makes the property more saleable.
• Leasehold interests for foreigners in houses and villas are common in Phuket, Koh Samui, and Chiang Mai.

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Company-Held Property

Some foreign investors hold Thai residential property through a Thai limited company (typically structured to comply with majority Thai shareholding requirements). Exiting via a company involves two options:

• Sell the property out of the company: Standard Land Department transfer process with full transfer fees and WHT/SBT.
• Sell the company shares: Transfer ownership of the company itself rather than the underlying property. May be cheaper on transaction taxes but requires due diligence by the buyer on any company liabilities, and the Thai Revenue Department may scrutinise share sales involving property-owning companies.

Neither route is uniformly superior — the right choice depends on the company's history, liabilities, and the buyer's preference. Thai legal advice is essential.

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Tips for a Smooth Exit

• Clear all co-juristic fees (the Thai equivalent of service charges) before the sale — the building's juristic person can block your transfer if fees are outstanding.
• Power of attorney: If you cannot attend the Land Department in person, instruct a Thai lawyer to act as your legal representative. The POA must be properly notarised.
• Currency risk: Thailand transactions are priced in Thai baht. If your home currency has strengthened significantly since purchase, your realised return in home-currency terms may be lower than the THB gain suggests.
• Draft a Thai-language contract addendum if the buyer is Thai — Thai courts generally prefer Thai-language documentation in disputes.

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Important: Thai tax law is complex and subject to change. The withholding tax calculation in particular depends on official appraised values set by the Treasury Department, which may differ from market values. This guide reflects the position as of June 2026; always verify current rates with a licensed Thai tax lawyer before completing a sale. Property values can fall as well as rise, and past returns are not a reliable guide to future performance.

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How Global Investments Can Help

Global Investments has over 32 years of experience in international property markets, including Thailand's condo and villa sectors. Our team can introduce you to experienced Thai property lawyers who handle Land Department transfers and FET documentation, connect you with RERA-equivalent licensed agents in Phuket, Bangkok, and Koh Samui, and advise on timing your exit relative to the five-year SBT threshold.

We can also help you redeploy capital into other markets we cover if you are looking to diversify your overseas property portfolio after your Thai exit.

Related guides:

• Buying Property in Thailand: A Guide for Foreign Investors
• Thailand Property Tax Guide for Overseas Investors
• Best Areas to Buy in Thailand
• Thailand Rental Yields and Investment Returns

Contact our property team to discuss your Thailand exit strategy: contact us.