Thailand Property Taxes and Fees — A Guide for Foreign Investors

Accurately forecasting the cost of acquiring, holding and eventually selling a property in Thailand requires a clear understanding of the tax and fee structure at each stage. Thailand's framework is relatively straightforward compared with some markets, but the interaction between Specific Business Tax and stamp duty, the operation of withholding tax, and the treatment of rental income for non-residents each require careful attention.

Nothing in this guide constitutes tax advice. Tax positions depend on individual circumstances, the applicable double-tax treaty (if any) between Thailand and your country of residence, and current Thai Revenue Department practice. You should take professional tax advice before committing to a purchase and before filing any returns.

Transaction Costs at the Point of Transfer

The main costs arising when ownership of a Thai property transfers are set out below. All are calculated on the appraised value as assessed by the Land Department (the official valuation), not necessarily the actual transaction price. The Land Department value and the transaction price may differ; in a buoyant market the transaction price is frequently higher.

Transfer Fee — 2%

A transfer fee of 2% of the Land Department appraised value is charged by the Land Department on registration of the transfer. By convention, this cost is often split equally between buyer and seller (1% each), but this is a matter of negotiation and should be agreed in writing in the Sale and Purchase Agreement. Buyers should not assume a 50/50 split unless it is documented.

Specific Business Tax (SBT) — 3.3%

Specific Business Tax (SBT) applies to property sales at a rate of 3.3% (comprising 3% SBT plus a 10% local government surcharge, giving a combined rate of 3.3%) of whichever is higher — the Land Department appraised value or the actual sale price. SBT is a seller-side charge.

SBT applies where the seller:

• Has held the property for fewer than five years, or
• Has not been registered at the address as their primary residence for at least one year

SBT is mutually exclusive with stamp duty — if SBT is triggered, stamp duty does not apply, and vice versa. Because SBT is a significant cost, the five-year holding period is a relevant factor in planning the timing of a resale. For investors purchasing from developers (who are companies), SBT will almost always apply because a company cannot satisfy the individual residency condition.

Stamp Duty — 0.5%

Where SBT does not apply, stamp duty is payable at 0.5% of the Land Department appraised value or the actual sale price, whichever is higher. This arises principally in transactions where the seller is an individual who has held the property for more than five years or meets the primary residence condition.

Stamp duty is substantially lower than SBT and can make a material difference to the net proceeds received by a long-term seller. For a buyer, the distinction matters to the extent that seller-side costs affect negotiating dynamics and net pricing.

Withholding Tax — The Mechanism for Taxing Gains

Thailand does not have a standalone capital gains tax. Instead, any profit element on a property sale is captured through the withholding tax system at the point of transfer.

The withholding tax calculation for individuals uses a progressive rate structure applied to the Land Department appraised value, reduced by an allowance for the number of years held. The resulting tax base is taxed at progressive personal income tax rates. In practice, the withholding tax is deducted from the seller's proceeds and remitted directly to the Revenue Department at the time of the Land Department transfer registration.

For corporate sellers, withholding tax is calculated at a flat rate applied to the Land Department value less allowable costs. Companies are subject to different rates depending on their registration status.

From a buyer's perspective, it is worth understanding that the seller's withholding tax position affects their net proceeds and therefore the realistic negotiation range for a resale transaction. When evaluating re-sale opportunities, ask the seller or their lawyer to provide a summary of the expected withholding tax cost.

The interaction between withholding tax, SBT and stamp duty requires care:

Seller type	Held < 5 years or company	Held > 5 years (individual, primary residence)
Transfer fee	2% (typically split)	2% (typically split)
SBT	3.3%	Not applicable
Stamp duty	Not applicable	0.5%
Withholding tax	Progressive (individual) or flat (company)	Progressive (individual)

All figures are calculated on Land Department appraised value or actual price, whichever is higher. Rates as of 2026; confirm current rates with a Thai tax adviser.

Ongoing Annual Costs

Land and Building Tax

Thailand introduced its current Land and Building Tax system in 2020, replacing the older house and land tax and local development tax. The annual charge is calculated on the Land Department appraised value and applies to all real property.

The rate structure varies by use:

• Agricultural use: Lower rates apply, with exemptions up to defined thresholds
• Residential use (principal residence): Lower rates, with exemptions for appraised values below defined thresholds
• Residential use (secondary or investment properties): Higher rates than for a principal residence; there is no exemption for investment properties
• Commercial or other use: Higher rate applicable

For foreign investors holding a condominium unit as an investment (not as a principal residence), the land and building tax will apply at the residential investment rate on the appraised value. The annual cost is generally modest in absolute terms for a standard condominium unit, but should be included in your yield calculations.

The condominium juristic person typically assists owners with filing, but the tax is the individual owner's liability. Confirm the current year's assessment with the juristic person or your property manager.

Common Area Charges (Maintenance Fees)

These are not a tax but are a mandatory ongoing cost for condominium owners. The monthly maintenance charge covers shared facilities, building management, security and communal utilities. Rates vary significantly by development — from a few thousand baht per month for a modest unit to substantially higher for premium serviced residences. Confirm the current rate and any planned increases before purchase, and review the juristic person's reserve fund position.

Rental Income Tax for Non-Resident Investors

Foreign investors earning rental income from Thai property are subject to Thai income tax on that income. For non-residents, the standard mechanism is withholding tax deducted at source.

Withholding Tax on Rental Income

Where a corporate tenant or agent pays rent to a non-resident, they are generally required to withhold tax at 15% of the gross rental payment and remit it to the Revenue Department. Individual tenants paying rent to a non-resident landlord also have withholding obligations, though compliance is less consistent in practice.

If you use a rental management company to let your property, the management company should handle withholding correctly. Confirm their tax compliance procedures before signing a management agreement.

Filing Obligations

Non-resident individuals who receive Thai-sourced income — including rental income — may have a Thai tax return filing obligation, even where withholding tax has been deducted. Your Thai tax adviser can confirm whether a return is required in your specific circumstances.

Double-Tax Treaties

Thailand has double-tax treaties with a significant number of countries. The treaty position affects whether Thai withholding tax can be credited against tax due in your home jurisdiction, and in some cases whether reduced Thai withholding rates apply. The treaty provisions vary by country, and the interaction between Thai and home-country tax treatment of property income can be complex. A tax adviser with expertise in both jurisdictions is advisable.

Personal Income Tax Returns for Residents

If you are spending significant time in Thailand and meet the Thai tax residency threshold (generally 180 days or more in a tax year), you may be treated as a Thai tax resident and your rental income would be subject to personal income tax at progressive rates rather than the flat withholding rate. The LTR visa programme offers certain tax concessions for qualifying holders — see our LTR Visa Property Guide for detail.

Budgeting for a Purchase — A Worked Example

To illustrate how these costs combine in a typical transaction, consider a condominium unit purchased off-plan from a developer for THB 5,000,000, assuming the Land Department appraised value is THB 4,500,000:

Cost item	Basis	Indicative amount
Transfer fee (buyer's share, 50%)	1% of THB 4,500,000	THB 45,000
SBT (seller/developer side)	3.3% — seller's cost but may affect pricing	THB 148,500
Stamp duty	Not applicable (SBT applies)	—
Withholding tax (seller/developer)	Developer's liability	Variable
Common area sinking fund (typical)	One-time at transfer	THB 50,000–150,000
Legal fees	Independent estimate	THB 30,000–80,000

These are illustrative figures only. Actual costs depend on the Land Department appraised value, negotiated allocations and the specific development. Obtain a full cost schedule from your lawyer before exchange.

Summary of Key Points

• Transfer fee of 2% is typically split between buyer and seller by convention, not by law
• SBT at 3.3% and stamp duty at 0.5% are mutually exclusive; SBT applies to most developer and short-hold resale transactions
• Thailand has no standalone capital gains tax; gains are taxed through withholding tax at transfer
• Annual land and building tax applies to investment properties at residential investment rates
• Non-resident rental income is subject to 15% withholding tax; double-tax treaty positions vary
• All tax positions should be confirmed with a qualified Thai tax adviser and, where relevant, an adviser in your home country

How Global Investments Can Help

Global Investments has assisted international investors with Thai property transactions for over 32 years and can introduce you to independent tax advisers and lawyers with the specialist knowledge required. We do not provide tax advice directly, but we can ensure you have access to the right professionals from the outset. Visit our Thailand hub or listings page to explore current opportunities.