Taxes & fees: what categories apply

Thai property transactions involve several distinct taxes and fees, calculated differently and sometimes overlapping. Rates, thresholds and calculation bases change over time, so this page describes the categories rather than quoting figures that could already be out of date by the time you read this — always confirm the current numbers with a lawyer or the Land Office before you budget a purchase.

At the Land Office, on transfer

• Transfer fee — a fee for registering the change of ownership, generally calculated on the property’s appraised or contract value, whichever the Land Office uses.
• Stamp duty or Specific Business Tax — one or the other typically applies depending on how long the seller has held the property and whether the sale counts as a business transaction; they are not usually both charged on the same sale.
• Withholding tax — a tax on the seller’s gain, collected at the point of transfer, calculated differently for individuals and companies. See capital gains & resale tax for a deeper look at how this is worked out and what changes the calculation.

Which of these apply, and at what rate, depends on factors like the seller’s holding period and whether the seller is an individual or a company — get a specific calculation for your transaction rather than assuming a percentage.

Who pays what

None of these taxes and fees is fixed by law as to who between buyer and seller pays — that split is a matter of negotiation and is normally set out in the sale and purchase agreement. Make sure the contract states clearly which party bears which cost, so there is no argument about it on transfer day.

VAT on new-build purchases from a developer

A sale of new-build property directly from a developer registered for value-added tax is generally treated differently from a resale between private individuals, which is typically outside the VAT system but within the stamp duty or Specific Business Tax framework above. If you are buying new-build directly from a developer, ask specifically how VAT applies to your purchase price and whether it is included in the quoted price or added on top — this is a common source of buyer surprise on off-plan and new-build purchases, see off-plan risks.

Ongoing property tax

Thailand has an annual land and building tax that applies to most property, with the rate depending on how the property is used (residential, commercial, agricultural, vacant land) and, for owner-occupied residences, some allowances. Because rates and allowances are periodically adjusted, ask your lawyer or the local land office for the current position rather than budgeting from an old figure. If you believe your property has been incorrectly assessed or classified for this tax, there is generally a process to raise that with the local authority — a lawyer can advise on the current procedure.

Not a tax, but still obligatory: condo common fees

Condo owners pay ongoing common-area maintenance fees and contribute to the building’s sinking fund. These are set by the juristic person, not the government, and vary building to building — check the current fee schedule and the fund’s financial health before buying, as described in buying a condo and condo fees & the juristic person.

Company-structure and lease-specific costs

Registering a long-term lease at the Land Office carries its own registration fee and stamp duty calculated on the lease value, separate from a sale transaction. If you hold property through a Thai company, there are additional ongoing costs — company registration, accounting and annual filings, and corporate income tax on any company income — that a straightforward personal purchase does not involve. Factor these into a genuine cost comparison between structures; see land & house options and property through a Thai company.

Foreign tax obligations in your home country

Owning, renting out, or selling property in Thailand can also have tax consequences in your home country, entirely separate from the Thai side — ranging from reporting obligations for foreign-held assets to home-country capital gains tax on a sale, sometimes offset in part by tax treaties between Thailand and your home country. This is squarely outside what a Thai property lawyer typically advises on, and worth raising separately with a tax adviser in your home jurisdiction, ideally before rather than after a purchase or sale.

Budgeting a realistic total, not just the headline price

A common planning mistake is budgeting only the property’s listed price and treating taxes and fees as a rounding error. Depending on the transaction, the combined Land Office costs, any applicable withholding tax passed to the buyer by negotiation, legal fees, and (for a lease or company structure) registration and ongoing compliance costs can add a meaningful amount on top of the headline price. Ask your lawyer for a written, itemised estimate of every category likely to apply to your specific transaction before you make an offer, not after you have already committed emotionally and financially to a particular property.

What happens on transfer day, financially

At the Land Office, the various taxes and fees are generally calculated and settled on the spot, based on figures the office holds or that are provided at the time, before the transfer is finalised and the new title issued. This means you should arrive with a clear, pre-confirmed understanding of what is due and in what form of payment is accepted, rather than expecting to negotiate or calculate the amounts for the first time at the counter. Your lawyer, or whoever is representing you at registration, should have already confirmed the expected figures with you in advance.