Buying Costs and Taxes in Thailand: What You'll Pay in 2026
Transaction costs on Thai property are modest by European standards, typically somewhere between about 2.5% and 6% of the official appraised value, but they are split between several different taxes and fees, and who pays what is largely a matter of negotiation.
Here is what is due at the Land Office when a sale completes in 2026, why the government's much-publicised 0.01% fee cut probably will not apply to you as a foreign buyer, and the other costs worth budgeting for.
The four charges due at the Land Office
Every registered sale involves a transfer fee of 2% of the property's official appraised value. On top of that, the seller owes one of two taxes depending on how long they have owned the property: Specific Business Tax of 3.3% if they have held it for less than five years, or stamp duty of 0.5% if they have held it for five years or more. The two are mutually exclusive.
Finally there is withholding tax, effectively a prepayment of the seller's income tax. For corporate sellers it is a flat 1% of the higher of the sale price and appraised value; for individual sellers it is calculated on a sliding scale based on the appraised value and years of ownership, which UK-Thai advisory firm Forbes and Partners estimates typically works out at roughly 1.8% to 2.5%. Taken together, total government charges usually land between about 2.5% and 6.3% of the appraised value.
- Transfer fee: 2% of the official appraised value
- Specific Business Tax: 3.3%, if the seller has owned the property under 5 years
- Stamp duty: 0.5%, if the seller has owned it 5 years or more (only when SBT does not apply)
- Withholding tax: 1% for company sellers; sliding scale for individuals
- Fees are calculated on the Land Department's appraised value, which can differ from the price you agreed
Who actually pays what
Thai law makes the seller responsible for Specific Business Tax or stamp duty and for withholding tax, while the 2% transfer fee is, by convention, often split 50/50 between buyer and seller. But none of this is fixed: developers and private sellers routinely negotiate different splits, and some new-build contracts push most costs onto the buyer.
The practical advice is simple: agree the split in writing before you sign anything, itemised charge by charge. On a resale, also ask how long the seller has owned the property, because whether 3.3% SBT or 0.5% stamp duty applies makes a real difference to the numbers being negotiated.
- Seller is legally liable for SBT or stamp duty and withholding tax
- The 2% transfer fee is commonly split 50/50, but everything is negotiable
- Get the agreed split written into the sale and purchase agreement
- Ask for the seller's ownership length; it determines which taxes apply
The 0.01% fee cut, and why it likely excludes you
You may have read that Thailand slashed transfer and mortgage fees to 0.01%. It is true, but narrow. The Cabinet first approved cutting both fees from 2% (transfer) and 1% (mortgage registration) to 0.01% for homes and condos priced at up to 7 million baht, as reported by the Bangkok Post in April 2025, and in June 2026 the measure was extended for another year, running to 30 June 2027, according to The Nation.
The catch for readers of this guide: the reduction applies to individual Thai nationals only. Foreign buyers pay the standard 2% transfer fee regardless of price. The measure matters to you mainly as a signal, as it exists because Thailand's housing market has been in a slump, which is worth knowing when you negotiate.
- Transfer and mortgage registration fees cut to 0.01% for properties up to 7 million baht
- Extended in June 2026 to run until 30 June 2027
- Applies to individual Thai nationals only; foreigners pay the standard rates
- The cut is a stimulus response to a weak market, useful context for price negotiations
Costs beyond the Land Office
Budget for a Thai property lawyer to run due diligence on the title, the developer and, for condos, the foreign quota. Legal fees vary by firm and complexity, so get quotes rather than relying on rules of thumb. Foreign condo buyers also need to remit funds from abroad in foreign currency and obtain a Foreign Exchange Transaction form from their Thai bank, and banks may charge receiving fees on large transfers.
New condos come with two recurring obligations: a one-off sinking fund contribution on handover and ongoing common area management fees, both set per square metre and varying by building, so check the rates in your contract. If you lease land or a villa instead of buying, registering the lease at the Land Office attracts its own registration fee. Once you own, Thailand's annual Land and Building Tax is low for residential use, and main-home owners are often exempt below official thresholds; confirm current rates with the local authority or the Revenue Department, as they change.
- Lawyer's due diligence: essential, priced case by case
- Bank charges on the inbound foreign currency transfer and FET paperwork
- Condos: one-off sinking fund plus ongoing common fees, set per square metre
- Leases must be registered at the Land Office, which charges a registration fee
- Annual Land and Building Tax is modest; check current rates with official sources
A worked example
Take a 5 million baht resale condo with a matching appraised value, where the seller, an individual, has owned it for three years. The transfer fee is 2%, or 100,000 baht, commonly split at 50,000 baht each. Because the seller has held it under five years, 3.3% Specific Business Tax applies, at 165,000 baht, plus their withholding tax; both are legally the seller's bills, though they are often priced into the deal.
If the same seller had owned the unit for six years, the 3.3% SBT would be replaced by 0.5% stamp duty, at 25,000 baht, a 140,000 baht difference on the same flat. Run these numbers, using the appraised value rather than the asking price, before you make an offer. Habio's Thailand buyer guides include a fuller checklist you can work through alongside the listings.
- Example: 5m baht condo, seller owned 3 years: 100,000 baht transfer fee + 165,000 baht SBT + withholding tax
- Same condo, seller owned 6+ years: SBT falls away, replaced by 25,000 baht stamp duty
- Always calculate on the official appraised value, not just the agreed price
Frequently asked questions
What are the total buying costs for property in Thailand?
Government charges typically total between about 2.5% and 6.3% of the official appraised value: a 2% transfer fee, either 3.3% Specific Business Tax or 0.5% stamp duty depending on how long the seller has owned the property, and withholding tax. Legal fees and bank charges come on top.
Who pays the transfer fee when buying Thai property?
The 2% transfer fee is commonly split 50/50 between buyer and seller, but it is negotiable and should be agreed in writing. The seller is legally responsible for Specific Business Tax or stamp duty and for withholding tax.
Does Thailand's 0.01% transfer fee cut apply to foreigners?
No. The reduction to 0.01% for properties up to 7 million baht, extended in June 2026 until 30 June 2027, applies to individual Thai nationals only. Foreign buyers pay the standard 2% transfer fee.
What is Specific Business Tax on Thai property?
A 3.3% tax on the sale, payable by sellers who have owned the property for less than five years. If the seller has owned it for five years or more, 0.5% stamp duty applies instead; the two never apply together.
Is there an annual property tax in Thailand?
Yes, the Land and Building Tax, but residential rates are low and owner-occupied main homes are often exempt below official value thresholds. Rates and thresholds change, so check the current position with the local authority or Thailand's Revenue Department.
Sources
This article is general information, not legal, tax or financial advice. Markets and rules change — verify the current position with official sources before acting. Published 2 August 2026.