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At purchase, the Land Department collects a transfer fee of 2% of the official appraised value. Who pays it — buyer, seller, or split — is a matter of negotiation recorded in the contract; developers commonly split it 50/50 with buyers on new units.
The seller's side of a transfer involves either specific business tax at 3.3% (including municipal surcharge), generally when selling within five years of acquisition, or stamp duty at 0.5% when specific business tax does not apply. Only one of the two is charged.
Withholding tax is also collected at transfer. For individual sellers it is computed from the appraised value using a formula based on years of ownership under Revenue Department rules; for corporate sellers it is 1% of the higher of the appraised value or sale price.
During ownership, the annual land and building tax (Land and Building Tax Act B.E. 2562) applies, assessed by the local administrative organization on the appraised value with progressive residential rates and reliefs for owner-occupied primary residences. Condo owners also pay building CAM fees, which are private charges rather than taxes.
Rental income earned by individuals is subject to Thai personal income tax at progressive rates, with a standard deduction available for property letting; non-resident landlords may also face withholding on rent paid by corporate tenants. Double-tax treaties may affect the position in your home country.
Rates summarized here are the statutory figures published by the Revenue Department and Land Department at the verification date. Always confirm current rates and any temporary incentive reductions before budgeting a transaction, and take professional tax advice for your specific case.
Frequently asked questions
Who normally pays the transfer costs?
It is negotiable. A common market convention is: transfer fee split 50/50, seller pays specific business tax or stamp duty and their own withholding tax. Whatever is agreed must be written into the sale and purchase agreement.
Is there an annual property tax in Thailand?
Yes — the land and building tax, assessed annually by the local administrative organization on the official appraised value, with progressive residential rates and reliefs for owner-occupied primary residences registered in the house book.
Do I pay Thai tax on rental income as a foreigner?
Yes. Rental income from Thai property is Thai-sourced income subject to personal income tax regardless of your residence, with a standard expense deduction available for letting. File through the Revenue Department; treaty relief may apply in your home country.
Related links
Verified on: 2026-07-26
Citations
- The Revenue Department · government · 2026-07-26
- Department of Lands — fee schedule · government · 2026-07-26
- Fiscal Policy Office — Land and Building Tax · government · 2026-07-26