Taxes and Fees When Buying Property in Thailand

This guide gives a general overview of the costs that come on top of a property price in Thailand. It is not legal or tax advice. Fee and tax rates, the values they are calculated on and the exemptions change over time, so we do not quote rates here: a Thai lawyer and your own tax adviser can work out the figures for your purchase on the date it happens.

Most surprises in a Thai purchase are not hidden costs. They are costs that were always there but only showed up when the developer sent the invoice for the transfer day. Almost all of them can be known in advance if you ask the right questions before you sign. Below is what each cost is, who normally carries it, and how to check the breakdown a developer sends you.

The short version

• the contract price, paid on the developer's schedule if you buy off-plan;
• fees and taxes at the Land Office on registration day;
• one-off costs around the deal: lawyer, money transfer, sinking fund, handover payments;
• yearly owner costs: common fee, land and building tax, insurance, utilities;
• taxes if you rent out or sell — in Thailand and wherever you are tax resident.

Prices and instalments are covered in our guide to developer payment plans. This page is about everything else.

Fees and taxes at the Land Office

Ownership passes when the transfer is registered at the Land Office for the district where the property sits. On that day you pay the balance to the developer, and the transfer fee and taxes are paid at the Land Office counter. A typical calculation includes these lines.

Transfer fee

The fee for registering the transfer itself. It is calculated on the government appraised value of the property, which is not necessarily the contract price — so multiplying a rate by your price may not give the right answer. This is the line that buyer and seller most often agree to split.

Specific Business Tax or stamp duty

A sale of property attracts one of two charges: Specific Business Tax or stamp duty. Which one applies depends mainly on the seller — whether it is a company or an individual, and how long it has owned the property. When you buy new from a developer, the seller is a company; resales work differently. By law this is the seller's tax, but the contract can shift all or part of it to the buyer.

Withholding tax

On transfer day the Land Office also collects income tax from the seller, withheld in advance against the seller's gain. It is calculated differently for companies and for individuals. It is the seller's obligation and a fair contract does not pass it to the buyer — but it is worth checking the wording.

If you are buying a leasehold

Foreigners usually take villas and houses on a long-term land lease. What gets registered then is the lease, not a change of ownership, and it has its own registration fee and stamp duty, calculated differently. The difference between leasehold and freehold is explained in our guide to foreign ownership in Thailand.

Who pays: the contract, not custom

The law says on whom each tax falls, but the parties agree who actually covers each line, and that agreement is what shapes your budget. Developers have their usual wording, yet it varies between projects and sometimes between units in a promotion. A sales agent saying “everyone does it this way” is worth nothing until the split is written into the contract line by line and your lawyer has read it.

Watch for a clause such as “all transfer costs are borne by the buyer”. It can include taxes the law places on the seller. That is not prohibited, but it is your money, and the time to decide whether to accept it is before you sign.

One-off costs around the purchase

An independent lawyer

A lawyer who acts for you, not for the developer, checks the land, permits, foreign quota and contract, and at the end checks the fee calculation too. You agree the fee with them directly — some charge a fixed amount, some by scope. Ask for a written quote that lists what is included: due diligence, contract changes, attendance at registration, power of attorney.

Moving the money

An international transfer costs you in two ways: bank charges (your bank, any intermediary bank, the Thai bank) and the exchange rate. On a large amount the exchange margin often outweighs all the charges combined, so compare the total cost of the transfer rather than the headline fee. The Thai bank issues a document confirming that the money arrived from abroad in foreign currency, which a foreigner needs to register a condo in their own name; there may be a small charge for it. The details are in our guide to transferring money to Thailand.

Sinking fund

In a condominium you pay a one-off contribution to the building's sinking fund at handover. It pays for major future works — roof, lifts, facade — so owners are not asked for money every time. It is usually calculated on the unit's area, the developer sets it before handover, and it is not part of the price. Ask in advance whether the quote you received already includes it.

Other handover payments

• the common fee in advance for the first period;
• electricity and water meter connection and deposits;
• a furniture package, if it is not included in the price;
• for remote buyers, notarising a power of attorney and translations;
• travel and accommodation if you inspect the unit in person.

What to check at handover is covered in our handover guide, and buying without travelling in the guide to buying remotely.

Yearly costs of owning

Common fee

The common fee pays for cleaning, security, the pool, gym, gardens and building management. In Thailand it is set in baht per square metre per month, and that is exactly how it appears on each project page on our site when the figure is in our database: multiply by your unit's area and by twelve months for the yearly amount. It is usually billed in advance, yearly or half-yearly. The figure on the site is a starting point; the amount for a specific unit and the billing schedule are confirmed by our manager.

Land and building tax

Owners, foreigners included, pay an annual land and building tax to the local administration. The amount depends on the appraised value and on how the property is used — your own home, a rental, or left empty. The administration sends an assessment notice, so make sure it has current contact details for you or your property manager.

Insurance, utilities and management

The condominium's juristic person insures the common areas; contents and liability towards tenants are a separate policy. Electricity and water are billed by meter. If you rent out, a management company charges commission, which varies between companies and between long-term and short-term letting. The full picture is in our guide to ownership costs.

Renting out: where tax comes in

Rent from a Thai property is Thai-source income and may be taxable in Thailand even if you do not live there; a corporate tenant may withhold tax when it pays you. Your country of tax residence will most likely want to know about that income as well. Whether a tax treaty applies and how to avoid paying twice is a question for your tax adviser, not for an agency.

Short-term, nightly letting is regulated separately in Thailand and not every building allows it. Check the building rules and local requirements before counting on that income. See our guides to rental management and rental yield.

Selling: the roles reverse

When you sell, you are the seller, so the seller's taxes described above become yours: Specific Business Tax or stamp duty depending on how long you have owned the property, withholding tax collected by the Land Office, and the transfer fee as agreed with the buyer. The gain will most likely need to be reported in your country of residence too.

To take the sale proceeds out of Thailand later without trouble, keep your transfer documents and purchase contract from day one. More in our guide to resale and exit.

How to read a developer's cost breakdown

Before you sign, ask the developer for a written list of every cost on top of the price. When it arrives, go through it with these questions:

• Is every line named — transfer fee, Specific Business Tax or stamp duty, withholding tax, sinking fund, advance common fee, meters?
• Does each line say who pays — you, the developer, or split? Does that match the contract?
• What is each line calculated on — the contract price or the government appraised value? Anything before registration is an estimate; the Land Office makes the final calculation on the day.
• Sinking fund and advance common fee: on what area, and for what period?
• What happens if the amount on the day differs from the estimate, and who covers the difference?
• In what currency, and to which account, is each line paid — the developer, the Land Office, an escrow?
• If a promotion says “free transfer”, which lines does it cover, and is it written into the contract rather than only the brochure?

A breakdown with clear answers is a good sign. “Everything is included” without detail is a reason to ask again and pass the question to your lawyer before signing. How to check the developer itself is covered in our developer due diligence guide.

Budget mistakes we see

• working out the transfer fee from the contract price when the base may be different;
• forgetting the sinking fund and advance common fee, which arrive as one bill at handover;
• budgeting at today's exchange rate when payments stretch across the build;
• relying on a verbal promise about who pays the taxes without a line in the contract;
• talking to a tax adviser about rental income only after the first tenant has moved in.

How ROMA ThaiProperty helps

Before you commit, our manager requests a written cost breakdown from the developer, showing who pays each line, and walks you through it in English, Hebrew or Russian. We do not calculate taxes and we do not give legal opinions: an independent Thai lawyer checks the contract and the fee calculation, and your own adviser handles tax at home. Our job is to make sure you reach them with the right questions and a complete set of documents.

What next

See real common fees in our project catalogue or on the area pages for Pattaya, Phuket and Hua Hin. If you are just starting, read the step-by-step buying guide first. For a specific project, leave a request and a manager will come back with the developer's cost breakdown.