Tax at Purchase
When you buy property in Thailand, several transfer taxes apply. These are typically shared between buyer and seller, though the split is negotiable and depends on the developer's terms.
- Transfer fee: 2% of the government-appraised value (often split 50/50 between buyer and seller)
- Stamp duty: 0.5% of the appraised or actual sale price, whichever is higher (only if specific business tax doesn't apply)
- Specific business tax: 3.3% of the appraised or actual sale price if the seller has owned the property for less than 5 years (replaces stamp duty)
- Withholding tax: 1% of the appraised value for corporate sellers, or progressive rates for individual sellers
For a new condo purchased directly from a developer, the buyer typically pays only the transfer fee (2%) while the developer covers the rest. For resale properties, these costs are negotiated between the parties.
Annual Holding Taxes
Land and Building Tax
Thailand introduced a land and building tax in 2020. For residential properties, the rates are very low compared to most Western countries.
- Primary residence (owner's name on house registration): First ฿50M is exempt. Above ฿50M: 0.02-0.1%
- Secondary/investment property: 0.02-0.1% of appraised value
- Commercial use (rental): 0.3-0.7% of appraised value
For most foreign-owned condos and villas, the annual tax is minimal — often just a few thousand baht per year.
Rental Income Tax
If you rent out your property, the income is subject to Thai income tax. For foreign owners not tax-resident in Thailand (staying less than 180 days), a flat 15% withholding tax applies to rental income. Tax-resident foreigners are taxed at progressive rates from 0-35%, with deductions available.
Many investors use a management company that handles tax withholding as part of their service. Your accountant can advise on the most tax-efficient structure for your situation.
Tax at Sale
When you sell, the same transfer taxes apply as at purchase (transfer fee, stamp duty or specific business tax, withholding tax). If you've held the property for more than 5 years, you avoid the 3.3% specific business tax and pay only the 0.5% stamp duty — a significant saving.
Common Area Maintenance Fees
While not technically a tax, every condo owner pays monthly or annual common area maintenance (CAM) fees. These cover building upkeep, security, pool maintenance, elevators, and shared facilities. Typical rates: ฿40-80 per sqm per month for standard projects, ฿80-150+ for premium branded residences.
Thailand's property tax burden is remarkably light compared to countries like the US, UK, or Australia. It's one of the financial advantages that makes the market attractive to international investors. We can put you in touch with English-speaking accountants who specialize in foreign property ownership if you'd like personalized tax advice.