Transfer Costs & Taxes When Buying Property in Thailand

Transfer Costs & Taxes When Buying Property in Thailand

The purchase price is not the only number that matters. Thailand has several mandatory costs payable at the Land Office on transfer day. Budgeting for these in advance prevents unpleasant surprises.

The Four Standard Costs

1. Transfer Fee — 2%

Calculated on the Land Department's assessed value of the property (which is usually lower than the actual sale price). Typically paid by the buyer, though it is negotiable.

2. Specific Business Tax (SBT) — 3.3%

Applies when the seller has owned the property for less than 5 years (or has not been registered as their primary residence for at least 1 year). Calculated on the higher of assessed value or sale price. Usually paid by the seller, but sometimes negotiated 50/50.

3. Stamp Duty — 0.5%

Replaces SBT when the property has been owned for more than 5 years or the seller qualifies for residential exemption. Much lower than SBT.

Only one of SBT or stamp duty applies—never both.

4. Withholding Tax

The seller's income tax on the gain. The rate is calculated on a sliding scale based on assessed value, years of ownership, and whether the seller is an individual or company. Paid by the seller.

Typical Buyer Cost Example

Property assessed value: ฿5,000,000

• Transfer fee (2%): ฿100,000 (buyer)
• SBT if applicable (3.3%): ฿165,000 (seller, sometimes shared)

Buyer's total out-of-pocket at Land Office: ฿100,000–182,500 depending on how costs are negotiated.

Developer vs Resale Differences

New from developer: Many developers offer "promotion" pricing where they cover SBT and transfer fee for a limited period. Always get this in writing.

Resale from individual: Full negotiations apply. Sellers often ask buyers to split all costs 50/50. This is common in the Thai market.

Resale from company: Companies pay corporate withholding tax, which may differ from individual rates. Get your lawyer to calculate the exact amount before transfer.

Additional Costs to Budget

• Lawyer fees: ฿15,000–50,000
• Title search: ฿200–500 (official fee)
• FET bank fee: varies by bank, typically ฿500–2,000
• Mortgage registration fee: 1% of loan amount (if financing)

Total Budget Recommendation

Budget 3–6% of purchase price for all transaction costs, depending on the property age, seller type, and negotiated cost splits. This is conservative but will cover all scenarios.

Common Negotiation Points

• Who pays transfer fee (buyer default, but negotiable)
• SBT split — if seller is within the 5-year window, buyers sometimes offer to cover half in exchange for a price reduction
• Whether developer promotional rates apply to resale properties (they usually do not)

Key Takeaway

The Land Office requires all fees paid on the day of transfer. Have liquid funds ready—not just the purchase price. Ask your lawyer for a detailed cost breakdown specific to your transaction at least 2 weeks before transfer day.