Hidden Costs of Buying Property in Thailand: Taxes, Fees & Due Diligence
The sticker price is never the final price. Budget an additional 5–10% on top of the purchase price.
One-Time Purchase Costs
| Cost Item | % of Value | Paid By | |-----------|-----------|---------| | Transfer fee | 2.0% | Usually split 50/50 | | Stamp duty | 0.5% | Seller (unless exempt) | | SBT | 3.3% | Seller if sold within 5 years | | Withholding tax | 1.0% | Seller | | Mortgage registration | 1.0% | Buyer |
Professional Fees
- Legal fees: 30,000–80,000 THB
- Engineering inspection: 5,000–20,000 THB
- Appraisal fee: 3,000–7,000 THB
The Appraisal Gap
This is the most painful hidden cost. The Land Office uses its own appraised value (almost always lower than the purchase price) for tax calculations. If the bank's appraisal matches the Land Office, you need a bigger down payment.
Due Diligence Checklist
- [ ] Title deed check at Land Office
- [ ] Building permit verification
- [ ] Foreign quota confirmation
- [ ] Company search (if using company structure)
- [ ] Flood and subsidence check
Transfer and Mortgage Fees: The Reduced Rate in Force Since July 2026
The standard rates are 2% for transfer registration and 1% for mortgage registration. Since 1 July 2026 both are reduced to 0.01%, but only for a Thai individual buying at a price and official appraised value of no more than ฿7 million, with the mortgage registered at the same time and also capped at ฿7 million. The cabinet extended the measure on 30 June 2026 and it runs to 30 June 2027.
Foreign buyers do not qualify for the reduced rate and pay the standard 2% and 1%. Partial sales are excluded, and the property must be a detached house, semi-detached house, townhouse, commercial building, land transferred with such a building, or a registered condominium unit.
What does it actually cost to buy property in Thailand?
Budget 5-10% of the purchase price on top of the sticker price. The one-time items are the 2% transfer registration fee, 0.5% stamp duty, 3.3% Specific Business Tax where the seller has held the property for under five years, 1% withholding tax and 1% mortgage registration, plus legal fees of roughly 30,000-80,000 THB.
Who pays what at transfer in Thailand?
The seller pays the Specific Business Tax and the withholding tax. The buyer pays mortgage registration. The transfer fee and stamp duty are customarily split, but the split is negotiable and belongs in the sale agreement.
Can a foreign buyer get the reduced 0.01% registration fee?
No. The reduced rate is limited to Thai individual buyers at a price and appraised value of no more than 7 million THB. Foreign buyers pay the standard 2% transfer and 1% mortgage registration fee.
Source note added: the reduction was made by Ministry of Interior notifications drafted by the Department of Lands, published in the Royal Gazette on 1 July 2026. See the Department of Lands and the Revenue Department for the registration and tax rates.
