TL;DR: Property transfers typically include 2% transfer fee, SBT 3.3% (or 0.5% stamp duty when SBT not applicable), and withholding tax (1% for companies, progressive for individuals). Annual Land & Buildings Tax applies to all property owners based on assessed values.
At Transfer (Typical)
Transfer Fee
Rate: 2% of assessed value (Land Office valuation) Paid by: Typically split buyer/seller (negotiable) Calculation: Based on Land Office or MOI assessed value Payment: At Land Office during title transfer
Specific Business Tax (SBT)
Rate: 3.3% when applicable Applies when:
- Company sells property held <5 years
- Property sold for commercial purposes
- Developer sales (new construction)
Official source: Revenue Department SBT
Stamp Duty
Rate: 0.5% when SBT not applicable Applies when: SBT doesn't apply (individual sales, long-held properties) Calculation: On assessed value or sale price (whichever higher)
Official source: Revenue Department Stamp Duty
Withholding Tax
Company sellers: 1% of assessed/sale value (whichever higher) Individual sellers: Progressive rates on assessed/sale value:
- Income tax rates: 0-35% depending on total annual income
- Calculation can be complex based on seller's tax situation
Note: Withholding tax calculations vary significantly. Consult the Revenue Department or qualified tax advisors for specific situations.
Costs & Fees Breakdown
Before You Start
- Budget 4-7% of purchase price for total transfer costs
- Verify who pays what - standard practice is negotiable
- Get accurate assessed value from Land Office before calculating
- Confirm seller's tax status (company vs. individual, holding period)
Documents You'll Need
- Purchase contract showing agreed sale price
- Title deed for Land Office assessed value
- Seller's tax information (company registration, individual income status)
- Transfer authorization if using representatives
Worked Example (5M THB Condo Purchase)
Property Details
- Sale price: 5,000,000 THB
- Land Office assessed value: 4,200,000 THB
- Seller: Individual (held property 6 years)
- Buyer: Foreign individual
Fee Calculations
- Transfer fee (2%): 4,200,000 × 2% = 84,000 THB
- Stamp duty (0.5%): 5,000,000 × 0.5% = 25,000 THB (SBT not applicable)
- Withholding tax: Variable based on seller's total income
- Total (excluding withholding): 109,000 THB
Who Typically Pays What
- Transfer fee: Split 50/50 (42,000 THB each)
- Stamp duty: Buyer pays (25,000 THB)
- Withholding tax: Buyer pays on seller's behalf (amount varies)
Annual Property Tax (Land & Buildings Tax)
Tax Overview
The Land & Buildings Tax Act B.E. 2562 (2019) replaced previous property taxes with a unified system.
Official source: FPO Land & Buildings Tax Act PDF
Tax Categories
Residential Property
- Owner-occupied: Lower rates, exemptions available
- Rental property: Higher rates than owner-occupied
- Vacant property: Progressively higher rates to discourage speculation
Commercial Property
- Commercial use: Separate rate structure
- Mixed-use: Proportional calculation by usage
Rate Structure (Simplified)
Rates and thresholds are set by law with local authority collection:
- Assessment: Based on assessed land and building values
- Payment: Annual, collected by local administrative organizations
- Exemptions: Various exemptions for low-value residential properties
Property Owner Obligations
- Annual payment: Due dates set by local authorities
- Value updates: Properties reassessed periodically
- Usage reporting: Must report actual property use
- Payment tracking: Keep receipts for transfer purposes
Transfer Fee Table Summary
| Fee Type | Rate | Calculation Base | When Applicable |
|---|---|---|---|
| Transfer Fee | 2% | Assessed value | All transfers |
| SBT | 3.3% | Sale/assessed value | Companies <5yrs, commercial |
| Stamp Duty | 0.5% | Sale/assessed value | When SBT not applicable |
| Withholding Tax | 1% (co.) / 0-35% (ind.) | Sale/assessed value | All transfers |
Common Pitfalls
Assessed vs. Sale Price Confusion
Risk: Underestimating fees based on assessed value only Solution: Some taxes calculated on higher of assessed or sale price
SBT vs. Stamp Duty Misunderstanding
Risk: Budgeting for wrong tax type Solution: Verify seller status and property holding period
Withholding Tax Surprises
Risk: Unexpected high withholding tax amounts Solution: Get seller's tax situation clarified before purchase
Annual Tax Obligations
Risk: Forgetting ongoing Land & Buildings Tax obligations Solution: Budget for annual property tax payments
Where to Verify
Official Sources
- Revenue Department English: Current tax rates, SBT, stamp duty
- Ministry of Finance FPO: Land & Buildings Tax Act details
- Local Land Office: Current assessed values, transfer procedures
Professional Support
Property tax calculations can be complex, especially for withholding tax. Consult qualified tax advisors for significant transactions.
Related Guides
- Property Buying Guide - Complete purchase process including fee planning
- Condo Ownership - Condo-specific transfer requirements and ongoing costs
- Long-Term Leases - Lease registration fees and stamp duty
- Due Diligence - Verifying tax status and encumbrances
Need tax or transaction coordination? Ask for an introduction to an independent qualified tax or legal professional. Verify credentials, scope, fees, and engagement terms directly. Request coordination.