Understanding property taxes is essential for any real estate purchase in Thailand. This guide covers all taxes and fees buyers should budget for.
Property taxes in Thailand are relatively straightforward compared to many Western countries, but there are several fees and taxes that buyers need to account for when budgeting for a purchase.
Taxes and Fees at Purchase
Transfer Fee
Rate: 2% of the official assessed value
Who pays: Typically split 50/50 between buyer and seller (but negotiable)
When: At the Land Department on transfer day
Stamp Duty
Rate: 0.5% of the assessed value
Who pays: Typically the seller (but often negotiated to buyer)
When: At transfer
Specific Business Tax (SBT)
Rate: 3.3% of the sale price or assessed value (whichever is higher)
Who pays: Seller
When: At transfer
Exemption: If the seller has owned the property for more than 5 years
Withholding Tax
Rate: Varies based on the sale price and how long the seller owned the property
Who pays: Buyer withholds from seller's proceeds
When: At transfer
Note: For individuals, this is calculated on a progressive scale
Ongoing Property Taxes
Land and Building Tax
Introduced in 2020, this annual tax replaced the old house and land tax. Rates vary by property type:
Residential (owner-occupied): 0.02-0.1% of assessed value
Residential (rented out): 0.3-0.7% of assessed value
Commercial: 0.3-0.7% of assessed value
Undeveloped land: 0.3-0.7% (with surcharges if left undeveloped)
The tax is assessed by the local municipality and billed annually. Most condo owners pay a relatively small amount (a few thousand THB per year).
Maintenance Fees
While not technically a tax, monthly maintenance fees are an ongoing cost. They typically range from 40-80 THB/sqm/month for mid-range condos and 100-200+ THB/sqm/month for luxury buildings.
Budgeting Tips
When budgeting for a property purchase in Thailand, add approximately 5-7% to the purchase price to cover all transaction costs. For ongoing ownership, budget 15,000-30,000 THB/year for a typical 50-80 sqm condo, including maintenance fees and property tax.