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Taxes, Fees, and Expenses When Buying Secondary Property in Thailand
Learn about the taxes, fees, and mandatory expenses when buying secondary property in Thailand. We explain rates, timing, and key nuances in simple terms so you can accurately calculate your budget and avoid hidden costs.
Contents
Buying secondary property in Thailand involves taxes, registration fees, and annual ownership payments. These are often the most confusing part of the process, because the rules can seem complicated and the allocation of costs between buyer and seller varies. Below is a breakdown of all mandatory payments: who pays what, how rates are calculated, and what buyers should consider when purchasing on the secondary market.
Main Expenses When Finalizing the Deal
When a secondary property changes ownership, the Land Office collects several mandatory taxes and fees. These are one-time payments, made on the day of registration. Each payment depends on the specific situation: how long the seller has owned the property, the sale price, and whether the seller is an individual or a legal entity.
Transfer Fee — Registration Fee (2%)
The transfer fee is charged for the actual transfer of ownership. The rate is fixed at 2% of the appraised value, as determined by the Land Office.
Who pays: Usually split 50/50 between buyer and seller, but negotiable.
When it’s paid:
Who pays: Usually split 50/50 between buyer and seller, but negotiable.
When it’s paid:
- On the day of the deal, directly at the Land Office.
- Payment is made once, after which you receive the property ownership documents.
Specific Business Tax (SBT) — 3.3%
SBT is only charged if the seller has owned the property for less than 5 years. The rate is 3.3% of the higher value between the sale price and appraised value.
Who pays: Seller (standard practice).
When it’s charged: On the day of the deal at the Land Office.
If the seller has owned the property for 5 years or more, SBT does not apply.
Who pays: Seller (standard practice).
When it’s charged: On the day of the deal at the Land Office.
If the seller has owned the property for 5 years or more, SBT does not apply.
Stamp Duty — 0.5%
Stamp duty is applied instead of SBT, never together with it. The rate is 0.5% of the higher of sale price or appraised value.
Who pays: Usually the seller.
When it’s paid: On the day of the deal at the Land Office; applicable if SBT does not apply.
Who pays: Usually the seller.
When it’s paid: On the day of the deal at the Land Office; applicable if SBT does not apply.
Withholding Tax (WHT)
This is an advance income tax withheld from the seller.
Rates:
Who pays: Always the seller.
When it’s paid: Withheld at the Land Office before registration; without it, the deal cannot be registered.
Rates:
- Companies — 1% of sale price or appraised value (whichever is higher).
- Individuals — progressive rates depending on how long the property was owned.
Who pays: Always the seller.
When it’s paid: Withheld at the Land Office before registration; without it, the deal cannot be registered.
Annual Taxes After Purchase
Land and Building Tax
Introduced in 2020, this is an annual tax payable by every property owner. Rates depend on property usage:
When it’s paid: Once a year; notices are usually sent January–March, payment is due by April–May (exact dates depend on the municipality).
Exemption: Properties used as personal residence under 10 million THB may be fully exempt with registration (Yellow Book).
- Personal residence
- Rental
- Commercial use
- Vacant land
When it’s paid: Once a year; notices are usually sent January–March, payment is due by April–May (exact dates depend on the municipality).
Exemption: Properties used as personal residence under 10 million THB may be fully exempt with registration (Yellow Book).
Additional Deadlines to Keep in Mind
International Money Transfer
Foreign buyers of freehold condos must transfer funds from abroad. It’s recommended to send money 3–5 business days before the deal so the bank can issue the FET form.
Document Preparation
Checking documents and drafting the contract takes 1–5 days, provided the seller’s documents are in order.
Land Office Appointment
Usually booked 2–7 days in advance.
Land Office Process
The registration procedure takes 1–2 hours.
Summary: Key Points to Remember
- Transfer Fee — 2% (usually shared between parties).
- SBT — 3.3% applies only if the seller owned the property less than 5 years.
- Stamp Duty — 0.5% applies only if SBT does not apply.
- Withholding Tax is paid by the seller on the day of the deal.
- Annual Land and Building Tax ranges from 0.02% to 0.3%.
- All payments are made once at the Land Office on the day of ownership registration.
- Cost allocation can be negotiated.
- Understanding the tax structure helps you accurately budget and avoid surprises on the day of the transaction.
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