The listed price of a property in Thailand is not the final price. Between government transfer fees, taxes, legal costs, and ongoing annual charges, the true cost of buying and owning property typically adds 5 to 10 percent on top of the purchase price — sometimes more. Here's every fee you'll encounter, who pays it, and how to calculate it.
Fees paid at transfer (one-time costs)
These are the government fees and taxes assessed at the Land Office when ownership is officially transferred. They're calculated on either the appraised value (set by the Treasury Department) or the actual sale price, whichever is higher.
Transfer fee — 2%
The transfer fee is 2% of the appraised value. This is the main government charge and applies to every property transfer. By custom, the buyer pays the transfer fee — but this is negotiable. In a buyer's market, sellers often agree to split it 50/50 or absorb it entirely.
For a condo appraised at 3 million THB, the transfer fee is 60,000 THB (roughly $1,700 USD).
Stamp duty — 0.5%
Stamp duty is 0.5% of the appraised value or sale price, whichever is higher. It's paid by the seller, but only when specific business tax does not apply (more on that below). You pay one or the other — never both.
Specific business tax — 3.3%
If the seller has owned the property for less than five years (counted from the date on the title deed, not the purchase date), they must pay specific business tax instead of stamp duty. The rate is 3.3% of the appraised value or sale price, whichever is higher.
This is a significant cost. On a 5 million THB property, it's 165,000 THB (about $4,700 USD). If you're buying from a developer or a recent flipper, this tax applies — and even though it's technically the seller's responsibility, it's often factored into the listing price or negotiated as part of the deal.
The five-year rule: ownership must be registered for five full years. If the seller registered ownership on March 15, 2022, the five-year period ends March 15, 2027. A transfer on March 14, 2027 still triggers SBT. The countdown resets if there was an inheritance — but proof is required.
Withholding tax — varies
Withholding tax is deducted at the point of transfer and depends on who the seller is:
- Seller is a company: 1% of the appraised value or sale price, whichever is higher. Simple.
- Seller is an individual: calculated on a progressive scale based on the appraised value and the number of years the seller has owned the property. The Land Office uses a formula that divides the appraised value by the years of ownership, applies the personal income tax rates to that annual figure, then multiplies back by the number of years. In practice, this usually works out to 1-3% of the appraised value for properties held 5+ years.
Withholding tax is always the seller's responsibility and cannot be shifted to the buyer.
Quick reference: transfer cost summary
| Fee | Rate | Who pays |
|---|---|---|
| Transfer fee | 2% | Buyer (negotiable) |
| Stamp duty | 0.5% | Seller (if owned 5+ years) |
| Specific business tax | 3.3% | Seller (if owned <5 years) |
| Withholding tax | 1-3% | Seller |
Example: You buy a resale condo appraised at 4 million THB from an individual who has owned it for 3 years. The costs break down as: transfer fee (80,000 THB, buyer), specific business tax (132,000 THB, seller), and withholding tax (~80,000 THB, seller). Your direct cost as buyer: 80,000 THB (~$2,300 USD), or 2% of the appraised value.
Legal and professional fees
These aren't government charges, but they're real costs you should budget for.
- Independent lawyer: 30,000 to 80,000 THB for a full due diligence package including title search, contract review, and transfer attendance. Higher for complex structures (company, usufruct, superficies).
- Agent commission: typically 3-5% of the sale price, paid by the seller. As a buyer, you don't usually pay this — but it's built into the price. In direct sales (no agent), there's room to negotiate the price down.
Ongoing annual costs
Ownership doesn't end at the transfer. These costs recur every year.
Land and building tax
Thailand introduced a new Land and Building Tax in 2020, replacing the older house and land tax. The rates depend on how the property is used:
- Primary residence (your name on the house registration): 0.02% of the appraised value for the first 50 million THB. For a 5 million THB condo, that's 1,000 THB per year — essentially negligible.
- Other residential use (second home, rental property, vacant): 0.02% up to 50 million THB, then graduated rates above that. Still low by international standards.
- Commercial use: 0.3% up to 50 million THB, graduating upward.
- Vacant/unused land: 0.3%, increasing by 0.3% every three years up to 3% — a deliberate penalty for land banking.
Important for foreigners: as a foreigner, you typically cannot register as a resident on the house registration book (tabien baan), which means your condo or property may be taxed at the "other residential" rate rather than the primary residence rate. In practice, the difference at most property values is minimal, but it's worth understanding.
Common area fees (condos)
Every condo charges a monthly common area maintenance (CAM) fee, typically calculated per square meter. The range is wide:
- Budget buildings: 30-45 THB per sqm/month
- Mid-range: 45-65 THB per sqm/month
- Luxury/serviced: 65-120+ THB per sqm/month
For a 45 sqm condo at 55 THB/sqm, that's 2,475 THB/month (~$70 USD) or about 29,700 THB/year. This covers security, cleaning, pool maintenance, elevator maintenance, insurance, and common utilities. It does not cover your unit's electricity or water.
Sinking fund
A one-time payment at purchase (usually 500-1,000 THB per sqm) that goes into a reserve fund for major repairs — roof replacement, elevator overhaul, facade work. This is paid once but the fund is ongoing. If the sinking fund runs low, the juristic person can levy special assessments — essentially surprise bills — on all unit owners.
Utilities
Your unit's own electricity and water are separate from common area fees. Condos often mark up utility rates from the base government rate:
- Electricity: 6-9 THB per unit (government rate ~4 THB). Running air conditioning in a 45 sqm unit typically costs 1,500-4,000 THB/month depending on usage.
- Water: 18-35 THB per unit (government rate ~10 THB). Usually a small amount — 200-500 THB/month.
If you rent out the property
Rental income is taxable in Thailand. As a non-resident, your tenant (if a company) or property manager should withhold 15% at source. If your tenant is an individual, the obligation to declare falls on you through an annual tax filing. Many foreign landlords engage a tax accountant (5,000-15,000 THB/year) to handle the filing.
Rental income from Thailand may also be taxable in your home country, depending on your tax residency status and any double taxation agreement between Thailand and your country. Consult a tax professional who understands both jurisdictions.
Hidden costs nobody tells you about
Meter installation fees. For new-build condos, electricity and water meter installation can be 10,000-30,000 THB — charged separately from the purchase price.
Furniture packages. Developers often quote "fully furnished" prices, but the furniture package may be a separate charge of 200,000-500,000 THB.
Management changeover costs. When condo management companies change (which happens), special assessments to cover transition costs are common.
Insurance. The building's common area is insured through the CAM fee, but your unit's contents and liability are not. Budget 3,000-8,000 THB/year for contents insurance.
Visa costs. Owning property in Thailand does not give you the right to stay. You still need a valid visa, and most long-term visa options have their own costs — the retirement visa alone requires proof of 800,000 THB in a Thai bank account or 65,000 THB monthly income.
Every fee, every tax, every hidden cost
Our guide includes complete cost worksheets for every ownership structure — condo, leasehold, company, usufruct — with real worked examples so you know the true cost before you sign. 50 pages, instant PDF download.
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