Transfer Fees, Stamp Duty, and Withholding Tax: Who Pays What When Buying Property in Thailand

Key points

• The transfer fee is 2% of the government appraised value; stamp duty is 0.5%; withholding tax is progressive for individuals and 1% flat for companies; SBT is 3.3% and replaces stamp duty when it applies. The two never apply together.
• None of these is legally fixed to either party; the split is set in the purchase contract. On a freehold purchase the combined charges are usually divided equally between seller and buyer, leaving the buyer with around 3 to 3.3%. On a leasehold registration the buyer pays about 1.1%.
• Foreign buyers can own condominiums outright within the building's 49% foreign quota. A villa can be structured either with the building registered freehold in the buyer's name and the land on a registered lease, or with both the building and the land on lease. Land is not available to foreign buyers freehold.
• Contract wording determines who actually writes the cheque.

The transfer fee is calculated on the government appraised value, the Land Department's official valuation for the property. Stamp duty, SBT and withholding tax are calculated on the appraised value or the contract price, whichever is higher. All rates are accurate as of July 2026 and are published by the Land Department and the Revenue Department.

What Is the Transfer Fee and Who Actually Pays It?

The transfer fee is a registration charge paid to the Land Department at the point of title conveyance. The statutory rate is 2% of the appraised value, the official valuation the Land Department maintains for every property. There is no legal rule that assigns it to buyer or seller. In practice, it is the most commonly negotiated item on the closing cost sheet, and a 50/50 split is the default in a large share of Phuket transactions.

In a buyers' market or when a seller is motivated, the seller may absorb the full 2%. In off-plan developer sales, the payment split is usually stated in the reservation agreement or sale and purchase contract before any negotiation takes place.

What Is Stamp Duty and When Does It Apply?

Stamp duty in Thailand is not a universal charge on every property sale. It applies only when a transaction is exempt from the Specific Business Tax. The two cannot apply simultaneously.

• Rate: 0.5% of the appraised value or actual purchase price, whichever is higher.
• Who pays: Traditionally the seller.
• When it applies: Individual sellers who have held the property for five or more years, or who have been registered as a resident at the property for at least one year.

If neither condition is met, the transaction falls under SBT instead of stamp duty. The distinction matters because SBT is 3.3% (the 3% base rate plus a 10% municipal surcharge), which is a materially higher charge. Sellers who do not meet the stamp duty conditions often negotiate to share the SBT cost with buyers, particularly in developer-to-buyer transactions where the developer, as a corporate seller, always pays SBT rather than stamp duty.

How Is Withholding Tax Calculated in Thailand?

Withholding tax is a prepayment toward the seller's income tax on the transaction (Revenue Department). This is not a cost the buyer carries directly, but it is worth understanding, because it forms part of the overall sum settled at the Land Department on registration day.

• Corporate sellers: A flat 1% of the appraised value or sale price, whichever is higher.
• Individual sellers: Calculated on a progressive scale based on the property's appraised value and the number of years held. Longer ownership periods reduce the effective rate because fewer "years of income" are assessed.

The practical implication for a buyer: when purchasing directly from a developer (a company), the withholding tax cost is predictable and capped at 1%. When buying resale from an individual, the seller's withholding tax liability varies and can be a negotiating point if the seller's net position affects their willingness to accept a given price.

How This Works in Practice

On a freehold purchase from a developer, the charges come to 6.3% in total: the 2% transfer fee, 3.3% SBT and 1% withholding tax. As a rule the developer pays half and the contract assigns the other half to the buyer, so the figure to budget for is around 3 to 3.3% of the price. Some developers absorb a larger share and leave the buyer with less, 2% for example. It is a one-time cost.

On a leasehold purchase the charges come to 1.1% and are paid by the buyer. They fall due again each time the lease is renewed and a new term is registered at the Land Department.

What Taxes Apply When You Sell Later?

The same framework meets you again on the way out, and it is worth knowing before you buy, because the holding period changes the numbers.

• Selling within five years of ownership: the sale attracts SBT at 3.3%.
• Selling after five or more years of ownership, or after being registered as a resident at the property for at least one year: the sale is exempt from SBT and pays only 0.5% stamp duty instead.
• Withholding tax is paid on the sale in either case, as the prepayment toward income tax on the proceeds.
• The 2% transfer fee applies to the new transfer, with the split again a matter for the contract.

For an investor planning an exit, the five-year threshold is the single most consequential date: crossing it replaces a 3.3% charge with a 0.5% one.

How Do Ownership Structure and Foreign Buyer Status Affect These Taxes?

Foreign nationals can hold Thai condominiums on a freehold basis within the 49% foreign quota. A villa can go two ways. The building can be registered freehold in the buyer's name, with the land beneath it held on a registered lease. Alternatively both the building and the land are taken on lease. Land is not available to foreign buyers on a freehold basis in either case. A freehold transfer incurs the 2% transfer fee, withholding tax, and, where the seller does not qualify for stamp duty (which includes virtually all primary-market developer sales), 3.3% SBT. A leasehold registration incurs a 1% registration fee and a 0.1% stamp duty, about 1.1% in total. These charges attach to the transaction itself. The buyer's nationality leaves them unchanged.

What changes is the documentation. Foreign buyers registering a leasehold will have a lease agreement registered rather than a title deed transfer, and the fee is calculated on the registered lease value.

About Undersun Estate

Undersun Estate is a Phuket-based real estate agency. The team co-founded the Phuket Property Association, partners with the Phuket Real Estate Association, and has worked in the Phuket property market since 2020, managing transactions end to end: shortlisting, negotiation, document verification, payment coordination, and support with Land Department registration. The agency works with international buyers on properties across Phuket, handles purchases fully remotely where needed, and operates in English, Russian, Ukrainian, and Thai.

If you want a shortlist matched to your brief and the total cost of purchase worked out, send us your budget and preferred districts on WhatsApp or through the form on this page.

References

1. Department of Lands, Ministry of Interior (dol.go.th)
2. The Revenue Department of Thailand (rd.go.th)