Checks, costs & money
Every fee and tax paid when you buy, own, rent out and sell property in Thailand, who normally pays it, and worked examples for Koh Samui condos and villas.
In short
- At transfer, four items can apply: a 2% transfer fee, 3.3% Specific Business Tax or 0.5% stamp duty, and withholding tax.
- Most are calculated on the Land Office appraised value, or the higher of that and the sale price.
- Who pays is negotiable. The sale contract should say exactly who pays each item.
- Registering a lease costs 1% of the total rent plus 0.1% stamp duty.
- Owners pay an annual Land and Buildings Tax, and rental income is taxable in Thailand.
Property costs in Thailand are paid at the Land Office on the day of transfer, and they can add several percent to a purchase. Buyers who understand them negotiate better, budget accurately and avoid surprises at the transfer desk. This guide explains every fee and tax, how each is calculated, who typically pays, and what happens when you own, rent out and sell. For the full buying process, see buying property in Koh Samui.
General information, not tax advice. Rates, reliefs and appraised values change. Confirm current figures with your property lawyer or a Thai tax adviser.
Two values you need to know
- The sale price: what you agree to pay.
- The appraised value: the official value set by the Treasury Department and used by the Land Office. On Koh Samui it is often lower than the market price, especially for land, but not always.
Some costs use the appraised value; others use whichever is higher. Your lawyer can obtain the appraised value for a specific property before you sign.
Freehold transfer costs
| Cost | Rate | Calculated on | Usually paid by |
|---|---|---|---|
| Transfer fee | 2% | Appraised value | Negotiable; often 50/50 |
| Specific Business Tax (SBT) | 3.3% | Higher of price and appraised value | Seller |
| Stamp duty | 0.5% | Higher of price and appraised value | Seller; not charged when SBT applies |
| Withholding tax: individual seller | Progressive | Appraised value, adjusted for years held | Seller |
| Withholding tax: company seller | 1% | Higher of price and appraised value | Seller |
When Specific Business Tax applies
SBT replaces stamp duty when property is sold:
- within five years of the seller acquiring it, or
- by a company or in the course of business.
An individual is usually exempt if the property has been their registered home (on the house registration) for at least one year, or they inherited it.
How withholding tax works for individual sellers
For an individual seller, withholding tax is calculated on the appraised value using a formula that:
- deducts a standard allowance that grows with the number of years the property has been held,
- divides the result by the number of years held,
- applies personal income tax rates to that figure, and
- multiplies the tax back up by the number of years.
The effect is that sellers who have held for longer pay a lower effective rate. Your lawyer or the Land Office will calculate the exact figure.
Leasehold costs
| Cost | Rate | Calculated on |
|---|---|---|
| Lease registration fee | 1% | Total rent for the whole term |
| Stamp duty | 0.1% | Total rent for the whole term |
| Superficies, usufruct or servitude | Fee based on any payment, or a small fixed fee | The amount paid for the right |
| Transfer of the house | Freehold transfer rates | Appraised value of the building |
Worked examples
VAT, and why new property doesn’t carry it
Sales of land and buildings in Thailand aren’t subject to VAT. Instead, Specific Business Tax applies to developers and short-term sellers. Furniture packages, management services and some rental arrangements can carry VAT, so check how a developer’s price is made up.
Tax residency and money you bring in
If you spend 180 days or more in Thailand in a tax year, you are a Thai tax resident. Since 2024, Thai tax residents can be taxed on foreign income that they bring into Thailand, depending on when it was earned and any tax treaty. Savings and capital built up before then are treated differently from new income. If you plan to live on Samui, take tax advice before you transfer large sums.
Other costs of buying
- Legal fees for due diligence, contracts and the transfer. Ask for a fixed written quote.
- Bank charges on the international transfer, and the exchange rate margin.
- Condo: a one-off sinking fund contribution and common-area fees, often paid a year in advance.
- Mortgage registration, if you borrow: 1% of the loan, capped by law.
- Translation and power of attorney costs if you’re abroad at transfer.
Annual costs of owning
Land and Buildings Tax
Since 2020, owners pay an annual Land and Buildings Tax to the local authority, based on the appraised value and how the property is used:
| Use | Typical rate band |
|---|---|
| Residential | 0.02%–0.1% |
| Commercial and other use | 0.3%–0.7% |
| Vacant or unused land | 0.3%, rising over time if left unused |
Rates are progressive within each band, and the local authority applies them. A residential condo or villa usually carries a modest annual bill; land left vacant costs more. For a leasehold villa, the lease should say whether you or the landowner pays.
Other running costs
Common-area fees, utilities, insurance, maintenance and management. See villa ownership and running costs.
Tax on rental income
Rental income from property in Thailand is taxable in Thailand, whether or not you live there:
- Individuals pay personal income tax at progressive rates, after a standard deduction for expenses.
- Corporate tenants may withhold tax from rent paid to you.
- Short-term holiday letting is also a business with licensing rules. See hotel licences and short-term rentals.
You may also owe tax in your home country, depending on its rules and any tax treaty with Thailand. Take advice from a tax adviser in both countries.
When you sell
The seller-side costs above apply: SBT or stamp duty, withholding tax and any agreed share of the transfer fee. Thailand has no separate capital gains tax for individuals; the withholding tax at transfer serves that purpose. See selling property in Koh Samui.
Inheritance and gifts
Thailand charges inheritance tax only on very large inheritances, and gift tax on gifts above set thresholds. Transfers to children or spouses can carry reduced Land Office fees. Plan this with a lawyer if you intend to pass property on.
Common mistakes
- Not agreeing in writing who pays each fee.
- Budgeting on the price when fees are calculated on the appraised value, or the other way round.
- Forgetting the one-off condo costs at handover.
- Ignoring rental income tax because the money is paid abroad.
Frequently asked questions
The transfer fee is 2% of the appraised value. Including taxes, total costs are commonly 6–7% of the value, usually split between buyer and seller as agreed.
It’s negotiable. Splitting it 50/50 is common; developers sometimes pay it all.
No. The same fees and taxes apply to Thai and foreign buyers.
Not as a separate tax for individuals. Withholding tax at transfer, and SBT where it applies, are paid by the seller instead.
A 3.3% tax on selling property within five years of acquiring it, or when sold by a business. It replaces 0.5% stamp duty.
Yes, the Land and Buildings Tax, charged on the appraised value at rates that depend on how the property is used.
Yes. Rental income from Thai property is taxable in Thailand, and may also be taxable in your home country.
Want an estimate for a specific property?
We’ll work out the likely fees and taxes for anything you’re considering.
General information only, not tax or legal advice. Rates and appraised values change; confirm the figures for your transaction with a lawyer or tax adviser.