Bangkok Property Purchase Fees in 2026: 7 Costs Every Investor Must Know

Buying real estate in Thailand involves a transaction cost structure that differs significantly from most Western markets. There is no notary system in Thailand. Instead, all property transfers are registered directly at the Land Department, the government body responsible for title records and fee collection. For international investors purchasing a condominium in Bangkok, this means understanding a distinct set of transfer fees, taxes, and registration charges before signing anything.

On a property priced at 5,000,000 THB (approximately 130,000 USD at 2026 rates), total transaction costs can range from 1% to over 6% of the purchase price, depending on whether you are buying from a developer or on the secondary market, and how long the seller has held the asset. Below is a precise breakdown of every cost involved.

Quick answer

• Transfer fee: 2% of the appraised value or transaction price (whichever is higher), typically split 50/50 between buyer and seller
• Specific Business Tax (SBT): 3.3%, paid by the seller if the property has been held for less than 5 years
• Stamp duty: 0.5%, applies instead of SBT when the seller has held the property for more than 5 years
• Withholding tax: 1% of appraised value for corporate sellers; progressive scale for individuals - paid by the seller
• Rental income tax in Thailand: progressive scale of 0-35%, with a standard expense deduction of 30% of gross rental income
• No double taxation treaty: Poland, the UK, and most EU countries do not have a tax treaty with Thailand or Cambodia, meaning rental income may be taxed in both jurisdictions
• Cambodia transfer tax: a flat 4% of market value, paid by the buyer; annual property tax of 0.1% above a threshold of approximately 25,000 USD

Options and scenarios

Scenario 1 - Buying from a developer (new condominium in Bangkok)

When purchasing a new-build unit directly from a developer, the seller typically absorbs the SBT (3.3%) and withholding tax (1%), as the developer has held the land for less than five years. The transfer fee (2%) is either split equally or negotiated as part of the deal. Promotional campaigns sometimes include full developer coverage of transfer costs.

For a condominium priced at 5,000,000 THB, the buyer's realistic out-of-pocket cost at the Land Department ranges from 50,000 THB (1%, covering half the transfer fee) to 100,000 THB (2%), equivalent to roughly 1,300 to 2,600 USD. This is the most cost-efficient scenario for an international buyer.

Scenario 2 - Secondary market purchase (seller held property for more than 5 years)

On the resale market, a long-holding seller avoids SBT entirely but pays stamp duty (0.5%) and withholding tax. The transfer fee is again split 50/50 by convention. Because SBT (3.3%) is replaced by the much lower stamp duty (0.5%), total transaction costs across both parties are considerably reduced.

For the same 5,000,000 THB property, the buyer typically pays 50,000 THB (half of the transfer fee), while total costs across both parties come to approximately 150,000 THB (around 3%). This is a transparent and predictable scenario, provided the fee split is clearly documented in the sale agreement.

Scenario 3 - Purchasing in Phnom Penh, Cambodia

Cambodia applies a simpler, single-layer transfer tax of 4% of market value, paid entirely by the buyer. There is no equivalent of SBT or stamp duty. The annual property tax is 0.1% of the assessed value above the exemption threshold of 100 million KHR (approximately 25,000 USD).

For an apartment priced at 100,000 USD, the upfront transfer tax is 4,000 USD. The annual property tax at that value would be approximately 75 USD, making the ongoing holding cost minimal. Cambodia's system offers predictability, though legal due diligence remains essential given the country's evolving land registration framework.

Comparison table

Parameter	Bangkok - New Developer	Bangkok - Secondary Market (over 5 years)	Phnom Penh - Cambodia
Transfer fee / tax	2% (split 50/50 or negotiated)	2% (split 50/50)	4% (buyer pays)
Specific Business Tax	3.3% (seller pays)	Not applicable	Not applicable
Stamp duty	Not applicable (SBT applies)	0.5% (seller pays)	Not applicable
Withholding tax	1% corporate / progressive individual (seller)	1% corporate / progressive individual (seller)	No direct equivalent
Annual property tax	0.02%-0.3% (varies by value and use)	0.02%-0.3%	0.1% above ~25,000 USD threshold
Buyer cost on 5M THB / 100K USD	50,000-100,000 THB	50,000 THB	4,000 USD
Tax treaty with EU / UK	None	None	None

Rental income taxation

Thailand

Rental income generated in Thailand is subject to Thai personal income tax on a progressive scale of 0% to 35%. Non-resident foreign investors are entitled to a standard expense deduction of 30% of gross rental income before calculating the taxable base. The first tax bracket (up to 150,000 THB annually) is exempt only for Thai tax residents, not for non-residents.

From 2024, Thailand expanded the scope of taxation on foreign-source income remitted into the country. For an investor renting out a Bangkok condominium, the primary obligation remains paying Thai income tax on locally generated rental income.

As a practical example: annual rental income of 300,000 THB (approximately 7,800 USD) generates a taxable base of 210,000 THB after the 30% deduction. For a non-resident, the resulting Thai tax liability would be approximately 10,500 THB (around 270 USD), reflecting the lower end of the progressive scale.

Cambodia

Non-resident individuals receiving rental income in Cambodia are subject to a 14% tax on income. A separate rental tax of 10% on gross income also exists. In practice, one of these two charges typically applies, but the interaction between them requires advice from a local tax professional, as interpretation by Cambodian authorities can vary.

Home-country tax obligations for international investors

Most countries require tax residents to declare worldwide income, including foreign rental income. Neither Thailand nor Cambodia has a double taxation treaty (DTT) with Poland, the United Kingdom, most EU member states, or the United States. In the absence of a DTT, the standard approach in many jurisdictions allows a credit for tax paid abroad, but only up to the proportion of domestic tax attributable to that foreign income. This does not fully eliminate the risk of effective double taxation, particularly when the foreign rate is lower than the domestic rate.

Investors should model their after-tax return using the combined tax burden in both countries. At current rates, the combined effective rate on Thai rental income for a European investor typically falls in the 20-30% range, depending on total income levels in the home country.

Risks and mistakes

• Overlooking the Land Department appraisal value: The Land Department assigns its own assessed value to every property. If this assessed value exceeds the transaction price, all fees are calculated on the higher figure. Buyers are often surprised by this gap at the point of registration
• Failing to verify the title deed type: A Chanote (full ownership title, also known as Nor Sor 4 Jor) is the only document that provides secure freehold ownership. Other title categories such as Nor Sor 3 or Nor Sor 3 Gor offer weaker protections and should be approached with caution
• Exceeding the foreign ownership quota: Thai condominium law restricts foreign ownership to a maximum of 49% of a building's total sellable floor area. If that quota is already met in a given building, a foreign buyer cannot complete a freehold purchase
• Underestimating foreign exchange transfer costs: To register a condominium in a foreign buyer's name, funds must be transferred to Thailand from abroad in foreign currency and documented with a Foreign Exchange Transaction form (FET / Thor Tor 3). Exchange rate spreads and bank charges can add 0.5% to 1.5% to the total acquisition cost
• Ignoring home-country tax obligations: The absence of a double taxation treaty with Thailand or Cambodia means that tax authorities in the buyer's home country may assess income tax on rental earnings even after Thai or Cambodian tax has already been paid. Proper tax planning before purchase is essential
• Relying on verbal agreements for fee splits: In Thailand, the allocation of transfer fees between buyer and seller is a matter of negotiation. If the sale and purchase agreement does not specify who pays which portion of the transfer fee, the seller may attempt to shift the entire cost to the buyer at the point of Land Department registration

FAQ

Is a notary required to buy property in Bangkok?

No. Thailand does not use a notary system for real estate transactions. All title transfers are registered directly at the Land Department. However, hiring an independent property lawyer to review the contract and verify the title deed is strongly recommended.

What are the equivalent of notary fees when buying property in Bangkok?

There are no notary fees in Thailand. The equivalent costs are Land Department registration charges: a 2% transfer fee, SBT of 3.3% or stamp duty of 0.5% (depending on how long the seller held the property), and withholding tax. Total transaction costs range from roughly 1% to over 6% of the purchase price.

Who pays the transfer fee in Thailand - buyer or seller?

By convention, the 2% transfer fee is split equally between buyer and seller. However, this is not a legal requirement. The parties can agree on any allocation in the sale agreement, and developers sometimes cover the full amount during promotional periods.

Does my country have a double taxation treaty with Thailand?

As of 2026, Thailand has tax treaties with a number of countries, but not with Poland. Cambodia has no broad network of DTTs in place. Investors from the EU, UK, or elsewhere should verify their specific country's treaty position with a qualified tax adviser before purchasing.

How is rental income from a Bangkok condo taxed?

Rental income is taxed in Thailand on a progressive scale of 0-35%, with a 30% standard expense deduction allowed against gross income. Investors must also declare this income in their home country. Without a DTT, partial double taxation is possible, though a proportional foreign tax credit typically reduces the domestic tax liability.

What is the transfer tax on a property in Cambodia?

The transfer tax (sometimes called the property transfer tax) in Cambodia is 4% of the market value, paid entirely by the buyer at the time of registration.

Can a foreigner own a condominium in Thailand?

Yes. Foreigners may hold freehold title to a condominium unit as long as the foreign ownership quota in the building (maximum 49% of total floor area) has not been reached. Direct ownership of land or houses is not available to foreigners; long-term leasehold structures are used instead.

What is the annual property tax in Bangkok?

Thailand introduced the Land and Building Tax in 2020. For residential properties, rates range from 0.02% to 0.1% of the assessed value. Commercial properties and vacant land are subject to higher rates, up to 0.3% and above.

Do I need a Thai bank account to buy a condominium in Bangkok?

It is not a formal legal requirement, but funds used to purchase a condo must arrive from outside Thailand in foreign currency and be documented with an FET form (Thor Tor 3). Having a Thai bank account simplifies this process and reduces currency conversion costs.

How does Cambodia tax rental income for foreign investors?

Non-resident foreign individuals are subject to either a 14% tax on income or a 10% rental tax on gross rental receipts. The applicable charge and its interaction with other obligations should be confirmed with a local Cambodian tax adviser, as enforcement and interpretation can vary.

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