Bangkok Property Transaction Costs 2026

Buying a condominium in Bangkok priced at 5 million THB (approximately 130,000 USD) generates total transaction costs of 6-8% of the purchase price on the secondary market. On the primary market - buying directly from a developer - that figure drops to just 1-2%. The gap is significant and stems from how Thai law distributes tax obligations between buyer and seller.

For international investors, there is an additional layer to consider: rental income from Thai or Cambodian property may trigger tax obligations in your country of residence. This article breaks down every fee, identifies who pays it, and illustrates each cost with concrete numbers.

Quick answer

Transfer fee: 2% of the official appraised value, typically split 50/50 between buyer and seller
Specific Business Tax (SBT): 3.3% of the sale price, paid by the seller if the property has been held for fewer than 5 years
Withholding tax: progressive scale of 0-35% on the seller's capital gain, always borne by the seller
Stamp duty: 0.5% of the sale price, applies only when SBT does not
Rental income tax in Thailand: progressive personal income tax at 0-35%; the first 150,000 THB of annual income is exempt
Cambodia for comparison: transfer tax of 4%, annual property tax of 0.1% on value exceeding 100 million KHR (approx. 25,000 USD)
Entry cost for the buyer: 1-2% on new builds, 1-3% on resale in Bangkok; 4-5.5% in Phnom Penh

Options and scenarios

Scenario 1: Buying a new-build apartment from a developer in Bangkok

Developers in Bangkok typically absorb the transfer fee, SBT, and stamp duty themselves. The buyer pays only the sinking fund - usually 400-600 THB per square metre as a one-time contribution - and the common area maintenance fee of approximately 40-80 THB per square metre per month.

For a 35 sqm unit priced at 5 million THB, the realistic entry cost for the buyer is around 15,000-21,000 THB upfront, plus ongoing monthly charges. One important caveat: developers incorporate these costs into their pricing. It is a sales strategy, not a subsidy.

Scenario 2: Buying on the secondary (resale) market

On the resale market, the allocation of costs is subject to negotiation. Bangkok convention is to split the 2% transfer fee equally. SBT at 3.3% falls on the seller if the property was held for fewer than five years. If held for more than five years, stamp duty at 0.5% replaces SBT. Withholding tax is always the seller's responsibility.

For a 5 million THB resale purchase where the seller has owned the property for three years, the breakdown looks like this:

Transfer fee: 100,000 THB (2%), of which the buyer pays 50,000 THB
SBT: 165,000 THB (3.3%) - seller pays
Withholding tax: estimate 25,000-75,000 THB depending on the seller's tax brackets
Total buyer cost: approximately 50,000 THB, representing 1% of the purchase price
Total seller cost: approximately 240,000-290,000 THB, representing 4.8-5.8% of the purchase price

Scenario 3: Investment in Phnom Penh, Cambodia

Cambodia operates a simpler system. The property transfer tax is a flat 4% of the property value, paid by the buyer. The annual property tax is 0.1% of the assessed value above the threshold of 100 million KHR (roughly 25,000 USD). There is no equivalent to Thailand's SBT or seller withholding tax.

For a 120,000 USD apartment in Phnom Penh:

Transfer tax: 4,800 USD (buyer)
Annual property tax: nil if assessed value is below threshold
Legal and registration fees: 500-1,500 USD

Rental income taxation

In Thailand, rental income is subject to progressive personal income tax at rates of 0-35%. Non-residents pay Thai tax only on income sourced in Thailand. A standard withholding tax of 5% of gross rent is deducted by corporate tenants at source. Landlords may claim a flat 30% deduction of rental income as allowable expenses, or opt to deduct actual documented costs.

In Cambodia, rental income for non-residents is subject to a withholding tax of 14% of gross rent (10% for tax residents). This is withheld at source.

For residents of other countries, rental income from foreign property typically must be declared in your country of residence. Where a tax treaty exists with Thailand or Cambodia, the method for avoiding double taxation - usually a credit or exemption - will be set out in that agreement. Where no treaty exists, unilateral domestic rules in your home country apply. Investors should obtain country-specific tax advice before committing to a purchase.

Comparison table

Parameter	Bangkok - New Build	Bangkok - Resale	Phnom Penh	Who Pays
Transfer fee / tax	2% (developer absorbs)	2% (typically 50/50)	4%	TH: negotiable / KH: buyer
Specific Business Tax (3.3%)	Developer	Seller (held under 5 years)	N/A	Seller
Stamp duty (0.5%)	N/A when SBT applies	Seller (held over 5 years)	N/A	Seller
Withholding tax on sale	Developer	Seller (progressive)	N/A	Seller
Annual property tax	0.02-0.3% (from 2020)	0.02-0.3%	0.1% above threshold	Owner
Sinking fund	400-600 THB/sqm	N/A (already paid)	Project-dependent	Buyer
Estimated buyer entry cost	1-2%	1-3%	4-5.5%	Buyer

Risks and mistakes

Failing to negotiate the SBT allocation: on the resale market, some sellers attempt to pass the 3.3% SBT to the buyer. Always agree on the cost-sharing structure before signing any reservation agreement
Overlooking your home-country tax obligations: rental income from foreign property is taxable in most jurisdictions. Tax authorities are increasingly exchanging information across borders - non-disclosure carries real risk
Confusing appraised value with transaction price: Thailand's transfer fee is calculated on the Land Department's official appraised value, which is often lower than the market price. Do not assume this will always be the case, as appraisals are updated periodically
Skipping legal due diligence in Cambodia: Cambodia's property registration system is still maturing. Without a verified hard title (full ownership certificate), legal risk rises sharply. Always engage a qualified local lawyer
Ignoring currency risk: rental income converted to your home currency for tax purposes is typically calculated at an official exchange rate from the date of receipt. Currency fluctuations can increase or reduce your effective tax burden
Inflating deductible expenses: overstating renovation or management costs to reduce taxable income is a compliance risk. Tax authorities in both Thailand and Cambodia are improving their audit capabilities
Missing the FETF requirement: foreign buyers of Thai condominiums must bring funds from abroad in foreign currency and obtain a Foreign Exchange Transaction Form (FETF) from a Thai bank. Without this document, the Land Department will not register ownership in a foreign name

Practical transaction cost checklist

Transfer fee or transfer tax
Specific Business Tax or stamp duty (Thailand)
Withholding tax on the sale (seller)
Sinking fund and common area maintenance fee
Legal fees (15,000-50,000 THB in Thailand; 500-2,000 USD in Cambodia)
Document translation and notarisation
International wire transfer and FETF certificate (Thailand, foreign buyers only)
Annual property tax
Rental income tax (local jurisdiction and home country)
Property insurance

FAQ

What are the total transaction costs when buying a condo in Bangkok?

On the primary market, the buyer typically pays 1-2% of the purchase price, covering mainly the sinking fund and administrative fees. On the resale market, the buyer's share is 1-3%, depending on the negotiated split of the transfer fee.

Who pays the transfer fee in Thailand?

By Bangkok convention, the 2% transfer fee (calculated on the official appraised value) is split equally between buyer and seller. On the primary market, developers frequently absorb the full amount as part of their sales offer.

What is Specific Business Tax in Thailand?

Specific Business Tax (SBT) equals 3.3% of the sale price and is charged to the seller when the property has been held for fewer than five years. If the seller has owned the property for more than five years, stamp duty at 0.5% applies instead.

What are the transaction costs for buying property in Cambodia?

The transfer tax in Cambodia is 4% of the property value, paid by the buyer. Additional costs include legal and registration fees of 500-2,000 USD and, for higher-value assets, an annual property tax of 0.1% on value exceeding approximately 25,000 USD.

Do I need to pay tax in my home country on rental income from a Bangkok condo?

In most cases, yes. Residents of most countries are taxed on their worldwide income, including foreign rental income. The applicable tax treatment depends on whether your country has a double tax treaty with Thailand. You should consult a tax adviser familiar with both jurisdictions before investing.

What is the FETF and why does it matter for foreign buyers?

The Foreign Exchange Transaction Form is issued by a Thai bank and confirms that the funds used to purchase a condominium were remitted from abroad in foreign currency. Without this document, the Thai Land Department will not register the property in the name of a foreign national.

Is rental income from Thailand taxed in Cambodia or vice versa?

No. Each country taxes income sourced within its own territory. If you own property in Thailand, Thai rental income tax rules apply there. If you own property in Cambodia, Cambodian rules apply. Your home-country tax obligations are separate and depend on your residency status.

How does the annual property tax in Thailand work?

Thailand introduced a Land and Buildings Tax in 2020. Residential properties are taxed at rates between 0.02% and 0.3% of the assessed value per year. The applicable rate depends on whether the property is owner-occupied, rented out, or left vacant.

What is a sinking fund in a Bangkok condominium?

A sinking fund is a one-time contribution paid at the time of purchase, used to cover major future maintenance or capital expenditure for the building. In Bangkok, it typically ranges from 400 to 600 THB per square metre and is paid directly to the juristic person (condominium management body).

Can I deduct expenses from rental income in Thailand to reduce my tax bill?

Yes. Thai law allows landlords to deduct either a flat 30% of gross rental income as a standard allowance, or actual documented expenses if these exceed the flat rate. Receipts and proper bookkeeping are required if claiming actual costs.

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