Phuket Condo Buying Costs: 7 Fees to Know in 2026

Purchasing a condo on Phuket at 5,000,000 THB (approximately 140,000 USD) and assuming that figure is your total outlay? Factor in an additional 6.75% to 12.25% of the transaction value in taxes, government charges, and legal fees. Investors who skip this calculation face a sharp surprise at the Land Office counter.

Thailand applies multiple fiscal layers to property transactions. Some charges formally fall on the seller, others on the buyer, and in practice the split differs significantly between new-build and secondary market deals. Below is a precise breakdown of every cost relevant to an international investor purchasing residential property in Phuket.

Quick answer

Transfer fee: 2% of the registered value or official appraisal (whichever is higher). Formally split 50/50, but new-build developers frequently push the full 2% onto the buyer.
Specific Business Tax (SBT): 3.3% of the sale price, charged to a seller who has held the property for fewer than 5 years. On new projects, the developer absorbs this cost.
Withholding tax: Levied on the seller at progressive personal income tax rates (up to approximately 35%) or a flat 1% for corporate sellers. The buyer does not pay this directly, but it influences the negotiated price.
Stamp duty: 0.5%, applied only when SBT is not triggered.
Sinking fund: A one-time payment at handover, typically 400 to 800 THB per square metre.
Legal fees: 30,000 to 80,000 THB for due diligence and transaction management.
Rental income tax: Taxed progressively in Thailand at 0 to 35%. International investors must also comply with tax obligations in their country of residence.

Options and scenarios

Scenario 1: Buying a new condo from a developer (off-plan or completed)

A Phuket developer acting as seller is typically liable for SBT and withholding tax. The buyer covers the transfer fee (or 50% of it, depending on the contract), the sinking fund, and the first year of common area fees. On a 5,000,000 THB purchase, the buyer's realistic out-of-pocket transaction costs run to approximately 180,000 to 250,000 THB (3.6% to 5.0%).

Important note: developers commonly insert a clause making the buyer responsible for the full 2% transfer fee. This is a negotiating point and should be addressed before signing.

Scenario 2: Buying on the secondary market from an individual seller

The cost allocation is fully negotiable here. If the seller has owned the condo for fewer than 5 years, SBT at 3.3% applies to them. If they have held it longer, stamp duty at 0.5% applies instead. Withholding tax is calculated on a progressive personal income tax scale. The transfer fee of 2% is commonly split equally between parties. The combined transaction cost for both sides reaches 6.3% to 8.3% of the property value.

Scenario 3: Purchasing through a Thai company

Some international investors establish a Thai Co., Ltd. to hold property. In this structure, withholding tax on the selling company is a flat 1%, which is favourable compared to personal progressive rates. However, annual accounting and audit costs for maintaining the company add 40,000 to 100,000 THB per year. This structure is legal but is subject to increasingly close scrutiny by Thai tax authorities and requires a credible business rationale.

Cambodia as a reference point

For comparison, Cambodia charges a transfer tax of 4% of market value, conventionally paid by the buyer. The annual property tax is 0.1% of value above approximately 25,000 USD. Entry transaction costs in Phnom Penh are therefore higher than in Thailand, but the absence of SBT and lower ongoing fees partially offset this at the operating level.

Comparison table

Parameter	Thailand - New Condo	Thailand - Secondary Market	Cambodia - Condo
Transfer fee	2% (typically buyer pays)	2% (split 50/50)	4% (buyer pays)
SBT	3.3% (developer pays)	3.3% if held under 5 years (seller)	None
Stamp duty	0.5% (when SBT not triggered)	0.5% (when SBT not triggered)	None
Withholding tax	1% flat (corporate developer)	Progressive up to 35% (seller)	0% for buyer
Sinking fund	400-800 THB per sqm	Not applicable (already paid)	Project-dependent
Annual common area fee	40-80 THB per sqm per month	40-80 THB per sqm per month	0.5-1.5 USD per sqm per month
Rental income tax	0-35% progressive	0-35% progressive	14% flat rate
Total buyer entry cost	approx. 3.5%-5.5%	approx. 2.5%-4.0%	approx. 5.0%-6.5%

Worked example: 5,000,000 THB condo in Phuket (new project)

Using an indicative rate of 1 THB = approximately 0.028 USD (2026 estimate):

Purchase price: 5,000,000 THB (approx. 140,000 USD)
Transfer fee (2%): 100,000 THB (approx. 2,800 USD)
Sinking fund (600 THB per sqm x 45 sqm): 27,000 THB (approx. 756 USD)
Common area fee, first year (60 THB per sqm x 12 months x 45 sqm): 32,400 THB (approx. 907 USD)
Legal fees: 50,000 THB (approx. 1,400 USD)
Total buyer costs: approximately 209,400 THB (approx. 5,863 USD), representing 4.19% of the purchase price

The developer, as seller, pays SBT at 3.3% and withholding tax at 1% on their side. These do not appear as a direct line item for the buyer, but they are typically built into the list price.

Rental income taxation and double taxation considerations

An international investor renting out a Phuket condo faces tax obligations in two jurisdictions simultaneously.

In Thailand: rental income for individuals is taxed on a progressive scale from 0% to 35%. A standard deduction of 30% of gross rental income is available, or actual costs may be deducted instead. A tax return (Form PND.90 or PND.91) must be filed by the end of March of the following year.

For residents of countries with a tax treaty with Thailand: Thailand has double taxation agreements with more than 60 countries, including most European nations. Under these agreements, property rental income is typically taxable in the country where the property is located (Thailand), with tax credits available in the investor's home country. The specific mechanism (credit method or exemption method) depends on the bilateral treaty in force. Investors should confirm the applicable treaty provisions with a qualified tax adviser.

Cambodia - no treaty coverage: Cambodia has limited double taxation agreements in place with most Western countries. Investors from countries without a treaty with Cambodia face the risk of double taxation on rental income. Cambodia applies a flat 14% withholding tax on rental income. Local tax advice is essential before investing.

Regardless of jurisdiction, investors are strongly advised to engage both a local Thai or Cambodian tax specialist and a tax adviser in their country of residence before completing any transaction.

Risks and mistakes

Ignoring the official Land Department appraisal. The Thai Land Office applies its own assessed value, which may differ from the agreed transaction price. The transfer fee is calculated on whichever figure is higher. Verify the official appraisal before signing any contract.
Overlooking foreign currency transfer costs. An international wire transfer in foreign currency to a Thai THB account incurs a banking spread of 0.5% to 2.0%. Thailand also requires a Foreign Exchange Transaction Form (FETF) issued by the receiving bank to confirm that purchase funds originated from abroad. Without this document, the Land Office cannot register freehold title in a foreigner's name.
Missing home-country tax obligations. Many investors fail to declare foreign rental income in their country of residence. Tax authorities across Europe are increasingly exchanging information with Asian jurisdictions under international frameworks. Non-declaration carries material financial and legal risk.
Purchasing above the 49% foreign quota. Foreign nationals can acquire freehold condo title only within the 49% of total building floor area designated for foreign ownership. If this quota is exhausted, the only available structure is leasehold (typically 30 years, renewable), which affects resale value and financing options.
Excluding sinking fund and common area fees from yield calculations. Common area maintenance (CAM) fees in Phuket typically run 40 to 80 THB per sqm per month. For a 45 sqm unit, this amounts to 21,600 to 43,200 THB per year, reducing net rental yield by 0.5 to 1.0 percentage points.
Using the developer's recommended lawyer. A law firm introduced by the seller does not represent the buyer's interests. Engage an independent solicitor holding a Thai Bar Association licence before signing any documentation.

FAQ

What is the transfer fee when buying a condo in Phuket?

The transfer fee is 2% of the registered transaction value or the Land Department's official appraisal, whichever is higher. On new-build projects, developers commonly require the buyer to cover the full 2%, though this is negotiable.

Who pays Specific Business Tax on a Thai property purchase?

SBT of 3.3% is levied on the seller when the property has been held for fewer than 5 years. When buying a new condo directly from a developer, the developer pays SBT as the selling party.

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

In most cases, yes. Most countries tax their residents on worldwide income. If your home country has a double taxation agreement with Thailand, the tax paid in Thailand can typically be credited against your home-country liability. Consult a tax adviser familiar with both jurisdictions.

What are the annual running costs of a Phuket condo?

Common area maintenance fees typically range from 40 to 80 THB per sqm per month. For a 45 sqm unit, this equals 21,600 to 43,200 THB per year. Add property insurance and any repair costs as needed.

Can a foreign national buy a condo in Phuket outright?

Yes, provided the purchase falls within the 49% foreign freehold quota of the building and the buyer documents an international fund transfer with a Foreign Exchange Transaction Form (FETF) issued by a Thai bank.

How do transaction costs in Thailand compare to Cambodia?

Cambodia charges a 4% transfer tax versus Thailand's 2% transfer fee, but lacks SBT and stamp duty. Total buyer entry costs in Cambodia are approximately 5.0% to 6.5%, versus 3.5% to 5.5% in Thailand for new-build purchases.

What is a sinking fund and how much is it in Phuket?

A sinking fund is a one-time contribution to the building's long-term maintenance and capital repair reserve, paid at handover. The standard rate in Phuket is 400 to 800 THB per sqm. For a 45 sqm unit, this equals 18,000 to 36,000 THB.

Is Cambodia covered by double taxation treaties?

Cambodia has limited treaty coverage with Western countries. Investors from most European nations do not benefit from a double taxation agreement with Cambodia, creating a risk of income being taxed in both countries. Independent tax advice is essential before committing.

What is the Foreign Exchange Transaction Form (FETF) and why does it matter?

The FETF is a document issued by a Thai bank confirming that purchase funds were remitted from abroad in foreign currency. Without this document, the Land Department will not register freehold title in a foreign buyer's name. Always obtain the FETF at the point of receiving your transfer.

What is the buyer transaction cost checklist for a Phuket condo?

The key items are: transfer fee (2%, confirm who pays in the contract), sinking fund (one-time, 400 to 800 THB per sqm), first-year common area fee, independent legal fees for due diligence and registration, international wire transfer costs and banking spread, any required document translation, optional property insurance, and a tax reserve for rental income obligations in Thailand and your home country.

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Phuket Condo Buying Costs: 7 Fees Every Investor Must Know in 2026