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

A foreign buyer purchasing a condominium for 5 million THB in Bangkok will pay between 180,000 and 325,000 THB in government taxes and fees alone. That represents 3.6% to 6.5% of the transaction price. Many international investors only discover these costs at the moment of signing documents at the Land Office. This guide eliminates surprises.

Below, every fee is broken down in detail. The article compares the cost burden in Thailand and Cambodia, clarifies who actually pays what, and explains how rental income from Southeast Asian property is treated for tax purposes in an investor's home country.

Quick answer

• Transfer fee in Thailand is 2% of the official appraised value. By convention, it is split equally between buyer and seller.
• Withholding tax is charged to the seller. For individuals it is calculated progressively; for companies it is 1% of the higher of the official or contract price.
• Specific Business Tax (SBT) is 3.3% and applies when a property has been held for fewer than 5 years. It replaces stamp duty.
• Stamp duty is 0.5% of the price, payable only when SBT does not apply.
• In Cambodia, the transfer tax is 4% of the property value, and the annual property tax is 0.1% on value above 100 million KHR.
• Rental income in Thailand is subject to progressive personal income tax (up to 35%); in Cambodia a flat 10% withholding tax applies.
• The total buyer-side cost is typically 1-3% of the price in Thailand and 4.5-5.5% in Cambodia.

Options and scenarios

Scenario 1: Buying a new developer condo in Thailand

An investor purchases a studio for 3 million THB. The developer is selling the unit for the first time and has held it for more than 5 years, so SBT does not apply. Transfer fee: 60,000 THB (2%). By convention the developer covers half, meaning the buyer pays 30,000 THB. Stamp duty of 15,000 THB (0.5%) is charged to the seller. Withholding tax is also borne by the developer. The buyer's total official cost comes to approximately 30,000 THB, or 1% of the price.

Important caveat: in practice, many developers pass all government fees to the buyer. Always check the reservation agreement clause before signing.

Scenario 2: Buying a resale condo in Thailand

A condo priced at 5 million THB, held by the seller for 3 years. SBT applies instead of stamp duty. Transfer fee: 100,000 THB (2%, split: buyer pays 50,000 THB). SBT: 165,000 THB (3.3%), paid by the seller. Withholding tax: paid by the seller (amount depends on progressive bracket). The buyer should budget 50,000 to 100,000 THB (1-2% of price), depending on the negotiated cost split.

Scenario 3: Buying an apartment in Phnom Penh, Cambodia

An apartment priced at 80,000 USD in a hard-title zone. Transfer tax: 3,200 USD (4%), formally charged to the buyer. Notary and registration fees: approximately 500-1,000 USD. Annual property tax: if the unit value falls below the 100 million KHR threshold (roughly 25,000 USD), no obligation arises. Total one-time buyer cost: approximately 3,700-4,200 USD, or 4.6-5.3% of the purchase price.

Scenario 4: Rental income and tax reporting

An investor rents out a Bangkok condo at 25,000 THB per month gross. Annual income: 300,000 THB (approximately 34,000 USD at 2026 rates). In Thailand, rental income is taxed progressively after deductions. If this is the investor's only Thai-source income, the effective rate may be 5-10%. In their home country, the investor must declare this income and may apply a foreign tax credit based on any applicable double taxation treaty.

In Cambodia, rental tax is a flat 10% of gross income. The absence of a double taxation agreement between Cambodia and most Western countries increases the risk of double taxation. Investors should consult a qualified tax adviser familiar with both jurisdictions before committing.

Comparison table

Parameter	Thailand - New Condo	Thailand - Resale Condo	Cambodia - Phnom Penh
Transfer fee	2% (split)	2% (split)	4% (buyer)
Withholding tax	1% (seller)	Progressive (seller)	None
SBT (3.3%)	Usually not applicable	Yes, if held under 5 years	None
Stamp duty	0.5% (when no SBT)	No, when SBT applies	None
Annual property tax	None for individuals (condo)	None for individuals (condo)	0.1% above threshold
Rental income tax	Progressive PIT up to 35%	Progressive PIT up to 35%	10% flat on gross
Double tax treaty	Yes (varies by country)	Yes (varies by country)	None with most countries
Estimated buyer cost	1-2% of price	1-3% of price	4.5-5.5% of price

Risks and mistakes

1. Ignoring the official appraised value. The Thailand Land Office calculates fees based on its own appraised value or the contract price, whichever is higher. Understating the price in the contract will not reduce the tax burden and may trigger an audit.

2. Not verifying the cost-split clause. Thai law does not prescribe a fixed rule for who pays what. Everything is negotiable. Premium developers often absorb the transfer fee but factor it into the asking price. Read every clause in the contract carefully.

3. Overlooking home-country tax obligations. As a tax resident of your home country, you are generally required to declare global income, including rental earnings from Thailand. Failing to do so can result in penalties. Double taxation treaties, where they exist, typically allow you to credit the Thai tax paid against your domestic liability.

4. Buying in Cambodia without understanding the absence of tax treaties. Most Western countries have no double taxation agreement with Cambodia. This means rental income may effectively be taxed twice, and any available foreign tax credit relief is often capped at a low threshold. Always model the net-of-tax yield before committing.

5. Hidden costs - sinking fund and management fees. When buying a new condo in Thailand, the developer charges a one-time sinking fund (typically 300-800 THB per sqm) and monthly common area management fees (40-80 THB per sqm). These are not taxes, but they represent a real entry cost that investors frequently omit from their financial models.

6. The Foreign Exchange Transaction (FET) document requirement. To register a condo in a foreigner's name in Thailand, the purchase funds must arrive from abroad in foreign currency and be converted to THB at a Thai bank. The bank then issues a Foreign Exchange Transaction form (also known as Thor Tor 3). Without this document, the Land Office will refuse to register the title. Plan your remittance strategy before closing.

FAQ

What are the total fees when buying a condo in Thailand as a foreign investor?

For the buyer, the total is most commonly 1% to 3% of the transaction price. The main component is half of the transfer fee (1%), plus any costs the seller passes on during negotiation. On the primary market, developers frequently absorb most official fees.

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

Thai law does not specify this rigidly. By convention the fee is split equally, but the contract can assign it in any proportion the parties agree. Always verify the exact clause before signing.

Do I need to pay tax in my home country on a Thai property?

Yes. As a tax resident of your home country, you are generally required to declare worldwide income, including Thai rental income. Where a double taxation treaty exists between your country and Thailand, you can typically credit the Thai tax paid against your domestic liability.

What rental income tax applies in Cambodia?

Cambodia levies a flat 10% withholding tax on gross rental income. There is no progressive scale - the rate is fixed regardless of the amount earned.

Does Cambodia have double taxation treaties with Western countries?

Generally, no. Cambodia has signed very few tax treaties, and most Western countries are not covered. This creates a material risk of double taxation on rental income, and any available domestic relief (such as a foreign tax credit) is often limited. Consult a specialist tax adviser before investing.

What is Specific Business Tax (SBT) in Thailand?

SBT is a 3.3% tax (comprising 3% base rate plus 10% local tax surcharge) levied on property sales where the seller has held the asset for fewer than 5 years. It replaces stamp duty in such cases and is paid by the seller.

What additional costs apply when buying a new condo from a developer in Thailand?

Beyond official government fees, expect a one-time sinking fund of 300-800 THB per sqm and monthly management fees of 40-80 THB per sqm. For a 30 sqm studio, this means a sinking fund of roughly 9,000-24,000 THB and monthly fees of 1,200-2,400 THB.

Is the Foreign Exchange Transaction document mandatory for buying a condo in Thailand?

Yes. The FET form (formerly called Thor Tor 3) confirms that the purchase funds arrived from abroad in foreign currency. Without this document, the Land Office will not register the title in a foreigner's name. It must be obtained from the receiving Thai bank at the time of the transfer.

How much is the transfer tax in Cambodia?

The transfer tax in Cambodia is 4% of the property value, paid by the buyer. This is one of the higher transfer tax rates in the Southeast Asia region.

Is it worth buying property through a company in Thailand or Cambodia?

It depends on the scale of investment and the overall tax strategy. A Thai company cannot legally be used as a nominee vehicle for a foreign buyer - nominee shareholding is illegal and carries serious legal risks. In Cambodia, a corporate structure can facilitate land ownership by foreigners, but it generates additional administrative and compliance costs. Any such arrangement requires thorough analysis with a legal and tax adviser experienced in both jurisdictions.

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