Property Sale Taxes in Thailand 2026: 7 Key Fees

Selling a condominium in Bangkok that you purchased five years ago for 5 million THB? Before you calculate your profit, the Thai tax authorities and your home country's revenue service may together claim between 15% and 30% of the transaction value - if you have not planned the sale structure in advance. Every year, international investors lose thousands of dollars simply because they do not understand how transaction costs are split between buyer and seller in Thailand.

This guide breaks down every tax and fee involved in selling property in Thailand in 2026, compares them with the Cambodian system, and explains how foreign residents should handle their home-country tax obligations.

Quick answer

Transfer fee: 2% of the official appraised value, customarily split 50/50 between buyer and seller.
Withholding tax (WHT): deducted from the seller at the point of Land Department registration, calculated on a progressive personal income tax scale (5%-35%) or a flat 1% rate for corporate sellers.
Specific Business Tax (SBT): 3.3% of the sale price or official appraised value (whichever is higher) - applies when the property is sold within 5 years of acquisition.
Stamp duty: 0.5% - applies only when SBT does not.
Cambodia: 4% transfer tax plus an annual property tax of 0.1% on value exceeding 100 million KHR (approximately 25,000 USD).
Home-country tax: capital gains earned abroad must be declared; no double taxation treaty exists between Thailand or Cambodia and most Western countries, so a proportional tax credit method applies.
Key takeaway: holding a Thai property for more than 5 years eliminates SBT and significantly reduces the total tax burden - the saving on a 5 million THB property exceeds 150,000 THB.

Options and scenarios

Scenario 1: Selling a Thai condo before 5 years of ownership

An investor purchased a condominium in Pattaya for 4,000,000 THB. After 3 years, the property is sold for 5,000,000 THB. The Land Department's official appraised value is 4,500,000 THB.

Cost breakdown for the seller:

Transfer fee: 2% of the appraised value = 2% x 4,500,000 = 90,000 THB. Customarily each party pays 45,000 THB.
Specific Business Tax: 3.3% of the transaction price (higher than the appraised value) = 3.3% x 5,000,000 = 165,000 THB. Paid by the seller.
Withholding tax: for an individual, the Land Department divides the appraised value by the number of years held, applies the progressive PIT scale, then multiplies back. With 3 years of ownership and an appraised value of 4,500,000 THB, the estimated WHT is approximately 75,000 - 100,000 THB.
Stamp duty: not applicable, because SBT takes precedence.

Total seller-side cost: approximately 285,000 - 310,000 THB, representing 5.7%-6.2% of the sale price.

In addition, the capital gain must be declared in the investor's country of tax residence. The gain of 1,000,000 THB is subject to a standard 19%-20% capital gains rate in most European jurisdictions, generating a tax liability of roughly 19,000-23,000 USD equivalent. The withholding tax already paid in Thailand can typically be credited against this liability using the proportional offset method, but SBT and transfer fees are not creditable as income taxes.

Scenario 2: Selling after 5 or more years of ownership

The same property, sold after 6 years:

Transfer fee: unchanged at 90,000 THB (split 50/50).
SBT: not applicable - property held for more than 5 years.
Stamp duty: 0.5% of the transaction price = 0.5% x 5,000,000 = 25,000 THB. Paid by the seller.
Withholding tax: lower effective rate because the appraised value is divided across more years - estimated at approximately 50,000 - 70,000 THB.

Total seller-side cost: approximately 120,000 - 140,000 THB, representing 2.4%-2.8% of the sale price. The saving compared to Scenario 1 exceeds 150,000 THB.

Scenario 3: Selling property in Cambodia

An investor sells an apartment in Phnom Penh for 100,000 USD.

Transfer tax: 4% of the declared value = 4,000 USD. Customarily paid by the buyer, though the split is often negotiated.
Capital gains tax: Cambodia enacted a 20% capital gains tax, but implementation has been repeatedly postponed. The current enforcement status in 2026 should be verified with a local adviser.
Annual property tax: 0.1% on value exceeding 100 million KHR (approximately 25,000 USD).

There is no double taxation treaty between Cambodia and most Western countries, but taxes paid in Cambodia can generally be credited against home-country liability under domestic proportional offset rules.

Comparison table

Parameter	Thailand (under 5 years)	Thailand (over 5 years)	Cambodia
Transfer fee	2% (split 50/50)	2% (split 50/50)	4% (typically buyer)
Specific Business Tax	3.3% (seller)	Not applicable	Not applicable
Stamp duty	Not applicable (SBT replaces)	0.5% (seller)	None
Withholding tax	Progressive 5%-35% (seller)	Progressive, lower effective rate	No standard WHT
Capital gains tax	None separate (absorbed into WHT)	None separate (absorbed into WHT)	20% (enforcement uncertain)
Total seller burden	approx. 5.7%-6.2%	approx. 2.4%-2.8%	approx. 0%-4%
Home-country tax obligation	Yes - declare capital gain, credit WHT	Yes - declare capital gain, credit WHT	Yes - declare capital gain, credit local tax
Double taxation treaty	None with most Western countries	None with most Western countries	None with most Western countries

Risks and mistakes

1. Ignoring the official appraised value. The Thai Land Department values property independently of the market price. If the official appraisal exceeds the agreed sale price, SBT and transfer fee are calculated on the higher figure. Many investors budget only on the contract price and face an unexpected bill at registration.

2. Missing the 5-year threshold by days. Selling even one day before the 5-year anniversary of the title deed registration (not the contract signing date) triggers SBT. The cost difference is 3.3% of the property value - on a 5 million THB property, that is 165,000 THB.

3. Failing to declare income abroad. The absence of a double taxation treaty does not remove the obligation to declare foreign income. Undisclosed foreign gains can result in penalties, interest, and back taxes in the investor's home jurisdiction.

4. Confusing SBT with stamp duty. These two levies never apply simultaneously. If SBT is due, stamp duty is waived. Some agents incorrectly add both to cost estimates.

5. Overlooking capital repatriation documentation. Transferring sale proceeds out of Thailand requires banking documentation confirming that the original purchase funds were brought into Thailand in foreign currency (the Foreign Exchange Transaction Form, also known as FETF or Thor.Tor.3). Without this document, the bank may block the outward transfer.

6. Negotiating cost-sharing after the contract is signed. The split of transfer fee and SBT must be agreed in writing before the deposit is paid. In new-development sales, developers often push 100% of transaction costs onto the buyer. In resale transactions the dynamic is reversed, and an unprepared seller may absorb the full liability.

FAQ

What is the total tax on selling property in Thailand in 2026?

The seller's total tax burden ranges from approximately 2.4% to 6.2% of the transaction value, depending on the holding period. The critical threshold is 5 years: selling before that point triggers Specific Business Tax at 3.3%.

Who pays transfer fee in Thailand - buyer or seller?

Thai law does not mandate which party pays. The standard practice is a 50/50 split of the 2% fee. The allocation should be confirmed in the sale-and-purchase agreement before any deposit is paid.

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

Yes. If you are a tax resident outside Thailand, you are generally required to declare the capital gain from a foreign property sale in your home jurisdiction. A standard rate of 19%-20% on the net gain applies in most European countries. The withholding tax already paid in Thailand can typically be credited against this obligation using the proportional offset method.

What is the Specific Business Tax (SBT) in Thailand?

SBT is a levy of 3.3% (comprising 3% base tax plus a 10% local surcharge) calculated on whichever is higher: the actual sale price or the Land Department's official appraised value. It applies to properties sold within 5 years of the title deed registration date.

How is withholding tax calculated on a Thai property sale?

The Land Department deducts WHT automatically at the point of registration. For an individual seller, the calculation divides the appraised value by the number of years the property was held, applies the progressive PIT scale (5%-35%), then multiplies the result back by the number of years. This is a final tax in Thailand and does not require further filing with the Thai Revenue Department.

Does a double taxation treaty exist between Thailand and Western countries?

Thailand has signed double taxation treaties with a number of countries, including the UK, Germany, France, and several others, but not with all nations. If no treaty applies to your country of residence, you can still use the proportional tax credit method under your domestic tax law to avoid being taxed twice on the same gain. Always verify your specific situation with a qualified tax adviser.

What taxes apply when selling property in Cambodia?

The transfer tax is 4% of the declared value. Cambodia has enacted a 20% capital gains tax, but enforcement has been delayed multiple times. As of 2026, the practical application of that tax should be confirmed with a local legal adviser before completing any transaction.

What is the FETF document and why does it matter?

The Foreign Exchange Transaction Form (FETF, formerly called Thor.Tor.3) is issued by a Thai bank when foreign currency is converted to Thai baht to purchase property. It proves that the original purchase funds came from abroad. Without it, the bank may refuse to process an outward transfer of the sale proceeds to a foreign account.

Is it financially beneficial to hold Thai property for more than 5 years?

From a tax perspective, yes. After 5 years, SBT at 3.3% no longer applies, and the withholding tax base is spread across more holding years, reducing the effective rate. On a property valued at 5 million THB, the combined saving exceeds 150,000 THB compared with selling before the 5-year mark.

What is the total cost of selling a Thai condo worth 5 million THB?

For a sale within 5 years: approximately 285,000 - 310,000 THB in Thai-side costs (5.7%-6.2% of sale price). For a sale after 5 years: approximately 120,000 - 140,000 THB (2.4%-2.8%). In both cases, a home-country capital gains tax liability on the net profit must also be accounted for, partially offset by the WHT credit.

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Property Sale Taxes in Thailand: 7 Fees Every Investor Must Know in 2026