Property Taxes in Thailand and Cambodia: 7 Transaction Fees Every Investor Must Know (2026)

An investor purchases a condominium in Bangkok for 5,000,000 THB (approximately 130,000 USD). On the table are five documents to sign and six separate fees to pay. Which one is stamp duty, and which is the specific business tax? Who pays the transfer fee - the buyer or the seller? And how much remains after accounting for rental income taxes back home?

These are exactly the questions that every internationally-based investor faces when buying real estate in Southeast Asia. The answers are specific and concrete, but they require a clear understanding of local regulations in both Thailand and Cambodia - as well as how those rules interact with your home country's tax treaties.

Below, we break down every transaction fee in Thailand and Cambodia: who pays it, what percentage applies, and how it affects your real net return on investment.

Quick answer

• Stamp duty in Thailand is 0.5% of the appraised or declared value (whichever is higher) and applies only when the seller is not subject to specific business tax (SBT)
• Transfer fee in Thailand is 2% of the official appraised value and is customarily split 50/50 between buyer and seller (though this is negotiable)
• Specific business tax (SBT) is 3.3% and is charged to sellers who have owned the property for fewer than 5 years
• Withholding tax in Thailand is 1% of the appraised value for corporate sellers, or progressive personal income tax rates for individual sellers - always paid by the seller
• Transfer tax in Cambodia is 4% of the market value, standardly paid by the buyer
• Annual property tax in Cambodia is 0.1% of value above the 100 million KHR threshold (approximately 25,000 USD)
• Poland has a double taxation treaty with Thailand (proportional credit method), but no such treaty with Cambodia

Options and scenarios

Scenario 1: Buying a new-build condominium in Thailand (primary market)

An international investor purchases a new apartment directly from a developer for 5,000,000 THB. In primary market transactions, the developer typically absorbs the SBT and withholding tax, as these arise from its own commercial activity. The transfer fee (2%) is either split equally or passed entirely to the buyer depending on what is negotiated in the contract.

Typical buyer-side transaction costs:

• Transfer fee (buyer's share): 1% of 5,000,000 THB = 50,000 THB (approx. 1,400 USD)
• Stamp duty: 0 THB (not charged when SBT applies)
• Sinking fund: a one-time payment of approximately 500-700 THB per sqm; for a 35 sqm unit, roughly 17,500-24,500 THB
• Common area maintenance (CAM) fee: paid monthly, not at closing

Total estimated closing costs: approximately 67,500-74,500 THB (1,900-2,100 USD), representing 1.35%-1.49% of the purchase price.

Scenario 2: Buying on the secondary market in Thailand

The same apartment, but purchased from an individual who has owned it for 3 years. Since ownership is under 5 years, SBT applies instead of stamp duty.

Typical cost split based on market practice (negotiable):

• Transfer fee (2%): 100,000 THB total - customarily split, so the buyer pays 50,000 THB
• Specific business tax (3.3%): 165,000 THB - paid by the seller
• Withholding tax: progressive personal income tax rates applied to the seller's gain - paid by the seller
• Stamp duty (0.5%): not applicable, since SBT is charged instead

When the seller has owned the property for more than 5 years, SBT does not apply. In that case, stamp duty at 0.5% is charged instead, and it is typically covered by the seller.

Scenario 3: Buying a hard-title apartment in Cambodia (Phnom Penh)

A foreign buyer purchases a hard-title apartment for 120,000 USD.

• Transfer tax: 4% = 4,800 USD - paid by the buyer
• Annual property tax: the property value of approximately 490 million KHR minus the 100 million KHR threshold = taxable base of approximately 390 million KHR x 0.1% = roughly 390,000 KHR per year (approximately 95 USD per year)
• VAT: 10% applies only to new buildings sold by VAT-registered developers

Total entry costs: approximately 4,800-16,800 USD (4% transfer tax, plus up to 10% VAT on primary market purchases).

Rental income taxation

Thailand: Rental income is subject to Thai personal income tax at progressive rates (5%-35%). Rental income derived from a property located in Thailand is treated as Thai-source income and is taxable regardless of the investor's country of residence. Since January 2024, Thailand has also extended its rules on taxing income remitted into the country - investors transferring rental proceeds to Thai bank accounts should monitor this regulatory shift.

Cambodia: For non-residents, rental income is subject to a 10% withholding tax on gross receipts, typically deducted at source by the tenant or property manager. Corporate entities are taxed at 14% of net income.

Home country tax implications: Under Article 6 of the Poland-Thailand double taxation agreement, income from real estate situated in Thailand may be taxed in Thailand. Poland applies the proportional credit method - tax paid in Thailand is credited against the Polish tax liability. However, if the Polish rate exceeds the Thai rate, the difference remains payable in Poland. For investors from countries without a tax treaty with Thailand, domestic rules of their home country will determine how foreign tax credits are handled.

With Cambodia, Poland has no double taxation treaty, creating a real risk of double taxation on rental income. Investors from countries in a similar position should seek qualified local tax advice before committing capital.

Comparison table

Parameter	Thailand - Primary Market	Thailand - Secondary Market	Cambodia - Hard Title
Transfer fee	2% (often split 50/50)	2% (split 50/50 by convention)	4% (buyer pays)
Stamp duty	0.5% (only when SBT does not apply)	0.5% (only when SBT does not apply)	No separate stamp duty
Specific business tax (SBT)	3.3% (paid by developer)	3.3% (seller, if owned less than 5 years)	Not applicable
Withholding tax	1% (corporate) / progressive (individual)	Progressive (paid by seller)	10% on rental income (non-residents)
VAT	Included in price	Not applicable	10% (primary market only)
Annual property tax	Low (land and building tax)	Low (land and building tax)	0.1% above the threshold
Who pays transfer fee	Negotiable (typically 50/50)	Negotiable (typically 50/50)	Buyer
Double tax treaty with Poland	Yes (proportional credit method)	Yes (proportional credit method)	No treaty in place

Risks and mistakes

1. Assuming SBT and stamp duty are both charged. Many buyers mistakenly calculate both fees into their budget. In reality, stamp duty (0.5%) and SBT (3.3%) are mutually exclusive. If the seller is subject to SBT, stamp duty is not assessed. Failing to understand this distinction either overstates your cost estimate or - worse - results in paying fees that were never owed.

2. Ignoring the appraised value (official Land Office valuation). Transfer fees and related charges are calculated on the appraised value or the contract price - whichever is higher. The official appraised value is sometimes lower than market price, but Land Office valuations are periodically revised. Always verify the current appraised value before signing.

3. Failing to report foreign rental income at home. Tax residents of most countries are required to declare foreign rental income in their annual tax filings. Omitting this - even when tax has been paid in Thailand - can carry significant penalties. If a tax treaty exists, the credit method should reduce the overall liability, but the filing obligation remains.

4. Cambodia's lack of bilateral treaty coverage. The 10% withholding tax deducted at source in Cambodia does not automatically guarantee a full credit in your home country if no treaty exists. Effective tax rates can end up materially higher than projected, eroding net yields significantly.

5. Hidden costs in Cambodia. When buying from a developer, 10% VAT is often not prominently disclosed upfront. Combined with the 4% transfer tax, total entry costs can reach 14% of the purchase price - a figure that substantially changes the economics of a deal.

6. Evolving tax rules in Thailand. Since 2024, Thailand has been gradually broadening the scope of income subject to domestic taxation, particularly for funds remitted into the country. Investors should monitor these regulatory changes closely, especially if rental income is being transferred to a Thai bank account.

7. Not negotiating the transfer fee split in writing. Market convention suggests a 50/50 split on the 2% transfer fee, but this is not mandated by law. Without a clear contractual provision, you may end up bearing the full 2% - a cost that on a 5,000,000 THB property equals 100,000 THB (approximately 2,800 USD).

FAQ

What is the stamp duty rate when buying property in Thailand?

Stamp duty in Thailand is 0.5% of the officially appraised value or the contract price, whichever is higher. It applies only when the transaction is not subject to specific business tax. For new-build purchases from a developer, stamp duty is typically not charged because SBT applies instead.

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

Thai law does not mandate who bears the transfer fee (2%). Market convention is a 50/50 split between buyer and seller, but the actual arrangement is negotiable and should be clearly specified in the purchase contract before any deposit is paid.

Do international investors need to report Thai rental income in their home country?

In most cases, yes. Tax residents are generally required to declare worldwide income, including foreign rental income, in their annual tax filings. Where a double taxation treaty exists with Thailand, a proportional credit for Thai taxes paid can reduce the overall liability - but the reporting obligation still applies. Always consult a qualified tax advisor in your country of residence.

What is the transfer tax rate in Cambodia?

The property transfer tax in Cambodia is 4% of the market value of the property, standardly paid by the buyer at the time of title transfer.

Does Poland have a double taxation treaty with Cambodia?

No. As of 2026, Poland has no double taxation treaty with Cambodia. This creates a risk of genuine double taxation on rental income. The foreign tax paid in Cambodia may be partially creditable under general domestic provisions, but the mechanism is considerably less favourable than under a formal bilateral agreement.

What is the difference between specific business tax and stamp duty in Thailand?

Specific business tax (SBT, 3.3%) is charged to sellers who have owned the property for fewer than 5 years or who trade in real estate as a business activity. Stamp duty (0.5%) is charged only when SBT does not apply. The two are mutually exclusive - only one will apply to any given transaction.

What are the annual tax costs of owning property in Cambodia?

The annual property tax in Cambodia is 0.1% of the value exceeding the 100 million KHR threshold (approximately 25,000 USD). For a property valued at 120,000 USD, the annual property tax works out to roughly 95 USD. Building management (CAM) fees are additional but are not a tax.

Does withholding tax in Thailand affect the buyer?

No. Withholding tax is deducted from the seller at the point of registration at the Land Office. For corporate sellers, the rate is 1% of the appraised value. For individual sellers, progressive personal income tax rates apply. The buyer has no direct withholding tax liability in a standard transaction.

How should I budget for total entry costs in Thailand vs Cambodia?

In Thailand, total buyer-side transaction costs on a primary market purchase typically range from 1.35% to 2% of the purchase price when transfer fees are split. On the secondary market, budget for roughly 1%-2% on top of negotiated transfer fee contributions. In Cambodia, budget for a minimum of 4% (transfer tax) and up to 14% if VAT applies on a new-build purchase.

Is the sinking fund payment in Thailand part of the tax structure?

No. The sinking fund (typically 500-700 THB per sqm, paid once at purchase) is a building reserve contribution managed by the condominium juristic person. It is not a government tax. However, it is a real and non-negotiable closing cost that must be factored into your budget.

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