Property Taxes in Thailand and Cambodia 2026

Buying a condominium in Bangkok worth 5 million THB (approximately 140,000 USD) means paying between 1.1% and 6.3% of the purchase price in taxes and transfer fees alone. The difference between the lower and upper bound comes down to a single question: has the seller held the property for more than five years? That one detail determines which taxes apply and which party absorbs the fiscal burden.

For international investors, the picture adds further complexity. Rental income earned in Thailand must typically be declared in the investor's home country, and the absence of double taxation treaties between Thailand and many Western nations means foreign tax relief is not automatic. Cambodia operates under a different framework, but demands equal attention. Below is a structured breakdown of every cost you need to account for.

Quick answer

Transfer fee in Thailand is 2% of the official appraised value, conventionally split 50/50 between buyer and seller.
Stamp duty is 0.5% of the sale price or appraised value (whichever is higher), but is waived when specific business tax applies.
Specific business tax (SBT) is 3.3% and applies when the seller has held the property for fewer than 5 years.
Withholding tax falls on the seller: 1% for corporate sellers, progressive rates for individuals.
In Cambodia, the property transfer tax is 4% of market value; the annual property tax is 0.1% on value exceeding 100 million KHR (approximately 25,000 USD).
Rental income from both countries is generally taxable in the investor's home jurisdiction; no double taxation treaty exists between Thailand or Cambodia and most European countries, including Poland.
Cambodia levies a 10% withholding tax on rental income for non-resident landlords.

Options and scenarios

Scenario 1 - Buying a new condominium from a developer in Bangkok

An investor purchases a studio for 3 million THB (approximately 84,000 USD) on the primary market. The developer has held the land for fewer than five years, so specific business tax of 3.3% applies. In practice, developers typically absorb SBT within the asking price, but the 2% transfer fee is usually shared with the buyer.

Transfer fee (buyer's half): 1% = 30,000 THB
Stamp duty: 0 THB (SBT applies instead)
Legal fees and due diligence: approximately 30,000-50,000 THB
Sinking fund (one-time): approximately 500 THB per sqm
Total buyer-side transaction cost: approximately 1.5-2.5% of the purchase price

Scenario 2 - Buying a resale unit in Phuket (seller held more than 5 years)

A condominium valued at 8 million THB (approximately 224,000 USD). The seller is exempt from SBT, so stamp duty of 0.5% applies instead. Transfer fee of 2% is typically shared equally.

Transfer fee (buyer's half): 1% = 80,000 THB
Stamp duty: 0.5% = 40,000 THB (formally on the seller, but negotiable)
Withholding tax: calculated progressively on the seller's capital gain
Buyer should budget for approximately 1-1.5% of the price plus legal costs

Scenario 3 - Buying an apartment in Phnom Penh, Cambodia

An apartment in the capital for 120,000 USD. The property transfer tax is 4% of market value, totalling 4,800 USD, borne almost entirely by the buyer.

Transfer tax: 4% = 4,800 USD
Annual property tax: 0.1% on value above the 100 million KHR threshold (approximately 95 USD per year at this price point)
Withholding tax on rental income: 10% for non-residents
Total buyer-side transaction costs: approximately 4.5-5.5%

Comparison table

Parameter	Thailand - New Build	Thailand - Resale	Cambodia
Transfer fee	2% (split 50/50)	2% (split 50/50)	4% (buyer pays)
Stamp duty	0% (SBT applies)	0.5% (seller)	Not applicable
Specific business tax	3.3% (seller)	0% (held 5+ years)	Not applicable
Withholding tax	1% corporate / progressive individual (seller)	Progressive individual (seller)	10% on rental income (non-resident)
Annual property tax	0.02-0.3% (varies by use)	0.02-0.3%	0.1% above threshold
Typical buyer cost	1.5-2.5% of price	1-1.5% of price	4.5-5.5% of price
Double taxation treaty (most EU countries)	None	None	None

Risks and mistakes

1. Assuming stamp duty and SBT are both charged. This is the most common error among foreign buyers. In Thailand, either stamp duty (0.5%) or specific business tax (3.3%) applies - never both simultaneously. The seller's holding period determines which one.

2. Ignoring home-country tax obligations. Many international investors assume that paying tax locally closes the matter. Most countries tax their residents on worldwide income. Rental income from Thailand or Cambodia must typically be declared at home. Without a double taxation treaty, the credit method may only partially offset the foreign tax paid. Consulting a tax adviser familiar with international property law is strongly recommended.

3. Agreeing to a fee split without documenting it. The 50/50 transfer fee split is market convention, not law. If the arrangement is not written into the sale contract, the Land Office will allocate the fee according to its default procedure. Buyers must ensure the agreed split is clearly stated in the contract.

4. Overlooking recurring maintenance costs. In Thailand, common area fees range from 30 to 80 THB per sqm per month, and the sinking fund is a one-time charge of 500-1,000 THB per sqm. In Cambodia, management fees at premium new developments can be higher and vary significantly by building.

5. Ignoring currency risk. Transactions denominated in THB or USD expose investors to exchange rate fluctuations against their home currency. A 10% shift in rates can materially alter the real cost of the investment. Forward contracts or currency options should be part of the financial planning process.

6. Exceeding the foreign ownership quota in Thailand. Foreigners may hold a maximum of 49% of total floor area in a Thai condominium building on a freehold basis. If the quota is already filled, the only available route is leasehold, which carries a different legal and tax profile. Always verify the foreign quota status before signing anything.

7. Failing to obtain the Foreign Exchange Transaction form (FET / Thor Tor 3). For a foreign buyer to register freehold ownership of a Thai condo, funds must be transferred from abroad in foreign currency, and the receiving Thai bank must issue the FET form. Without it, the Land Department will not process the title transfer.

FAQ

What is the stamp duty rate when buying property in Thailand in 2026?

Stamp duty in Thailand is 0.5% of the sale price or official appraised value, whichever is higher. It applies only when the seller has held the property for more than five years. If the holding period is shorter, specific business tax of 3.3% applies instead, and stamp duty is not charged.

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

Formally, either party can pay the 2% transfer fee. In practice, it is split equally, with each side paying 1%. This arrangement is a market convention rather than a legal requirement, so it must be specified clearly in the sale and purchase agreement to be enforceable.

Do international investors pay tax at home on rental income from Thailand?

In most cases, yes. The majority of countries tax their tax residents on worldwide income. Rental income earned in Thailand must be declared in the investor's home country. Where no double taxation treaty exists, the investor may be able to credit Thai taxes paid against their home-country liability, but only up to the proportion of domestic tax attributable to that income. Professional tax advice is essential.

What is the property transfer tax rate in Cambodia?

The transfer tax in Cambodia is 4% of the market value of the property. It is paid by the buyer.

Is there an annual property tax in Cambodia?

Yes. Cambodia charges an annual property tax of 0.1% on the value of the property above a threshold of 100 million KHR (approximately 25,000 USD). For an apartment worth 120,000 USD, the annual liability is approximately 95 USD.

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

Thailand has signed double taxation agreements with a number of countries, but coverage is uneven. Investors should verify whether their home country has an active treaty with Thailand or Cambodia before completing a purchase, as the absence of a treaty means tax credit relief may be limited or calculated using the less favourable proportional deduction method.

What is specific business tax (SBT) in Thailand and who pays it?

Specific business tax is levied at 3.3% (3% tax plus a 0.3% local surcharge). It applies when the seller has owned the property for fewer than five years. Formally, SBT is the seller's liability, though developers of new projects often absorb it into the asking price.

What are typical monthly maintenance fees for a condo in Thailand?

Common area fees typically range from 30 to 80 THB per square metre per month. In addition, buyers pay a one-time sinking fund contribution of 500-1,000 THB per square metre at the time of purchase. These costs vary by building, location, and facility standard.

Can a foreigner buy a condo in Thailand on a freehold basis?

Yes, subject to two conditions. First, the foreign ownership quota for the building must not be exhausted (foreigners can collectively own a maximum of 49% of total floor area on freehold terms). Second, the purchase funds must originate from outside Thailand, transferred in foreign currency, and the investor's Thai bank must issue a Foreign Exchange Transaction form (FET, also known as Thor Tor 3), which is required to complete the title transfer at the Land Department.

What is a practical transaction cost checklist for buying in Thailand or Cambodia?

For Thailand: transfer fee (typically 1% of appraised value for the buyer), stamp duty or SBT on the seller, sinking fund of 500-1,000 THB per sqm, common area fees of 30-80 THB per sqm per month, legal and due diligence fees of 30,000-80,000 THB, and the FET form from the bank. For Cambodia: 4% transfer tax, annual property tax of 0.1% above threshold, 10% withholding tax on rental income for non-residents, and building management fees. In both cases, budget for home-country tax reporting and adviser fees.

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