Thailand Property Purchase Taxes: 2026 Rates Explained

Taxes when purchasing real estate in Thailand – what an investor must know in 2026

Purchasing real estate in Thailand, especially in Phuket, involves specific tax obligations and transaction fees. For foreign investors, including Poles, understanding the structure of taxes when purchasing real estate in Thailand is crucial, as it directly affects the total investment cost and real return (ROI).

Unlike many European countries, the tax system in Thailand is relatively simple, but at the same time it has its own specifics – especially in the context of cost sharing between the buyer and the seller.

Does a foreigner pay taxes when purchasing real estate in Thailand?

Yes, but it is important to distinguish:

most taxes are formally assigned to the seller
in practice, costs are often shared between the parties

This means that a real tax cost for the buyer exists, even if it does not always directly result from regulations.

Main taxes and fees when purchasing real estate

1. Transfer fee

• typically: 2% of the property value

This is the basic fee charged by the Land Office during the transfer of ownership.

Most often shared 50/50 between the buyer and the seller.

2. Stamp duty

• amounts to: 0.5% of the property value

Applies when the property is not subject to Specific Business Tax.

3. Specific Business Tax (SBT)

• amounts to: 3.3% of the property value

Applies when:

• the property has been owned for less than 5 years

• the seller operates as a company

If SBT applies, stamp duty is not paid.

4. Withholding tax

Depends on:

• the status of the seller (individual / company)

• the value of the property

Typical values:

• approx. 1% for companies

• progressive for individuals

Total taxes when purchasing real estate

In practice:

• total tax burden amounts to approx. 2% – 5% of the property value

In most cases:

• the buyer covers part of the transfer fee

• the seller covers taxes, but the cost is often “included” in the price

Who pays the taxes – buyer or seller?

Formally:

• transfer fee → shared

• SBT / stamp duty → seller

• withholding tax → seller

In practice:

everything depends on negotiations

Taxes when purchasing condo vs villa

Condo (most common choice for foreigners)

• simpler tax structure

• easier process

• most often freehold

Villa / land

• more complex structure

• often leasehold

• additional legal issues

Condo is the simplest form of investment for a foreign buyer.

Are there additional taxes for foreigners?

No.

foreigners do not pay higher taxes than Thai citizens

However:

• they must meet legal requirements (e.g. transfer of funds from abroad)

• the foreign quota (49%) applies

Taxes and ownership structure (freehold vs leasehold)

Freehold

• standard taxes (transfer, SBT, etc.)

• full ownership

Leasehold

• often lower initial costs

• no full ownership

the tax structure may vary depending on the contract.

Taxes and investment – impact on ROI

Taxes directly affect:

• entry cost

• investment profitability

• liquidity

Example:

Property: 6 million THB

• taxes and fees: approx. 180,000 – 300,000 THB

impact on ROI: approx. 0.5–1% annually

Taxes when selling property

This is also important for the investor:

• SBT: 3.3% (if <5 years)

• withholding tax

• transfer fees

the tax structure affects the exit strategy.

Most common investor mistakes

1. Not accounting for taxes

the real cost is higher than the purchase price

2. Incorrect assumptions about cost sharing

negotiations are crucial

3. Lack of contract analysis

taxes may be “hidden” in the price

Trend 2026 – greater market transparency

The Phuket market is developing:

• greater transparency

• better development standards

• increased competition

investors have more information than ever before.

Are taxes in Thailand high?

Comparison:

• Thailand: 2–5%

• Europe: 8–15%

Thailand is one of the more favorable markets in terms of taxation.

Key conclusions

1. Taxes: approx. 2–5% of the property value

2. The largest fee: transfer fee (2%)

3. Cost sharing depends on negotiations

4. Taxes affect ROI

Tax analysis is the foundation of investment.

Sources

https://www.cbre.co.th/insights/figures/phuket-overall-figures-h2-2025
https://property.cbre.co.th/useful-information/phuket-condos-and-villas-2025
https://charlesdel.com/phuket-real-estate-trends/
https://sunwayestates.com/blog/post/phuket-2025-market-trends-and-the-winners-in-real-estate
https://alestriaproperty.com/blog/phuket-rental-yields-in-2025-what-investors-can-expect
https://phuketrealtor.com/blog/h1-2025-phuket-market-report-by-cbre