Transfer Fee in Thailand 2026: Rates, Who Pays, and 7 Hidden Transaction Costs

Buying a condominium in Bangkok for 5,000,000 THB and assuming that is your only expense? You are likely overlooking at least seven additional costs that can absorb between 1.1% and more than 6% of the property value. The largest single item is the transfer fee - the charge levied by Thailand's Land Department on every change of ownership. In 2026, the standard rate is 2% of the official appraised value of the property.

For international investors, that is only the starting point. On top of the transfer fee come: withholding tax, specific business tax (or stamp duty as an alternative), and - after acquisition - annual property tax, rental income tax, and potential obligations in your home country. This article breaks down every line item, clarifies who typically bears each cost, and illustrates the full picture with concrete numerical examples.

Quick answer

• Transfer fee in Thailand (2026): 2% of the Land Department appraised value - not necessarily the agreed transaction price
• Withholding tax for individuals: progressive rate (1-35%); for companies: 1% of the appraised value or sale price, whichever is higher
• Specific business tax (SBT): 3.3% (3% plus 10% local surcharge), applied when the seller has held the property for fewer than 5 years
• Stamp duty: 0.5% - applies only when SBT does not
• Cambodia transfer tax: 4% of market value, normally paid by the buyer
• Thailand has no double taxation treaty with most European countries including Poland - a fact with direct implications for total investment cost
• Cambodia similarly has no bilateral tax treaty with Poland or most EU member states

Options and scenarios

Scenario 1: Buying a new off-plan or completed condo from a developer in Bangkok

An international investor acquires a unit with a transaction value of 5,000,000 THB (approximately 130,000 USD at current exchange rates). The seller is a developer entity.

In practice, developers frequently cover the transfer fee and SBT in full, or split these costs 50/50 with the buyer as part of a sales promotion. This is not a statutory rule but a matter of negotiation. Always verify the exact split in the sale and purchase agreement before signing.

• Transfer fee (2%): 100,000 THB - often split 50/50, so the buyer pays approximately 50,000 THB
• Specific business tax (3.3%): 165,000 THB - typically borne by the developer
• Sinking fund: a one-off payment of approximately 500-700 THB per sqm; for a 35 sqm unit, around 20,000 THB
• Common area maintenance fee: first advance payment, typically 40-80 THB per sqm per month

Estimated buyer entry cost (excluding the purchase price): approximately 70,000-120,000 THB, or 1.4-2.4% of the property price.

Scenario 2: Resale purchase in the Thai secondary market

Same budget - 5,000,000 THB - but the property is purchased from an individual who has owned it for 3 years.

• Transfer fee (2%): 100,000 THB - customarily split 50/50; buyer pays approximately 50,000 THB
• Specific business tax (3.3%): 165,000 THB - borne by the seller (held for fewer than 5 years)
• Withholding tax: charged to the seller on a progressive basis; roughly 25,000-75,000 THB depending on the seller's overall tax position
• The buyer covers their share of the transfer fee plus legal fees

Estimated buyer entry cost: approximately 60,000-80,000 THB, or 1.2-1.6% of the purchase price.

Scenario 3: Buying an apartment in Phnom Penh, Cambodia

An international investor purchases a unit for 80,000 USD in the Cambodian capital.

• Property transfer tax: 4% of market value = 3,200 USD - customarily paid by the buyer
• Annual property tax: 0.1% of the value exceeding 100 million KHR (approximately 25,000 USD); on an 80,000 USD unit, roughly 55 USD per year
• No specific business tax or stamp duty in the Thai sense
• Legal and notarial fees: 500-1,500 USD

Estimated buyer entry cost: approximately 3,700-4,700 USD, or 4.6-5.9% of the purchase price.

Comparison table

Parameter	Thailand - New Condo	Thailand - Resale	Cambodia - Phnom Penh
Sample price	5,000,000 THB	5,000,000 THB	80,000 USD
Transfer fee / transfer tax	2% (usually 50/50)	2% (usually 50/50)	4% (buyer)
Specific business tax	3.3% (developer)	3.3% (seller, under 5 yrs)	None
Stamp duty	0.5% (when SBT does not apply)	0.5% (when SBT does not apply)	None
Withholding tax	1% (corporate seller)	Progressive 1-35% (individual)	None at purchase
Annual property tax	Yes (from 2020, varied rates)	Yes	0.1% above threshold
Estimated buyer entry cost	1.4-2.4%	1.2-1.6%	4.6-5.9%
Double tax treaty (EU/most Western countries)	None	None	None

Rental income taxation

Thailand

Rental income earned in Thailand is subject to Thai personal income tax on a progressive scale: from 0% (up to 150,000 THB per year) to 35% (above 5,000,000 THB). Non-resident taxpayers are taxed only on income sourced in Thailand, but the same progressive bands apply.

In practice, many foreign property owners receive rental income net of a withholding tax deduction arranged by a local property management company. It is worth clarifying with a qualified tax adviser whether holding the property as an individual or through a corporate structure is more efficient for your specific circumstances.

Cambodia

Rental income in Cambodia is subject to a 10% rental income tax on gross receipts for individuals without Cambodian tax registration, or 20% corporate income tax if the investor operates through a registered company. The 10% flat rate is straightforward and predictable for passive investors.

Home country tax obligations

Tax residents of most Western countries are required to declare worldwide income in their domestic annual tax return. This obligation covers rental income from properties in Thailand and Cambodia.

Because neither Thailand nor Cambodia has a double taxation treaty with Poland (or a number of other EU countries), the relief method available is typically a proportional foreign tax credit - the investor may offset tax paid abroad against the domestic liability, but only up to the proportion of domestic tax attributable to the foreign income. In simple terms: if you paid 15% tax in Thailand on rental income but your domestic marginal rate is 32%, you will owe the difference domestically.

The absence of a bilateral treaty results in a higher effective total tax burden compared with investments in countries that do have such agreements in place. A consultation with a tax adviser specialising in cross-border income is strongly recommended before completing the first transaction.

Risks and mistakes

• Not verifying the appraised value: Thailand's Land Department sets its own official valuation independently of the agreed sale price. The transfer fee is calculated on the higher of the two figures. Investors are frequently surprised by this distinction
• Assuming a fixed cost split: the allocation of transaction costs in Thailand is entirely contractual. Premium developers sometimes absorb 100% of fees; in resale deals the 50/50 convention is common but not legally prescribed. Read the contract carefully
• Underestimating the SBT impact on pricing: although SBT (3.3%) is technically the seller's liability, sellers who have held a property for fewer than 5 years often factor it into their asking price. The buyer bears it indirectly
• Overlooking the annual Land and Building Tax: introduced in Thailand in 2020, this tax applies at rates that vary by property type and value. For a residential property valued below 50,000,000 THB the rate is as low as 0.02%, but it remains a recurring obligation. Government discounts have been granted periodically
• Failing to declare foreign rental income domestically: tax authorities in many countries have enhanced tools for detecting undeclared overseas income. Non-compliance carries penalties and interest charges
• Ignoring currency risk: the THB/USD and THB/EUR exchange rates can move 10-15% within a single year. Build in a 5% currency buffer when projecting total acquisition cost in your home currency
• Skipping legal due diligence in Cambodia: the Cambodian property legal framework is less standardised than Thailand's. Verifying the type of title (hard title versus soft title) is not optional - it is a prerequisite for safe ownership

FAQ

What is the transfer fee rate in Thailand in 2026?

The transfer fee in Thailand is 2% of the Land Department's official appraised value. If the transaction price is higher than the appraised value, the fee is calculated on the higher figure.

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

Thai law does not prescribe who must pay. The market convention is a 50/50 split between buyer and seller. When purchasing from a developer, the developer may cover the entire amount as part of a promotional offer.

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

Specific business tax (3.3%) applies when the seller has held the property for fewer than 5 years and did not have official residence registration there. Stamp duty (0.5%) is charged only when SBT does not apply. The two are mutually exclusive - you will never pay both.

Does Thailand have a double taxation treaty with EU countries?

Thailand has concluded double taxation treaties with a number of countries, but not with Poland or several other EU member states as of 2026. Cambodia has no such treaty with Poland either. Investors from those countries apply a proportional foreign tax credit method under their domestic tax legislation.

How is Thai rental income declared in a European tax return?

The rental income must be reported as foreign-source income. Tax paid in Thailand can be credited against the domestic liability using the proportional credit method, up to the domestic tax amount attributable to that income. Professional tax advice is essential given the absence of a bilateral treaty.

What is the property transfer tax in Cambodia?

Cambodia levies a 4% transfer tax on the market value of the property. By market convention this is paid by the buyer at the time of registration.

Is there an annual property tax in Cambodia?

Yes. Cambodia charges an annual property tax of 0.1% on the value exceeding 100 million KHR (approximately 25,000 USD). For a unit priced at 80,000 USD, the annual liability is approximately 55 USD.

What are the total buyer costs when purchasing a condo in Bangkok?

For a new-build condo purchased directly from a developer, buyers should budget for 1.4-2.4% of the purchase price in transaction costs. On the resale market, assuming a standard 50/50 transfer fee split, the buyer's share is approximately 1.2-1.6%.

Can a foreigner own a condo freehold in Thailand?

Yes. Foreign nationals may hold a condominium unit on a freehold basis, provided that foreign ownership within the building does not exceed 49% of the total sellable area. Purchase funds must be remitted from abroad in foreign currency and documented with a Foreign Exchange Transaction form (FET form) from a Thai bank.

What is a sinking fund and is it mandatory in Thailand?

A sinking fund is a one-time capital reserve contribution collected at purchase, used for major future repairs and infrastructure of the condominium. It is standard practice and typically ranges from 500 to 700 THB per square metre. It is paid once, at the point of ownership transfer.

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