Who Pays Transfer Fee in Thailand? 2026 Guide

In Bangkok, purchasing a condominium priced at 5 million THB can generate transaction costs of up to 340,000 THB on top of the purchase price. Who is responsible for those costs - the buyer or the seller? The answer is less straightforward than most international investors expect.

Thailand has no fixed statutory allocation of transaction fees between parties. The law identifies who is legally liable, but both sides are free to negotiate the actual financial burden. On the secondary market, a 50/50 split of the transfer fee is standard practice. On the primary market, developers frequently shift the full cost onto the buyer, either embedding it in the purchase price or spelling it out in the sales and purchase agreement. Reading every clause carefully is not optional - it is essential.

Quick answer

Transfer fee equals 2% of the appraised government value or the actual sale price, whichever is higher; on the secondary market it is typically split 50/50 between buyer and seller
Withholding tax is borne by the seller: 1% of the sale price for corporate sellers, or calculated on a progressive scale for individual sellers
Specific Business Tax (SBT) is 3.3% of the sale price or appraised value and applies when the seller has held the property for fewer than 5 years; it is paid by the seller
Stamp duty is 0.5% and is charged only when SBT does not apply
In Cambodia, transfer tax is 4% of the government-assessed value and is paid by the buyer
Rental income in Thailand is subject to progressive personal income tax up to 35%; in Cambodia a flat withholding rate of 10-14% applies
Thailand and many international jurisdictions have a double taxation treaty, but Cambodia has no such treaty with most European countries, creating a real risk of double taxation for foreign investors

Options and scenarios

Scenario 1: New condominium from a developer in Bangkok

An investor purchases an off-plan studio for 3,000,000 THB (approximately 80,000 USD). The developer's standard contract states that the buyer covers 100% of the transfer fee, the sinking fund, and annual common area maintenance fees.

Transfer fee: 60,000 THB (2% of 3,000,000 THB) - fully allocated to the buyer
Sinking fund: approximately 30,000-50,000 THB (one-time payment)
Monthly common area fee: approximately 1,500-2,500 THB per month
Withholding tax, SBT, or stamp duty: borne by the developer (seller)

Total acquisition costs above and beyond the purchase price: approximately 100,000-120,000 THB.

Scenario 2: Secondary market purchase in Phuket

An investor acquires a condominium for 8,000,000 THB from an individual seller who has owned the unit for 3 years.

Transfer fee: 160,000 THB (2%), split 50/50 - buyer pays 80,000 THB
Specific Business Tax: 264,000 THB (3.3%) - paid by the seller (ownership under 5 years)
Withholding tax: calculated progressively for the seller (estimated 50,000-150,000 THB depending on declared gains)
Stamp duty: not applicable, because SBT applies in this case

The buyer's effective out-of-pocket transaction cost is approximately 80,000 THB. The seller absorbs the remainder.

Scenario 3: Apartment purchase in Phnom Penh, Cambodia

An investor buys a unit for 120,000 USD in a central Phnom Penh development.

Transfer tax: 4% of the government-assessed value, paid by the buyer. If the assessed value is 100,000 USD (often lower than the market price), this equals 4,000 USD
Annual property tax: 0.1% of the value exceeding the 100 million KHR threshold (approximately 25,000 USD). On a 120,000 USD property this amounts to roughly 95 USD per year
Capital gains tax: Cambodia formally introduced a 20% capital gains tax, though enforcement for foreign nationals remains inconsistent. Consult a qualified local legal adviser before transacting

Comparison table

Parameter	Thailand - Primary Market	Thailand - Secondary Market	Cambodia
Transfer fee / tax	2% (typically buyer)	2% (typically 50/50)	4% (buyer)
Withholding tax	1% corporate / progressive individual (seller)	1% corporate / progressive individual (seller)	No dedicated withholding tax
Specific Business Tax	3.3% if held under 5 years (seller)	3.3% if held under 5 years (seller)	Not applicable
Stamp duty	0.5% when SBT does not apply (seller)	0.5% when SBT does not apply (seller)	Included in transfer tax
Annual property tax	0.02%-0.3% by category	0.02%-0.3% by category	0.1% above threshold
Rental income tax	Up to 35% progressive	Up to 35% progressive	10-14% flat
Double taxation treaty	Yes (with multiple countries)	Yes (with multiple countries)	No

Rental income taxation for international investors

Thailand

Rental income from a Thai condominium is subject to Thai personal income tax at progressive rates from 0% to 35%. A foreign non-resident for tax purposes pays tax only on income sourced within Thailand. Deductions are available either as a flat 30% of gross rental income or on the basis of documented actual expenses.

Investors from countries that have a double taxation treaty with Thailand generally apply a proportional credit method: rental income is declared in the home country, but tax already paid in Thailand is credited against the domestic liability. If the Thai tax paid is lower than the home country rate, the investor pays the difference locally.

Cambodia

The absence of a double taxation treaty between Cambodia and most European countries creates a genuine risk of double taxation. Rental income is taxed in Cambodia at a flat rate of approximately 10-14%, and the same income must typically be declared in the investor's country of residence. Partial foreign tax credit relief may be available under domestic law, but its scope is often limited. Investors earning substantial rental income from Cambodian property should model the total effective tax burden carefully before committing capital.

Risks and mistakes

Opaque developer contracts: On the primary market in Thailand, developers frequently include a clause stating the buyer covers 'all government fees.' Always request a line-item cost breakdown before signing any agreement
Underestimating the government appraisal: Transfer fee in Thailand is calculated on whichever is higher - the government appraisal or the contract price. Do not assume the appraisal will be conservative
Thai tax residency rules from 2024: Thailand revised its rules on foreign-sourced income transferred into the country. If you spend more than 180 days per year in Thailand, you may acquire Thai tax residency and face broader tax obligations
Failure to declare rental income domestically: Tax residents of most countries are legally required to declare worldwide income, including rental income from Thailand or Cambodia. Non-disclosure carries significant penalties
Assuming Cambodia is 'cheaper' from a tax perspective: A 4% transfer tax in Cambodia is double the Thai rate. The absence of a double taxation treaty further increases the effective total tax burden over the holding period
Skipping legal counsel: Legal fees in Thailand typically range from 30,000 to 80,000 THB. In Cambodia, expect 500 to 2,000 USD. This is a necessary acquisition cost, not an optional extra

Transaction cost checklist

Purchase price (verify government appraisal value)
Transfer fee or transfer tax
Withholding tax (Thailand) or capital gains tax (Cambodia)
Specific Business Tax or stamp duty (Thailand)
Sinking fund and common area maintenance fee (Thailand condominiums)
Legal fees
Certified translation of documents
Power of attorney fee (if not attending in person)
Annual property tax
Rental income tax in the country of investment and in your country of residence

FAQ

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

Thai law does not rigidly assign the transfer fee to either party. On the secondary market, a 50/50 split is standard practice. On the primary market, developers typically require the buyer to cover the full 2%.

How much is the transfer fee in Thailand in 2026?

The transfer fee is 2% of the government-appraised value or the actual sale price, whichever is the higher of the two figures.

Is the transfer tax in Cambodia higher than in Thailand?

Yes. Cambodia charges a transfer tax of 4%, paid by the buyer. This is double the Thai transfer fee rate of 2%.

Do I need to declare Thai rental income in my home country?

Yes. Tax residents of most countries must declare worldwide income, including rental income from Thailand. If your country has a double taxation treaty with Thailand, you can credit the tax paid in Thailand against your domestic liability using the proportional credit method.

What is the Specific Business Tax rate in Thailand?

Specific Business Tax is 3.3% (3% base rate plus a 10% local surcharge) and applies when the seller has owned the property for fewer than 5 years. It is the seller's obligation.

Does Cambodia have a double taxation treaty with major investor countries?

No. Cambodia has not concluded double taxation treaties with most European or Western countries. This increases the effective tax burden for foreign investors earning rental or capital gains income from Cambodian property.

What additional costs apply when buying a condominium in Thailand?

Beyond the transfer fee, buyers typically pay a sinking fund (approximately 500-800 THB per square metre, one-time), a monthly common area fee (40-80 THB per square metre), and legal fees of 30,000-80,000 THB.

Can I negotiate the fee allocation with a Thai developer?

Yes. All government fees in Thailand are subject to negotiation between the parties. Leverage is limited on the primary market, but it is always worth requesting a split - particularly when purchasing multiple units.

How much is the annual property tax in Cambodia?

Annual property tax in Cambodia is 0.1% of the assessed value above the 100 million KHR threshold (approximately 25,000 USD). On a typical 120,000 USD apartment, this is around 95 USD per year.

What is the most important step before closing a property deal in Thailand or Cambodia?

Engage a qualified local lawyer to produce a full cost calculation covering all transfer fees, taxes, and ongoing charges before signing. Legal fees of 500-2,000 USD represent a fraction of the potential losses from a poorly negotiated fee split or an undeclared tax liability.

Ready to invest in Thailand or Cambodia property? Send us a request - our experts will find the best options for you.

Who Pays Transfer Fee in Thailand? 7 Property Transaction Costs Explained (2026)