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

In Bangkok, when a buyer and seller close on a condominium priced at 5,000,000 THB, the transfer fee is typically split equally between both parties. In Phnom Penh, the equivalent tax falls almost entirely on the buyer. That single difference can amount to tens of thousands of dollars in additional costs, yet many international investors only discover it when sitting in a law firm on the day of signing.

This guide breaks down every transaction and recurring cost you will face as a foreign buyer in Thailand or Cambodia in 2026. We use concrete rates, identify who customarily bears each charge, and illustrate everything with two benchmark prices: 5,000,000 THB (approx. 140,000 USD) for a Bangkok condominium and 120,000 USD for a Phnom Penh apartment.

Quick answer

• Transfer fee in Thailand is 2% of the government appraised value and is customarily split 50/50 between buyer and seller, though this is fully negotiable and must be written into the sale contract.
• Withholding tax (WHT) in Thailand is borne by the seller: 1% of the higher of contract price or appraised value for a corporate seller; a progressive rate (approximately 1-5% effective) for an individual seller, calculated by the Land Department based on years of ownership.
• Specific Business Tax (SBT) is 3.3% of the higher value and is charged to the seller if they have held the property for fewer than 5 years (or have not been registered as resident there for more than one year).
• Stamp duty is 0.5% and applies only when SBT does not - the two charges are mutually exclusive. The seller pays it.
• Cambodia property transfer tax is 4% and in practice is paid by the buyer.
• Cambodia annual property tax is 0.1% of assessed value above a threshold of 100 million KHR (approximately 25,000 USD).
• Foreign investors earning rental income abroad must understand local withholding rules and report appropriately in their country of tax residence.

Options and scenarios

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

A developer sells a unit at 5,000,000 THB. The government appraised value set by the Land Department is sometimes lower than the market price, but for simplicity we assume they are equal here.

• Transfer fee 2% = 100,000 THB. Developers of new projects frequently absorb this cost entirely as a sales incentive. If not, the standard split is 50/50, meaning the buyer pays 50,000 THB.
• Withholding tax: borne by the developer (seller). For a corporate entity: 1% = 50,000 THB.
• SBT 3.3%: borne by the developer, since new-build inventory is held for fewer than 5 years = 165,000 THB.
• Stamp duty: not applicable, because SBT applies.

Total buyer cost: 0 to 100,000 THB (0-2% of price), depending on negotiation.

Scenario 2: Reselling a condominium in Thailand (secondary market, individual seller)

An investor sells after 3 years a condo originally purchased for 5,000,000 THB, now valued at 6,000,000 THB.

• Transfer fee 2% = 120,000 THB, typically split 50/50.
• SBT 3.3% = 198,000 THB, because ownership is under 5 years. Paid by the seller.
• Withholding tax: progressive, calculated by a Land Department officer using a standardised depreciation table based on years of ownership and appraised value. For a 3-year holding at 6,000,000 THB, the estimated amount is approximately 90,000-180,000 THB.
• Stamp duty: not applicable, because SBT applies.

Total seller cost: approximately 348,000-528,000 THB (50% of transfer fee + SBT + WHT).

Scenario 3: Buying an apartment in Phnom Penh for 120,000 USD

• Property transfer tax 4% = 4,800 USD. In Cambodia, this is almost always paid by the buyer.
• Annual property tax 0.1%: charged on assessed value above the 100 million KHR threshold. For a property worth approximately 480 million KHR (120,000 USD), the taxable base is 380 million KHR, yielding an annual tax of approximately 380,000 KHR (around 93 USD per year).
• No SBT or stamp duty exists in Cambodia in the form used in Thailand.

Total one-time buyer cost: approximately 4,800 USD, plus approximately 93 USD per year in property tax.

Rental income taxation

Thailand: Rental income earned in Thailand by a non-resident is subject to Thai personal income tax if the funds are remitted into Thailand in the same tax year they are earned, or if the investor spends more than 180 days in Thailand in a calendar year (triggering tax residency). Since 2024, Thailand has extended its tax scope to foreign-sourced income remitted into the country regardless of the year it was earned. Thai PIT rates reach 35%, though the effective rate on typical condo rental income is substantially lower due to progressive brackets and allowable deductions.

Foreign investors managing a Bangkok condo through a property manager without being Thai tax residents should seek current advice from a licensed Thai tax professional, as the rules have changed materially in the past two years.

Cambodia: Rental income in Cambodia is subject to a 10% tax on gross rental revenue. This applies to foreign nationals holding property outright (for example, a condominium under strata title) or under a long-term lease.

Investors who are tax residents in countries that have a double taxation agreement with Thailand or Cambodia should verify the applicable method of relief (exemption with progression, or proportional tax credit) with a qualified adviser in their home country. Cambodia has limited treaty coverage, which may result in a tax top-up obligation in the investor's country of residence.

Comparison table

Parameter	Thailand - Primary Market	Thailand - Secondary Market	Cambodia
Transfer fee / property transfer tax	2% (often covered by developer or split 50/50)	2% (typically split 50/50)	4% (paid by buyer)
Withholding tax	1% - paid by seller (corporate)	Progressive approx. 1-5% - paid by seller	No direct equivalent
Specific Business Tax (SBT)	3.3% - paid by seller	3.3% if held less than 5 years - paid by seller	Not applicable
Stamp duty	0.5% only when SBT does not apply	0.5% only when SBT does not apply	Not applicable
Annual property tax	0.02-0.3% (introduced 2020, low rates)	0.02-0.3%	0.1% above 100 million KHR threshold
Estimated total one-time buyer cost	0-2% of price	Approx. 1% of price	Approx. 4% of price
Who negotiates the split?	Both parties in the sale contract	Both parties in the sale contract	Customarily the buyer bears the full amount

Risks and mistakes

• Relying on verbal agreements. In Thailand, the allocation of transfer fees is a contractual matter. If the split is not written into the sale and purchase agreement, the Land Office may charge the buyer the full 2% at the point of registration.
• Ignoring the government appraised value. Transfer fee and withholding tax are calculated on the higher of the contract price or the government appraised value. In some locations, the appraised value exceeds the agreed transaction price, increasing the total cost beyond initial estimates.
• Failing to budget 4-6% for closing costs. In Cambodia, the transfer tax alone is 4%. Legal fees, notarisation, and registration add further costs. In Thailand, buyers should reserve at minimum 1-3% of the purchase price depending on the negotiated split.
• Confusing stamp duty with SBT. These two charges are mutually exclusive. If SBT (3.3%) applies, stamp duty (0.5%) is not charged, and vice versa. Both never apply simultaneously to the same transaction.
• Assuming Cambodian tax rules are stable. Cambodia's General Department of Taxation has been actively tightening enforcement. Rates and thresholds can change with shorter notice periods than investors accustomed to more established markets might expect.
• Overlooking rental income reporting obligations in your home country. Many foreign investors do not declare overseas rental income in their country of tax residence. In the event of an audit, the consequences typically include back taxes, interest charges, and potential penalties. Always confirm your obligations with a qualified adviser in your home jurisdiction.
• Not running a pre-signing tax audit. Engaging a local property lawyer and a tax adviser before signing a preliminary agreement is far less expensive than correcting a mispriced deal or an incorrect tax filing afterwards.

FAQ

Who pays the transfer fee when buying a condominium in Thailand?

In practice, the 2% transfer fee (calculated on the government appraised value) is split equally between buyer and seller. On the primary market, developers often absorb the full amount as a promotional incentive. The allocation must be specified in the sale contract to be enforceable.

How much should a buyer budget for closing costs in Thailand?

At the standard 50/50 split, a buyer typically pays approximately 1-2% of the property price in transaction costs, covering their share of the transfer fee plus legal fees. If the developer covers the transfer fee entirely, closing costs can fall below 1%.

Is the transfer tax higher in Cambodia than in Thailand?

Yes. Cambodia's property transfer tax is 4%, paid by the buyer. Thailand's transfer fee is 2%, typically shared between buyer and seller, making the effective buyer cost approximately 1% in most cases.

What is Specific Business Tax in Thailand and who pays it?

SBT is a 3.3% charge levied on the seller when they have owned the property for fewer than 5 years (or have not been registered as a resident of the property for more than one year). It replaces stamp duty and the two never apply together.

Does withholding tax in Thailand affect the buyer?

No. Withholding tax in Thailand is paid exclusively by the seller. It is collected at the Land Office at the time of title transfer registration.

Can the transfer fee split be negotiated in Thailand?

Yes, fully. On the secondary market, 50/50 is the standard starting point, but a buyer in a strong negotiating position may be able to shift a greater share onto the seller. Any agreed split should be documented in the sale and purchase agreement.

What annual property tax applies in Cambodia?

An annual property tax of 0.1% of the assessed value above the 100 million KHR threshold (approximately 25,000 USD) applies. For a property valued at 120,000 USD, the annual tax is approximately 93 USD.

How is rental income from Thailand taxed?

Rental income sourced in Thailand may be subject to Thai personal income tax depending on the investor's residency status and how funds are remitted. Thai PIT rates are progressive, reaching 35%, though effective rates on typical rental income are lower. Foreign investors should obtain current advice given rule changes introduced since 2024.

What is the rental income tax rate in Cambodia?

Cambodia levies a 10% tax on gross rental income. This applies to both resident and non-resident property owners, including foreign nationals holding condominiums under strata title.

Should I budget for legal fees in addition to the transfer tax?

Yes. In Thailand, legal fees for a standard condominium purchase typically range from 30,000 to 80,000 THB. In Cambodia, expect approximately 1,000 to 3,000 USD. These are separate from the transfer tax and should be included in your total acquisition budget.

---

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

Contact us ->