Who Pays Transfer Fee in Thailand? 7 Property Transaction Costs Explained (2026)
In Bangkok, when a buyer and seller sit across from each other at the Land Office to register a 5,000,000 THB condominium, the outstanding bill can easily reach 300,000 THB. Who covers it? The answer depends almost entirely on what was agreed in the Sale and Purchase Agreement, because Thai law does not prescribe a single fixed rule. This guide breaks down every transaction cost in Thailand and Cambodia for 2026, with concrete numbers and scenarios international investors can act on.
On the primary market, developers typically absorb withholding tax and specific business tax while buyers cover the transfer fee and any stamp duty. On the secondary market, everything is open to negotiation. The key principle: whatever the split, get it in writing before you sign.
Quick answer
- Transfer fee in Thailand is 2% of the Land Office appraised value. Market convention splits it 50/50 between buyer and seller on the secondary market; on the primary market, buyers often pay in full.
- Withholding tax is the seller's obligation. For individuals it is calculated progressively based on appraised value and years of ownership; for companies it is 1% of the higher of sale price or appraised value.
- Specific Business Tax (SBT) is 3.3% and applies to sellers who have owned the property for less than 5 years. Sellers who exceed 5 years of ownership pay stamp duty at 0.5% instead.
- In Cambodia, the property transfer tax is 4% of market value, standardly paid by the buyer.
- Cambodia's annual property tax is 0.1% of the value exceeding 100 million KHR (approximately 25,000 USD).
- Thailand has double taxation treaties with Poland, the UK and most EU countries, while Cambodia has no treaty with most Western countries, including Poland, so Cambodian rental income may be taxed in both jurisdictions. Always consult a qualified international tax adviser.
Options and scenarios
Scenario 1: New-build condominium purchase in Bangkok (price: 5,000,000 THB)
You buy directly from a developer. The appraised value is close to the contract price.
- Transfer fee 2%: 100,000 THB. On the primary market, buyers typically pay this in full, though some developers absorb half as a sales incentive.
- Stamp duty 0.5%: 25,000 THB, paid by the developer (seller).
- Withholding tax 1%: 50,000 THB, paid by the developer as a corporate entity.
- SBT: not applicable when stamp duty is charged (the two are mutually exclusive).
- Sinking fund: a one-off payment of approximately 400-800 THB per sqm, paid by the buyer.
- Common area fee (CAM fee): typically prepaid for one year at 40-80 THB per sqm per month.
Estimated total transaction cost for the buyer: approximately 125,000-175,000 THB (roughly 3,500-4,900 USD at current rates).
Scenario 2: Resale condominium purchase in Bangkok (price: 5,000,000 THB)
The seller is an individual who has owned the unit for 3 years.
- Transfer fee 2%: 100,000 THB split 50/50, buyer pays 50,000 THB.
- SBT 3.3%: 165,000 THB, paid by the seller (ownership under 5 years).
- Withholding tax: calculated progressively on appraised value and ownership period. For 3 years and a 5,000,000 THB value, this typically ranges from 75,000 to 150,000 THB, seller's cost.
- Stamp duty: not charged because SBT applies.
Estimated total transaction cost for the buyer: approximately 50,000-55,000 THB, plus sinking fund and common area fee prepayments.
Scenario 3: Apartment purchase in Phnom Penh, Cambodia (price: 80,000 USD)
- Transfer tax 4%: 3,200 USD, paid by the buyer.
- Annual property tax 0.1%: at 80,000 USD, the property may not exceed the 100 million KHR threshold, resulting in zero or minimal tax.
- Notarial and registration fees: approximately 200-500 USD.
Estimated total transaction cost for the buyer: approximately 3,400-3,700 USD.
Comparison table
| Parameter | Thailand, Primary Market | Thailand, Secondary Market | Cambodia |
|---|---|---|---|
| Transfer fee | 2% (usually buyer pays) | 2% (usually split 50/50) | 4% (buyer pays) |
| Withholding tax | 1% of price, paid by seller | Progressive rate, paid by seller | No separate WHT |
| Specific Business Tax | 3.3% or 0.5% stamp duty | 3.3% if ownership under 5 years | Not applicable |
| Stamp duty | 0.5% (if no SBT applies) | 0.5% (if no SBT applies) | Not applicable |
| Annual property tax | 0.02-0.1% (Land and Building Tax) | 0.02-0.1% | 0.1% above threshold |
| Rental income tax | 5-35% PIT (progressive) | 5-35% PIT (progressive) | 10-14% (flat or PIT) |
| Double tax treaty (most Western countries) | Yes | Yes | None |
| Estimated total buyer cost (% of price) | 2.5-3.5% | 1.5-2.5% | 4.5-5.5% |
Rental income taxation
Thailand
Rental income earned in Thailand is subject to Thai Personal Income Tax (PIT) on a progressive scale from 5% to 35%. A foreigner who qualifies as a Thai tax resident (spending more than 180 days per year in Thailand) must declare global income. Non-residents pay Thai tax only on income sourced in Thailand. Beginning with the 2024 tax year, Thailand began taxing foreign-sourced income remitted to Thailand in the same calendar year, an important development for investors holding offshore rental income.
Cambodia
Rental income in Cambodia is subject to a 14% withholding tax for non-residents, or a 10% rental tax for registered taxpayers. The applicable rate depends on the investor's registration status with the General Department of Taxation.
Tax obligations in your home country
Most Western countries tax their residents on worldwide income. If your home country has no double taxation agreement with Thailand or Cambodia, you will generally be entitled to a proportional foreign tax credit, meaning you can offset the tax paid abroad against your domestic tax liability, but only up to the proportion of domestic tax attributable to that foreign income. If the Thai effective rate is lower than your domestic rate, you pay the difference at home. Thailand has double taxation agreements with Poland, the UK, Australia and most EU member states, so check whether a treaty applies to your country of residence; Cambodia has no such agreement with most Western countries. Always verify with a licensed international tax adviser before completing a purchase.
Practical example: net rental income from a Bangkok apartment of 240,000 THB per year (approximately 6,700 USD). Thai tax at 5% equals roughly 12,000 THB. If your home country taxes the equivalent income at 20%, you owe the difference domestically after applying the foreign tax credit.
Risks and mistakes
- No written agreement on fee allocation: If the Sale and Purchase Agreement does not specify who pays transfer fee, SBT, and stamp duty, the Land Office will demand payment before registering the title. You could be left covering the full amount.
- Land Office appraised value vs. contract price: The Land Office uses its own appraised value, which can differ from the agreed sale price. Transaction taxes are calculated on whichever figure is higher.
- Ignoring SBT on resale: Many investors forget that selling a property held for less than 5 years triggers SBT at 3.3%, which materially reduces net proceeds. Factor this into any exit strategy.
- Failure to declare foreign rental income at home: Foreign rental income must be reported in your country of residence. Tax authorities in most OECD countries participate in the Common Reporting Standard (CRS) for automatic financial information exchange.
- Cambodia, soft title risk: Purchasing a property with only a 'soft title' (sporadic title or document of possession) rather than a registered 'hard title' carries significant legal risk, including difficulty enforcing ownership rights.
- Currency risk: Fluctuations in THB and USD against your home currency can shift the effective yield by several percentage points annually. Budget a 3-5% buffer on all cost projections.
- Foreign ownership quota in Thailand: Foreign buyers can only hold freehold title to a condominium unit if the building's foreign quota (49% of total floor area) has not been exhausted. Always verify quota availability before committing.
FAQ
Who pays the transfer fee when buying property in Thailand?
There is no statutory rule assigning transfer fee to either party. The market convention on the secondary market is a 50/50 split. On the primary market, buyers typically pay in full. The split must be specified in the Sale and Purchase Agreement.
How much is the transfer fee in Thailand in 2026?
The transfer fee is 2% of the Land Office appraised value of the property. This appraised value may differ from the agreed transaction price.
What is Specific Business Tax (SBT) in Thailand?
SBT is a tax of 3.3% charged to sellers who have owned the property for less than 5 years. Sellers who have held the property for more than 5 years pay stamp duty at 0.5% instead. SBT and stamp duty are mutually exclusive.
Does Thailand have a double taxation treaty with most Western countries?
Thailand has treaties with a number of countries, but coverage is uneven. These include Poland, the UK and most EU states, so many Western investors are covered. Most Western investors are not covered by a treaty with Cambodia, which means Cambodian rental income may be taxable in both countries, with only a proportional foreign tax credit available. Verify your specific situation with a tax adviser.
What is the annual property tax in Cambodia?
Cambodia levies an annual property tax of 0.1% on the portion of a property's value exceeding 100 million KHR (approximately 25,000 USD). Properties valued below this threshold are exempt.
How much is the transfer tax when buying property in Cambodia?
The transfer tax in Cambodia is 4% of the market value of the property and is standardly paid by the buyer at the time of title registration.
Do I need to declare rental income from Thailand in my home country?
Yes. If you are a tax resident in your home country, you are generally required to declare worldwide income, including foreign rental income. A foreign tax credit is available but may not eliminate the domestic tax liability entirely. Consult a qualified tax adviser.
What are the hidden costs of buying a condominium in Thailand?
Beyond transfer fee and taxes, buyers should budget for a sinking fund (400-800 THB per sqm one-off), a common area fee prepayment (40-80 THB per sqm per month), legal fees (approximately 30,000-80,000 THB), and potential bank transfer fees for international wire payments.
Can a foreigner buy land in Thailand?
No. Foreign nationals cannot directly own land in Thailand. They can, however, purchase a freehold condominium unit, provided the building's foreign ownership quota of 49% of total floor area has not been reached.
What is the foreign ownership quota for condominiums in Thailand?
Thailand's Condominium Act limits aggregate foreign ownership within any single condominium project to 49% of the total registered floor area. If this quota is full, foreign buyers can only take a long-term leasehold interest rather than freehold title.
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