Withholding Tax Thailand: 5 Property Fees (2026)

Buying a condominium in Bangkok for 5,000,000 THB and expecting to pay only the contract price? The Thai government will collect between 3.3% and over 6% of the transaction value - depending on who is selling and how long they have held the property. For international investors, there may also be tax obligations in your home country, as many jurisdictions tax worldwide income. Below is a precise breakdown of every fee, down to the last baht.

Thailand applies five main fiscal charges on real estate transactions: transfer fee, withholding tax, specific business tax (SBT), stamp duty, and rental income tax. Cambodia operates on a simpler structure but has its own considerations. This article covers both jurisdictions side by side, with concrete figures and a cost checklist.

Quick answer

Transfer fee in Thailand is 2% of the government appraised value and is customarily split equally between buyer and seller
Withholding tax for an individual seller is calculated progressively under the personal income tax schedule, based on appraised value and years of ownership - the effective rate is typically 1-3% of appraised value
Specific business tax (SBT) is 3.3% and applies to sellers who have owned the property for fewer than 5 years (counted from the registration date)
When SBT does not apply, stamp duty of 0.5% is charged instead
Cambodia levies a flat 4% property transfer tax plus an annual property tax of 0.1% on value above 100 million KHR
Thailand has a double taxation agreement (DTA) with many countries including the UK, Germany, and others - Cambodia does not have a DTA with most Western nations

Options and scenarios

Scenario 1: Buying a new condo from a developer in Bangkok

You purchase a unit for 5,000,000 THB (approximately 130,000 USD at current rates). The developer is a company that has held the land for fewer than 5 years.

Transfer fee 2%: 100,000 THB. Standard practice is a 50/50 split - 50,000 THB is the buyer's share
Withholding tax 1% (corporate seller): 50,000 THB - paid by the developer
Specific business tax 3.3%: 165,000 THB - paid by the developer
Stamp duty: not applicable, as SBT takes precedence

Your actual transaction cost: approximately 50,000 THB (1% of the price). The developer absorbs the rest. In practice, some developers pass the full transfer fee on to the buyer - always review the purchase agreement carefully.

Scenario 2: Reselling a condo after 3 years to another investor

You sell the same unit for 6,000,000 THB. You are an individual seller and have owned the property for 3 years. The government appraised value is 5,200,000 THB.

Transfer fee 2%: 104,000 THB (customarily split - 52,000 THB for you, 52,000 THB for the buyer)
Withholding tax: calculated progressively based on the appraised value divided by years of ownership (3). Base amount: 5,200,000 / 3 = 1,733,333 THB. After applying the progressive PIT schedule, the effective tax comes to approximately 113,000 THB (around 2.2% of appraised value)
Specific business tax 3.3%: 171,600 THB (ownership under 5 years, paid by you as the seller)
Stamp duty: not applicable

Your cost as the seller: approximately 336,600 THB (transfer fee 52,000 + WHT 113,000 + SBT 171,600). This exceeds 5.6% of the appraised value.

Scenario 3: Buying a condo in Phnom Penh for 80,000 USD

Cambodia uses a simpler structure. You purchase a strata title unit for 80,000 USD.

Property transfer tax 4%: 3,200 USD - formally borne by the buyer
Annual property tax 0.1%: levied on value above 100 million KHR (approximately 25,000 USD). On an 80,000 USD property the taxable base is around 55,000 USD, making the annual tax roughly 55 USD
Rental income tax: a flat 10% rate on rental income for non-residents, settled quarterly

Comparison table

Parameter	Thailand - New Condo from Developer	Thailand - Resale After 3 Years	Cambodia - Condo Purchase
Purchase price	5,000,000 THB	6,000,000 THB	80,000 USD
Transfer fee	2% (buyer pays 50%)	2% (buyer pays 50%)	4% (buyer pays)
Withholding tax	1% (developer)	approx. 2.2% (seller)	none
SBT (3.3%)	yes (developer)	yes (seller)	none
Stamp duty (0.5%)	no (SBT applies)	no (SBT applies)	none
Annual property tax	none (below threshold)	none (below threshold)	0.1% above threshold
Buyer cost	approx. 1% of price	approx. 1% of price	approx. 4% of price
Seller cost	approx. 4.3% (developer)	approx. 5.6% of appraised value	typically none
DTA with Western nations	yes (multiple agreements)	yes (multiple agreements)	limited coverage

Risks and mistakes

1. Ignoring the government appraised value. Withholding tax and SBT in Thailand are calculated on whichever is higher: the transaction price or the government appraised value. If the Land Department values the property above your contract price, you will pay tax on a larger base.

2. Confusing SBT with stamp duty. These two charges are mutually exclusive - you never pay both at the same time. SBT (3.3%) applies when the seller has owned the property for fewer than 5 years or is a registered business entity. After 5 years of ownership, SBT no longer applies and stamp duty (0.5%) is charged instead, resulting in a significantly lower bill.

3. Overlooking home-country tax obligations. Even after paying withholding tax in Thailand, residents of most Western countries are required to declare foreign-source income. Many countries apply a credit method, allowing you to offset Thai taxes paid against domestic liability - but the mechanics vary by jurisdiction and DTA terms. Always consult a cross-border tax advisor.

4. Cambodia and limited DTA coverage. Cambodia has not signed double taxation agreements with most Western nations. Rental income from a Cambodian property may be subject to tax in both Cambodia (10% flat) and your home country. The effective combined burden can be materially higher than a single-jurisdiction investment. Professional tax advice is strongly recommended before purchasing.

5. Hidden administrative fees at registration. In both countries, additional costs arise at closing - document translations, notarization, power of attorney fees, and minor Land Office charges. In Thailand, the Land Office may also require a Thor Tor 3 form from your bank confirming the legal foreign currency transfer, particularly for foreign buyers.

6. Currency conversion at tax time. Exchange rates fluctuate significantly. When declaring income in your home country, the taxable amount is converted at a specific reference rate on the date income was received. An unfavorable rate can increase your taxable base even when the underlying property values remain unchanged.

FAQ

What is withholding tax in Thailand on a property sale?

Withholding tax is a source tax collected by the Thai Land Department at the moment of ownership transfer registration. For individual sellers, it is calculated progressively based on the government appraised value divided by the number of years of ownership. For corporate sellers, the flat rate is 1%.

Who pays withholding tax - the buyer or the seller?

Withholding tax is formally the seller's obligation. It is deducted from the sale proceeds at the point of Land Department registration. The buyer does not pay this charge unless the purchase agreement explicitly states a different arrangement.

How much is the transfer fee in Thailand in 2026?

The standard transfer fee is 2% of the government appraised value. In practice, buyers and sellers typically split this cost equally, though terms may differ when purchasing from a developer.

Do I need to pay tax in my home country on a Thai condo?

In most cases, yes. Residents of countries with tax treaties with Thailand can generally offset Thai withholding taxes paid against their domestic liability using a proportional credit method. The exact rules depend on the specific DTA between Thailand and your country of residence. Always verify with a qualified international tax advisor.

How is rental income from a Cambodia property taxed?

Cambodia charges a flat 10% tax on rental income for non-resident landlords, payable quarterly. Since Cambodia has no DTA with most Western countries, this income may also be taxable domestically. You should apply any available foreign tax credit and consult a specialist familiar with Cambodian fiscal rules.

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

SBT (3.3%) and stamp duty (0.5%) are mutually exclusive charges. SBT applies when the seller has owned the property for fewer than 5 years or operates as a business. Stamp duty applies when SBT does not - typically after 5 years of individual ownership. You will never pay both on the same transaction.

What is the annual property tax in Cambodia?

It is 0.1% per year on the portion of the property's value exceeding 100 million KHR (roughly 25,000 USD). On a typical condo valued at 80,000 USD, the annual tax is approximately 55 USD.

Can I offset Thai withholding tax against my domestic income tax?

Yes, if your country has a DTA with Thailand. Under the proportional credit method, the amount of Thai tax you can deduct from your domestic liability is capped at the domestic tax attributable to the Thai-source income. Any excess cannot be refunded.

What documents are needed for tax reporting on a Thai property?

Key documents include the Land Department withholding tax receipt, the sale and purchase agreement, the Thor Tor 3 bank confirmation of foreign currency transfer, and certified translations of key documents where required by your home-country tax authority.

When does specific business tax not apply in Thailand?

SBT does not apply when an individual seller has owned the property for at least 5 years (calculated from the Land Department registration date) and is not registered as a business operator in real estate. In this case, the lower stamp duty of 0.5% applies instead.

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Withholding Tax in Thailand: 5 Property Transaction Fees Explained (2026)