Transfer Fees and Taxes.

Overview

The Costs Most Buyers Discover Too Late

The purchase price is what gets agreed. The fees are what get paid on transfer day. Many expat buyers arrive at the Land Office with a clear number in mind and leave having paid significantly more than they expected, because nobody explained the tax structure in advance.

Thailand levies several charges on property transfers. Some are paid by the seller, some by the buyer, and some are negotiated between the parties. The challenge is that what is legally owed and what gets agreed between buyer and seller are not always the same thing.

We brief every client on transfer costs before they sign anything. The information below reflects the standard position for residential property transactions.

Section 1

Transfer Fee

The transfer fee is 2% of the Land Office's assessed value of the property, which may differ from the agreed sale price. It is typically split between buyer and seller, with each paying 1%, though this is negotiable and varies by transaction. We always ensure fee allocation is agreed and documented in the SPA before contracts are signed. Getting this in writing at the negotiation stage avoids real friction on transfer day.

The assessed value used by the Land Office is an official valuation reviewed periodically. It is often lower than market value, particularly for resale properties. In new developments, it may be closer to the sale price. We calculate the expected transfer fee for clients using the assessed value before they sign anything, so there are no surprises at the Land Office.

• Rate: 2% of the Land Office assessed value.
• Commonly split 50/50 between buyer and seller.
• The assessed value may be lower than the agreed sale price.
• Applies to all freehold property transfers including condominiums.
• Paid on the day of transfer at the Land Office.

Section 2

Specific Business Tax (SBT)

Specific Business Tax is 3.3% of the higher of the sale price or the Land Office assessed value. It is payable by the seller and applies when the property has been held for less than five years, or when the seller is a company rather than an individual. On resale transactions we verify the seller's holding period at the outset, because whether SBT applies significantly affects the total cost picture. Sellers sometimes underestimate this figure when setting their asking price.

When SBT applies, stamp duty does not. When SBT does not apply (because the property has been held for more than five years), stamp duty applies instead. We confirm which applies for every transaction before recommending the fee allocation for the SPA.

• Rate: 3.3% of the higher of sale price or assessed value.
• Paid by the seller.
• Applies when property held for less than five years.
• Also applies when seller is a company.
• When SBT applies, stamp duty is waived.

Section 3

Stamp Duty

Stamp duty is 0.5% of the sale price or assessed value, whichever is higher. It is paid by the seller and only applies when SBT does not, specifically when an individual has owned the property for more than five years. At 0.5% compared to SBT's 3.3%, the difference matters in a negotiation. We advise clients whether SBT or stamp duty will apply before contracts are signed, because sellers who are in SBT territory sometimes try to negotiate fee sharing arrangements that shift a portion of that burden to the buyer. Understanding the position in advance is important.

• Rate: 0.5% of the higher of sale price or assessed value.
• Paid by the seller.
• Only applies when SBT does not (property held over five years by an individual).
• SBT and stamp duty are mutually exclusive.

Section 4

Withholding Tax

Withholding tax is payable by the seller on any gain from the sale. The calculation method differs between individuals and companies. For individual sellers, the Land Office calculates the amount using a formula based on the appraised value, the number of years of ownership, and a Revenue Department depreciation schedule. We request this calculation in advance where possible so sellers know their net position before agreeing final terms.

For companies, withholding tax is 1% of the higher of the sale price or assessed value, a simpler calculation, but one that still needs to be factored in when company sellers negotiate fee allocation with buyers.

• Paid by the seller.
• Individual sellers: calculated on a progressive scale using assessed value and years of ownership.
• Corporate sellers: 1% of the higher of sale price or assessed value.
• Withheld and remitted to the Revenue Department on transfer day.
• The Land Office calculates the amount for individuals using their standard tables.

Section 5

Who Pays What in Practice

The law sets out who is liable for each charge. What actually gets agreed between buyer and seller is a different matter. In many transactions, particularly new developer sales, the developer offers to split certain fees or absorb them as part of a promotional offer.

In resale transactions, fee allocation is negotiated as part of the purchase agreement. We always ensure the fee allocation is clearly documented in the sales contract before any deposit is paid. Disputes about who pays what are far easier to avoid than to resolve after a deal is agreed.

Speak with Our Team

Know the full cost before you commit.

We calculate the complete transfer cost picture for clients before contracts are signed.