Thailand Property Sale VAT and Fees: 2026 Rates Explained

As of 1 July 2026, Thailand's temporary fee discount on property transfers had lapsed and standard rates briefly returned. Within days, the Cabinet approved an extension of the reduced rates through 30 June 2027, but only for properties valued up to 7 million THB. For investors working with higher-value assets, this means the full rate applies: 2% for transfer registration and 1% for mortgage registration¹. Here is exactly what taxes and fees foreign buyers and sellers face in Thailand right now.

Thailand levies several mandatory payments on property transactions. VAT-equivalent Specific Business Tax (SBT) of 3.3% of the registered or appraised value (whichever is higher) applies to corporate sellers and to individuals who have owned a property for less than 5 years. If the seller is an individual who has held the property for 5 years or more, a Stamp Duty of 0.5% applies instead of SBT. These two charges are mutually exclusive.

For context, buyers evaluating off-plan units should also note that new-build sales made by corporate developers can carry a separate 7% VAT layer, and on a 5-million-THB unit the difference between VAT-inclusive and VAT-exclusive pricing can run to roughly 350,000 THB⁵, so always confirm how the contract price is structured before signing.

Quick Answer

• Transfer Fee: 2% of appraised value; a reduced rate of 0.01% applies through 30 June 2027 for properties up to 7 million THB²

• Mortgage Fee: 1% standard, reduced to 0.01% under the same conditions³

• Specific Business Tax (SBT): 3.3% of registered or appraised value, charged when the seller has owned the property for less than 5 years

• Stamp Duty: 0.5%, the alternative to SBT when ownership has lasted 5+ years

• Withholding Tax on sale proceeds: calculated on a progressive scale against appraised value, deducted by the Land Department at the moment of registration

• From 1 January 2027, Phuket's official land appraisal values will rise, automatically increasing every fee tied to cadastral valuation⁴

Scenarios and Options

Scenario 1: Buying a condo under 7 million THB to live in. The buyer pays the transfer fee at the discounted 0.01% rate instead of the standard 2%. On a 5-million-THB unit, that saves 99,500 THB (roughly $2,800). The discount applies to registered condominium units where both the purchase price and cadastral appraisal stay under 7 million THB². This suits buyers hunting for a first home in Bangkok or Pattaya.

Scenario 2: Buying a Phuket villa above 7 million THB. No discount applies here. The full transfer fee of 2% and mortgage fee of 1% kick in. On a 15-million-THB villa, the transfer fee alone comes to 300,000 THB. A corporate developer-seller will also owe 3.3% SBT, which is often built into the contract price, so investors should clarify cost allocation upfront.

Scenario 3: Reselling within 5 years of purchase. An individual seller pays 3.3% SBT instead of the 0.5% stamp duty, plus Withholding Tax calculated on a progressive scale that factors in the appraised value and holding period. Reselling a 10-million-THB condo after 2 years can push the seller's total tax burden to 5-6% of the transaction value.

Scenario 4: Renting out and declaring income. Rental income is taxed on a progressive scale (5% to 35% for tax residents, a flat 15% Withholding Tax for non-residents). Double-taxation treaties between Thailand and many home countries allow investors to credit tax paid in Thailand against their domestic filing, so check your own country's treaty terms before assuming double liability.

Comparison Table

Main Risks and Mistakes

Mistake 1: Calculating fees off the contract price instead of the appraised value. The Land Department always uses the higher of the two figures. From 1 January 2027, Phuket's cadastral land appraisal is set to jump 20-25%, automatically lifting every fee linked to it⁴. Mitigation: request the current Treasury Department appraisal before signing.

Mistake 2: Overlooking SBT on a fast resale. Many investors buy off-plan and sell within 2-3 years of handover, triggering the full 3.3% SBT. Mitigation: model net returns including both SBT and Withholding Tax before committing.

Mistake 3: Confusing the 0.01% discount with the standard 2% rate. The discount only applies to properties up to 7 million THB purchased by an individual, not through a corporate structure³. It generally works for foreign condo buyers but not for company-held purchases. Mitigation: confirm eligibility with a lawyer before placing a deposit.

Mistake 4: Ignoring double taxation on rental income. Without properly applying the relevant tax treaty, an investor can end up taxed twice on the same rental income. Mitigation: obtain a Thai tax residency certificate and file it with your home tax authority.

Mistake 5: Forgetting the annual Land and Building Tax. The residential rate runs from 0.02% to 0.1% of appraised value. As cadastral appraisals rise in 2027, annual bills will increase proportionally⁴.

FAQ

How much VAT is charged on a property sale in Thailand?

Standard Thai VAT is 7%, but individual sellers who have owned a property for less than 5 years pay the Specific Business Tax (SBT) of 3.3% instead, which effectively substitutes for VAT. Corporate sellers (developers) settle SBT through their regular tax filings.

What is the condo transfer fee in Thailand in 2026?

The standard rate is 2% of appraised value. Properties up to 7 million THB qualify for the reduced 0.01% rate through 30 June 2027².

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

By law it falls on the buyer, but in practice the parties frequently agree to a 50/50 split, written into the sale and purchase agreement.

Can a foreigner claim the 0.01% transfer fee discount?

Yes, provided the property is a condominium priced at or under 7 million THB and the buyer is an individual. There is no nationality restriction, but the purchase must be made directly, not through a company³.

How will Phuket property taxes change in 2027?

From 1 January 2027, Thailand's Treasury Department will raise official land appraisal values across Phuket, narrowing the gap with market prices to within 20-25%⁴. This will automatically increase transfer fees, the annual land tax, and the base used for Withholding Tax calculations.

Is there a capital gains tax in Thailand?

Thailand has no separate capital gains tax. Profit from a sale is instead captured through Withholding Tax on a progressive income-tax scale.

Which is cheaper, the 3.3% SBT or the 0.5% Stamp Duty?

The 0.5% Stamp Duty is cheaper, but it only applies when the property has been held for 5 years or more. Ownership under 5 years triggers SBT at 3.3% with no alternative.

What is the rental income tax rate for foreigners in Thailand?

Non-residents pay a flat 15% Withholding Tax on rental income. Thai tax residents are taxed on a progressive scale from 5% to 35%.

Source: Mondaq

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