When you buy or sell a condominium in Thailand, the headline price is only part of the story. Both parties at the transfer desk at the Land Department face a set of government fees and taxes — and if you have not budgeted for them, the surprise can be significant. This guide explains every fee, who typically pays it, how each is calculated, and how a savvy buyer or seller can legitimately reduce the total bill.
The Five Fees at Transfer
Thailand's Land Department levies five distinct charges on every property transaction. The rules on who pays each fee are not fixed by law — they are negotiated between buyer and seller — but there are well-established market conventions for each.
1. Transfer Fee (ค่าโอน)
The transfer fee is 2% of the Land Department's appraised value of the property — not the actual sale price. The appraised value is the government's assessed value, updated periodically, and is generally lower than market price. By convention, this fee is split equally between buyer and seller (1% each), though in buyer's-market conditions sellers sometimes agree to absorb the full 2%.
2. Specific Business Tax — SBT (ภาษีธุรกิจเฉพาะ)
SBT is 3.3% (3% tax + 0.3% local levy) of the appraised value or actual sale price, whichever is higher. This tax applies to the seller when either of the following is true:
- The seller has owned the property for fewer than 5 years; or
- The seller is a company (regardless of holding period).
SBT is normally the seller's responsibility. When SBT applies, stamp duty does not — the two are mutually exclusive.
3. Stamp Duty (อากรแสตมป์)
Stamp duty is 0.5% of the appraised value or sale price (whichever is higher). It applies only when SBT does not apply — meaning the seller is an individual who has held the property for 5 years or more. Stamp duty is the seller's cost and is substantially lower than SBT, making the five-year holding period a meaningful financial threshold.
4. Withholding Tax — WHT (ภาษีหัก ณ ที่จ่าย)
Withholding tax is the seller's income tax on the transfer. The calculation method depends on whether the seller is an individual or a company:
- Individual sellers: WHT is calculated using the Land Department's progressive formula, based on the appraised value multiplied by the number of years of ownership, divided by that number of years, with personal income tax rates applied. The result is then multiplied back by years held. This formula typically produces a lower effective tax rate than a simple percentage, and your lawyer or the Land Department officer can calculate it precisely before transfer day.
- Company sellers: WHT is 1% of the appraised value or actual sale price, whichever is higher — or the actual corporate income tax calculated on the gain, if higher.
WHT is always the seller's obligation. Buyers should confirm that the seller has accounted for this in pricing negotiations.
5. Mortgage Registration Fee (ค่าจดจำนอง)
If the buyer is financing the purchase with a Thai bank mortgage, a 1% fee on the loan amount is charged to register the mortgage at the Land Department. This is the buyer's cost and is paid on the same day as the transfer. Cash buyers pay nothing for this item.
Worked Example: 5,000,000 THB Condo
Assume a condo with a Land Department appraised value of 5,000,000 THB, sold by an individual who has owned it for 3 years, with the buyer financing 3,000,000 THB via mortgage. The conventional 50/50 transfer fee split applies.
| Fee | Rate | Amount (THB) | Who Pays |
|---|---|---|---|
| Transfer Fee | 2% of appraised | 100,000 | Split 50/50 |
| Specific Business Tax | 3.3% (held <5 yrs) | 165,000 | Seller |
| Withholding Tax | Progressive formula | ~45,000 | Seller |
| Mortgage Registration | 1% of loan | 30,000 | Buyer |
| Total Costs | 340,000 | ||
| Buyer's Share | 80,000 | ||
| Seller's Share | 260,000 |
WHT amount is illustrative — the Land Department computes the precise figure using the progressive formula on transfer day.
How to Legitimately Reduce Your Transfer Costs
- Hold for 5+ years before selling. An individual seller who crosses the five-year mark pays stamp duty (0.5%) instead of SBT (3.3%) — a saving of 2.8%. On a 5,000,000 THB appraised property, that is 140,000 THB saved on this one item alone.
- Negotiate the transfer fee split. The market norm is 50/50, but buyers can negotiate for the seller to absorb more — particularly when demand is soft or the property has been listed for a long time.
- Time the transfer to an assessed value revision. Land Department appraisals are updated on a regular cycle. In some cases, timing a transfer to fall before a revision can reduce the fee base — ask your lawyer whether an upcoming revaluation applies to your property.
- Use cash rather than a mortgage. Removing the mortgage avoids the 1% mortgage registration fee entirely. On a 3,000,000 THB loan, that is 30,000 THB saved.
What to Prepare for Transfer Day
Both parties attend the Land Department in person (or via a power of attorney) on the agreed transfer date. Bring identification documents (passport for foreigners, ID card for Thais), proof of funds for buyers bringing the balance, and the previously agreed amounts in cash or cashier's cheque for the fees. The Land Department does not accept bank transfers on the day. Your lawyer will have calculated the exact fee amounts in advance so there are no surprises at the desk.
Understanding these five fees before you negotiate price gives you an accurate picture of your all-in cost of ownership — and allows you to plan the most tax-efficient timing for both purchase and eventual sale.