What Property Transfer Fees Thailand Charges on Registration Day
Property transfer fees Thailand collects at the Land Department cover more than just the transfer fee itself — withholding tax and stamp duty or specific business tax also apply depending on the seller and situation.Ownership of land, a house, or a condominium unit in Thailand is transferred through written registration at the authorized Land Department Office. The transaction is recorded on the title deed in the case of land and condominiums, and on other relevant documents in the case of a house, with all supporting documents retained in official records. In general, the current fees and taxes applicable upon registration of ownership of such immovable property are as follows:
1. Transfer Fee
The transfer fee is not technically a “tax” — it is not collected under the Revenue Code of Thailand, but is instead an administrative fee under Thailand’s Land Code. It is payable upon transfer of immovable property at a rate of 2% of the Land Department’s appraised value of the property. This value is assessed periodically by a Valuation Committee in accordance with the Land Code, and every land plot, house, and condominium unit in Thailand has such an official appraised value. Notably, the Land Office’s appraised value is usually significantly lower than the property’s actual market value or sale price. The same appraised value is also used as the basis for calculating personal income tax payable upon transfer.
2. Income Tax (Payable as Withholding Tax)
(a) Company sellers: When a corporate entity sells immovable property, a withholding tax of 1% of the sale price must be deducted from the sale price and paid to the authorities at the time of transfer. This functions as a prepayment of the corporate seller’s income tax for that tax year and is credited against any tax owed for the year. Both the seller and the buyer jointly bear the legal duty to withhold and remit this tax, and a surcharge of 1.5% per month applies to any late or insufficient payment.
(b) Individual sellers: When an individual sells immovable property, the withholding tax is generally calculated based on the property’s appraised value under Section 49bis of the Revenue Code, less certain deductions. These deductions depend on how long the property was owned, calculated through a specific statutory formula that accounts for the ownership period and the progressive personal income tax rates — without including any of the seller’s other taxable income, if the seller elects this approach. Note that even where a transfer of immovable property is made without consideration (i.e., a gift) by an individual, it will still be treated as a “sale” subject to personal income tax.
3. Stamp Duty or Specific Business Tax + Local Development Tax
(a) Stamp Duty: For individuals, Stamp Duty generally applies if the property has not been transferred within the previous five years. In such cases, Stamp Duty is payable by the seller at 0.5% of the Land Office’s appraised value or the actual transaction value of the property, whichever is higher.
(b) Specific Business Tax + Local Development Tax: If a seller does not qualify for Stamp Duty, Specific Business Tax and Local Development Tax apply instead. The Specific Business Tax rate is 3%, with an additional Local Development Tax equal to 10% of that Specific Business Tax amount. Combined, this results in a rate of 3.3% of the Land Office’s appraised value or the actual transaction value of the property, whichever is higher, payable by the seller.
Finally, note that the above summarizes only the government fees and taxes payable on the day of transfer of immovable property in Thailand — it does not account for any other tax liability that may arise as a result of the transfer.
Both buyers and sellers should factor these property transfer fees Thailand requires into their transaction budget well before closing, since the applicable rate can differ significantly depending on whether the seller is a company or an individual, and how long the property has been held.