COSTS OF BUYING
Costs of Buying Property in Thailand
and who usually pays.
Beyond the price, a purchase in Thailand has fees and taxes charged at transfer. This page explains the main ones, who usually pays and how the figures are worked out, with an illustrative example. Rates and temporary reductions change, so our lawyer confirms the figures for your transfer.
Start Your ConsultationTHE MAIN COSTS
What is charged at transfer.
The law places the sales taxes on the seller, and the contract decides who bears what. Read the split before you agree a price.
| Cost | Based on | Usual rate | Usually paid by |
|---|---|---|---|
| Transfer fee | The government appraised value | 2% | Shared between buyer and seller, often equally, as the contract says |
| Specific business tax | The higher of the price and the appraised value | 3.3%, including local tax, where the seller has owned for under five years | Seller |
| Stamp duty | The higher of the price and the appraised value | 0.5%, instead of the specific business tax | Seller |
| Withholding income tax | The appraised value, by a formula that depends on the seller | Varies | Seller |
| Mortgage registration fee | The loan amount | 1% | Buyer, where you finance the purchase |
| Common fees and sinking fund | Unit size, as set by the juristic person | Set by the building | Often prepaid by the buyer at transfer |
A WORKED EXAMPLE
Illustrative figures for a resale condo.
These numbers are invented to show the method. Your own figures depend on your appraisal, the seller and the contract.
| Item | How it is worked out | Result in baht |
|---|---|---|
| Agreed price and appraised value | Price 6,000,000. Appraised value 5,000,000. | Starting figures |
| Transfer fee | 2% of the appraised value of 5,000,000 | 100,000, or 50,000 each if shared equally |
| Specific business tax | 3.3% of the higher figure, 6,000,000, if sold within five years | 198,000, paid by the seller |
| Withholding income tax | Worked out by the Land Office from the appraised value | Paid by the seller |
WHERE BUYERS ARE SURPRISED
Four things to ask before you agree.
- 01
Who pays is negotiable
The contract decides the split. Read it before you agree the price, not at the Land Office.
- 02
Off-plan prices
Developers often quote a net price that includes some of these costs and passes others on to you. Ask for the full list in writing.
- 03
Value versus price
The fee is based on the appraised value and the taxes on the higher of price and value, so a low stated price does not remove them.
- 04
Condo extras
Ask about the sinking fund, advance common fees and any special assessment due at transfer.
QUESTIONS
Costs of buying, in plain terms.
Who pays the transfer fee in Thailand?
It is usually shared between buyer and seller, often equally, but the contract decides. Developers sometimes cover it in the price. Ask for the split in writing before you reserve.
Do foreign buyers get a reduced transfer fee?
Temporary reductions have been announced from time to time, with conditions on the buyer and the price that may exclude foreign buyers. Ask our lawyer which rate applies at your transfer.
How much cash do I need on transfer day?
The agreed share of the transfer fee, any mortgage registration, prepaid common fees and the sinking fund, plus the balance of the price in the form the contract requires. We help you list these in advance.
Can a lower registered price reduce the cost?
No. The fee and the taxes are based on the appraised value as well as the price, and stating a lower price than the real one is a legal and contractual risk. Ask our lawyer.
Does Baanward calculate these costs?
We help you list the expected costs inside your agreed scope, and our lawyer confirms the figures. They are estimates until the Land Office confirms them at transfer.
YOUR THAILAND PROPERTY PARTNER