Taxes & Fees Guide
On a typical resale, transfer-related taxes and fees come to roughly 6% of the value — and they are usually shared between buyer and seller. Here is exactly what you pay, when, and to whom in Phuket.
The big picture
There are two very different sets of costs: the one-off taxes and fees paid at the Land Office on the day of transfer, and the smaller recurring costs of owning the property afterwards. Get both into your budget from the start.
Transfer fee, Specific Business Tax (SBT) or stamp duty, withholding tax, plus lease or mortgage registration where relevant — all settled at the Land Office on the day the title changes hands.
The annual Land & Building Tax, condo common-area maintenance (CAM) fees, and income tax on any rent you earn. These are modest for residential owners but should still be planned for.
Most transfer taxes are calculated on the government-appraised value of the property — set by the Land Department — which is often lower than the market price. Some taxes use the higher of the appraised or actual sale price. Always ask for the figures specific to your property before you sign.
At the Land Office
These are the charges that arise when ownership is registered. Not all of them apply to every sale — which ones bite depends on how long the seller has owned the property and whether you are buying, leasing or financing.
| Tax / Fee | Rate | Typically paid by |
|---|---|---|
| Transfer fee | 2% of the appraised value | Buyer & seller (often split 50/50) |
| Specific Business Tax (SBT) | 3.3% of the higher of appraised or sale price | Seller (if owned < 5 years) |
| Stamp duty | 0.5% of the registered value | Seller (only when SBT does not apply) |
| Withholding tax | Progressive (individuals) / 1% (companies) | Seller |
| Lease registration | 1% fee + 0.1% stamp duty on total rent | Lessee, or split |
| Mortgage registration | 1% of the mortgaged amount (capped) | Borrower (the buyer) |
The transfer fee is the only charge every buyer encounters: a flat 2% of the appraised value, paid when the title is registered in your name at the Land Office.
Specific Business Tax (SBT) and stamp duty are mutually exclusive. SBT of 3.3% (which already includes a municipal surcharge) applies when the seller has owned the property for less than five years, or when it is not their registered principal residence. When SBT does not apply — typically when the property has been held for five years or more — the seller pays stamp duty of 0.5% instead. You never pay both on the same sale.
Withholding tax is income tax on the gain, collected at the Land Office. For an individual seller it is a progressive calculation based on the appraised value and the number of years of ownership, after standard deductions. For a company seller it is simply 1% of the higher of the appraised or sale price.
If you take out a local mortgage, the Land Office charges a mortgage registration fee of 1% of the loan amount (subject to a cap). And if you are buying a villa on a long lease, a lease over three years must be registered, which costs a 1% registration fee plus 0.1% stamp duty, calculated on the total rent payable over the whole term.
The negotiation
Thai law sets the rates, but it does not rigidly dictate who settles each charge. In practice, that is a matter of negotiation — and it can move thousands of baht in either direction.
On a resale, the transfer fee is very commonly split 50/50 between buyer and seller, while the seller normally carries SBT or stamp duty and the withholding tax — since those are taxes on their gain. But everything is open to negotiation, and the split should be written clearly into the sale and purchase agreement.
With new-build developments, the developer usually sets the terms in advance. Some absorb all transfer costs as a sales incentive; others split the 2% transfer fee and pass the rest to the buyer. Always confirm the exact allocation in writing before you reserve a unit.
A vague verbal agreement on who pays the taxes is the single most common source of last-minute disputes at the Land Office. Insist that the precise allocation of every fee is spelled out in the sale and purchase agreement, in both Thai and your own language.
Owning the property
In force since 2020, this tax replaced the old house-and-land tax. For residential owners the rates are deliberately low and tiered, and the government has periodically reduced them — so treat any figure as indicative and confirm the current rate each year.
The tax applies to land and buildings on a tiered basis: residential property is taxed at very low percentages that rise gradually with value, while undeveloped or unused land is taxed at escalating rates designed to discourage idle holdings.
How much you pay depends heavily on whether the property is your home or an investment. Second homes and investment residential property are taxed from very low percentages of the appraised value, climbing with the value bracket. Rates are set and adjusted by the government, so the precise figure for your property is best confirmed locally each year.
If your name appears on both the land title and the house — and it is your registered primary residence — you benefit from a substantial tax-free allowance. For many owners this means the annual Land & Building Tax on their main home effectively comes to zero.
The full budget
Beyond the headline taxes, a realistic budget should include the professional and service costs that come with buying and holding Thai property.
Rental income from a Thai property is subject to Thai personal income tax on a progressive scale, and a withholding mechanism can apply depending on how the rent is paid. The rules reward good record-keeping, so engage a local accountant before you take your first booking.
With Empire Estates
Before you commit, we estimate every tax and fee on your specific property so there are no surprises at the Land Office.
We negotiate who pays what and make sure the allocation is spelled out clearly in your sale and purchase agreement.
We introduce you to licensed Thai lawyers and accountants who act for you — for due diligence, contracts and tax planning.
We set out the annual tax, CAM fees and rental-income rules so you can budget for the years after purchase, not just the day of transfer.
The figures in this guide are indicative only. Tax rates, allowances and appraised values are set and adjusted by the Thai authorities, often annually, and how they apply depends on your specific circumstances. This is general information, not legal or tax advice — always consult a licensed Thai property lawyer and accountant before committing to a purchase.
FAQ
The questions buyers ask us most often about the cost of a purchase.
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Tell us the property you have in mind and we will prepare a clear estimate of every tax and fee — and who should pay what.
