You’ve found it. That stunning sea-view condo in Pattaya or the lush pool villa in Koh Samui. The price looks right, the location is perfect, and you are mentally arranging the furniture.
But before you sign that cheque, there is one question that often gets whispered too late in the negotiation process: “Wait, who pays the taxes?”
Unlike many Western countries where property tax is a hefty monthly bill, Thailand’s tax system is unique. It’s front-loaded. Most of the costs hit you on the day you buy (or sell), while the annual holding costs remain surprisingly low. However, in 2026, with the Thai government tightening up on tax collections and property assessments, understanding property tax in thailand for foreigners is no longer optional—it is essential for protecting your ROI.
At Sukhothai Inter Law, we have seen deals collapse at the Land Department because the buyer and seller couldn’t agree on who pays the transfer fee. Today, we are going to walk you through every tax you need to know, so there are no nasty surprises.
Part 1: The “Big Hit” – Taxes Due on Transfer Day
When people talk about “property tax” in Thailand, 80% of the time they are talking about the costs incurred on the day the Title Deed (Chanote) changes hands. These are paid at the Land Department.
1. The Transfer Fee (2%)
This is the standard government fee for transferring ownership. It is calculated as 2% of the appraised value of the property (which is often lower than the actual market price).
Who pays? By law, it is the seller’s responsibility, but in practice, it is almost always shared 50/50 between the buyer and seller.
Tip: Always check your Sales & Purchase Agreement. If it says “Buyer pays all transfer fees,” you are negotiating a bad deal!
2. Specific Business Tax (SBT) (3.3%)
This tax is designed to stop “flipping.” It applies if the seller has owned the property for less than 5 years.
The Rate: 3.3% of the selling price or appraised value (whichever is higher).
The Exemption: If the seller has owned the property for more than 5 years (or is an individual who has had their name on the household registration tabien baan for 1 year), they are exempt from SBT.
Who pays? Strictly the Seller. However, be careful—some developers or sellers try to push this onto the buyer in the fine print.
3. Stamp Duty (0.5%)
You only pay this if you are exempt from the Specific Business Tax. You never pay both.
The Rate: 0.5% of the selling price or appraised value.
Who pays? The Seller.
4. Withholding Tax (WHT)
This is essentially an income tax prepayment.
If the Seller is a Company: They pay 1% of the appraised value or sales price (whichever is higher).
If the Seller is an Individual: It is calculated based on a progressive scale (like income tax) based on the appraised value and years of ownership.
Who pays? The Seller.
Part 2: The Annual “Holding” Tax (Land and Building Tax)
For years, Thailand had very confusing annual taxes. That changed with the introduction of the Land and Building Tax Act, which is fully active and enforced in 2026.
Many potential clients ask us: “Is property tax in thailand for foreigners expensive?”
Compared to the US or Europe? No. It is incredibly low.
The 2026 Rates
The tax is calculated on the official appraisal value of the property, not the market price.
Residential (Second Home): If you own a condo or house but your name is not in the Blue Tabien Baan (common for foreigners), you are taxed as a “second home.”
Rate: Approx 0.02% to 0.10%.
Example: On a 5 Million Baht condo, you might pay around 1,000 to 2,000 THB per year. Yes, really.
Commercial / Rental: If you officially declare the property as a rental business.
Rate: Approx 0.3%.
Vacant Land: This is where the government bites. If you buy land and leave it empty to wait for capital appreciation.
Rate: Starts at 0.3% and increases every 3 years if left unused. This is to discourage land hoarding.
Part 3: Tax on Rental Income
This is the area where we see the most confusion in 2026. If you buy a condo for an investment visa and rent it out on Airbnb or Agoda, that income is taxable.
Personal Income Tax (P.I.T):
As a foreigner, you are subject to tax on income earned in Thailand. You must file a half-year return (PND 94) and an annual return (PND 90/91).
Deductions: You can usually deduct a standard 30% for expenses without showing receipts, meaning you are only taxed on 70% of the rental income.
The Rates: Progressive, starting from 0% (for the first 150k THB net profit) up to 35%.
Warning: In 2026, the Revenue Department is linking data with booking platforms. If you are earning rental income but not declaring it, the fines can be steep.
How to Protect Your Wallet
Understanding property tax in thailand for foreigners isn’t just about knowing the rates—it’s about the contract.
When you find that dream property, do not sign the reservation agreement until a lawyer has reviewed the “Tax & Fee Breakdown.”
Is the seller passing their Withholding Tax to you? (Illegal in spirit, but happens).
Is the appraisal value significantly lower than the purchase price? (This affects your tax calculation).
At Sukhothai Inter Law, we perform a full Due Diligence report. We calculate the exact taxes due at the Land Department before you go, so you know exactly how many cashier’s cheques to prepare. No surprises, no hidden costs.
Considering Property for a Visa?
If you are paying these taxes, make sure the property is working for you! Did you know your property investment could qualify you for a Long-Term Resident Visa?
Check your eligibility here: Thailand Property Investor Visa Application
Did we save you money today?
If you found this guide helpful, we’d love to hear from you.
🌟 Leave us a Google Review here: Review Sukhothai Inter Law
Contact Us for a Tax Assessment
Don’t let tax confusion stop your investment. Contact our offices today.
Bangkok Office:
17 Chan 35, Chan Road, Sathorn, Bangkok 10120
Koh Samui Office:
119/2 Moo 1, T.Bophut, A. Koh Samui, Surathani, 84320
Pattaya Office:
33/35 Moo 11, Soi Kohpai, (Soi 6 Theprasit) T. Nongprue, A. Banglamung, Chonburi, 20150
Phone: +662 212 6866-7
Fax: +662 213 3124
Email: info@sukhothaiinterlaw.com
Whatsapp: +66846764436
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