Buying in Thailand: what a property purchase actually costs
The headline price on a Thai property purchase is not what you pay. Between transfer fees, taxes, withholding tax, and the variables that get negotiated in the sale and purchase agreement, the total cost of a ฿10M purchase is typically ฿10.15M–10.65M — and that is before you factor in ongoing ownership costs and what it will eventually cost you to sell.
This is how the numbers break down — before you are standing at the transfer counter.
Part 1: Transfer-day costs
The transfer fee
The Land Department charges a 2% transfer fee, calculated on the appraised value of the property or the declared sale price, whichever is higher (Thai Land Department schedule, as of September 2026).
For a condo appraised at ฿8M that sells for ฿10M, the transfer fee is ฿200,000 (2% of ฿10M). Conventionally this is split 50/50 between buyer and seller, meaning ฿100,000 each — though the SPA may allocate it differently and everything is negotiable. If the developer is absorbing both sides as a sales incentive, the effective discount is the full ฿200,000.
Note: stimulus programmes have periodically reduced this fee (to 0.01% in some cases), but these reductions have generally applied to Thai nationals purchasing a primary residence. Foreign buyers should assume the standard 2% rate unless their lawyer confirms otherwise for their specific transaction.
Specific business tax vs stamp duty
The seller pays one of two charges, not both:
Specific business tax (SBT): 3.3% of appraised value or sale price, whichever is higher (Thai Revenue Code). Applies when the seller has held the property for fewer than five years, or when the seller is a juristic person (company).
Stamp duty: 0.5% of appraised value or sale price, whichever is higher. Applies when the seller is a natural person who has held the property for five years or more.
For a newly-launched property reselling within five years — which describes most speculative investment property — the seller pays SBT at 3.3%. On a ฿10M property, that is ฿330,000.
The negotiation question is: who absorbs this? Developers selling directly from inventory usually have the SBT absorbed into their headline pricing. Resellers in an agent-mediated deal often attempt to share or pass through the SBT. Review the SPA carefully.
Withholding tax
Also paid by the seller. The rate is progressive for individual sellers — calculated on the appraised value using a depreciation schedule that varies by years held. For companies, it is a flat 1% of appraised value.
For individual sellers the precise figure depends on the specific appraisal, holding period, and filing status. Ballpark for a mid-length individual hold: 1–3% of the appraised value. In developer sales this is absorbed. In secondary market sales it is negotiated.
Title deed registration fee
Flat ฿500. Essentially irrelevant to the total calculation, but it appears as a line item at the Land Office.
Legal fees
Hiring a Thai property lawyer to review the SPA, conduct title due diligence, and manage the transfer process. Standard fees run ฿15,000–80,000 depending on complexity, whether a company structure is involved, and whether the lawyer is also handling the FET documentation (Forbes & Partners, January 2026). This is not optional: contracts written by developers are written for developers.
The Foreign Exchange Transaction (FET) form
This is one of the most important and least understood requirements for foreign condo buyers in Thailand.
What it is. The FET is an official certificate issued by an authorised Thai bank confirming that foreign currency was remitted into Thailand and converted to Thai baht. It is required under the Condominium Act (B.E. 2522) as proof that the purchase funds originated from abroad.
Why it matters. Without the FET, the Land Office will not register the transfer in a foreign name. More critically, without the FET you cannot transfer the condo back out of your name later — it is required for resale. Losing the FET or failing to obtain one is the single most common procedural mistake foreign buyers make, and it creates problems that are expensive to fix after the fact.
How to get it right:
- —Transfer the full purchase price as foreign currency (USD, EUR, GBP, AUD, etc.) from your overseas bank account to your Thai bank account. The currency must arrive as foreign currency — do not convert to THB before sending.
- —The transfer must be in your name (the buyer's name) or your company's name if purchasing through a company.
- —The remittance purpose should reference the property purchase.
- —Upon receipt and conversion, request the FET form from your Thai bank. For transfers above USD 50,000, banks are required to issue the form; for smaller amounts, a credit note or bank letter may substitute (PropertyScout, 2026).
- —Keep the original FET. You will need it at the Land Office for the transfer, and you will need it again if you ever sell.
The common mistake: sending Thai baht directly, or converting currency offshore before remitting. If the money arrives as THB, the Thai bank cannot issue an FET because no foreign exchange transaction occurred. This is not fixable after the fact without re-doing the transfer.
FOREX costs. The bank handling the conversion charges a spread on the exchange rate and potentially a wire transfer fee. Budget 0.5–1.5% of the transferred amount depending on your bank, currency pair, and transfer method.
Worked examples: transfer-day costs
฿10M condo — developer primary market (taxes absorbed):
| Item | Who pays | Amount | |---|---|---| | Transfer fee (buyer half) | Buyer | ฿100,000 | | Transfer fee (seller half) | Developer absorbed | — | | SBT | Developer absorbed | — | | Withholding tax | Developer absorbed | — | | Legal review | Buyer | ฿20,000–50,000 | | FET / FOREX costs | Buyer | ฿50,000–150,000 | | Total above headline price | | ฿170,000–300,000 |
฿10M resale — secondary market (typical negotiation):
| Item | Who typically pays | Approximate amount | |---|---|---| | Transfer fee (50/50) | Buyer pays ฿100,000 | ฿100,000 | | SBT (3.3%) | Seller — may negotiate | ฿330,000 | | Withholding tax | Seller — may negotiate | ฿80,000–150,000 | | Legal review | Buyer | ฿30,000–80,000 | | FET / FOREX | Buyer | ฿50,000–150,000 | | Buyer's total above headline | | ฿180,000–330,000 |
Always clarify before signing: who absorbs SBT? Who pays both sides of the transfer fee? What does the SPA say on each item? These are standard questions and any seller or developer with experience answers them directly. If the answer is unclear or evasive, that is a signal.
Part 2: Ongoing ownership costs
Transfer-day costs are one-time. The costs below recur every year you own the property — and they affect your net yield calculation directly.
Common area maintenance fees (CAM)
Every condominium charges a monthly CAM fee to fund the operation of shared facilities: security, cleaning, pool maintenance, gardening, elevator servicing, common-area electricity and water, and management office salaries.
Typical ranges (Storm Real Estate Phuket, 2026):
- —Budget condominiums: 35–55 THB/sqm/month
- —Mid-range condominiums: 55–80 THB/sqm/month
- —Luxury and branded residences: 80–150+ THB/sqm/month
- —Villa estates: 15–40 THB/sqm/month
The island-wide average is approximately 60 THB/sqm/month. For a 45 sqm mid-range condo at 65 THB/sqm, that is 35,100 THB per year — typically invoiced annually in advance.
CAM fee increases require a three-quarters majority vote at the owners' annual general meeting and registration with the Land Office to take legal effect. In practice, fees increase by 3–5% per year as utility and labour costs rise (MORE Group, 2026).
What to check before buying: ask for three years of AGM minutes and the current CAM rate. A project with deferred maintenance or a thin sinking fund will eventually need to raise CAM fees or levy a special assessment.
Sinking fund
A one-time payment made at purchase, held in reserve by the condominium juristic person for major capital expenditure — roof replacement, structural repairs, lift overhaul, large equipment replacement.
Typical range: 200–800 THB/sqm (Storm Real Estate Phuket; Varsovia Estate, 2026). For a 45 sqm unit, that is 9,000–36,000 THB. This is non-refundable.
The sinking fund is legally separate from CAM fees. If the fund runs low, the juristic person may call for a supplementary contribution — another reason to review the financial statements before buying.
Annual property tax (Land and Building Tax)
Thailand's Land and Building Tax Act (B.E. 2562, enacted 2019) replaced the older house and land tax. For most foreign condo owners, the annual tax bill is modest:
Residential property — not the owner's primary residence (which applies to most foreign-owned investment condos):
- —Assessed value 0–50M THB: 0.02% per year
- —50–75M THB: 0.03%
- —75–100M THB: 0.05%
- —Over 100M THB: 0.10%
For a condo assessed at ฿5M, the annual tax is ฿1,000. For a ฿10M condo: ฿2,000. For most residential units, the annual property tax bill is under ฿5,000 — negligible in the context of total ownership costs (Lex Bangkok, 2026).
Important: if the property is used commercially (e.g., operated as a hotel-licensed rental), the commercial rates apply: 0.30–0.70% of assessed value. That changes the calculation significantly. Confirm with your lawyer how your property's use is classified.
Payment deadline for 2026: June (extended from the standard April deadline by the Ministry of Interior).
Insurance
Building insurance for common areas is typically included in your CAM fees — paid by the juristic person. Contents insurance and personal liability coverage for your individual unit is separate and your responsibility.
Typical range for unit contents and liability: 8,000–15,000 THB/year depending on coverage level and unit size (MORE Group, 2026). Many owners skip this; we would not recommend it if you are renting the unit to short-stay guests.
Property management fees
If you are buying to rent — and most foreign buyers in Phuket are — the management operator takes a cut of your revenue.
Short-term rental management: 20–30% of gross rental revenue is the standard range in Phuket (MORE Group; Varsovia Estate, 2026). This typically includes listing management, guest communication, check-in/check-out, cleaning coordination, and minor maintenance. Cleaning and laundry are usually billed to the guest on top.
Long-term rental management: 8–15% of monthly rental income. This covers tenant sourcing, lease administration, and rent collection.
These fees are the single largest drag on net yield. The difference between a 22% operator and a 30% operator, on a condo generating ฿600,000 gross revenue per year, is ฿48,000 — roughly the same as your annual CAM fees. Choose your operator carefully.
Utilities
Electricity, water, and internet for the unit. If rented, these are typically passed through to the tenant. If the unit is unoccupied, budget approximately ฿1,000–2,000/month for a nominal electricity draw (air conditioning compressors on timer, hot water heater standby).
Total annual carrying cost — a worked example
฿10M, 45 sqm condo, mid-range project, rented short-term:
| Item | Annual cost | |---|---| | CAM fees (65 THB/sqm × 45 sqm × 12) | ฿35,100 | | Property tax (0.02% of ฿10M) | ฿2,000 | | Insurance (contents + liability) | ฿12,000 | | Maintenance reserve | ฿15,000–25,000 | | Management fees (25% of ฿500K gross) | ฿125,000 | | Total annual carrying cost | ฿189,100–199,100 |
That ฿189,000–199,000 is roughly 2% of the property's value per year. It is the gap between your gross yield and your net yield — and it is the number most developer marketing materials omit.
Part 3: Exit costs — what it costs to sell
Buying is not the only transaction that costs money. When you sell, the following apply:
SBT or stamp duty — the same rules apply as when you bought, but now you are the seller. If you sell within five years: 3.3% SBT. After five years as an individual: 0.5% stamp duty. On a ฿12M sale, that is ฿396,000 (SBT) or ฿60,000 (stamp duty).
Withholding tax — calculated on the appraised value using the progressive depreciation schedule. Ballpark 1–3%.
Transfer fee — 2%, typically split with the buyer (your share: 1%).
Agent commission — if you use a real estate agent to sell, standard commission in Phuket is 3–5% of the sale price. On a ฿12M sale, that is ฿360,000–600,000. Some agents negotiate; some do not.
Total exit cost on a ฿12M sale (sold within 5 years via agent):
| Item | Approximate cost | |---|---| | SBT (3.3%) | ฿396,000 | | Withholding tax | ฿120,000–360,000 | | Transfer fee (seller half) | ฿120,000 | | Agent commission (3%) | ฿360,000 | | Total | ฿996,000–1,236,000 |
That is 8–10% of the sale price. Factor this into any investment thesis that relies on capital appreciation. A property that appreciates 15% over three years but costs 10% to exit has delivered roughly 5% net — before adjusting for currency movements.
Note on company-held property
Foreign buyers who hold property via a Thai company face different tax treatment. The company pays a flat 1% withholding tax (lower than the progressive individual rate) but SBT applies at 3.3% on sales within five years regardless of structure. Corporate tax on profits from the sale is a separate layer. If you are buying or selling via a company, have your lawyer model the full tax cost for your specific structure. See the 2026 nominee crackdown for how recent enforcement changes affect this approach.
For a full explanation of what foreign buyers can and cannot own directly, see Hawook's foreign ownership guide.
This article describes how transaction taxes and ownership costs work in Thailand as of September 2026. Tax rules and fee ranges change. Every figure is sourced and dated in the article metadata. Have a licensed Thai lawyer review your specific SPA before signing. This is not legal or tax advice.