Property Tax for Foreign Buyers in Thailand
Transfer fees · SBT · Stamp duty · Annual tax · Koh Samui · 2026
Property tax for foreign buyers in Thailand splits into two clocks: one-time transfer charges at the Land Department, and annual Land and Building Tax on owned structures and leasehold interests. Rates are statutory — who pays what is often negotiated. This guide maps Koh Samui villa and condominium purchases in 2026; it is not personalised tax or legal advice.
Direct answer
How much tax do foreign buyers pay when buying property in Thailand?
At transfer, buyers commonly face a 2% registration fee on the Treasury-appraised value — often split with the seller — while the seller side may carry 3.3% specific business tax or 0.5% stamp duty plus withholding tax. Leasehold villas add registration on the lease term. Totals are structure-specific; counsel and a Thai tax adviser confirm before completion.
Ownership structure changes the line items. Condominium freehold within the foreign quota follows one matrix; registered lease plus structure on Koh Samui land follows another. Compare tenure on foreign ownership in Thailand and leasehold vs freehold before modelling tax.
What is the transfer fee on a Thai property purchase?
The standard transfer registration fee is 2% of the Treasury appraised value at the Land Department. Resale contracts often split it 50/50; developer sale agreements often assign it to the buyer. Foreign buyers should budget the full 2% unless the final SPA and Land Office calculation state otherwise.
On Koh Samui, the appraised value can differ from the negotiated price. That gap matters. The cheque at transfer follows the Land Department calculation, while the commercial negotiation determines who ultimately bears the cost.
How is the transfer fee calculated for foreign buyers?
Property tax for foreign buyers at transfer starts with the 2% registration fee on the Treasury appraised value — not necessarily the SPA price. On a ฿60,000,000 villa where the appraised value is ฿48,000,000, the fee base is ฿48,000,000 unless counsel confirms a different Land Office treatment. Split clauses in resale contracts are common; developer SPAs often load the full 2% on the buyer.
What should foreign buyers confirm before paying a deposit?
Request the SPA transfer-fee clause, the seller’s holding period for SBT purposes, and a preliminary appraised-value estimate. Compare tenure on foreign ownership in Thailand before modelling completion-day cheques.
Do foreign buyers qualify for Thailand’s 0.01% transfer fee reduction?
Foreign buyers do not receive Thailand’s 0.01% transfer and mortgage registration reduction. The measure covers eligible Thai nationals buying qualifying residential property up to ฿7,000,000 and is extended to 30 June 2027. International buyers should model the normal 2% transfer fee and treat any reduction as confirmed only in writing.
This point matters because the stimulus headline is easy to misread. Most prime Koh Samui villas sit above the ฿7,000,000 threshold in any event, and the policy is aimed at Thai homebuyers rather than foreign second-home or investment buyers.
Why do foreign buyers pay normal transfer rates in 2026?
Cabinet extended reduced transfer and mortgage registration fees for qualifying Thai residential buyers to 30 June 2027 (Bangkok Post and Nation Thailand, June 2026). Foreign nationality is outside the eligibility scope; international purchasers should budget the standard 2% transfer fee and full mortgage registration where applicable.
Does the ฿7,000,000 cap affect Koh Samui villa buyers?
Even where a foreign buyer could theoretically benefit from a reduced rate, the policy caps qualifying residential value at ฿7,000,000. Gold Triangle villas and estate-grade stock typically exceed that threshold. Treat any headline 0.01% rate as Thai-national policy unless the Land Office confirms otherwise in writing.
What are specific business tax and stamp duty?
Specific Business Tax is 3.3% when the seller has held the property for less than five years and no primary-residence exception applies. Stamp duty is 0.5% when SBT is not due. The two are mutually exclusive: a transfer attracts one or the other, not both.
SBT and stamp duty are seller-side charges in normal resale practice, but buyers still need to understand them. A seller facing SBT may price differently, especially on a recently completed villa, developer stock, or a company-held asset.
When does specific business tax apply to a Koh Samui resale?
SBT is 3% under Revenue Code Section 91/6 plus a 10% municipal surcharge — 3.3% total — on the higher of sale price or appraised value when the seller held under five years and no qualifying primary-residence exception applies. Developer flips, recently completed villas, and company-held land often trigger SBT on the seller side.
How does stamp duty differ from SBT for foreign buyers?
Stamp duty at 0.5% applies when SBT is not due — typically when the seller held the asset over five years or a primary-residence exception applies. Foreign buyers do not pay stamp duty directly, but seller-side tax economics can shape the negotiated net price.
Who pays withholding tax at transfer?
Withholding tax is collected from the seller at the Land Office. A corporate seller usually pays 1% of the higher of sale price or appraised value; an individual seller is assessed on a progressive personal-income formula tied to appraised value and holding period. The buyer’s exposure is usually commercial, not statutory.
The practical issue is the net deal. If the seller wants a fixed amount after tax, the buyer may see the tax economics inside the price rather than as a separate line item.
How does withholding tax affect foreign buyer budgeting?
Withholding is a seller obligation collected at the Land Office as prepaid income tax. Corporate sellers typically face 1% on the higher of sale price or appraised value; individual sellers use a progressive formula tied to appraised value and years held. Buyers should model total transfer-day cashier cheques with counsel — not assume withholding sits entirely on the seller’s side of the negotiation.
Transfer tax matrix
Property tax for foreign buyers in Thailand — transfer matrix
The core transfer matrix has five lines: transfer fee, Specific Business Tax, stamp duty, withholding tax, and lease or superficies registration. The buyer normally sees the transfer fee directly; seller-side taxes still affect negotiation because they shape the seller’s net proceeds at completion.
| Charge | 2026 rate | Tax base | Customary payer | Buyer note |
|---|---|---|---|---|
| Transfer fee | 2% | Treasury appraised value | Often split; buyer may pay full amount in developer SPA | Foreign buyers should not model the Thai-only 0.01% stimulus |
| Specific Business Tax | 3.3% | Higher of sale price or appraised value | Seller | Applies when seller held under five years unless exception applies |
| Stamp duty | 0.5% | Higher of sale price or appraised value | Seller | Applies only when SBT is not due |
| Withholding tax | 1% corporate; progressive individual | Corporate: higher of sale price or appraised value; individual: appraised-value formula | Seller | Collected at Land Office as prepaid income tax |
| Lease registration | 1% + 0.1% stamp | Total rent over registered term | Negotiated | Relevant to Koh Samui villas held by registered leasehold |
| Superficies registration | 1.1% | Contract value | Negotiated | Used where building ownership is separated from land tenure |
Expert Property Asia analysis. Foreign buyer property tax at transfer is rarely a single line item. On Koh Samui leasehold villa files, buyers model lease registration and structure transfer separately from condominium freehold within the 49% quota. Seller-side SBT and withholding still shape net negotiation even when the buyer’s statutory exposure is mainly the 2% transfer fee — counsel and a Thai tax adviser confirm the cashier-cheque schedule before SPA execution.
Source: Thailand Revenue Department fee schedules and Land Department registration practice · counsel and tax adviser confirm before completion
What ongoing property tax applies after purchase?
Thailand’s Land and Building Tax Act B.E. 2562 charges annual tax on appraised value. In 2026, most foreign-owned second homes and rental properties are taxed from the first baht: 0.02% up to ฿50,000,000, then 0.03%, 0.05%, and 0.10% above ฿100,000,000.
The number is often small compared with purchase costs, but classification matters. A villa used as a second home, a rental property, or a vacant land parcel may sit in a different bracket from a registered primary residence.
How is annual property tax classified for foreign-owned villas?
Most international buyers purchasing Koh Samui second homes or rental villas fall in the other residential band under the Land and Building Tax Act B.E. 2562 — not the lower primary-residence schedule available to qualifying Thai owner-occupiers. Local administrative organisations collect the tax annually on appraised value.
| Appraised value band | Other residential rate | Typical foreign-buyer relevance |
|---|---|---|
| ฿0-50,000,000 | 0.02% | Most condominiums and smaller villas |
| ฿50,000,001-75,000,000 | 0.03% | Upper-tier villas and larger second homes |
| ฿75,000,001-100,000,000 | 0.05% | Prime hillside and beachfront assets |
| Above ฿100,000,000 | 0.10% | Estate-grade villas and high-value land/structure holdings |
What taxes apply on a Koh Samui leasehold villa purchase?
A registered land lease is charged at 1% of total rent over the registered term plus 0.1% stamp duty. Structure transfer or Right of Superficies registration adds a separate 1.1% on contract value. The 2% transfer fee applies to condominium freehold stock — not the land lease itself.
Leasehold is the dominant Koh Samui villa structure for foreign buyers who cannot hold freehold land. Tax lines multiply: lease registration, structure sale, and any superficies right each carry separate Land Office charges. Compare tenure mechanics on leasehold vs freehold in Thailand before offer.
How do lease registration fees differ from freehold transfer tax?
Lease registration is 1% of total rent over the registered term plus 0.1% stamp duty on the lease instrument. A 30-year lease at ฿1,000,000 per year registers on ฿30,000,000 of total rent — not the villa’s market value. Superficies registration at 1.1% of contract value may apply where building ownership is separated from land tenure.
What should foreign buyers verify on leasehold SPA tax clauses?
Confirm who pays lease registration, structure transfer, and any company-share sale taxes if the villa sits in a Thai company wrapper. EPA coordinates the commercial file; counsel models the full registration schedule before deposit.
Illustrative Koh Samui property tax examples for foreign buyers
Illustrative only — not a quote or tax computation. On a ฿60,000,000 appraised villa, annual other-residential tax at 0.02% is approximately ฿12,000 per year in the first band. On ฿120,000,000 appraised value, the top 0.10% band yields approximately ฿120,000 annually. Transfer-day fees depend on tenure and seller holding period.
These figures assume other-residential classification and Treasury appraised values matching the illustrative price. Actual Land Office calculations, SPA allocation, and seller-side SBT or withholding can change completion-day totals materially.
Illustrative transfer-day charges — ฿60,000,000 appraised condominium freehold
Buyer-side transfer fee at 2%: approximately ฿1,200,000 if the buyer bears the full fee. Seller-side SBT at 3.3% or stamp duty at 0.5% applies depending on holding period — typically seller obligations but often priced into negotiation. Condominium freehold also requires inward remittance documentation; see FET section below.
Illustrative annual tax — ฿120,000,000 appraised estate villa
Other-residential annual tax in the above-฿100,000,000 band at 0.10%: approximately ฿120,000 per year on full appraised value. Leasehold structures add separate annual considerations only where land or structure components are separately classified — counsel confirms.
Important disclaimer on illustrative figures
All examples are desk-level budgeting aids. A Thai tax adviser and property lawyer confirm appraised values, classification, SPA allocation, and cashier-cheque schedules before any reservation payment or SPA execution.
What property tax mistakes do foreign buyers make in Thailand?
The most common errors are modelling the Thai-only 0.01% transfer stimulus, ignoring seller-side SBT on recent completions, omitting lease registration on villa structures, and assuming SPA price equals the Land Office tax base. Each mistake can add six or seven figures to completion-day exposure.
Mistake 1 — assuming headline stimulus rates apply to foreign buyers
Reduced transfer and mortgage registration fees extended to 30 June 2027 apply to qualifying Thai nationals on residential property up to ฿7,000,000. Foreign buyers should budget the standard 2% transfer fee unless the Land Office confirms a specific exemption in writing.
Mistake 2 — ignoring seller holding period and SBT exposure
A villa completed within five years may carry 3.3% SBT on the seller side. Buyers who focus only on the 2% transfer fee can misread the seller’s net position and weaken their negotiating position.
Mistake 3 — treating leasehold like freehold for tax modelling
Registered lease plus structure sale carries lease registration, stamp duty, and possibly superficies charges — not a single 2% land transfer. Structure and tenure must be mapped on foreign ownership in Thailand before offer.
When to appoint a Thai tax adviser
Before signing a reservation agreement or SPA. Expert Property Asia coordinates the commercial file; counsel and a Thai tax adviser sign off transfer-day figures and annual classification. Book a consultation or contact the Bophut office to start a mandate.
How does FET reporting relate to condominium purchases?
Condominium freehold transfers require evidence that purchase funds entered Thailand in foreign currency. Inward remittances of USD 50,000 or more receive a Foreign Exchange Transaction Form automatically; smaller transfers need equivalent bank documentation. Keep the original form for capital repatriation when the unit is resold.
For villa structures, FET paperwork may not be the transfer trigger, but clean banking records still matter. The buyer’s lawyer and bank should confirm remittance wording before money moves.
What FET documentation do foreign condominium buyers need at transfer?
The Land Department expects evidence that purchase funds entered Thailand in foreign currency for condominium freehold within the foreign quota. Inward remittances of USD 50,000 or more generate a Foreign Exchange Transaction Form automatically; smaller amounts need equivalent bank certification. Retain originals for tax-free capital repatriation on resale.
Are tax rates different for off-plan vs resale purchases?
Statutory tax rates are not different for off-plan and resale purchases; the contract economics are. Developer SPAs often place the full 2% transfer fee on the buyer and build seller-side taxes into price. Resale deals may split transfer fee and leave SBT, stamp duty, and withholding with the seller.
Off-plan tax language belongs in the reservation agreement and SPA. If the contract says the buyer pays all government fees, the buyer needs the estimated Land Office schedule before paying the deposit.
How do developer SPAs allocate property tax for foreign buyers?
Developer sale agreements often assign the full 2% transfer fee to the buyer and may price seller-side taxes into the headline unit price. Resale contracts from individual sellers held over five years typically leave stamp duty and lower withholding on the seller side. Read the government-fees clause before reservation — not at completion.
Common questions
Property tax for foreign buyers FAQ
Koh Samui buyer tax context reviewed by Julien Cusimano, Managing Director — 9 July 2026. EPA coordinates commercial files on registered lease, condominium freehold, and resale villa mandates; external counsel and tax advisers confirm legal and tax treatment before completion.
Page last reviewed: 9 July 2026 · Government and Tier-2 press sources verified · Thai tax adviser review in progress
Before you offer
Model the tax before the deposit
Send the property type, price, tenure route, and seller profile. EPA will map the commercial file; counsel and a Thai tax adviser confirm the final tax treatment before completion.