Ownership Transfer Costs in Thailand
Know the True Expenses Before Transfer Day
Buying or selling property in Thailand involves more than just the agreed purchase price. Ownership transfer day costs are mandatory expenses payable at the Land Office and must be clearly understood in advance to avoid disputes or cash shortfalls.
Overview of Transfer-Day Costs
All fees and taxes are calculated based on the higher value between the sale price and the Land Office’s appraised value, with responsibilities shared according to contractual agreement.
1) Transfer Fee
2% of the appraised value
Responsibility can be agreed by both parties
Common practice: split equally (1% buyer / 1% seller)
2) Mortgage Registration Fee (If Applicable)
1% of the mortgage amount
Typically borne by the buyer
Payable on transfer day if financing is involved
3) Withholding Income Tax (Seller)
Calculated based on
Holding period
Appraised value
Seller’s status (individual or company)
Payable by the seller
4) Specific Business Tax (If Applicable)
3.3% of sale price or appraised value (whichever is higher)
Applies if
Holding period is less than 5 years, and
Seller does not qualify for residential exemption
5) Stamp Duty (If SBT Is Not Applicable)
0.5% of sale price or appraised value
Payable by the seller
Key Notes Before Transfer Day
All payments are made on the same day at the Land Office
Cost responsibility should be clearly stated in the contract
Buyers should prepare a small cash buffer to cover valuation differences
FAQ
Q1: Which price is used to calculate transfer costs?
A: The higher of the sale price or the Land Office appraised value.
Q2: Who pays the transfer fee?
A: As agreed by both parties, commonly split equally.
Q3: Is mortgage registration fee always required?
A: No. It applies only if a mortgage is registered.
Q4: Is Specific Business Tax always payable?
A: No. Certain exemptions apply.
Q5: What applies if Specific Business Tax is not required?
A: Stamp duty at 0.5% applies instead.
