By law, most of that burden sits with the seller. In practice, Phuket's resale market runs on a 50/50 split by custom. Below is every fee broken down, what changed in the government's 2026 fee reduction, and three worked examples using real Phuket price points.
The four fees that make up your closing costs
Thai property transfers are taxed at the Land Office on the day ownership changes hands. Four line items can appear on that bill, though only three of them ever apply to a single sale at once.
| Fee | Rate | Charged On | Owed by Law |
|---|---|---|---|
| Transfer Fee | 2% | Appraised Value | Shared by Buyer & Seller |
| Specific Business Tax | 3.3% | Higher of Appraised or Sale Price | Seller |
| Stamp Duty | 0.5% | Higher of Appraised or Sale Price | Seller |
| Withholding Tax | Variable | Apprised Value by Seller Type | Seller |
Fine print that trips people up
Specific Business Tax and stamp duty are mutually exclusive, not additive. SBT applies if the seller has owned the property for under five years, or is officially in the real estate business (this includes essentially every developer selling off-plan units). Stamp duty only applies when SBT doesn't. You will never pay both on the same transaction, and any breakdown that lists all four fees stacking to a flat total is oversimplifying it.
That mutual exclusivity is why the "roughly 6.8%" total is really a ceiling, not a fixed number: a resale from a seller who has held the unit for six years costs meaningfully less than a resale of a three-year-old off-plan condo, because the 0.5% stamp duty replaces the 3.3% SBT.
Freehold vs leasehold: why one costs six times more
A freehold sale is a full transfer of ownership, so it triggers all four fees above. A leasehold registration is not an ownership transfer at all, it's a registered right to occupy, so the Land Department taxes it on a completely different schedule: a 1% lease registration fee on the total value of the rent across the lease term, plus a 0.1% duty stamp. Total cost lands around 1.1%, versus ~6.8% for freehold.
Leasehold is common in Phuket for land and villas that sit outside the foreign freehold condo quota. It's worth knowing the cost gap exists, but the decision between freehold and leasehold should be driven by ownership security and resale value, not closing costs alone. If you're weighing the two, read our companion guide on property ownership options for foreigners in Thailand before comparing prices.
Who actually pays: the law versus Phuket practice
Thai law puts SBT, stamp duty, and withholding tax on the seller's side of the ledger, with the 2% transfer fee shared. Almost nobody in Phuket's resale market follows that split literally.
- Transfer fee (2%): split 50/50 by both law and near-universal custom.
- SBT or stamp duty, plus withholding tax: legally the seller's cost, but Phuket convention typically splits these 50/50 as well, especially on secondary-market resales between private individuals.
- Off-plan developer sales: developers often quote a "net" price and cover only the 2% transfer fee, passing SBT and withholding tax to the buyer. Always ask what the quoted price includes before you sign a reservation agreement.
The practical fix
Usual practice" is a starting point for negotiation, not a legal default. Whatever split you agree on with the other party, get it written into the Sale and Purchase Agreement in exact percentages before signing. Land Office staff will follow whatever the SPA and both parties state on transfer day.
How the Land Department sets your tax base
Every tax above (except the withholding tax formula, covered separately below) is calculated on whichever is higher: the government's official appraised value, or your declared sale price. The Treasury Department sets appraised values in cycles roughly every four years, and in fast-moving Phuket zones such as Bang Tao, Laguna, and Kamala, appraised values can lag well behind actual market prices between revaluations.
The practical effect: if you're buying in an area where prices have risen quickly since the last valuation cycle, expect the tax base to land close to your real purchase price rather than an outdated, lower appraised figure. Ask your agent or lawyer for the current appraised value before you make an offer, not after.
The 2026 government fee reduction, and why most foreign buyers don't qualify
Thailand's cabinet has repeatedly extended an emergency measure cutting the transfer fee and mortgage registration fee from their standard rates (2% and 1%) down to 0.01% each. The current extension runs through 30 June 2027.
| Condition | Detail |
|---|---|
| Reduced Rate | 0.01% transfer fee + 0.01% mortgage registration fee |
| Price Cap | Purchase price and appraised value both at or under THB 7,000,000 |
| Eligibility | Thai nationals only, buying a house or condo unit |
| In Force Until | 30 June 2027 (extended from the original mid-2026 deadline) |
What this means if you're buying as a foreigner
Thai companies and foreign nationals are explicitly excluded from the reduced rate, regardless of the property's price or your intended use. If you're a foreign buyer purchasing a Phuket condo under freehold ownership, you will pay the standard 2% transfer fee and 1% mortgage registration fee, even on a unit priced well under the THB 7 million cap. None of Thailand's stimulus measures to date have reduced SBT, stamp duty, or withholding tax either, those three remain at the rates listed earlier in this guide regardless of nationality.
The one scenario worth a lawyer's confirmation: a jointly purchased, qualifying home registered predominantly to a Thai spouse. Eligibility in mixed-nationality purchases depends on how the title is registered, not on the household's combined nationality, so don't assume either way without checking first.
Withholding tax: the fee buyers consistently underestimate
Withholding tax uses two entirely different formulas depending on who's selling.
Corporate sellers: a flat 1%
If the seller is a company, whether a developer or a holding company set up around a single villa, withholding tax is a straightforward 1% of whichever is higher: the appraised value or the sale price.
Individual sellers: progressive, not flat
If the seller is a private individual, the Revenue Department calculates withholding tax as if it were personal income tax on the sale, spread across the years of ownership. Three steps:
- Deduct a standard "expense" allowance from the appraised value, based on how many years the seller has owned the property.
- Divide the remaining amount by the number of years owned, to estimate one year's worth of taxable gain.
- Apply Thailand's progressive personal income tax rates to that annual figure, then multiply the resulting tax by the number of years owned.
Years Owned | Deductible Expense Percentage % |
|---|---|
1 Year | 92% |
2 Years | 84% |
3 Years | 77% |
4 Years | 71% |
5 Years | 65% |
6 Years | 60% |
7 Years | 55% |
8+ Years | 50% |
In practice, this means an individual seller who has owned a property for only a year or two often owes noticeably less withholding tax than the flat 1% a company would pay on the same price, while a seller in year six or seven can land close to or above it. It's a genuinely different calculation, not a rounding difference, so don't assume 1% and budget accordingly. A conveyancer or the Land Office can run the exact figure once the appraised value and ownership date are confirmed.
Not sure which side of these numbers you're on?
Storm Phuket's transaction team will run the exact fee split against a specific listing before you make an offer, using the current appraised value, not an estimate.
Three worked scenarios at Phuket price points
Figures below are illustrative, rounded, and assume a foreign buyer under freehold or leasehold as noted. Always confirm exact numbers with a licensed conveyancer once the appraised value is known.
Scenario A: 6,500,000 THB condo resale, individual seller, owned 6 years
| Fee | Rate | Amount (THB) |
|---|---|---|
| Transfer Fee | 2.0% | 130,000 |
| Stamp duty (owned 5+ yrs, no SBT) | 0.5% | 32,500 |
| Withholding tax (individual, progressive) | est. | ~95,000 |
| Total: | ~3.9% | ~257,500 |
Split 50/50 by Phuket convention, each side budgets roughly 128,750 THB. Because the seller held the unit past five years, stamp duty applies instead of the more expensive SBT, which is most of why this scenario lands under the "typical" 6.8% ceiling.
Scenario B: 18,000,000 THB freehold pool villa, corporate seller, owned 3 years
| Fee | Rate | Amount (THB) |
|---|---|---|
| Transfer Fee | 2.0% | 360,000 |
| Specific Business Tax (owned <5 yrs) | 3.3% | 594,000 |
| Withholding tax (corporate, flat) | 1% | 180,000 |
| Total: | 6.3% | 1,134,000 |
Split 50/50, each side budgets roughly 567,000 THB. This is close to the market's "~6.8%" shorthand because a company seller who has held the villa under five years triggers both SBT and the flat corporate withholding rate, the two most expensive versions of each fee.
Scenario C: 12,000,000 THB leasehold villa, 30-year registered lease
| Fee | Rate | Amount (THB) |
|---|---|---|
| Lease registration fee | 1.0% | 120,000 |
| Duty stamp | 0.1% | 12,000 |
| Total: | 1.1% | 132,000 |
No SBT, stamp duty, or withholding tax applies, because no ownership changes hands. This is the cost gap referenced earlier: roughly a sixth of the equivalent freehold total.
What foreign buyers need to arrange before transfer day
- Foreign Exchange Transaction (FET) form. To register a foreign name as freehold owner of a condo unit, the Land Department requires proof the purchase funds were remitted from overseas in foreign currency. Your Thai bank issues this once funds arrive, typically required for transfers of USD 50,000 or more. Wire funds in good time, this cannot be arranged retroactively on transfer day.
- Foreign ownership quota check. Condominium buildings can sell no more than 49% of total saleable floor area to foreign freehold owners. Confirm with the juristic office that the building hasn't hit its quota before you commit to a unit.
- Title deed verification. Confirm whether the land carries a Chanote (full title) or a lesser deed type such as Nor Sor 3 Gor, and have a lawyer check for existing mortgages or liens registered against it.
How to avoid closing-cost surprises
- Get the Land Department's current appraised value before you sign the Sale and Purchase Agreement, not on transfer day.
- Write the exact fee and tax split into the SPA. Don't rely on "that's just how it's done here."
- Ask a developer directly whether their quoted price includes SBT and withholding tax, or only the transfer fee.
- If the seller is an individual who has owned the property under five years, budget for the 3.3% SBT rate rather than the cheaper 0.5% stamp duty.
- If you're structuring a purchase as leasehold specifically to reduce transfer costs, confirm the lease registration schedule with your lawyer before assuming the ~1.1% figure applies to your exact deal.
Frequently asked questions
How much are property transfer fees and taxes in Thailand?
For a standard freehold sale, expect roughly 6.8% of the Land Department's appraised value in total, made up of a 2% transfer fee, either 3.3% Specific Business Tax or 0.5% stamp duty, and a withholding tax that varies by seller type. Leasehold transfers cost around 1.1% instead.
Who pays the transfer fee, the buyer or the seller?
By law and by near-universal Phuket custom, the 2% transfer fee is split 50/50 between buyer and seller. Other taxes are legally the seller's responsibility, but are frequently split 50/50 by market convention too, so confirm the split in writing before signing.
What's the difference between Specific Business Tax and stamp duty?
They're mutually exclusive alternatives, never charged together. SBT (3.3%) applies if the seller owned the property under five years or sells as a business, including most developers. Stamp duty (0.5%) applies only when SBT doesn't, typically a private seller who has held the property five years or longer.
Do foreigners qualify for Thailand's 0.01% transfer fee discount?
No. The reduced 0.01% transfer and mortgage registration fee, extended through 30 June 2027, applies only to Thai nationals buying a qualifying home priced at or under THB 7,000,000. Foreign buyers and Thai companies pay the standard 2% and 1% rates regardless of price.
How much lower are the costs for a leasehold property?
Roughly a sixth of freehold. Leasehold registration triggers a 1% lease registration fee and a 0.1% duty stamp, around 1.1% total, because a lease is a registered right to occupy rather than a transfer of ownership.
How is withholding tax calculated when the seller is an individual?
Not as a flat percentage. The Revenue Department deducts a standard expense allowance from the appraised value based on years of ownership, divides the remainder by the number of years owned to estimate annual income, then applies progressive personal income tax rates to that figure before multiplying by the years owned. A conveyancer can calculate the exact figure once the appraised value and purchase date are confirmed.
