Costs & taxes
Costs of Buying a House in Bangkok: Transfer Fees, Taxes and Who Pays
Every transfer-day fee and tax explained, who usually pays it, a worked THB 30 million example and the costs buyers forget.
Short answer: on top of the price, a buyer of a new house in Bangkok should budget roughly 1–3% for transfer-day fees (more if borrowing), plus advance common fees, utility connection charges and fit-out. The main government charges are the 2% transfer fee on the appraised value (often shared with the seller), 1% mortgage registration fee on the loan (capped at THB 200,000), and taxes that are normally the seller’s responsibility — 3.3% specific business tax or 0.5% stamp duty, and withholding tax. Who pays what is negotiable and is written into the sale contract.
Transfer-day costs: who usually pays
| Item | Rate | Calculated on | Usually paid by |
|---|---|---|---|
| Transfer fee | 2% | Government appraised value | Split 50/50, or seller as a promotion |
| Specific business tax (SBT) | 3.3% | Higher of appraised value or sale price | Seller |
| Stamp duty | 0.5% | Higher of appraised value or sale price — only if SBT does not apply | Seller |
| Withholding tax — company seller | 1% | Higher of appraised value or sale price | Seller |
| Withholding tax — individual seller | Progressive | Appraised value, after deductions for years held | Seller |
| Mortgage registration | 1%, max THB 200,000 | Loan amount | Buyer |
| Lease registration (foreign buyers) | 1% + 0.1% stamp duty | Total rent for the lease term | As agreed |
Government appraised values are usually below market prices, so the transfer fee is often less than 2% of what you pay. The Land Office calculates the exact figures on transfer day.
When does specific business tax apply?
SBT applies when the seller is a business, such as a developer selling a new house, or when an individual sells within five years of acquiring the property. An individual seller is exempt if they have owned the house for five years or more, or if their name has been in the house registration for at least one year; in those cases 0.5% stamp duty applies instead. When you buy from a developer, the developer normally pays SBT and withholding tax.
Worked example: a THB 30 million house
Assume a new house from a developer, a government appraised value of THB 27 million, a THB 20 million loan, and a transfer fee split equally.
| Cost | Buyer pays |
|---|---|
| Half of 2% transfer fee on THB 27M | THB 270,000 |
| Mortgage registration, 1% of THB 20M (at the THB 200,000 cap) | THB 200,000 |
| SBT and withholding tax | THB 0 (paid by the developer) |
| Government charges, buyer’s share | THB 470,000 (about 1.6% of the price) |
A cash buyer in the same case would pay about THB 270,000. These are illustrations — rates and your contract decide the actual amounts.
Costs that are easy to forget
Common-area fee and sinking fund
Housing estates charge a monthly common fee per square wah of land to pay for security, landscaping and the clubhouse. Developers often collect 12–36 months in advance at transfer, plus a one-off sinking fund. Ask for both figures before you book.
Utilities
New houses may need water and electricity meter fees or deposits paid at handover. Amounts depend on meter size and the utility provider.
Fit-out and furniture
Luxury houses are often handed over with a basic specification. Built-in wardrobes, curtains, lighting, air-conditioning in every room and garden work commonly add 10–15% of the price.
Annual land and building tax
Under the Land and Building Tax Act, a house that is the owner’s main residence — owned with the land and with the owner’s name in the house registration — is exempt up to THB 50 million of appraised value. Any value above that, and second homes, are taxed at low annual rates that rise with value.
Insurance and maintenance
Budget for home insurance, pool and system servicing, and repairs after the developer’s warranty ends.
Five ways to keep costs under control
- Ask for the government appraised value in advance so you can estimate fees.
- Negotiate who pays the transfer fee — developers often absorb it during promotions.
- Check what a “free transfer” promotion actually includes; it rarely covers mortgage registration.
- Compare common-fee rates between projects, not just prices.
- Keep 3–5% of the price as a reserve beyond the contract price.
Note: the government has at times reduced transfer and mortgage fees for homes below a price threshold. These measures have targeted lower-priced homes, so they rarely apply to luxury houses — check the current rules with the Land Office.
Related: how to buy a house in Bangkok · lease registration costs.
Sources
- Department of Lands — registration fees: dol.go.th
- Revenue Department — specific business tax, stamp duty and withholding tax: rd.go.th
- Land and Building Tax Act B.E. 2562
Frequently asked questions
What is the transfer fee for a house in Thailand?
2% of the government appraised value of the property. Buyer and seller often split it, and developers sometimes pay it as a promotion.
Who pays specific business tax when buying a house in Thailand?
Usually the seller. SBT of 3.3% applies to developers and to individuals selling within five years, unless they have been in the house registration for at least one year.
How much is the mortgage registration fee in Thailand?
1% of the loan amount, capped at THB 200,000.
Do I pay annual property tax on a house in Bangkok?
Under the Land and Building Tax Act, a main residence owned with its land and registered in the owner’s house registration is exempt up to THB 50 million of appraised value. Value above that, and second homes, are taxed at low annual rates.