Land Transfer Fees in Thailand: Transfer Costs, Taxes and Charges for Individuals and Companies

Land Transfer Costs in Thailand

When transferring land ownership in Thailand, buyers and sellers must consider several taxes and government fees in addition to the agreed sale price. These expenses are paid at the Land Office on the transfer date.

The main costs include transfer registration fees, specific business tax, stamp duty, withholding tax, and mortgage registration fees where financing is involved.

• Transfer fee: 2%
• Specific Business Tax: 3.3%
• Stamp Duty: 0.5%
• Withholding Tax
• Mortgage Registration Fee: 1%

The exact amount depends on ownership type, holding period, assessed value, sale price, and whether the seller is an individual or a company.

Transfer Registration Fee

The transfer fee is generally 2% of the official assessed value determined by the Treasury Department, not the actual selling price.

For example, if the assessed value is THB 3,000,000, the transfer fee is THB 60,000 regardless of whether the selling price is higher.

Formula: Assessed Value x 2%

Buyers and sellers often share this cost equally, although the allocation can be negotiated.

Individual Seller Taxes

Individual sellers may be subject to withholding tax, specific business tax, or stamp duty depending on ownership period and transaction characteristics.

Withholding tax for individuals is calculated using a progressive rate system based on assessed value and years of ownership.

If specific business tax applies, the rate is 3.3%. Otherwise, stamp duty of 0.5% generally applies.

Corporate Seller Taxes

When a company sells land, withholding tax is generally calculated at 1% of the higher of the assessed value or sale price.

Specific Business Tax at 3.3% may also apply. In addition, the company must account for gains or losses under corporate income tax rules.

Proper accounting and tax planning are essential before the transfer takes place.

Example Calculation

Assume a sale price of THB 5,000,000 and an assessed value of THB 4,500,000.

Transfer Fee = THB 4,500,000 x 2% = THB 90,000.

If Specific Business Tax applies, it is calculated on THB 5,000,000, resulting in THB 165,000.

If SBT does not apply, stamp duty may be THB 25,000.

Preparation Before Transfer

Proper preparation helps ensure a smooth transfer process.

• Original title deed
• ID card and house registration
• Company affidavit for corporate parties
• Power of attorney if applicable
• Sale and purchase agreement
• Bank financing documents

All encumbrances and legal restrictions should be verified before the transfer date.

Conclusion

Land transfer costs in Thailand typically include a 2% transfer fee, 3.3% specific business tax where applicable, 0.5% stamp duty, withholding tax, and mortgage registration fees.

Individuals and companies are subject to different tax calculation methods, making advance planning essential.

Buyers and sellers should clearly define responsibility for each expense in the contract and verify the latest regulations with relevant government agencies before completing the transaction.