The four charges due at the Land Department, and who typically pays what
Buying or selling property in Thailand means settling up to four separate charges at the Land Department on transfer day: a transfer fee, specific business tax or stamp duty, and withholding tax. None of them are optional, but who pays which portion is negotiable between buyer and seller. Here's what each component actually covers.
The base charge for registering ownership change at the Land Department, calculated on the property's appraised (government) value rather than the actual sale price. The government has at times temporarily reduced this rate as a housing-market stimulus measure, so always check the current rate rather than assuming a fixed percentage.
It depends on the appraised value, sale price, the seller's holding period, and whether the seller is an individual or a company — there's no single flat answer. BaanMe's Transfer Fee Calculator breaks down each component (transfer fee, SBT or stamp duty, and withholding tax) for your specific sale price.
The seller. Withholding tax is a prepayment against the seller's income tax on the sale, so it's their obligation by law, even though it's collected at the Land Department on transfer day alongside the other charges.
Yes. The government has, at various points, temporarily reduced the standard transfer fee rate as part of housing-market stimulus measures, usually for a limited time and sometimes tied to a maximum property value. Always confirm the current rate before budgeting for a sale rather than relying on a rate you saw previously.
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Applies when the seller has owned the property for less than 5 years (with some exceptions, such as using it as a registered primary residence). It's calculated on the higher of the appraised value or the actual sale price, and generally falls on the seller since it's framed as a tax on the sale as a business transaction.
The alternative to specific business tax: if the seller has owned the property for 5 years or more (or otherwise qualifies for an SBT exemption), stamp duty applies instead — the two are mutually exclusive on the same transaction. Stamp duty is generally a smaller charge than SBT and is calculated similarly, on the appraised or sale value.
An advance deduction against the seller's income tax on the sale, collected at transfer. For individual sellers it's calculated progressively based on the appraised value and years of ownership; for corporate sellers it's typically a flat rate on the higher of appraised or sale value. This is a genuine tax obligation on the seller's income, not a fee for the transaction itself.
Thai law doesn't dictate a fixed split between buyer and seller for the transfer fee — only withholding tax is unambiguously the seller's obligation. In practice, common local convention often splits the transfer fee 50/50 and leaves specific business tax/stamp duty and withholding tax to the seller, but this varies by region and negotiation. Get the agreed split written into the Sale and Purchase Agreement before transfer day.