What taxes do I pay when buying a condo in Pattaya?

When buying a condo in Pattaya, the main government fees paid at the Land Department are: Transfer Fee (2% of appraised value, typically split 50/50 between buyer and seller), Specific Business Tax or SBT (3.3% of appraised value, paid by the seller if they have owned the property for fewer than 5 years), Stamp Duty (0.5% if SBT is exempt), and Withholding Tax (deducted from the seller). As a buyer, your main out-of-pocket tax cost is typically 1% of appraised value for your share of the transfer fee.

What is the annual property tax on a condo in Thailand?

Under the Land and Building Tax Act (2019), the annual tax on a residential condo in Thailand is calculated on the government-appraised value — not the market price. For an owner-occupied primary residence, the rate is 0.02% per year with an exemption on the first THB 50 million of appraised value. For a non-primary residence or investment property, the rate is 0.02%–0.3%. On a condo with a government appraised value of THB 3 million, the annual tax bill is approximately THB 600–9,000 depending on usage.

Who pays transfer fee when buying a condo in Thailand — buyer or seller?

The 2% Transfer Fee is legally payable at the Land Department and by convention is split 50/50 between buyer and seller — each paying 1% of the government-appraised value. However, this split is negotiable and varies by project and developer. Some developers absorb the full transfer fee as a sales incentive; others insist the buyer pays the full 2%. Always clarify the fee split in writing in your Sale and Purchase Agreement before signing.

What is Specific Business Tax (SBT) in Thai property?

Specific Business Tax (SBT) is a 3.3% tax (3% SBT plus 0.1% local tax) applied to the higher of the appraised value or sale price when a property is sold within 5 years of purchase. It is the seller's tax but is often negotiated between buyer and seller at the time of purchase. If the seller has owned the property for 5 or more years, SBT is waived and 0.5% Stamp Duty applies instead — making long-held property cheaper to transfer.

Property Tax in Thailandfor Foreigners

Q: Do foreigners pay property tax in Thailand?

Yes. Foreign condo owners in Thailand are subject to the Land and Building Tax (introduced in 2020), which applies to all property owners regardless of nationality. The annual rate for residential properties is 0.02% of the government-appraised value for owner-occupied units and up to 0.3% for non-primary residences. In practice, the annual tax bill for a typical Pattaya condo is very low — often THB 500–5,000 per year.

Q: Is there capital gains tax on property in Thailand?

Thailand does not have a separate capital gains tax on property. Instead, profit from property sales is taxed through the Withholding Tax mechanism — calculated on a progressive scale based on the appraised value and years of ownership, applied to the seller's gross proceeds rather than the actual profit. The effective withholding tax rate typically ranges from 1% to 3% of appraised value for individual sellers.

1The Six Taxes Every Buyer Must Know

Thai property transactions involve up to six distinct government taxes and fees. Some are paid once at the Land Department on transfer day; one is paid annually as long as you own the property. Here is the complete map:

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Transfer Fee

Buyer & Seller · One-time

Of government appraised value. Typically split 50/50 — each party pays 1%.

📋

Specific Business Tax

Seller · One-time

3.3%

Applies if seller held property under 5 years. Replaces Stamp Duty when triggered.

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Stamp Duty

Seller · One-time

0.5%

Applies only when SBT is exempt (seller held 5+ years). Cannot occur simultaneously with SBT.

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Withholding Tax

Seller · One-time

1–35%

Progressive rate on appraised value × years owned. Effective rate typically 1–5% for individuals.

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Land & Building Tax

Owner · Annual

0.02–0.3%

Annual tax on government appraised value. Rate depends on property use (residential, commercial, agricultural).

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CAM & Sinking Fund

Buyer / Owner

Varies

Not a government tax — building maintenance fees paid to the juristic person. THB 30–80/sqm/month.

2Transfer Fee — The Biggest Buyer Cost

The Transfer Fee is a 2% levy paid to the Land Department on the government’s appraised value of the property — not the actual sale price. The appraised value is set by the Treasury Department and is typically 20–40% lower than market value, which significantly reduces the effective tax burden compared to what buyers initially expect when told “2% transfer fee.”

Critical distinction: The Transfer Fee is calculated on the government appraised value, not the purchase price. If you buy a condo for THB 5,000,000 but the government appraised value is THB 3,200,000, the 2% Transfer Fee is calculated on THB 3,200,000 — giving a fee of THB 64,000, not THB 100,000. Always ask your agent for the building’s current Land Department appraised value before estimating costs.

Who Pays — and How to Negotiate

By convention, the Transfer Fee is split evenly — the buyer pays 1% and the seller pays 1%. However, this is not legally mandated. In a competitive market, sellers sometimes absorb the full 2% as an incentive. In a buyer’s market, some developers pass the full cost to the buyer. The fee split must be clearly stated in your Sale and Purchase Agreement. If the SPA is silent on this point, raise it with your lawyer before signing.

3Specific Business Tax — The Seller’s Major Cost

Specific Business Tax (SBT) — often written as “โรงแรมและธุรกิจนำเที่ยว” on tax forms — is a 3.3% levy (3% base tax plus 0.1% local government surcharge) applied to the higher of the appraised value or sale price when a property is sold within five years of the seller’s original purchase.

SBT is formally the seller’s liability, but in practice it is frequently a negotiation point between buyer and seller at the time of purchase. In a hot market with strong demand, sellers hold firm and absorb SBT themselves. In a softer market — or when purchasing directly from a developer who has held the units since construction — buyers may be asked to contribute to or fully absorb the SBT.

The Five-Year Rule

If the seller has owned the property for five or more years (or has their name on the house register for at least one year — a separate qualification route for inherited property), SBT is completely waived and the 0.5% Stamp Duty applies instead. This makes properties held by long-term owners significantly cheaper to transfer:

Held under 5 years

3.3%

SBT applies

Seller’s cost

Held 5+ years

0.5%

Stamp Duty applies
SBT waived

Seller’s cost

Your savings

2.8%

Cost reduction when buying from long-term owner

On appraised value

Buyer strategy tip: When comparing two similar units — one from a developer or investor who bought recently, one from a long-term owner — factor in the SBT saving. On a THB 4 million appraised-value unit, the SBT saving of 2.8% = THB 112,000. This can be a meaningful negotiating lever or a genuine reason to prefer the long-held property.

4Withholding Tax — How It Is Calculated

Withholding Tax (WHT) is the closest thing Thailand has to a capital gains tax on property — though it is not a true capital gains tax, since it is calculated on a formula based on the appraised value and years of ownership, not on actual profit. It is the seller’s tax, deducted at the Land Department before proceeds are released.

The calculation is complex and uses progressive tax tables set by the Revenue Department. The Land Department handles the computation automatically, but understanding the mechanism helps buyers assess a seller’s flexibility on price:

Years of Ownership	Deduction from Appraised Value	Net Taxable Amount	Effective Rate (Approx.)
1 year	8%	92% of appraised value ÷ 1 year	~4–6%
3 years	24%	76% of appraised value ÷ 3 years	~2–4%
5 years	40%	60% of appraised value ÷ 5 years	~1.5–3%
8 years	64%	36% of appraised value ÷ 8 years	~1–2%
10+ years	80%	20% of appraised value ÷ 10 years	~0.5–1.5%

The effective rate decreases significantly the longer a seller has owned the property. A long-held condo may attract WHT of only 1–2% of appraised value, while a recently purchased unit sold quickly may attract 5–6%. The Land Department calculates the exact figure from official tables — your lawyer can estimate this in advance.

5Land & Building Tax — Your Annual Bill

The Land and Building Tax Act (B.E. 2562, enacted 2020) replaced the old House and Land Tax and Local Development Tax. It introduced a modern annual property tax applicable to all property owners in Thailand — including foreign nationals who own condominium units.

The good news: the effective annual tax on a Pattaya condo is extremely low. The base rate is applied to the government appraised value (not market price), and residential rates start at 0.02% per year.

Primary Residence

0.02% per year

Owner-occupied home. First THB 50M of appraised value is exempt. Rarely exceeds THB 2,000/year for a typical condo.

THB 3M appraised → THB 0/year (under exemption)

Non-Primary Residence

0.02–0.1% per year

Secondary home or investment unit not registered as primary. Applies progressively from 0.02% up to 0.1% for high-value properties.

THB 3M appraised → THB 600–3,000/year

Rental / Commercial Use

0.3% per year

Property used for commercial purposes including short-term rental. Maximum residential rate is 0.3% of appraised value.

THB 3M appraised → THB 9,000/year

Unused / Vacant

0.3–3% per year

Escalates every 3 years for vacant land. Condos left entirely unused may be reclassified — speak to your juristic person about registration.

THB 3M appraised → up to THB 90,000/year

Practical note: In Pattaya, the annual LBT bill for most foreign condo owners is collected by the local municipality (Pattaya City) and delivered annually, usually in January–February for the previous tax year. The juristic person (building management) sometimes collects this on behalf of owners and adds it to common area maintenance billing. Confirm with your building office how and when this is collected.

6Real Calculation: THB 5 Million Pattaya Condo

Here is a worked example for a Pattaya condo with a market price of THB 5,000,000 and a government appraised value of THB 3,200,000 (a typical 36% discount to market). The seller has owned for 3 years. Transfer fee split 50/50 by agreement:

Transaction Cost Breakdown

Market Price: THB 5,000,000 · Appraised Value: THB 3,200,000 · Seller held: 3 years

Transfer Fee (2% × THB 3.2M) Split 50/50 THB 64,000 total

→ Buyer’s share of Transfer Fee Buyer THB 32,000

→ Seller’s share of Transfer Fee Seller THB 32,000

Specific Business Tax (3.3% × THB 3.2M) Seller THB 105,600

Stamp Duty Seller Waived (SBT applies)

Withholding Tax (approx. 2.5% effective, 3 yrs) Seller ~THB 80,000

Sinking Fund (est. THB 450/sqm × 50 sqm) Buyer THB 22,500

Independent Lawyer Fee Buyer ~THB 20,000

Total Buyer’s Tax & Fee Cost ~THB 74,500

As % of purchase price ~1.5%

Buyer costs

Seller costs

Split costs

Key takeaway from this example: The buyer’s effective out-of-pocket tax and fee cost on a THB 5M condo is approximately THB 74,500 — or about 1.5% of purchase price. The seller bears the much heavier burden: SBT alone is THB 105,600. This is why seller motivation matters in fee negotiations and why total transaction cost looks very different from each party’s perspective.

7Ongoing Annual Costs as an Owner

Beyond the one-time transfer costs, foreign condo owners in Pattaya face a predictable set of annual and monthly expenses. None are particularly burdensome by international standards, but they should factor into your total cost of ownership calculation:

Cost Item	Frequency	Typical Amount	Who Collects	Notes
Land & Building Tax	Annual	THB 0–9,000+	Pattaya City	Varies by use & appraised value. Primary residence often near zero.
Common Area Maintenance	Monthly	THB 30–80/sqm	Juristic Person	Covers pool, gym, security, lift, gardens. Average THB 2,500–5,000/mo for 60 sqm unit.
Sinking Fund Top-up	Periodic	As needed	Juristic Person	One-time fee at purchase; additional calls rare but possible for major repairs.
Building Insurance	Annual	THB 1,000–4,000	Insurer	Structure covered by building policy; contents insurance is owner’s choice.
Utilities	Monthly	THB 1,500–6,000	MEA / PEA	Electricity (THB 4–6/unit), water, internet. Varies greatly by usage & building.
Income Tax (if renting)	Annual	5–35% of net income	Revenue Dept.	Rental income is taxable. Foreign owners should register with Revenue Dept. if generating Thai rental income.

8Tax on Rental Income — What Foreign Owners Must Know

If you rent out your Pattaya condo — whether on a long-term lease to an expat or through short-term platforms — the rental income is taxable in Thailand under the Revenue Code. This applies to foreign owners as well as Thai nationals.

How Rental Income Tax Works

Rental income from Thai property is classified as assessable income under Section 40(5) of the Revenue Code. Individual foreign owners are taxed at the standard personal income tax (PIT) rates — progressive from 0% on the first THB 150,000 to 35% on income above THB 5,000,000. A standard deduction of 30% of gross rent is allowed for residential property (or actual expenses if higher).

Important for foreign owners: Many foreign condo owners in Pattaya who receive rental income do not register with the Thai Revenue Department and do not file annual tax returns. This is technically non-compliant. While enforcement against foreign individual owners has been limited historically, increased scrutiny of property rental income — particularly through short-term platforms — is a growing trend. Consult a Thai tax advisor if you generate regular rental income from a Pattaya property.

Guaranteed Rental Programs

Many Pattaya developers offer guaranteed rental programs — typically 5–7% per annum for 3–5 years, paid by the developer. Under these arrangements, the developer manages and operates the unit and pays you a fixed return. The tax treatment of this income stream depends on how payments are structured and whether they are classified as rental income or a developer incentive. Always consult a Thai accountant before enrolling in a guaranteed rental program.

9Tax When You Sell — Repatriation & Withholding

When a foreign condo owner sells their Pattaya unit and wants to repatriate the proceeds, two key issues arise:

You become the seller — Withholding Tax applies to you

When you sell, you are now the seller. The Land Department deducts Withholding Tax from your proceeds before releasing funds — calculated using the same formula as above (progressive rate × appraised value ÷ years owned). If you held for 5+ years, this cost is meaningfully reduced.

TT3 document is required to repatriate proceeds

The Foreign Exchange Transaction form (TT3) you received when you originally remitted funds to buy the property is required to prove the money came from overseas. Without it, your bank may not release the equivalent sum as a foreign outward transfer. Keep this document safely — it is not reissuable.

You can repatriate up to the original remittance amount

Thai regulations allow foreign nationals to repatriate an amount equal to the original foreign currency remittance (as evidenced by the TT3). Profit above this amount may require additional documentation or may be subject to foreign currency controls. Your Thai bank’s international desk will guide you through this at the time of sale.

SBT waived if you sell after 5+ years

If you hold the property for five or more years before selling, Specific Business Tax (3.3%) is waived and only Stamp Duty (0.5%) applies to your transfer. For investors with a medium-to-long holding horizon, the tax cost of exit decreases substantially after the five-year mark — a meaningful factor in your hold-vs-sell calculation.

10Tax Document Checklist for Buyers

FET Form (TT3) — proof of overseas remittance from your bank. Required at Land Department transfer and when repatriating sale proceeds. Never lose this.
Land Department appraised value certificate — your lawyer or agent obtains this to calculate exact fees before transfer day. Avoids surprises.
SPA fee split clause — your Sale and Purchase Agreement must explicitly state who pays which portion of the Transfer Fee. If silent, negotiate before signing.
Seller’s ownership duration confirmation — verify how long the seller has held the unit. Under 5 years = SBT applies (3.3%); 5+ years = Stamp Duty only (0.5%). Affects your fee negotiations.
CAM fee rate confirmation — ask the juristic person for the current common area maintenance rate per sqm and any outstanding CAM arrears from the current owner (which transfer to you as new owner in some buildings).
Revenue Department registration (if renting) — if you plan to generate rental income, register with the Thai Revenue Department after purchase to ensure tax compliance. A Thai accountant can handle this for THB 3,000–8,000 per year.

Frequently Asked Questions

Do foreigners pay property tax in Thailand?

Yes. Foreign condo owners in Thailand pay the same Land and Building Tax as Thai nationals — there is no nationality-based exemption. The annual rate for a non-primary residential property is 0.02%–0.3% of the government appraised value. For most Pattaya condos, this results in an annual bill of THB 600–9,000 — extremely low by international standards. If you use the unit as your primary registered residence, the first THB 50 million of appraised value is exempt, meaning most foreign retirees and long-stay expats pay zero annual LBT.

What taxes do I pay when buying a Pattaya condo?

As a buyer, your main government cost is your share of the Transfer Fee — typically 1% of the government appraised value if split 50/50 with the seller. You also pay the Sinking Fund (a one-time payment to the building, typically THB 300–600/sqm) and any legal fees. The heavier taxes — Specific Business Tax, Withholding Tax, and Stamp Duty — are all formally the seller’s responsibility, though they are frequently negotiated between parties.

Is there capital gains tax on property in Thailand?

Thailand does not have a standalone capital gains tax on property. Instead, profit from property sales is captured through the Withholding Tax system — a progressive levy calculated on the government appraised value divided by years of ownership, then taxed at standard income tax rates. The effective rate is typically 1–5% of appraised value for individual sellers, decreasing the longer you hold the property. It is not calculated on actual profit, which means it applies even if you sell at a loss.

What is SBT and who pays it?

Specific Business Tax (SBT) is a 3.3% levy on the higher of the appraised value or sale price, applied when the seller has held the property for fewer than five years. It is formally the seller’s tax but is a frequent negotiation point. If the seller has owned the property for five or more years, SBT is fully waived and only 0.5% Stamp Duty applies — saving the equivalent of 2.8% of appraised value. Understanding whether SBT applies is one of the most important pre-purchase questions to ask.

Do I need to pay tax on rental income from my Pattaya condo?

Yes. Rental income from Thai property is taxable in Thailand for both Thai and foreign owners under the Revenue Code. A 30% standard deduction of gross rent is allowed for residential property. The remaining 70% is subject to personal income tax at progressive rates from 0% to 35%. In practice, many foreign owners with a single rental condo fall into low tax brackets and pay minimal tax after deductions — but registration with the Revenue Department and annual filing is technically required. Consult a Thai tax accountant for your specific situation.

Can I bring my sale proceeds back home after selling?

Yes — provided you kept the original Foreign Exchange Transaction form (TT3) from when you remitted funds to buy the property. This document proves the money was brought into Thailand from abroad and allows you to repatriate the equivalent amount after the sale. Without the TT3, repatriation is significantly more complicated. Thai banks can repatriate amounts up to the TT3-documented sum routinely; proceeds above this amount may require additional documentation and bank compliance review.

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Disclaimer: Tax rates, exemption thresholds, and regulations are correct as of April 2025 based on publicly available Thai Revenue Department and Land Department guidelines. Tax law changes frequently. This article is for general information only and does not constitute tax or legal advice. Always consult a licensed Thai tax advisor or property lawyer before making decisions. 9Pattaya accepts no liability for actions taken based solely on this content.