Taxes and Government Fees When Selling Property in Thailand

Property Sales via Company Takeover

If a property is sold by transferring ownership of a company (either Thai or offshore), the property itself does not legally change hands. Instead, the transaction involves a transfer of shares, and no real estate transfer taxes or fees apply. For a Thai company: a 0.1% stamp duty applies on the share value, and the seller is liable for personal income tax on any capital gains. For an offshore company: the transaction occurs outside Thailand and is not taxable in Thailand, though taxes may apply in the other jurisdiction.

Property Sales by Setting up a New Company

Where a property is sold without taking over a company, then there is an actual transfer of property ownership. A real estate transaction has occurred and government fees and taxes need to be paid. These can account for up to 6% of the contract price. The taxes and fees involved vary according to whether the ownership is leasehold or freehold.

Leasehold Sales

When selling leasehold property (land or building), the following apply:

• Stamp duty: 0.1% of the total lease value, typically paid by the seller.
• Lease registration fee: 1%, typically split 50:50 between buyer and seller.

These rates and responsibilities apply whether the seller is an individual or a company. Summary of Leasehold Transfers

Tax/Fee	Rate	Party Liable
Stamp duty	0.1%	Seller
Lease registration fee	1%	Buyer and seller share 50:50

Freehold Sales

For freehold transactions (e.g. land or a freehold condo), the following apply:

• Transfer registration fee: 2% of the land office appraised value (usually lower than market value). Normally split equally, though terms vary.
• Withholding tax:
  • 1% if the seller is a company (based on the higher of appraised value or sale price).
  • If the seller is an individual, this is calculated based on a combination of ownership duration, appraised value, and progressive income tax rates.
• Specific Business Tax (SBT): 3.3% of the higher of appraised value or sale price, if the sale is deemed commercial (held under 5 years or in a company name).
• Stamp duty: 0.5%, applies only if SBT is not applicable.

In practice, while these taxes are technically seller obligations, many deals result in the parties splitting the full tax and fee burden equally. Summary of Freehold Transfers

Tax/Fee	Rate	Party Liable
Transfer registration fee	2%	Buyer and seller share 50:50
Withholding tax	1% (company) or variable (individual)	Seller
Specific Business Tax	3.3%	Seller
Stamp duty	0.5%	Seller

Declared Value and Capital Gains Exposure

When a property is sold in Thailand, the capital gain is calculated based on the difference between the declared value at the time when the property was purchased and the declared value now being recorded at the Land Office for the sale. It is common for buyers and sellers to declare a purchase price well below the actual market value — sometimes as low as one-third to one-half — in order to reduce transfer taxes and fees. However, this can create issues when the property is sold. From the seller’s perspective, if the property was originally purchased with a declared value lower than the actual price paid, and the sale is now recorded at the true market value, the gain will appear artificially high. This exaggerated profit figure increases the seller’s exposure to capital gains tax. Legal advice is strongly recommended to assess the implications of declared values on capital gain exposure.

Capital Gains Tax

Thailand does not have a separate capital gains tax code — capital gains are taxed as income.

• If the seller is a person, the capital gain is taxed as personal income (10–35% depending on the amount).
• If the seller is a Thai company, the gain is taxed as part of corporate income (0–20% depending on profit level).

Repatriation of Funds

When it comes to repatriating funds, proper documentation is required in order to repatriate the original capital amount tax-free. With the right paperwork, sellers can repatriate the same amount they initially sent into Thailand without incurring tax — only the capital gain is subject to income tax. This documentation consists of either a Foreign Exchange Transfer Form (FET) or a letter from the bank confirming that the funds were transferred from overseas and converted into Thai baht.

Personal Income Tax (Individuals)

Foreigners selling property registered in their personal name are subject to personal income tax on the gain. This is calculated on a progressive scale after allowable expenses.

Income After Expenses (THB)	Tax Rate (%)
Up to 150,000	0
150,001 – 300,000	5
300,001 – 500,000	10
500,001 – 750,000	15
750,001 – 1,000,000	20
1,000,001 – 2,000,000	25
2,000,001 – 5,000,000	30
Over 5,000,000	35

Corporate Income Tax (Companies)

If a Thai company sells real estate and makes a profit, that gain is taxed like any other business income under corporate income tax (CIT) rules. For companies with up to 5 million baht paid-up capital:

Net Profit (THB)	Tax Rate (%)
Up to 300,000	0
300,001 – 3,000,000	15
Over 3,000,000	20