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Withholding Tax in Thailand: 7 Numbers That Decide Every Property Deal in 2026
Sell a condominium in Phuket for 10 million baht and, depending on how well you know the rules, you could lose anywhere from 300,000 to 1,500,000 baht in taxes alone. Withholding tax (WHT) in Thailand is not a footnote in your purchase agreement — it is real money deducted at the Land Department counter the moment ownership transfers. Most foreign buyers discover this only when they are already standing in the Land Office queue, with no room left to maneuver.
This guide covers every tax and fee involved in buying, selling, and renting property in Thailand — with exact rates, calculation formulas, and practical scenarios for international investors and expats.
Quick Answer
- Withholding tax (WHT) on sale — withheld from the seller at a progressive rate of 5% to 35% for individuals; a flat 1% for corporate sellers
- Transfer fee — 2% of the appraised value, typically split 50/50 between buyer and seller
- Specific Business Tax (SBT) — 3.3% if the property has been held for fewer than 5 years
- Stamp Duty — 0.5%, payable only when SBT does not apply
- Rental income WHT for non-residents — 15% withheld at source
- Double taxation agreements (DTAs) exist between Thailand and numerous countries, allowing taxes paid in Thailand to offset obligations at home
- All taxes are calculated on the appraised value set by the Land Department — not the contract price
Scenarios and Options
Scenario 1 — Buying a New-Build Condominium from a Developer
Purchasing directly off-plan or from a developer carries the lightest tax burden. The buyer typically pays only their share of the transfer fee — around 1% of the appraised value, with the developer covering the other half. In practice, many Phuket and Pattaya developers absorb the full transfer fee during promotional campaigns. Withholding tax does not affect the buyer — it is the seller's liability.
If the developer is VAT-registered, a 7% VAT applies to the sale price. This is almost always built into the quoted price, but always confirm in writing before signing.
Scenario 2 — Resale by an Individual Foreign Seller
This is where the arithmetic becomes serious. When an individual sells, the Land Department calculates WHT using Thailand's Personal Income Tax (PIT) progressive scale. The base is the appraised value divided by the number of years held (capped at 10 years). That annual figure is taxed at the following rates:
- Up to 150,000 baht — exempt
- 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%
- Above 5,000,000 — 35%
The annual tax figure is then multiplied back by the number of years held. The longer you own the property, the lower your effective rate — a meaningful incentive for long-term investors.
Scenario 3 — Selling Through a Thai Company
When property is held by a Thai limited company, WHT drops to a flat 1% of the appraised or contract value, whichever is higher. For high-value assets, this can represent enormous savings. The trade-off: annual accounting and audit costs of 15,000–30,000 baht, plus a 20% corporate income tax on net profit. For investors holding multiple properties or high-value units, the corporate structure often remains cost-effective over the medium term.
Scenario 4 — Renting Out Your Property
Rental income earned by a non-resident is subject to 15% WHT, withheld at source. If the property is managed by a hotel operator or rental pool company, they deduct and remit this tax automatically. If renting privately to an individual, the legal obligation to declare the income falls on the property owner.
Many countries have double taxation agreements with Thailand, meaning taxes paid in Thailand can be credited against your home-country tax liability. This prevents paying twice on the same income — but requires proper declarations in both jurisdictions.
Tax and Fee Comparison Table
| Tax or Fee | Rate | Who Pays | When It Applies |
|---|---|---|---|
| Transfer Fee | 2% of appraised value | Buyer and seller (50/50) | Every transaction |
| WHT — Individual Seller | 5–35% progressive | Seller | On sale |
| WHT — Corporate Seller | 1% flat | Seller | On sale |
| Specific Business Tax (SBT) | 3.3% | Seller | Held fewer than 5 years |
| Stamp Duty | 0.5% | Seller | When SBT does not apply |
| Rental Income WHT (non-resident) | 15% | Owner (withheld by tenant or operator) | Each rental payment |
| Corporate Income Tax | 20% | Company owner | Annually on net profit |
Main Risks and Mistakes
1. Ignoring the gap between contract price and appraised value. The Land Department applies its own government appraisal, reviewed every four years — most recently updated in 2024. If you paid 8 million baht but the appraised value is 9 million, taxes are calculated on 9 million. Never assume the two figures align.
2. Selling within the first five years. SBT at 3.3% is a significant additional cost. On a 15 million baht property, that is 495,000 baht on top of WHT and transfer fees. Factor this into your exit timeline at the point of purchase.
3. Relying on verbal agreements about cost-splitting. Thailand has no statutory requirement for a 50/50 transfer fee split — it is convention, not law. Always document the agreed allocation in the sale and purchase contract.
4. Forgetting to file in your home jurisdiction. Double taxation relief only applies when you correctly declare income in both countries. Failing to report Thai-sourced rental or capital gains income at home can expose you to penalties regardless of what you paid in Thailand.
5. Overlooking VAT on developer sales. Large developers are registered VAT entities. The 7% VAT is usually included in the listed price, but confirm this in writing — particularly on commercial-use condominiums.
FAQ
What is withholding tax on property sales in Thailand? It is a tax deducted from the seller at the moment of title transfer registration at the Land Department. Individuals are taxed on a progressive scale from 5% to 35%; companies pay a flat 1%.
Does the buyer pay withholding tax? No. WHT is entirely the seller's obligation. The buyer typically pays their share of the transfer fee — usually 1% of the appraised value.
How can sellers reduce their withholding tax? Three approaches: hold the property longer (the tax base is spread over more years, lowering the annual figure); sell via a Thai company (flat 1%); or price the sale close to the appraised value to avoid a higher calculation base.
Is rental income taxed in Thailand? Yes. Non-residents pay 15% WHT on rental income. Operators or management companies withhold and remit this automatically; private landlords must self-declare.
What happens if I sell before five years of ownership? In addition to WHT, you pay Specific Business Tax at 3.3% of the appraised value or sale price — whichever is greater.
What taxes apply when buying a new condominium in Phuket? Primarily the transfer fee — usually 1% of the appraised value (your half of the standard 2%). Many developers absorb this entirely. VAT of 7% applies to developer sales and is generally included in the quoted price.
Can overpaid withholding tax be refunded? Yes. If your annual tax return shows that actual liability is lower than the amount withheld, the Revenue Department must refund the difference. The process typically takes three to six months.
How do I calculate taxes before signing? Request the official appraised value from your local Land Office, confirm the years of ownership, and apply the formulas above. Alternatively, engage a licensed Thai tax consultant — fees typically run 3,000–5,000 baht for a standard consultation.
Practical rule of thumb: budget 5–8% of the property value to cover all taxes and fees on any Thai real estate transaction. Calculate the precise figure before signing anything, document cost allocations in the contract, and consult a qualified tax adviser in both Thailand and your home country.
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