Fees & tax
Transfer fees and taxes on Thai property: who pays what
Quick answer
Four items dominate transfer day: a 2% transfer fee on the government appraised value; 3.3% specific business tax on the higher of sale or appraised price when the seller has owned under five years and has not been on the house registration for a year; or 0.5% stamp duty instead; plus withholding tax based on appraised value and years of ownership. Treat these as reference rates and confirm them with the Land Office.
The transfer fee
This is 2% of the Land Office appraised value, not the agreed sale price. In Khon Kaen it is commonly split 50/50, though sellers often absorb it to close faster.
The government periodically reduces this fee for homes under a price ceiling. Check what is in force on your transfer date with the Land Office itself.
Specific business tax or stamp duty
If the seller has owned the property for under five years and has not been registered in the house book for a year, specific business tax plus local tax runs about 3.3% of the higher of sale or appraised price.
If an exemption applies, stamp duty of 0.5% is charged instead, which is far cheaper. This is exactly why some owners wait until they qualify before selling.
Withholding tax
It is calculated from the appraised value less a standard deduction based on years of ownership, then annualised into progressive rates. Longer ownership means a larger deduction.
This is the seller's tax on the seller's income, though it can be negotiated into the headline price.
Mortgage registration and forgotten costs
Financed buyers pay 1% mortgage registration on the loan amount, plus duty, the bank's valuation fee and required fire insurance.
Also budget post-transfer items: electricity and water meter transfers, advance common-area fees in estates, and appliance installation. Together these often total tens of thousands of baht.
Key takeaways
- The transfer fee follows appraised value, not the agreed price
- Five years of ownership or one year on the house registration switches SBT to stamp duty
- Write the fee split into the contract to avoid arguments at the counter
- All figures are indicative; confirm with the Khon Kaen Land Office before transfer
FAQ
What do transfer costs look like on a THB 2 million house?
If the appraised value is close to THB 2 million, the 2% transfer fee is around THB 40,000, plus stamp duty or specific business tax and withholding tax depending on ownership history. Ask the Land Office to calculate the exact figures before booking the transfer.
Must buyer and seller always split fees equally?
No. The law sets no split; it is a contract term. A 50/50 split on the transfer fee is common in Khon Kaen, while the seller's taxes usually stay with the seller.
Can appraised and sale prices differ a lot?
Yes, and they usually do. Appraised value drives fees and taxes; the sale price is what the market agreed. Some tax items use whichever is higher.
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