Taxes and fees when buying property in Phuket

What does it cost to transfer property in Thailand? Beyond the purchase price, a property transfer carries several government charges, calculated on the appraised (assessed) value or the declared price. Budgeting for them early avoids surprises at the Land Office.

What are the main charges? Four items usually apply: a transfer fee (commonly 2% of the appraised value); specific business tax (around 3.3%) if the seller has held the property for less than five years, or stamp duty (0.5%) if they have held it longer — you pay one or the other, not both; and withholding tax on the seller, which for individuals is calculated on a progressive scale. On a new unit from a developer, the mix and who bears each item can differ.

Who pays what? This is negotiable and should be written into the sale and purchase agreement. A common split is to share the transfer fee 50/50, with the seller covering business tax and withholding — but developers often set their own terms, so read the contract. "Nett price" offers mean the developer absorbs the transfer costs.

What ongoing costs should I budget for? Condominiums charge a monthly common-area fee (per m²) and a one-off sinking fund at handover for major future repairs. Villas in managed estates have their own maintenance and security fees. Factor these into your yield, not just the headline price.

How do I avoid mistakes? Confirm whether quoted prices are gross or nett; ask for a written breakdown of who pays each transfer cost; and have your lawyer verify the assessed value the Land Office will use, since that — not always your price — drives the calculation.