Key takeaways
An individual selling a condo must budget for the transfer fee, either Specific Business Tax (SBT) or stamp duty, and withholding tax (WHT) calculated under a specific method. The holding period and whether the seller is registered in the house registration have a major effect on the total. Confirm the actual amounts with the land office before setting the price.
Introduction
Selling a condo does not end with finding a buyer and attending the transfer. Individual sellers are subject to different tax rules from companies, so costs should be assessed before setting the price.
1. Overview
There are three main groups of costs: the transfer fee, SBT or stamp duty, and withholding tax.
2. Transfer fee
Normally 2% of the appraised value, not the selling price. Buyer and seller can agree to split it, and this should be written into the contract. Temporary fee-reduction measures may apply to certain types of transaction. According to press reports, the fee is reduced to 0.01% until 30 Jun 2027 for eligible buyers, for example Thai-national individuals buying at a price not exceeding THB 7 million. Check the full announcement.
3. SBT or stamp duty
The seller pays one or the other, never both.
SBT of 3.3% applies
In principle when the property is sold within 5 years of the acquisition date, unless an exemption applies. The base is the selling price or the appraised value, whichever is higher.
Stamp duty of 0.5% applies
When SBT does not apply, for example where the property has been held for more than 5 years, or the seller has been registered in the house registration and has lived there as a residence for at least 1 year from the acquisition date under the stated conditions, or the property was acquired by inheritance.
4. Withholding tax (WHT)
For real estate acquired other than for trade or profit, the following steps are generally applied to the appraised value.
- Deduct the standard expense deduction, based on years held, from the appraised value.
- Divide the remainder by the number of years held (counted up to a maximum of 10 years).
- Calculate tax at the progressive rates for sales of real estate, without applying the THB 150,000 exempt band.
- Multiply the annual tax by the number of years held.
| Years held | Standard expense deduction |
|---|---|
| 1 year | 92% |
| 2 years | 84% |
| 3 years | 77% |
| 4 years | 71% |
| 5 years | 65% |
| 6 years | 60% |
| 7 years | 55% |
| 8 years or more | 50% |
Property acquired by inheritance or as a gift out of affection follows separate rules, for example a 50% standard expense deduction, and the applicable tax ceiling should be checked. In some cases the seller may choose to include the income in the year-end tax return, while transactions made for business purposes are subject to different rules.
5. Special cases
- Main residence: if the seller has been registered in the house registration for at least 1 year under the stated conditions, SBT may not apply.
- Selling and buying a replacement: tax benefits are available under certain conditions. Check the ministerial regulation and the purchase and sale dates.
- Inheritance or gift: the rules differ according to the relationship and the facts.
- Government measures: conditions change over time, so check the transfer day every time.
6. Worked example
Example: Mr A sells a condo for THB 5,000,000. The appraised value is THB 4,500,000, he has held it for 3 years, has no SBT exemption, and does not qualify for the fee-reduction measure.
| Item | Calculation | THB |
|---|---|---|
| Transfer fee | 4,500,000 × 2% | 90,000 |
| SBT | 5,000,000 × 3.3% | 165,000 |
| WHT | (4,500,000 × 23%) ÷ 3 = 345,000 per year; tax of 19,500 per year × 3 | 58,500 |
| Total (6.27% of the selling price) | 313,500 |
If we assume instead a full 5-year holding period and the same price: transfer fee 90,000 + stamp duty 25,000 + WHT 82,500 = THB 197,500 (3.95%), a reduction of THB 116,000. These figures are an example only. Confirm the appraised value and the actual tax with the land office.
7. Documents to keep
- The original purchase contract and evidence of the acquisition cost
- Evidence of renovation costs, where the law allows actual expenses to be used
- The loan agreement and interest certificate, which may be used for deductions subject to the conditions and limits set by law
- Receipts for fees and taxes paid on transfer day
8. Points to watch
- Repeated buying and selling of several units: this may be treated as trading or carrying on business for profit, and the tax consequences must be assessed on the facts.
- Setting the price below the appraised value: many items use the appraised value as the minimum base, so this does not reduce the tax.
- Foreign sellers: check tax residence and the double taxation agreement, as well as the documents for remitting funds abroad.
- Selling through a company: corporate rules apply, with the standard CIT rate of 20% on profit, and SBT and 1% WHT as applicable.
Conclusion
The seller's total cost is typically around 3–7% of the selling price, depending on the holding period, exemptions and how fees are split. Before deciding to sell, calculate using the latest appraised value and seek advice from a tax specialist for your own case.