Taxes and Costs of Owning a Condo in Thailand: Buying, Holding and Selling

Thai property has a reputation for being cheap to hold, and that's broadly true. But the cost structure is unfamiliar: the main charge doesn't come annually — it comes at the moment title transfers, and it depends heavily on how long the seller has owned the unit.

Buying and selling: four charges at closing

When title is registered, the Land Department calculates several charges at once. Which party pays which is a matter for the contract — “as is customary” doesn't work here; it needs to be written down.

• Transfer fee — a percentage of the property's assessed government value, not the contract price.
• Specific business tax — charged if the property is sold within five years of purchase. This is the single biggest factor that makes a quick resale in Thailand more expensive than it looks.
• Stamp duty — small, paid instead of the specific business tax when the latter doesn't apply, i.e. after five years of ownership.
• Withholding tax on the seller — calculated on its own formula: for an individual it accounts for the holding period, for a company it's a flat percentage of value.

The practical takeaway from this list: the five-year ownership mark isn't a bookkeeping detail — it's the single biggest fork in the economics of a Thai deal.

While holding: annual tax and maintenance

• Land and buildings tax. In effect since 2020, residential rates are low and depend on the property's value and whether it's your primary home. The notice is sent to the property's address — a non-resident owner should arrange in advance who receives it.
• Monthly maintenance fee — charged per square metre, and on resort projects with heavy amenities it becomes the owner's main recurring cost.
• Sinking fund — a one-off contribution at purchase from the developer, topped up later by decisions of the owners' meeting.
• Utilities. Electricity rates for a foreign owner run higher than the base rate in some projects — set by the management company, worth asking about before buying.

Renting: where the tax kicks in

Rental income is taxed under Thai income tax as Thailand-sourced income — regardless of where the owner lives. A separate issue is short-term rental: hospitality activity is licensed in Thailand, and renting a unit to tourists on short stays without a licence is a violation that penalises the owner, not the tenant. Many condominium management companies also ban it under their own rules.

Common mistakes

• Calculating from the contract price instead of the government assessment. Some charges are tied to the assessed value, which can differ from the market price in either direction.
• Ignoring the five-year mark. A “buy off-plan, sell on handover” model gets eaten into by the specific business tax in Thailand, which changes the whole calculation.
• Forgetting your home country. Thai withholding tax doesn't cancel out the obligation to declare income where you're a tax resident.

Based on Thai tax law, including the Land and Buildings Tax Act, and Land Department transaction registration practice.