Phuket Property Taxes and Fees: Complete Guide 2026

Understanding all the taxes and fees involved in Phuket property transactions is essential for accurate budgeting and avoiding surprises. Thailand’s property tax system is actually relatively simple and low by international standards — but it has multiple components that buyers, owners, and sellers need to understand.

This guide covers every tax and fee you’ll encounter across the property lifecycle: purchase, ownership, rental, and sale.

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Taxes and fees at the time of purchase (transfer)

All taxes and fees at transfer are calculated based on either the appraised value (set by the Land Department) or the declared transaction price, whichever is higher.

1. Transfer fee: 2% of appraised/declared value

The main transfer fee. Standard is 2% split 50/50 between buyer and seller (1% each). However, this is negotiable in the purchase agreement — sometimes buyer pays 2% fully, sometimes seller pays fully.

Who pays: Negotiated — typically split 50/50, but sometimes seller pays all as a concession. Example: $200,000 property → $4,000 total transfer fee → $2,000 buyer, $2,000 seller if split.

2. Specific Business Tax (SBT): 3.3% of appraised/declared value

Applies when:

The seller has owned the property for less than 5 years
Or the seller is a company

Who pays: Seller (occasionally negotiated). Example: $200,000 property sold within 3 years of purchase → seller pays $6,600 SBT.

If SBT applies, stamp duty (below) does NOT apply — it’s one or the other.

3. Stamp duty: 0.5% of appraised/declared value

Applies when:

The seller has owned the property for 5 or more years (individual seller, not company)
In this case, SBT does NOT apply

Who pays: Seller. Example: $200,000 property after 5 years ownership → $1,000 stamp duty.

4. Withholding tax (seller’s income tax)

The Land Department withholds an income tax from the seller at transfer. The calculation method depends on seller type:

For individual sellers: Progressive calculation based on appraised value and years owned (treated as personal income). Typically 1–5% of appraised value for most residential transactions. Your Thai lawyer can calculate exactly.

For company sellers: 1% of appraised value.

Who pays: Seller. (Not a buyer concern, but impacts seller’s net proceeds and their negotiating position.)

Summary: total transfer costs at a glance

Transaction	Transfer Fee	SBT	Stamp Duty	Total approx
Buyer from developer (new)	1% (buyer’s share)	Typically seller pays	—	~1% of price
Resale (held under 5 years)	1% each	Seller pays 3.3%	—	Buyer: ~1%, Seller: ~4.3%+
Resale (held 5+ years)	1% each	—	Seller: 0.5%	Buyer: ~1%, Seller: ~1.5%+

Practical budget: As a buyer, budget approximately 1–2% of purchase price for your portion of transfer costs. If you negotiate seller paying full transfer fee, your cost may be minimal.

Ongoing ownership costs

Annual land and building tax

Thailand implemented a new Land and Building Tax Act in 2020. For residential property owned by individuals as a second home/investment:

Rate: 0.02% – 0.10% of appraised value per year (varying by value) Example: A property with appraised value of 5,000,000 THB ($140,000) → approximately 1,000–5,000 THB/year ($28–$140)

This is extremely low by global standards. Don’t worry about the annual land tax — it’s negligible for most Phuket residential properties.

Principal residence: Even lower / exempt for primary residence use.

Common area maintenance fees (HOA)

Monthly fees paid to the building’s juristic person for common area maintenance, security, pool, gym, lifts, and building management.

Typical range: 30–80 THB per sqm per month Example: 50 sqm unit at 50 THB/sqm → 2,500 THB/month ($70) → $840/year

Higher-end buildings with extensive facilities charge more. This is a recurring cost to budget for annually.

Sinking fund (one-time or periodic)

A capital reserve fund for major building repairs (roof, lifts, plumbing). Often paid as a one-time contribution at purchase (1,000–2,000 THB/sqm). Some buildings request additional contributions periodically.

One-time at purchase: $1,000–$4,000 typically (depending on unit size and building).

Utilities

Electricity in Thai condos is often charged at the commercial rate (approximately 7–8 THB/unit vs residential 4–5 THB/unit). This is normal and legal for condo common metering. Your manager handles utility payments from rental income.

Taxes on rental income

Thai withholding tax: Foreign property owners receiving rental income via a management company typically have a 5% withholding tax applied at source. The management company handles this and provides a receipt.

Income in your home country: You must also declare rental income in your home country (see relevant nationality guide: UK buyers, Australians, Russian buyers). Most countries have Double Tax Agreements with Thailand allowing credit for Thai taxes paid.

Taxes and costs at sale

Item	Amount	Who pays
Transfer fee	2% of appraised value	Negotiated (often split)
SBT (if held under 5 years)	3.3% of appraised value	Seller
Stamp duty (if held 5+ years)	0.5% of appraised value	Seller
Withholding tax	Variable (1–5% of appraised value)	Seller
Agent commission (if used)	Typically 3–5%	Seller
Legal/transfer fees	$500–$1,500	Buyer

Net proceeds calculation: For a $300,000 sale by an individual held 3 years, selling costs (SBT + transfer fee seller share + withholding + agent) might total 7–9% of sale price, or $21,000–$27,000.

For buyers: Budget 1–1.5% of purchase price for transfer fees + legal costs + Land Department fees on a standard purchase.

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Frequently Asked Questions

What are the taxes when buying property in Thailand?

As a buyer, your main cost at transfer is 1% transfer fee (your share of the 2% total transfer fee, split with seller). If the seller has held the property under 5 years, Specific Business Tax of 3.3% applies to them. Buyers also pay legal fees ($500–$1,500) and Foreign Exchange Transaction fees (bank charges on international transfer). Total buyer closing costs are typically 1–2% of purchase price.

What is Specific Business Tax in Thailand?

SBT is a 3.3% tax on the sale of Thai property when the seller has owned it for less than 5 years, or the seller is a company. It's paid by the seller at the Land Department on transfer day. It doesn't apply to individual sellers who have held the property 5+ years (they pay stamp duty of 0.5% instead). SBT impacts seller's net proceeds and may affect negotiation.

Are there annual property taxes in Thailand?

Yes, but very low. The annual Land and Building Tax for residential investment property is approximately 0.02%–0.10% of appraised value. On a $200,000 property with appraised value of ~5M THB, annual tax is approximately $30–$140/year. This is negligible compared to most countries. HOA (common area) fees are the more meaningful annual cost — typically $600–$2,000/year depending on building.

Do I pay tax on rental income from my Phuket property?

In Thailand: typically 5% withholding tax is applied at source by your management company (for income over the tax-free threshold). In your home country: most countries tax worldwide rental income for residents, though Double Tax Agreements with Thailand allow credit for Thai taxes paid. The net tax position depends on your country of residence — consult a tax advisor.

How much does it cost to sell property in Phuket?

Selling costs for an individual holding under 5 years: approximately 3.3% SBT + 1% transfer fee (your share) + withholding tax (1–5%) + agent commission if used (3–5%). Total: typically 6–10% of sale price. Holding 5+ years: SBT is replaced by 0.5% stamp duty, significantly reducing selling costs. Long-term holding minimizes Thai selling costs.