What a seller pays, and which price it is calculated on
Transfer day carries four charges: the transfer registration fee of 2%, withholding tax, specific business tax of 3.3% where it applies, and stamp duty of 0.5% where specific business tax does not.
The starting figure is not the price you agreed. It is the appraised value used to collect the registration fee under the Land Code, which the Revenue Department states plainly is the figure to use under Section 49 bis of the Revenue Code, whatever the open-market price happens to be.
The exception is specific business tax and stamp duty, which are calculated on the appraised value or the sale price, whichever is higher.
The 2% transfer fee is still reduced to 0.01% for Thai individuals buying a home priced at not more than THB 7 million, until 30 June 2027, under the Ministry of Interior announcements dated 30 June 2026.
Withholding tax is a four-step calculation
For a property acquired by any means other than inheritance or gift, the Revenue Department sets out four steps under Sections 50(5)(b) and 48(4)(b) of the Revenue Code.
- Deduct a flat expense allowance set by Royal Decree No. 165 B.E. 2529 according to the number of years held.
- What remains is net income; divide it by the number of years held.
- Apply the personal income tax rate table to that annual figure, noting that the first band is not exempt when calculating withholding tax on a property sale.
- Multiply the resulting annual tax by the number of years held.
The flat allowance under Royal Decree No. 165 falls as the holding period lengthens: 92% for one year, 84% for two, 77% for three, 71% for four, 65% for five, 60% for six, 55% for seven, and 50% from eight years onwards.
Years held run from the year ownership was acquired to the year of transfer, are capped at ten, and any part of a year counts as one. Buy in December and sell the following January and you are already on two years.
The longer you hold, the higher the withholding tax
The result runs against intuition, because the shrinking expense allowance grows the tax base faster than dividing by the years can offset. The table below is calculated from the published rates on a home appraised at THB 3,000,000.
| Years held | Expense allowance | Net income | Withholding tax | Share of appraised value |
|---|---|---|---|---|
| 1 year | 92% | THB 240,000 | THB 12,000 | 0.40% |
| 3 years | 77% | THB 690,000 | THB 34,500 | 1.15% |
| 5 years | 65% | THB 1,050,000 | THB 52,500 | 1.75% |
| 8 years | 50% | THB 1,500,000 | THB 75,000 | 2.50% |
| 10 years | 50% | THB 1,500,000 | THB 75,000 | 2.50% |
The conclusion that selling early is cheaper is still wrong, because the second time-linked charge is specific business tax, and it hits far harder.
One protective ceiling exists. The Land Department states that for a sale of inherited property, or of property not acquired for trade or profit, the withholding tax calculated must not exceed 20% of the sale price.
Sell within five years and pay 3.3%, unless your name is in the house registration
A sale of immovable property made within five years of acquiring it counts as a sale for trade or profit subject to specific business tax, under Section 4(6) of Royal Decree No. 342 B.E. 2541. The rate collected is 3.3% including local tax.
Three exceptions matter to ordinary owners: expropriation, the sale of property acquired by inheritance, and the sale of a home used as the seller's principal residence where the seller's name has been in the house registration for not less than one year from the date of acquisition.
The last is the one that saves the most money for the least effort. Move your name into the house registration of the property you bought, leave it there for a full year, and keep a copy as evidence.
Where the land and the building were acquired at different times, the five-year period runs from the acquisition of whichever came later, which is the position of anyone who bought land first and built afterwards.
When specific business tax is not payable, stamp duty on the receipt applies instead at THB 1 per THB 200, which is 0.5%, and the Land Department notes that where specific business tax has been paid no stamp duty is due.
The real numbers on a THB 3 million home sold in year three
With the seller's name in the house registration for over a year, the total is THB 34,500 of withholding tax plus THB 15,000 of stamp duty plus THB 300 of transfer fee under the 0.01% measure, or THB 49,800.
Without the house registration, the total is THB 34,500 of withholding tax plus THB 99,000 of specific business tax plus THB 300 of transfer fee, or THB 133,800.
That is a THB 84,000 difference produced by one document and one year of time. It is why the first question in planning a sale is not what price to ask, but how long your name has been in that house registration.
The 2% transfer fee is customarily split in half, by convention rather than by law, so it belongs in the sale and purchase agreement in writing. Withholding tax and specific business tax fall on the seller. The order of events on the day is in our guide to transferring at the land office, and the current fee measure is covered in our article on the transfer and mortgage fee cut.
What to have ready before you fix a transfer date
Three things keep transfer-day figures from surprising you: the year of acquisition recorded on the reverse of the title deed, a copy of the house registration showing how long the seller's name has been there, and the current appraised value of the parcel.
The appraised value can be checked before you go to the land office, and it should be, because it is the base for both the fee and the withholding tax. How to check it is in our article on checking the title and the appraised value online.
If you are preparing a whole house for sale, running these numbers before setting the asking price saves cutting it later. How we work is on the house selling service page.
Frequently asked questions
What taxes apply when selling a home in Thailand?
A transfer registration fee of 2% of appraised value, withholding tax under the Revenue Department's formula, specific business tax of 3.3% if the sale falls within five years and no exception applies, and stamp duty of 0.5% where specific business tax is not payable.
Is tax calculated on the sale price or the appraised value?
Withholding tax and the transfer fee are calculated on the appraised value under the Land Code. Specific business tax and stamp duty are calculated on the appraised value or the sale price, whichever is higher.
What extra tax applies if I sell within five years?
Specific business tax at 3.3% including local tax, under Section 4(6) of Royal Decree No. 342 B.E. 2541, unless an exception applies, such as the seller's name having been in the house registration for at least a year, or the property having been inherited.
How long does my name have to be in the house registration?
Not less than one year from the date the property was acquired, and the home must have been the seller's principal residence.
Why does holding longer increase the withholding tax?
Because the flat expense allowance under Royal Decree No. 165 falls from 92% in the first year to 50% from the eighth year onwards, so the tax base grows faster than dividing by the number of years reduces it.
How are years held counted?
From the calendar year ownership was acquired to the year of transfer, capped at ten years, with any part of a year counted as one.
Do I have to declare the sale again in my annual return?
The seller may choose. The tax withheld can be treated as final without including this income in the annual return, or the income can be combined with other income, as the Revenue Department explains on choosing how to be taxed on a property sale.
Do foreign buyers get the 0.01% transfer fee?
No. The measure applies to natural persons of Thai nationality, as covered in our article on what foreigners can buy in Thailand.
Summary
- Transfer day carries a 2% registration fee, withholding tax, specific business tax of 3.3% where it applies, and stamp duty of 0.5% where it does not.
- Withholding tax is calculated on the appraised value, not on the price the parties agreed.
- The flat expense allowance falls from 92% in year one to 50% from year eight, so a longer holding period produces a higher withholding tax.
- A sale within five years attracts 3.3% specific business tax unless the seller's name has been in the house registration for at least a year or the property was inherited.
- On a THB 3 million appraised home sold in year three, the house registration is worth THB 84,000.
- The 0.01% transfer fee to 30 June 2027 applies to Thai individual buyers of homes priced up to THB 7 million.