Taxes on sale: what is due and who pays
Thailand does not run a separate capital gains tax return for most property sales. Instead, taxes are collected at the Land Office on transfer day, mostly on the official appraised value (or the sale price, whichever is higher, for some items).
| Tax or fee | Rate | Usually paid by |
|---|---|---|
| Specific business tax | 3.3% of the higher of appraised or sale price, if held under 5 years | Seller |
| Stamp duty | 0.5%, only when specific business tax is not due | Seller |
| Withholding tax, individual seller | Progressive, on appraised value after statutory deductions for years held | Seller |
| Withholding tax, company seller | 1% of the higher of appraised or sale price | Seller |
| Transfer fee | 2% of appraised value | Negotiable, often split |
For an individual's non-business sale, the five-year test for specific business tax counts from acquisition to transfer; have the Land Office confirm the exact dates. The year count used for withholding tax is calculated differently. Company and business sales follow different rules, and inherited property can be treated differently. Owners who have had their name on the house registration (tabien baan) for at least a year may also be exempt; ask your lawyer whether that applies to you.
A worked example
Example only, using round numbers: a foreign individual sells a freehold condo after three years for 12 m THB (≈ USD 358,000). The Land Office appraisal is 9 m THB.
| Item | Calculation | Amount |
|---|---|---|
| Specific business tax | 3.3% × 12 m (higher of price and appraisal) | 396,000 THB |
| Stamp duty | not due (business tax applies) | 0 |
| Transfer fee, seller's half | 2% × 9 m ÷ 2 | 90,000 THB |
| Withholding tax | progressive on 9 m after the 3-year deduction; your lawyer calculates it | varies |
| Agent commission (if any) | as agreed, commonly 3–5% | varies |
If the same owner sold only after the full five-year period had passed, and no other rule applied, the 396,000 THB business tax would be replaced by 0.5% stamp duty on the higher value, about 60,000 THB. That difference is why owners close to the five-year mark check the exact dates with the Land Office before agreeing a transfer date.
For a company seller the withholding tax is a flat 1% of the higher value, but the company also has corporate income tax on any profit and the cost of closing or maintaining the company.
Selling a leasehold villa
You do not sell land you never owned; you sell the remaining lease and, usually, the house. Three things decide how easy that is.
- Remaining registered years. A buyer pays for the term they will actually hold. Villas with 25 years left sell to a wider market than those with 12.
- Assignment rights. Your lease should let you assign it to a buyer without the landowner's fresh consent or a fee. If it does not, the landowner can delay or price the sale.
- The landowner's cooperation on registration. The transfer of a lease is registered at the Land Office; the landowner or their representative usually has to sign. Some sellers arrange for the landowner to grant the buyer a new 30-year lease, which buyers value highly.
The lease registration on resale costs about 1% of the rent attributed to the remaining term plus 0.1% stamp duty; the building transfer, if separate, pays 2% transfer fee and seller-side taxes on the building.
Timeline and how buyers find you
Resale in Phuket competes with a large supply of new off-plan projects offering instalment plans. Agencies report that well-priced completed property with good paperwork sells; overpriced units can sit for a long time. The 2026 market shows strong villa demand at the top and heavy competition among condos launched in the last few years.
What speeds a sale
- A clean, ready file: title, lease, FET, building permits, juristic person letter confirming no arrears.
- Honest pricing against current asking prices nearby. Public indices such as the Layan catalogue price index show developer asking prices per square metre by area, which buyers compare against.
- Good visuals. Buyers increasingly shortlist from abroad; a drone flyover and a 360° room tour let them decide before flying in.
- Rental history with real statements, if you rent it out.
Typical stages
- Valuation and paperwork check: 1–2 weeks.
- Marketing to agreement: weeks to months, depending on price and product.
- Deposit and sale agreement, buyer's due diligence: 2–6 weeks.
- Land Office transfer and payment of taxes: one appointment day.
We list properties with drone footage and 3D tours; if you are thinking of selling, send us the details.
Getting the money out
Foreign sellers can send sale proceeds abroad. Your Thai bank will usually ask for:
- the sale and purchase agreement;
- the Land Office transfer documents and tax receipts;
- evidence of how the purchase money originally came into Thailand, ideally your original FET or credit advice.
With those, the transfer is routine. Without them it can take longer and need more explanation, which is why our money transfer guide tells buyers to keep the FET forever.
If you are a Thai tax resident (180 days or more in a calendar year), think about the timing of moving money in and out, since foreign income remitted to Thailand can be taxable. Take advice from a tax adviser in Thailand and at home before a large sale.
Questions buyers ask
Do foreigners pay capital gains tax when selling property in Thailand?
Thai tax on a property sale is collected at the Land Office on transfer day: withholding tax, specific business tax or stamp duty, and a share of the transfer fee. Whether that withholding is final, or the income must also go into a Thai return, depends on how the property was acquired and held, so get a seller-specific answer before completion. Your home country may tax the gain too.
How long does it take to sell a villa in Phuket?
It depends mostly on price and paperwork. Once you have a buyer, deposit, due diligence and transfer usually take two to six weeks. Finding the buyer can take weeks for well-priced villas with clean title and long remaining leases, and much longer for overpriced ones.
Can I sell my condo to a Thai buyer?
Yes. Any buyer can purchase your unit. If you sell to a Thai, the unit leaves the foreign quota, which can matter for the building's later foreign sales, but it is entirely legal and widens your market.
Can I take the money from a sale out of Thailand?
Yes. Banks ask for the sale contract, Land Office documents and proof of how the purchase money came in, ideally the original FET. With those, repatriation is routine. Check the tax position in Thailand and at home first if you are tax resident in Thailand.
Sources
Editorial guidance, not legal or tax advice. Thai rules change; confirm your case with an independent Thai lawyer before paying a deposit.
