Quick answer: Thailand taxes property sale profit through withholding tax (collected at the Land Department, often around 1-3% of declared or appraised value for non-residents), Specific Business Tax at 3.3% if you sell within 5 years, or stamp duty at 0.5% if held 5 years or more, plus transfer fees at 2% of appraised value (often split in resale). There is no separate CGT line item like the UK or US, but your home country may still tax the gain.
| Tax at sale | Typical basis | Indicative rate |
|---|---|---|
| Withholding tax | Higher of declared or appraised value | ~1-3% of sale price (varies by hold) |
| SBT (under 5 years) | Same basis | 3.3% |
| Stamp duty (5+ years) | Same basis | 0.5% |
| Transfer fee | Appraised value | 2% (often 50/50 split) |
Part of the Phuket Property Legal & Taxes Master Guide 2026, full transfer fee tables and annual holding taxes.
Does Thailand have capital gains tax on property sales?
This structure differs from the UK, where HMRC applies explicit CGT rates on residential property disposals, or the US, where long-term capital gains rates apply to many sellers. Thailand’s effective rates are often lower at the Thai layer, but not automatically lower globally once home-country tax is included.
How is withholding tax calculated at the Land Office?
- Determines net assessable income using standard deductions tied to years of ownership
- Applies progressive rates up to 35% to that net amount
- Expresses the result as withholding at transfer
Practical outcome: For typical Phuket condo resales at market prices, withholding often lands near 1-3% of the sale price, with exact figures depending on purchase price, sale price, and hold length. Your lawyer should model your specific numbers before listing.
| Factor | Effect on withholding |
|---|---|
| Longer hold | Often lower effective withholding |
| Large gain vs purchase price | May push toward upper end of range |
| Appraised value above sale price | Tax on appraised value (rare in prime Phuket) |
SBT vs stamp duty: why the 5-year hold matters
| Holding period | Indicative Thai taxes (excl. transfer fee split) |
|---|---|
| Under 5 years | Withholding ~1-3% + SBT 3.3% ≈ 4.3-6.3% |
| 5 years or more | Withholding ~1-3% + stamp duty 0.5% ≈ 1.5-3.5% |
Saving from crossing 5 years: about 2.8% of sale price, on a $300,000 exit, roughly $8,400 less Thai transfer tax at the SBT vs stamp duty margin alone.
Factor this into hold strategy alongside rental yield from our Phuket rental yield guide and exit planning in how to exit a Phuket property investment.
Worked example: foreign seller after 3-year hold
| Tax item | Basis | Rate | Amount |
|---|---|---|---|
| Withholding tax | $250,000 | ~2% | ~$5,000 |
| Specific Business Tax | $250,000 | 3.3% | $8,250 |
| Transfer fee (seller 50%) | $220,000 | 1% | $2,200 |
| Total Thai tax at sale | ~$15,450 | ||
| Net gain after Thai taxes | ~$34,550 |
On a $200,000 cost base, that is roughly 17.3% absolute return over 3 years before rental income, about 5.5% per year before operations. Numbers are illustrative; your lawyer calculates exact baht amounts at closing.
Worked example: same sale after 6-year hold
| Tax item | Amount (indicative) |
|---|---|
| Withholding tax (~2%) | ~$5,000 |
| Stamp duty (0.5%) | $1,250 |
| Transfer fee (seller 50%) | $2,200 |
| Total | ~$8,450 |
Tax saving vs 3-year exit: about $7,000 on this example, plus any home-country timing benefits from long-term treatment.
Who pays transfer fees and how are they negotiated?
| Deal type | Common practice |
|---|---|
| Resale between individuals | 50/50 transfer fee split |
| Developer off-plan final transfer | Buyer pays all, often pre-written in SPA |
| Distressed seller | Buyer may negotiate full seller-side costs |
Confirm allocation in the sale agreement before booking flights for closing.
Home-country tax: the second layer foreigners forget
| Country | Indicative treatment (verify current rules) |
|---|---|
| United Kingdom | CGT on gain; annual exemption limited |
| United States | Long-term capital gains rates; foreign tax credit may apply |
| Australia | CGT with potential 50% discount after 12 months hold |
| Germany | Private disposal rules if held under 10 years |
| UAE / Singapore | Personal tax treatment depends on facts, confirm |
Keep purchase records: acquisition price, transfer fees paid, improvement invoices, and Thai tax receipts, home-country calculations deduct eligible costs.
Buyer scenarios: how exit tax affects strategy
Scenario A, US retiree holding 6+ years. Stamp duty replaces SBT; US long-term rates may apply. Thai withholding credit may reduce US liability, coordinate with CPA.
Scenario B, Australian investor with strong rental years. Thai sale tax is one line; ATO CGT another. Rental income history does not eliminate CGT on disposal.
Scenario C, Buyer assuming “no CGT country = no tax anywhere.” Thai transfer taxes still apply at the Land Office regardless of UAE personal tax posture.
Red flags and planning mistakes
Red flag 2, Selling at day 4 years 11 months. Waiting one month can save 2.8% SBT on many investment properties, confirm exact acquisition date with title history.
Red flag 3, Ignoring appraised value above agreed price. Rare in Phuket appreciation markets but painful when it happens.
Red flag 4, No documentation of purchase costs for home-country filing. Overpaying tax abroad from poor records.
Red flag 5, Assuming rental pool income was taxed correctly so sale is clean. Operating and disposal taxes are separate tracks.
Insider tip: Before listing, ask your lawyer for a closing statement draft with withholding, SBT/stamp duty, and transfer fee split, use it to set minimum acceptable net price.
How exit tax fits your purchase decision today?
Use the complete Phuket property guide for ownership structure context and buying property in Phuket for FET and registration, clean entry documentation supports clean exit calculations.
Structuring hold period for tax efficiency
Developers sometimes pitch “easy exit” without tax stack, ask for a sample Land Office closing statement from a recent foreign resale in the same project.
Rental income and sale tax: separate ledgers
Keep a sale folder: purchase SPA, all FETs, improvement invoices, rental P&L summaries, and Land Office receipts from acquisition. Your exit lawyer and home-country CPA use the same pack.
Purchase-price documentation for home-country CGT
Thai withholding paid at sale may credit against home liability under treaty rules, but credit requires proof of Thai payment. Store Land Office receipts in the same folder as FETs from purchase.
Company-owned units and corporate transfer taxes
Personal freehold foreign quota units remain the reference case for most readers, verify your title deed name matches the seller type assumed in your lawyer’s closing statement draft.
Withholding formula: why your lawyer’s number beats rules of thumb
Plan exit 60-90 days before listing: quota check for buyer, juristic fee clearance, withholding estimate, and home-country CPA notification if required.
Modelling net exit proceeds?
MORE Group helps foreign sellers stack Thai transfer taxes and realistic resale timelines, 0% buyer commission on purchases.
Frequently Asked Questions
No separate CGT regime. Gains are taxed through withholding tax on sale, plus Specific Business Tax or stamp duty, and transfer fees. Effective Thai-side costs are typically lower than Western CGT rates for many holds.
Indicatively roughly 4-6% of declared sale price if sold within 5 years (withholding plus SBT plus transfer fee share). After 5 years, SBT is replaced by 0.5% stamp duty, saving about 2.8% of sale price.
Yes. Specific Business Tax at 3.3% applies if sold within 5 years for most investment properties. After 5 years, stamp duty at 0.5% applies instead, a meaningful saving on exit.
Likely yes in the UK, US, Australia, and many EU countries. Thai taxes paid may be creditable under double taxation treaties where they exist, verify with your adviser.
Withholding tax is collected at transfer based on the higher of declared price or Land Department appraised value, using a formula tied to holding period. Practical results often fall around 1-3% of sale price for non-resident sellers.
Conventionally split between buyer and seller in resale deals; developer sales may assign differently. Confirm in your sale agreement before closing.
Maksim Shchegolev
Founder, MORE Group
Founder of MORE Group. Four years in investment banking before moving to Phuket, where he has worked in the local property market since 2018. Oversees developer relationships and every engagement above $300K.
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