# Property transfer fees in Thailand — the 2% rule and the Thai-only stimulus

> How Thailand's 2% property transfer fee works, who pays it, the 0.01% Thai-only 2026–2027 stimulus, and why foreigners pay the full rate.

The 2% transfer fee is the headline tax on Thai property transactions. It is paid in cash (typically cashier's cheque) to the Department of Lands at the moment of transfer. The mechanics are straightforward in principle but include several details that affect what foreign buyers actually pay — particularly the 2026–2027 stimulus that reduces the rate for Thai nationals only.

This article covers the rate, how it's calculated, who pays it, and what to negotiate — it's one line item inside the wider [[buying-property-thailand-step-by-step|purchase sequence]] that runs from reservation to transfer day.

## How much is Thailand's property transfer fee, and what is it based on?

The Department of Lands collects a transfer fee equal to **2% of the appraised value** when ownership of land or condominium units changes hands. This applies to:

- Sale and purchase
- Gift transfers (with limited family exemptions)
- Court-ordered transfers
- Most other change-of-ownership transactions

The base is the **appraised value** as recorded in the Treasury Department's database, not the sale price agreed between the parties. For most resale transactions the sale price exceeds the appraised value (because appraised values typically run 30–50% below market). The Land Office officer uses whichever is higher of appraised vs declared sale price for tax calculation — so the 2% is calculated on the higher figure.

For developer sales of new-build property, the contract price typically exceeds the appraised value, so the 2% is on the contract price.

## Does the 2026–2027 stimulus reduce the transfer fee for foreign buyers?

No — the 0.01% stimulus rate is restricted to Thai nationals; foreign buyers pay the full 2% throughout the stimulus period. The government introduced the stimulus in 2024, cutting the transfer fee from 2% to 0.01% on qualifying homes, condominium units and commercial buildings of no more than THB 7M, and has renewed it every year since. The 2025–2026 round ended on 30 June 2026. The Ministry of Interior published the replacement notifications in the Royal Gazette on 1 July 2026 on the same terms — 0.01% transfer and mortgage registration fees, first-hand and second-hand property, a sale price and appraised value of no more than THB 7M, and a mortgage of no more than THB 7M per contract — and they run until 30 June 2027.

The scope is wider than housing. The notifications cover detached houses, semi-detached houses and townhouses, condominium units, qualifying commercial buildings, and land sold together with a residential or a commercial building. The mortgage side is narrower than the transfer side: the 0.01% mortgage registration fee applies only to a mortgage that arises from that same qualifying purchase and is registered in the same transaction as the transfer.

**The reduced rate applies only to Thai nationals.** The Ministry of Interior notifications restrict the benefit to Thai citizens purchasing a qualifying home, condominium unit or commercial building. Foreign buyers — including foreigners married to Thai nationals where the foreign spouse is the registered buyer — pay the full 2%.

Some brokerage marketing has implied foreigners may also benefit on units of no more than THB 7M. This is incorrect. Practitioners (Nishimura & Asahi, FRANK Legal & Tax) have confirmed the Thai-only restriction. The safe planning assumption is that you pay 2%; if the Land Office officer applies a reduction, treat it as a bonus.

## Who pays the property transfer fee, buyer or seller?

By customary practice, the transfer fee is **split 50/50 between buyer and seller** — but the Sale and Purchase Agreement (SPA) controls. If it is silent, the parties must resolve the allocation; custom is not a legal default.

In practice, the split varies:

- **Resale transactions** most often honor the 50/50 split, often after some negotiation
- **New-build developer SPAs** commonly push the full 2% onto the buyer — this is part of the headline price negotiation
- **Distress or motivated-seller deals** sometimes shift more of the fee to the buyer in exchange for price reduction
- **Off-plan with payment-schedule incentives** may have the developer absorb the fee as a marketing concession

The customary split is common practice, not a legal default. Be explicit in the contract about who pays the transfer fee — leaving it to "customary practice" creates room for dispute on transfer day.

## How much does the transfer fee cost in a real transaction?

The transfer fee is always 2% of the higher of appraised value or sale/contract price (0.01% for a Thai national buying a qualifying home, condominium unit or commercial building of no more than THB 7M during the stimulus), so the cash amount scales directly with that figure. Four worked examples:

**Example 1 — Resale Phuket condo, 10M THB sale price, 7M THB appraised value**

- Higher of appraised vs sale price: THB 10M (sale price)
- Transfer fee: 2% × 10M = THB 200,000
- 50/50 split: THB 100,000 each

**Example 2 — Off-plan Phuket condo, 12M THB contract price, 8M THB appraised value, buyer pays full**

- Higher of appraised vs sale price: THB 12M (contract price)
- Transfer fee: 2% × 12M = THB 240,000
- Full to buyer: THB 240,000

**Example 3 — Phuket villa land transfer to Thai-majority company, 25M THB**

- Higher of appraised vs sale price: THB 25M
- Transfer fee: 2% × 25M = THB 500,000
- 50/50 split: THB 250,000 each

**Example 4 — Resale condo 6M THB to Thai national (stimulus applies)**

- Higher of appraised vs sale price: THB 6M
- Transfer fee with stimulus: 0.01% × 6M = THB 600
- 50/50 split: THB 300 each
- (For a foreign buyer of the same unit: 2% × 6M = THB 120,000)

The stimulus produces a meaningful real cost difference for Thai-national resale transactions. For a foreign buyer, this asymmetry is permanent for now.

## What other fees does a buyer pay at the Land Office besides the transfer fee?

Beyond the transfer fee buyer-share, a buyer typically also covers a lease registration fee and stamp duty if the deal is leasehold, plus a small foreign-quota verification fee for condos. On transfer day, the buyer typically pays at the Land Office:

- Transfer fee buyer-share
- Lease registration fee (1% of total rent) if leasehold
- Stamp duty 0.1% on lease if leasehold
- Foreign-quota verification fee (small, condo-specific)
- Various small administrative fees

For the full itemized tax breakdown — including Specific Business Tax, stamp duty on the sale, and withholding tax, all customarily the seller's — see [[taxes-buying-property-thailand]]. For what happens step by step once you're at the counter, see [[land-office-transfer-day]].

## Does the mortgage registration fee get the same Thai-only stimulus cut?

Yes — the standard 1% mortgage registration fee was cut to 0.01% under the same 2026–2027 stimulus and the same Thai-only restriction as the transfer fee. The cut is narrow: the 0.01% rate applies only to a mortgage that arises from the same qualifying purchase and is registered at the Land Office at the same time as the transfer. A mortgage registered on a later day, or taken against property you already own, pays the full 1%. Foreign buyers obtaining the (rare) Thai bank mortgage on a foreign-eligible condo pay the full 1%.

For most foreign buyers this is academic — Thai banks rarely lend to foreigners for residential property — but it's part of the same Ministry of Interior notifications.

## How should buyers negotiate the transfer fee split in the SPA?

Negotiate the split explicitly in the SPA rather than relying on custom, because the three common patterns favor different parties and the contract — not the customary 50/50 — is what actually governs.

**1. 50/50 split.** Most reasonable, matches custom, easy to explain.

**2. Buyer pays full (developer SPA).** Common in new-build; can sometimes be negotiated to 50/50 or to seller paying part as price reduction.

**3. Seller pays full (motivated seller, distress, structured incentive).** Less common; appears when the seller has reasons to want a clean fast close.

For foreign buyers, the realistic ask in negotiation:

- For resale: insist on 50/50 unless the price reflects you paying more
- For off-plan from a developer: try to negotiate down to 50/50; if the developer holds firm, factor 2% into your total cost
- For distressed or motivated seller: ask for seller-pays-full as part of a clean offer

## What happens if the SPA doesn't say who pays the transfer fee?

Disputes about the allocation occasionally erupt at the Land Office when the SPA is silent or vague, because the officer collecting the fee won't referee who owes what between the parties. The Land Office officer doesn't take sides — they collect the fee, and how it's split between the parties is the parties' problem to resolve.

If you arrive at the [[land-office-transfer-day|Land Office]] without clarity on who pays the fee, expect:

- A 30-minute negotiation in the corridor
- Pressure to "just pay it and resolve later"
- Risk of transfer being delayed if neither party will pay

The fix is to be explicit in the SPA. The cost of clarity in the contract is zero; the cost of resolving disputes at the Land Office is real (delayed transfer, frayed relations, extra trip if rescheduled).

## What should buyers do about the transfer fee in 2026?

Budget the full 2% as a foreign buyer, negotiate the split in the SPA rather than on transfer day, and arrange the buyer-share cashier's cheque the day before. Three rules:

1. **Budget the full 2% as a foreign buyer.** Don't underwrite the 0.01% stimulus — it's not for you.

2. **Negotiate the split in the SPA, not on transfer day.** Be explicit about who pays. Ask for 50/50 on resale; push back against 100% buyer for developer SPAs where the price hasn't been reduced to compensate.

3. **Pay the buyer-share via cashier's cheque made to the Land Office.** Arrange the cheque the day before transfer. Don't bring cash for property-scale amounts.

For broader tax context: [[taxes-buying-property-thailand]]. For the Land Office process: [[land-office-transfer-day]]. For withholding tax (the seller's biggest tax): [[withholding-tax-property-sale]]. For the SPA negotiation: [[purchase-agreement-thailand]].

## Links

- [Department of Lands](https://www.dol.go.th)
- [Treasury Department of Thailand](https://www.treasury.go.th)
- [Nishimura & Asahi — 2025 transfer/mortgage fee reduction](https://www.nishimura.com/en/knowledge/publications/20250421-112251)
- [FRANK Legal & Tax — Thailand condominium tax guide 2025](https://franklegaltax.com/thailand-condominium-tax-guide-2025/)
- [Thansettakij — Royal Gazette publishes the 0.01% fee cut, in force 1 July 2026 to 30 June 2027 (Thai)](https://www.thansettakij.com/real-estate/662832)
- [Bangkok Post — Cabinet approves the original 2024 property fee cuts](https://www.bangkokpost.com/property/2998331/thailands-cabinet-approves-property-fee-cuts-to-support-struggling-sector-official-says)