Before Completion: Understanding Property Transfer Taxes and Fees in Thailand

Buying a property in Thailand involves more than agreeing the purchase price. At completion, a number of taxes, government fees and other costs may become payable when ownership is transferred at the Land Office.

Understanding these costs in advance — and, importantly, knowing which party is responsible for them — helps avoid unexpected expenses at the final stage of a purchase.

Know what is included in your completion costs

Before completion, your lawyer, developer or agent should be able to provide an itemised estimate of the costs associated with the transfer.

Rather than working from a single headline figure, ask for the individual charges to be shown separately, together with the basis on which each has been calculated.

Depending on the property and the circumstances of the transaction, transfer-related costs may include government transfer fees and applicable taxes or duties.

The exact amount can depend on several factors, including the property's registered or appraised value, the agreed sale price, the seller's ownership history and the structure of the transaction.

For this reason, estimates should always be prepared for the individual property rather than based on a generic percentage.

Check who pays each cost

Knowing the amount is only half of the picture.

The sale and purchase agreement should clearly establish how transfer expenses are divided between buyer and seller. In some transactions particular costs may be shared, while others may be allocated entirely to one party.

If a contract simply refers to “transfer costs” being shared, it is worth confirming exactly what that wording covers.

Before signing, your legal adviser should review the proposed allocation alongside the estimated completion statement so there is no ambiguity when the transfer takes place.

Be careful with temporary reductions and incentives

Thailand periodically introduces measures that reduce certain property transfer costs for qualifying transactions.

These can be valuable, but they should not be treated as automatic.

Eligibility may depend on factors such as the type and value of the property, the parties involved, the date of transfer and the conditions applying to the particular government measure.

If a reduced rate has been included in your estimated costs, confirm that the transaction qualifies and that the measure will still be in force on the expected transfer date.

Request an updated statement before transfer

An estimate prepared when a property is first reserved may not necessarily be the final amount payable.

As completion approaches, request an updated calculation based on the information available at that time. Compare it with the original estimate and clarify any material differences before the scheduled transfer.

Your final completion file should ideally bring together the sale and purchase agreement, payment record, transfer-cost calculation and any supporting legal or government documentation.

This gives both buyer and seller a clear picture of what will be paid, by whom and on what basis.

Buying at The Vista Hua Hin

At The Vista Hua Hin, villa payments are structured around agreed construction milestones.

These construction payments are separate from the costs associated with the eventual property transfer. Under the current project arrangement, the transfer costs are shared equally between the buyer and the seller. Buyers should nevertheless confirm the precise allocation of each applicable fee, tax or duty in the sale and purchase agreement and consider the transfer budget independently before completion.

Our team can provide the relevant project documentation for a buyer's independent legal adviser to review as part of the purchase and transfer process.

Common questions

Are property transfer fees the same for every purchase in Thailand?

No. The final calculation can vary according to the property, transaction structure, applicable valuation and taxes, and any government measures in effect at the time of transfer.

Are transfer costs always split equally between buyer and seller?

Not necessarily. Responsibility for individual costs should be established in the sale and purchase agreement. At The Vista Hua Hin, the transfer costs are currently shared equally between buyer and seller, subject to the terms of the relevant agreement. Buyers should check the agreed allocation before signing.

When should I calculate my transfer costs?

An initial estimate is useful before committing to a purchase, but it should be updated as the transfer date approaches so that the completion budget reflects the latest applicable information.

Should I have the figures independently checked?

For a significant property purchase, independent legal advice is advisable. Your lawyer can review the contractual allocation of costs and confirm the documentation required for transfer.

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Property regulations, taxes and government measures can change. This article is intended as a general guide and does not constitute legal or tax advice. Buyers should obtain transaction-specific advice and confirm current requirements with the relevant authorities before completion.