Withholding Tax on Property Sales in Thailand: 2026 Calculation Guide

A seller of a 10 million THB condo in Thailand can face total transaction taxes ranging from 100,000 to 600,000 THB, and withholding tax is often the largest single component. Many international buyers only discover this at the Land Office, at the exact moment when it is too late to restructure the deal.

Withholding tax is deducted directly at the moment of title transfer registration at the Land Office. It is not automatically refundable, and the calculation method depends entirely on whether the seller is an individual or a Thai company. Below we break down the mechanics, real figures, and formulas you can use to estimate your own exposure.

Quick Answer

• Corporate sellers pay a flat withholding tax of 1% of the registered or appraised value (whichever is higher)

• Individual sellers pay according to a progressive personal income tax scale, calculated using the property's appraised value divided by years of ownership

• Land Office officers calculate the individual seller's tax using official Revenue Department tables, so you cannot simply self-assess

• Withholding tax is always paid by the seller; the buyer bears no legal liability for it

• Non-resident individual sellers can face a fixed 15% withholding rate on the sale price under Revenue Code Section 50, versus 0-35% progressive rates for tax residents

• Owning a property for more than 5 years exempts the seller from Specific Business Tax (3.3%), though withholding tax still applies regardless of holding period

Scenarios and Options

Scenario 1: Selling a condo after 2 years (individual seller)

You bought a unit for 5 million THB and sell it for 6.5 million THB after just 2 years. The Land Office calculates withholding tax on a progressive scale by dividing the appraised value by years of ownership. On top of that, Specific Business Tax of 3.3% applies to the sale price (roughly 214,500 THB) because the holding period is under 5 years. Combined, the total fiscal burden can reach 5-7% of the transaction value, which meaningfully erodes profit on a short investment horizon.

Scenario 2: Selling a villa after 6 years (individual seller)

Ownership beyond 5 years removes the SBT obligation entirely. Instead, only stamp duty of 0.5% and progressive withholding tax apply. The longer the holding period, the lower the annual calculation base, and therefore the lower the effective withholding rate. For a villa held 6 years and valued at 12 million THB, the effective rate can drop to roughly 2-3%, compared to 5-7% for a short hold.

Scenario 3: Selling through a Thai company structure

If the property is held under a Thai juristic entity, withholding tax is fixed at 1% of the appraised value, making tax planning far more predictable. However, a corporate structure comes with its own overhead: audits, bookkeeping, and an annual corporate income tax of 20%. This route suits portfolio investors holding multiple properties, where economies of scale justify maintaining the company.

Scenario 4: Selling an inherited property

According to Pattaya Mail, the tax base for an inherited property is calculated as a separate event from the inheritance itself. The inheritance and the sale are two distinct tax events. The sale's tax base factors in the appraised value at the time the inheritance was received, documented improvement costs, and the sale commission. Keeping thorough documentation of every expense is essential here.

Comparison Table

Note on transfer fee: according to Ocean Worldwide Property, properties valued up to 7 million THB currently qualify for a temporary discount, cutting the transfer fee to 0.01% (extended through 30 June 2027). This relief is limited to residential buildings and registered condo units, and applicability for foreign buyers depends on the specific deal structure.

Main Risks and Mistakes

Confusing withholding tax with a separate capital gains tax. Thailand has no standalone capital gains tax for individuals; withholding tax effectively serves this function. Do not budget for the same income to be taxed twice.

Calculating tax from the contract price instead of the appraised value. The Land Office always applies whichever figure is higher: contract price or official government appraisal. Selling below market value will not lower your tax bill.

Selling just before the 5-year mark without accounting for SBT. The difference between 4 years 11 months and 5 years 1 month of ownership can cost hundreds of thousands of baht. Plan your sale timeline in advance.

Missing documentation for renovation or improvement costs. For inherited or renovated properties, keeping every receipt and contractor invoice is critical, since these reduce the taxable base.

Overlooking double taxation treaties. Many countries, including Russia, have double taxation agreements with Thailand. Withholding tax paid in Thailand can often be credited against home-country income tax, but only with an official payment confirmation from Thai tax authorities.

Relying prematurely on temporary transfer fee discounts. According to Dej-Udom & Associates, the reduced 0.01% rate was approved by the cabinet on 30 June 2026 but only takes effect once published in the Royal Gazette. Until then, the standard 2% rate applies. Always confirm the current status on the day of your transaction.

FAQ

Who pays withholding tax when selling property in Thailand?

The seller always pays. The amount is deducted at the moment the transaction is registered at the Land Office and remitted directly to the Revenue Department.

How is withholding tax calculated for an individual seller?

The appraised value is divided by the number of full years of ownership. Thailand's progressive personal income tax scale (5% to 35%) is applied to that annual figure, then the result is multiplied back by the number of years. Land Office staff perform the exact calculation.

Can withholding tax be refunded after the sale?

Not directly. However, the amount can be credited when filing your annual tax return (PND 90 or PND 91). If your actual tax liability is lower than what was withheld, the difference is refunded.

What is the difference between withholding tax and Specific Business Tax?

Withholding tax is a deduction of the seller's income tax. SBT (3.3%) is a separate tax on commercial-style activity, applied when the property has been owned for less than 5 years. Both can apply simultaneously.

What withholding tax does a company pay when selling property in Thailand?

A flat 1% of the registered or appraised value, whichever is higher. The progressive individual scale does not apply to corporate sellers.

How does the holding period affect total taxes on a sale?

Two key effects come into play. First, ownership under 5 years triggers an additional 3.3% SBT. Second, the longer you hold the property, the lower the annual calculation base for the withholding tax scale, which reduces the effective rate.

Do double taxation treaties apply to withholding tax on Thai property sales?

Yes, many jurisdictions, including Russia, maintain double taxation agreements with Thailand. Withholding tax paid in Thailand can typically be credited against home-country income tax, provided you obtain a notarized confirmation from the Revenue Department.

How do I prepare for withholding tax before closing a deal?

Request a preliminary calculation from the Land Office covering the property's location. You will need the Chanote (title deed), the sale and purchase agreement, and the seller's passport. The calculation typically takes 1-3 business days.

Source: Pattaya Mail

Ready to invest in Thailand? Our experts will help you find the perfect property.