In-Depth Look at Property Transfer Fees: A Complete Guide for Real Estate Buyers and Sellers

Owning real estate, whether it's a house, condo, or land, is a significant goal for many people. However, the final step, known as "transfer of ownership" at the land office, can be confusing due to various associated costs. This article from Proview Living will provide an academic analysis of the essential expenses to help you gain a clear understanding and be thoroughly prepared.

1. Transfer Fee

This fee is the main charge collected by the Department of Lands for registering the change of ownership on a title deed or condominium unit title deed.

• Normal Rate: Calculated at 2% of the appraised value or the actual selling price (whichever is higher), as specified in the sales and purchase agreement or other supporting documents.

• Government Policy: The government may have economic stimulus measures that reduce this fee to 0.01% for eligible properties at that time, such as houses and condominiums priced at no more than 3 million baht.

• Responsible Party: Traditionally, the buyer and seller usually agree to share this cost equally, but other arrangements can be negotiated.

2. Mortgage Registration Fee

This expense applies only when the buyer obtains a loan from a financial institution to purchase the property. It involves registering the mortgage to grant the financial institution security rights over the property for debt repayment.

• Normal Rate: Calculated at 1% of the mortgaged amount (loan amount), up to a maximum of 200,000 baht.

• Government Policy: Similar to the transfer fee, the government may have measures to reduce this to 0.01% for eligible mortgaged properties.

• Responsible Party: The buyer who borrows from the financial institution is solely responsible for this cost.

3. Specific Business Tax

This is a direct tax collected by the Revenue Department from sellers of real estate that is considered to be for business or commercial purposes, or for profit.

• Rate: Calculated at 3.3% (including local tax) of the appraised value or the actual selling price (whichever is higher).

• Exemption Conditions: The seller is exempt from this tax in the following cases:

  • Ownership of the property for more than 5 years from the acquisition date.

  • Being listed in the house registration for at least 1 year on the date of transfer.

If the seller is exempt from specific business tax, stamp duty must be paid instead.

4. Stamp Duty

Stamp duty is a tax levied on instruments as specified in the Revenue Code, including those related to real estate transfer.

• Rate: Calculated at 0.5% of the actual selling price or appraised value (whichever is higher).

• Responsible Party: The seller is responsible for this cost and only pays it if they are not subject to specific business tax.

5. Withholding Personal Income Tax

This tax must be withheld from the seller on the date of ownership transfer. It is calculated based on the appraised value of the property and the number of years of ownership, with complex calculation rules as stipulated by the Revenue Department.

• Responsible Party: The seller is solely responsible for this cost.

6. Miscellaneous Expenses

In addition to the main expenses listed above, there are also minor costs to prepare for, including:

• Transfer Application Fee: 5 baht per plot

• Stamp Duty: 5 baht

• Witness Fee: 20 baht

• Other Expenses: Such as property appraisal fees (for loan applications), fire insurance premiums, and loan origination fees charged by banks.

Important Note

The information, conditions, and expense rates mentioned above may change according to project policies, financial institutions, or government measures at that time. For accuracy and up-to-date information, please verify with the relevant agencies before making any decisions.

References

• Department of Lands. (2025). Types of Registration

• Revenue Department. (2025). Stamp Duty Schedule

• iTAX pedia. (2025). Taxes Related to Individual Real Estate Sales

• DDproperty. (2025). House Transfer Fees 2025: How Much to Pay and Calculation Formula

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