The Real Cost of Buying Property in Phuket: Fees, Taxes and Running Costs
The asking price is only part of the picture. When you buy in Phuket there are government fees and taxes at the Land Office, professional fees, and running costs once you own. None of them are unreasonable — but they catch buyers out when nobody explains them up front.
Here’s what to budget for.
Costs at the Land Office (freehold transfer)
When ownership of a condo or building is transferred, four charges can apply. They are calculated on the official appraised value or the registered sale price, depending on the item — usually whichever is higher.
| Charge | Rate | Legally payable by |
|---|---|---|
| Transfer fee | 2% | Buyer and seller (commonly split 50/50) |
| Specific Business Tax (SBT) | 3.3% | Seller — if they have owned the property for under 5 years, or are a company |
| Stamp duty | 0.5% | Seller — only if SBT doesn’t apply |
| Withholding tax | 1% for companies; progressive for individuals | Seller |
SBT and stamp duty are mutually exclusive — you pay one or the other, never both.
Who actually pays?
This is where it gets negotiable. The law places SBT, stamp duty and withholding tax on the seller, but in practice:
- Resales between individuals in Phuket often split total transfer costs 50/50.
- Developers frequently quote prices on the basis that the buyer pays some or all of the transfer costs.
- Everything is negotiable — and it should be agreed in writing in your sale contract, not left to the day of transfer.
A realistic planning figure for a buyer is around 1–3.5% of the price in transfer costs, depending on what’s agreed.
What about the 0.01% transfer fee reduction?
Thailand has extended a scheme reducing the transfer and mortgage registration fees to 0.01% until 30 June 2027. It applies to Thai individual buyers purchasing homes priced at no more than 7 million baht for their own use. For most foreign buyers, the standard 2% transfer fee still applies — don’t let a headline about “0.01% fees” set your budget.
Costs for a leasehold purchase
Registering a lease is cheaper than a freehold transfer:
- Lease registration fee: 1% of the total rent for the lease term
- Stamp duty: 0.1% of the total rent
That’s roughly 1.1% of the lease value. Villa purchases often combine a land lease with a transfer of the building, so ask your lawyer to break down both parts.
Professional and one-off costs
- Legal fees: an independent lawyer for due diligence, contract review and transfer. Fees vary by complexity — get a fixed quote.
- Sinking fund (condos): a one-off contribution to the building’s reserve fund, usually charged per square metre on first purchase from a developer.
- Utility connection fees on new builds (electricity meter, water).
- Currency transfer costs: bank charges and exchange rate margins. On a large purchase, shopping around for a currency specialist can save more than you’d expect.
Running costs once you own
- Common area fees (condos and managed villa estates): charged monthly or annually per square metre. Check what’s included — pool, gardens, security, sometimes insurance.
- Land and Building Tax: an annual tax based on appraised value and use. For most residential owners it is modest, but it applies to both Thai and foreign owners.
- Utilities, internet and maintenance: pools, air-conditioning and gardens in a tropical climate need regular care.
- Insurance: building and contents cover.
- Rental management: if you plan to let the property, factor in a management fee. Our sister company, The Property Management Company, can give you realistic figures based on real bookings — not brochure yields.
A note on renting out
If you plan to earn rental income, budget for more than just management. Short-term lets of under 30 days generally fall under Thailand’s hotel licensing rules, and many condominium buildings restrict them in their regulations. Check the building’s rules and the licensing position before you buy an investment property — not after.
How to avoid surprises
- Agree who pays what in the sale contract — transfer fee, SBT or stamp duty, withholding tax.
- Ask for the Land Office appraised value early; it drives several of the calculations.
- Get a written breakdown of common area fees, sinking fund and any developer charges.
- Budget a contingency of a few percent for costs you haven’t foreseen.
Want a cost estimate for a specific property? Get in touch and we’ll walk you through the numbers — or explore our listings to start shortlisting.
Rates quoted are those generally applicable in 2026 and are for guidance only. Tax treatment depends on individual circumstances — confirm figures with your lawyer before transfer.
