Capital gains tax in Thailand: what an investor pays on sale

Investors often ask: “What’s Thailand’s capital gains tax when selling property?” The answer is unusual: there’s no standalone “capital gains tax” in the familiar sense — a sale is taxed via a combination of withholding tax, specific business tax or stamp duty, and transfer fees. Let’s break down what makes up the burden, what drives it, how an exit before handover differs from an exit after five years, and how to build all of it into your calculation. This is informational — a tax specialist computes the specific figures.

Contents

1. Is there “capital gains” in Thailand
2. Withholding tax
3. Specific business tax and stamp duty
4. Transfer fees
5. What drives the total
6. Who pays what
7. Three exit scenarios: before handover, under 5 years, after 5 years
8. Assignment before title registration
9. Freehold and leasehold on sale
10. Building it into the exit calc
11. Reporting at home and double taxation
12. Pitfalls
13. Case: a sale calculation

1. Is there “capital gains” in Thailand

Thailand has no standalone “capital gains tax” on property as in many countries. Instead of a single rate on sale profit, a combination of payments applies at transfer registration:

• withholding tax;
• specific business tax (SBT) or stamp duty;
• a transfer fee for registration.

The total burden depends on the holding period, seller status (individual/company) and appraised value. So “how much tax” is always a per-deal calculation.

There is one more fundamental feature: almost all of these payments are calculated not on your actual profit but on the property’s appraised value kept by the Land Department. In Phuket it is usually below market price, so the real burden as a percentage of the deal price comes out lower than the headline rates. The flip side: the payments arise even when the seller sells at break-even or at a loss — the state looks at the property’s value, not your financial result.

🔗 Basics: Property taxes →

2. Withholding tax

Withholding tax is the key payment on sale:

• for individuals it’s computed by a set method from the appraised/sale value factoring the holding period;
• for companies it’s counted differently (usually a percentage of value);
• it’s withheld at the moment of transfer registration at the Land Department.

This payment most often plays the role of a “profit tax” on sale, though formally it’s a withholding tax.

How the calculation works for an individual

The Revenue Department’s method is a sequence of steps, and the Land Department runs it right at registration:

1. Take the property’s appraised value (not the contract price).
2. Subtract the standard deduction from the table, which depends on the number of years held: in the first year most of the value is deducted, the share falls each year, and from the eighth year on it settles at half. Years are counted by calendar year, so buying in December and selling in January formally counts as two years.
3. Divide the remainder by the number of years held — that gives a notional “annual income.”
4. Apply the progressive personal income tax scale to it (the same one used for salary and rent, 0–35%, but without the 60,000 THB personal allowance).
5. Multiply the result back by the number of years — that is the amount withheld.

The point of the design is that a long hold “spreads” the notional income across years and lands it in the low brackets. So, all else equal, the longer you hold the unit, the lower the withholding — even if the price rose more.

For a company seller the calculation is simpler: 1% of the higher of appraised and sale value, treated as a prepayment against annual corporate income tax.

Final or not

For an individual selling a property that was not acquired for commercial resale, the amount withheld can generally be treated as the final tax: the sale income may be left out of the annual return. That is convenient for a non-resident — the Thai tax question is closed right at registration. If the property is sold as part of a business activity, the income goes into the return and the withholding is credited. Which regime applies to your deal is a question for a tax specialist.

3. Specific business tax and stamp duty

Here the holding period is decisive:

• Specific business tax (SBT) applies if the property is sold before a set holding period (the sale is deemed “commercial”).
• Stamp duty applies instead of SBT if the property was owned longer than that period.

So SBT and stamp duty are mutually exclusive: you pay one or the other depending on holding period. Longer holding usually shifts the deal into the stamp-duty regime with a lighter burden.

In the figures in force for 2026:

The five-year threshold runs from the date title was registered to the seller — not from the contract with the developer and not from the reservation date. For an investor who bought a unit under construction, that means the clock starts only after handover and registration at the Land Department.

There are exceptions to SBT — for instance, a seller who was registered at the property in the house book (tabien baan) for at least a year can sell before five years under the stamp-duty regime. For a foreign investor renting the unit out that is a rare case — budget for the general rule. For a company seller the stamp-duty regime after five years is generally unavailable: a sale of property by a juristic person is usually subject to SBT regardless of holding period — confirm with a specialist.

4. Transfer fees

The transfer fee is the charge for registering the transfer at the Land Department (usually a percentage of appraised value). It’s levied regardless of holding period and is part of “deal costs”.

For leasehold the registration logic differs: the lease is registered (roughly ~1.1% for 30 years at purchase). The final set of payments depends on the ownership form.

The transfer fee rate for freehold is 2% of appraised value. In 2026 the cabinet extended the reduced 0.01% fee for home buyers until 30 June 2027, but the relief is aimed at Thai buyers and does not extend to a deal with a foreign investor — budget the full 2% in your exit calc and agree in advance what share the buyer takes.

🔗 Buying process → · Leasehold vs freehold →

5. What drives the total

Bottom line: the same sale at a different holding period and status yields a different burden. Calculate in advance and per specific deal.

A note on appraised value: the Land Department revises it periodically, and in a rising market it lags deal prices. That works in the seller’s favour — the base for SBT/stamp duty and withholding ends up below the real price. You can request the current appraisal of a specific unit in advance, and it is the first thing to do before an exit calculation.

6. Who pays what

Splitting taxes and fees between seller and buyer is a matter of contract agreement:

• in practice, parts of the fees are often shared between the parties;
• it’s important to set the split out in advance, before the deal;
• for a selling investor this directly affects “net” profit.

Don’t leave “who pays” to verbal understanding — fix it in the contract.

Common practice on the Phuket resale market looks like this:

A seller who values speed often “buys” it by taking on the whole transfer fee; a buyer with several options bargains for the opposite. The offer should carry the exact formula, not the words “by agreement.”

7. Three exit scenarios: before handover, under 5 years, after 5 years

Let’s put it all in one table for a unit bought under construction:

The difference between the second and third scenarios is 2.8 percentage points of appraised value on the SBT/stamp duty line alone, plus lower withholding. On the Layan Verde horizon (handover in 2028) that means the “cheap” exit in terms of fees arrives no earlier than 2033 — or via assignment before handover. For Layan Green Park, where phase 1 was handed over in 2024, the first owners move into the stamp-duty regime in 2029.

🔗 Exit strategies by horizon: How to resell → · The sold-out phase 1 case →

8. Assignment before title registration

While the building is under construction and title is not registered, the investor sells not the property but the contract with the developer — an off-plan assignment. The tax logic here is different:

• No Land Department fees. Transfer fee, SBT and withholding are tied to the registration of a transfer of title, which has not happened yet.
• There is a developer’s fee. Assignment requires the developer’s consent and, as a rule, payment at the rate in the contract. The terms — the amount, the minimum share paid, a ban on assignments before a certain stage — read them before buying.
• The profit remains income. The difference between what you received and what you paid is income that in general must be declared; exactly how depends on your status — check with a tax specialist.
• The buyer takes over the schedule. The new holder of the contract continues the construction-period instalments from the point where you stopped.

This scenario is especially interesting where the developer offers instalments during construction: not the whole budget is invested, while the gain is counted on the full price. The Layan Verde developer forecasts appreciation of around +45% over the construction period — a forecast, not a guarantee, but it is what defines the economics of an early assignment.

🔗 Off-plan vs ready → · Construction-period instalment plans →

9. Freehold and leasehold on sale

The ownership form changes not the rates but the mechanics of the exit:

For leasehold, also check in the lease: who pays for registering the assignment, whether the lessor charges a consent fee, and how renewals are documented — the shorter the remaining term, the more these terms affect the price. For freehold in the foreign quota, a foreign buyer must prove the inflow of funds with the FET form — without it registration will not go through and the deal drags on.

10. Building it into the exit calc

When planning a resale, count “net” profit after all payments:

1. Price appreciation (sale minus purchase).
2. Plus accrued rental income (owner ~8–10% net via the pool).
3. Minus withholding, SBT/stamp duty, transfer fees.
4. Minus selling costs (agent commission, etc.).

Only then do you see the real exit ROI, not “gross” appreciation. Project-model guides: 5-year ROI ~65%, 10-year ~78% (before the deal’s individual taxes).

To keep the calculation honest, make three refinements:

• The base for fees. Count withholding, SBT/stamp duty and the transfer fee on appraised value (or the higher of appraised and sale value where that is the rule), not on your profit. Request the appraisal in advance.
• A separate line for rent. Income from the rental pool has already gone through the 5% withholding and your personal return — don’t tax it again in the exit calc. More: rental income tax →.
• Two date options. Run the “under 5 years” and “after 5 years” exits side by side: the difference in SBT/stamp duty and withholding shows whether to wait for the threshold or exit earlier in a rising market.

🔗 Calculating ROI → · Calculator

11. Reporting at home and double taxation

The story does not end with the Thai payments. Your country of tax residence generally taxes worldwide income — including profit from selling foreign property, and by its own rules: on actual profit, not on appraised value.

• Double-tax treaty. If a treaty is in force between your country and Thailand, the taxes paid in Thailand can usually be credited. You need a certificate of tax paid from the Revenue Department and proof of residency — get them right after registration; doing it retroactively is harder. More: double-tax treaties with Thailand →.
• Residency under the 180-day rule. If you spent 180 days or more in Thailand in a year, you are a Thai tax resident, which changes the regime for your foreign income but not the logic of tax on selling Thai property. More: the 180-day rule →.
• Taking the money out. Sale proceeds originally brought in with the FET form can be repatriated on the basis of that same form and the sale documents — one more reason to keep the paperwork from the day you buy. More: FET and bringing in funds →.

12. Pitfalls

• Looking for a single “capital gains” rate. In Thailand it’s a combination of payments, not one tax.
• Ignoring the holding period. It drives SBT/stamp duty and the withholding calc.
• Counting “gross” appreciation. Real profit is after all taxes, fees and commissions.
• Not fixing the fee split. “Who pays” belongs in the contract, not in words.
• Forgetting home reporting. Tax obligations in your own country are on the investor; check your own regime.
• Counting five years from the developer contract. The threshold runs from title registration — for off-plan that is a date after handover.
• Expecting zero tax on a sale without profit. Withholding and SBT/stamp duty are counted on the property’s value, not on your result.
• Selling by assignment without reading the contract. The developer’s fee and stage restrictions can eat a noticeable part of the premium.
• Leaving registration without certificates. Without proof of payment there is no credit at home and repatriating funds is harder.

13. Case: a sale calculation

Consider a typical scenario. An investor planned to sell a unit and wanted to know “net” profit. They didn’t chase an abstract “capital gains” rate but calculated the deal: price appreciation over the holding period, plus accrued rental income of ~8–10% a year, minus withholding, stamp duty (held long enough, so not SBT) and the transfer fee. The fee split was written into the contract in advance. The exit ROI came out predictable, with no “surprises” at registration.

What they did step by step — and what is worth repeating:

1. Requested the appraised value of the unit from the Land Department and calculated all fees on it, not on the listing price.
2. Checked the title registration date and confirmed five years had passed — the deal fell under 0.5% stamp duty rather than 3.3% SBT.
3. Calculated the withholding by the method with the deduction for years held — thanks to the long hold, the amount came out noticeably lower than the “1% of price” they had first assumed.
4. Fixed in the offer a 50/50 split of the transfer fee and the agent’s commission.
5. Collected the certificates of payment at registration and attached them to the return in their country of residence — the Thai payments were credited and no double tax arose.

For comparison: the same unit sold in year four would have cost the whole SBT plus a higher withholding — that calculation is what persuaded the investor to wait for the threshold while continuing to earn through the pool.

Takeaway: “capital gains tax” in Thailand is a set of payments sensitive to holding period and seller status. Calculate them in advance and per specific deal — then the exit is transparent.

I’ll help estimate “net” profit on sale, factoring taxes and fees via qualified tax specialists, and prepare the property for exit.

Sources

Primary sources for this topic. Rates, fees and procedures change — at the time of your transaction check them directly rather than relying on this article.

• The Revenue Department of Thailand — income tax, withholding tax, stamp duty
• Department of Lands, Thailand — title deeds, Chanote, registration of transfers and leaseholds

Informational only, not tax/legal advice; rates, thresholds and terms depend on the deal, holding period and status — confirm with qualified tax specialists.