Ownership Transfer Fee 2%

Property Transfer Fee

Basic Information
A property transfer fee is charged by the Land Office when the property freehold ownership is transferred to the new owner. Note that this transfer means a normal sale transaction, which is not the same as the transactions below, which will have much lower fees:

• Transferring ownership to an heir

• Exercising the right to buy back

• Buying back from mortgage

The most confusing notion is that the 2% is based on the government assessment value or the higher of the selling price. This is what is stated in the regulation of the Land Department.

However, in real practice, the Land Office usually uses the government assessment value even when the selling price is higher. Therefore, the 2% is based on government assessment value.

This does not apply to leasehold ownership transfer. In context of Thailand, ownership transfer usually specifically mean "freehold" ownership transfer.

Fee Rate
The transfer fee is 2% of the government assessment value. It must not be confused that the government assessment value is not the market value of the property and is determined only by the government (Treasury Department), not by the market.

Calculating Government Assessment Value
Land value can be estimated from the figures given by the Treasury Department. This can be done by contacting the Land Office or via online from Treasury Department's website. You can actually do it yourself.

The Treasury Department publishes the government value for each land plot. For land, the value is provided in Baht per sq.w.

If the property has a building, the building value must also be calculated, including the depreciation of the building. Government values for construction cost are provided per sq. along with the depreciation rate.

The calculation for condos is a bit different; the figure is provided per sq.m. Note that each floor has a different value. The higher the floor, the higher the value.

The value of both land and building combined becomes the total property value. The 2% fee applies to this number. Note that this value is the same as the one used in the calculation of the Land and Building Tax that the municipality charges on the property every year.

Responsible Parties
Transfer fees are usually agreed to be split half-half between the buyer and the seller. However, this can be negotiated and there is no absolute rule.

Government Incentive
The Thai government sometimes provides incentives for ownership transfers of residential property that have values below a certain threshold (mostly economic housing/condos) to support business activity. Buyers and sellers should check for this promotion and timing before the transaction. Commercial property does not have this incentive.

Applicable Sellers
Unlike Specific Business Tax (SBT), 2% transfer fee applies to both individual and juristic person sellers.

Summary
Unlike some other fees, the transfer fee is a fixed-rate cost and does not change based on the selling price. This makes it straightforward for both the buyer and the seller to estimate the amount in advance and prepare for the transaction with clarity.