The purchase price is only the starting point. To see the full investment picture you need to understand the transaction costs, taxes and running charges - and for property in Thailand these work differently than in Europe or the European Union. The good news: the total cost of a transaction is usually low by European standards, and the annual tax burden is among the lowest in Southeast Asia. Below you will find a complete, no-nonsense overview of what it really costs to buy - and to own - property in Phuket.
What buying really costs beyond the property price
Buyers often focus solely on the listing price and treat the extra costs as a footnote. In reality, transaction costs together usually come to around 2-6% of the property value - the exact figure depends on the type of contract, the developer's status, any negotiation over how fees are split, and whether you are buying from the original developer or on the secondary market.
It is also worth distinguishing two levels of cost:
- One-off costs - payable on transfer of ownership or signing of the contract.
- Recurring costs - the annual tax burden and the monthly running charges.
A full breakdown - together with a comparison of prices across different markets - is covered in our guide to property prices in Thailand. Here we focus on the costs over and above the price itself.
Transaction costs and property taxes in Thailand - at purchase
All fees and taxes on transferring title (Chanote or Nor Sor 3 Gor) are registered at the Land Department. Below is a summary of the most important items:
| Type of cost | Rate / basis | Who pays | Notes |
|---|---|---|---|
| Transfer fee | 2% of the assessed value | Often split 50/50 between buyer and seller/developer | The core cost of the transaction; the assessed value may be lower than the market price |
| Sinking fund | One-off, on the order of a few hundred THB/m2 (roughly 400-600 THB/m2) | Buyer | A reserve for future repairs to the common areas; paid once at purchase |
| Advance payment of common-area fees (CAM) | Usually 1 year in advance (around 50-90 THB/m2/month) | Buyer | Credited against future running charges |
| Legal costs and due diligence | Depends on scope; roughly on the order of tens of thousands of THB | Buyer | A lawyer to verify title, contract and transfer; strongly recommended |
| Stamp duty | 0.5% of value (only if exempt from business tax) | Usually the seller | Does not apply at the same time as the business tax (SBT) |
| Specific Business Tax (SBT) | 3.3% of value (for sales within 5 years of ownership) | Usually the seller | On the primary market - paid by the developer |
When buying from a top-tier developer, the buyer effectively pays: half the transfer fee (around 1% of the assessed value), the sinking fund and the advance CAM payment. In total - usually on the order of 1.5-3% of the transaction price. The rest of the costs fall on the developer. On the secondary market the split is negotiable and worth discussing before signing the contract.
The full purchase process - from choosing a property to signing the deed at the Land Department - is described in our article on how to buy property in Thailand.
The annual property tax - Land and Building Tax
Thailand introduced a modern land-value tax through the B.E. 2562 Act, in force since 2020. The Land and Building Tax (LBT) is levied by local government and assessed on the property's assessed value - not on the market price.
Rates for residential property
For residential property (a primary or holiday residence) the rates are very low compared with European standards: on the order of 0.02-0.10% of the assessed value per year. For example - with an apartment's assessed value at 5 million THB, the annual tax will come to roughly 1,000-5,000 THB (around EUR 25-140). Property intended for rental or used commercially may be subject to a higher rate.
An important note: the amount of tax depends on how the property is classified and on local-government decisions. The exact assessment should be calculated by a local lawyer or agent.
Taxes on rentals and on resale
Rentals
Income from renting property in Thailand is subject to Thai income tax. For non-residents the rate is around 15% withholding tax on gross income. In practice many owners invest through an operator's pooling structures - taxes are then settled by the operator at the level of the rental programme.
Short-term lets of under 30 days require a hotel licence - in practice such licences are held by short-term rental operators, not individual owners. This is important information when assessing the ROI from renting property in Phuket: tax and operating costs have a direct impact on the rate of return.
Sale on the secondary market
A sale of property usually brings several additional charges - paid by the seller:
- Specific Business Tax SBT (3.3%) - if the property is sold within 5 years of acquisition.
- Stamp duty (0.5%) - if ownership has exceeded 5 years (instead of SBT).
- Withholding tax - income tax on the gain; calculated progressively based on the period of ownership and the assessed value.
A buyer on the secondary market does not pay the above taxes directly, but it is worth knowing that they are often "built into" the price or negotiated when the fees are split.
Running costs of property in Phuket
Running costs are markedly lower than in Europe, but also vary widely depending on the standard of the complex and the location. Below is a summary of the typical items.
| Type of cost | Indicative rate | Frequency | Notes |
|---|---|---|---|
| Common-area fee (CAM) | around 50-90 THB/m2 | Monthly | Covers the common areas, security, the pool and grounds maintenance |
| Utilities (electricity, water) | Depends on usage; electricity around 7-10 THB/kWh in complexes | Monthly | Air conditioning is the main draw; in an apartment around 1,500-4,000 THB/month |
| Property insurance | Roughly from a few to a dozen-odd thousand THB/year | Annually | Recommended, especially when renting out |
| Rental management (operator's commission) | around 15-30% of gross income | Per transaction | With a rental pool: the split is usually 60/40 to 70/30 in the owner's favour |
| Annual tax (LBT) | around 0.02-0.10% of the assessed value | Annually | Very low; for own-use ownership often negligible amounts |
| Software/legal management/accounting | Case by case | Annually | Worth factoring in when actively renting |
A sample indicative calculation for an apartment
Below is an illustrative example - it is not an individual valuation. Assumptions: an apartment of around 50 m2, a purchase price of around 6 million THB, a Land Department assessed value of around 4 million THB.
One-off costs at purchase (approximate)
- Half the transfer fee (1% of 4 million): around 40,000 THB
- Sinking fund (around 500 THB/m2 x 50 m2): around 25,000 THB
- Advance CAM (70 THB x 50 m2 x 12 months): around 42,000 THB
- Legal costs/due diligence: around 30,000-50,000 THB
- Estimated total: around 137,000-157,000 THB (around 2.3-2.6% of the purchase price)
Estimated annual costs (without renting)
- CAM (70 THB x 50 m2 x 12): around 42,000 THB/year
- LBT tax: around 800-4,000 THB/year
- Insurance: around 5,000-10,000 THB/year
- Total: roughly around 48,000-56,000 THB/year (on the order of EUR 800-920)
As you can see, the running costs are significantly lower than for a comparably sized apartment in a European city. This is one of the factors that improves the rate of return on investment in Phuket.
What the developer covers
When buying from a reputable Thai primary-market developer, most of the costliest transaction taxes fall on the seller. Typically the developer covers:
- The Specific Business Tax SBT (3.3%)
- Half the transfer fee or the entire transfer fee (depending on the contract)
- Any arrears in fees or legal disputes connected with the property
The cost-sharing terms should, however, be verified in the purchase contract in every case. Twins Real Estate calculates the full transaction costs for a specific offer before any documents are signed - with no commission for the buyer. Browse the available property listings or read our main guide to the market.
The information above is general in nature and does not constitute tax or legal advice. Tax rates, cost-sharing rules and legal regulations may change. Before making an investment decision, we recommend consulting a local lawyer or tax adviser. Last updated: 6 June 2026.