Who Pays Which Closing Costs When Property Is Sold in Thailand?
Who pays which closing costs when property is sold in Thailand?
- Pillar
- Costs
- Jurisdiction
- National (Thailand); private SPA plus mandatory tax rules
- As of
- 9 Sept 2026
- Reader
- Buyer and seller negotiating a Thai property SPA cost schedule
- Reading time
- ~3 min
Direct answer
Some closing-cost lines can be allocated by contract between buyer and seller, but tax incidence rules may still make a particular party legally liable to the Revenue Department. Specific Business Tax on commercial or profitable immovable-property sales and stamp duty on listed instruments are defined in Revenue Department materials; negotiate the economic split in the SPA, then confirm mandatory liability and current amounts with counsel before transfer.
Key takeaways
- 1.Contractual split and legal tax liability are different questions.
- 2.Write a cost schedule into the SPA before transfer day.
- 3.SBT and stamp-duty paths depend on facts under RD materials—including Royal Decree 342 for SBT categories.
- 4.Retain official receipts showing who paid what.
- 5.Needs Thai legal and tax review before transactional reliance.
Important terms
Economic allocation — Who reimburses whom under the SPA.
Legal incidence — Who the tax law treats as the liable person even if someone else pays economically.
Transfer day schedule — Itemised list of charges settled around Land Office registration. (dol-home)
Detailed answer
What you can usually negotiate
Buyers and sellers commonly negotiate who bears registration-related fees and how to split certain charges. Put the split in the SPA—silent contracts create counter arguments.
What you must still check against tax rules
- Whether SBT applies under Royal Decree 342 categories. (rd-342)
- SBT rate themes on the English overview (real estate 0.1% of gross receipts; local tax 10% on SBT). (rd-sbt)
- Stamp duty persons liable for the relevant instrument. (rd-stamp)
Do not invent withholding or transfer-fee percentages here—confirm with Revenue Department / counsel.
Step-by-step
- List every expected charge category with counsel.
- Mark which are mandatory liabilities vs negotiable economics.
- Draft an SPA annex allocating each line.
- Recalculate if the deal shifts between SBT and stamp-duty paths.
- Bring the annex to the Land Office appointment.
- Collect receipts in the paying party’s name where possible.
Comparison table
| Cost theme | Often negotiated economically? | Still confirm legal liability? |
|---|---|---|
| Registration-related administrative fees | Yes | Yes — local practice |
| SBT (if applicable) | Sometimes reimbursed by contract | Yes — seller/operator liability themes under SBT rules |
| Stamp duty | Sometimes split | Yes — schedule names liable persons |
| Agent commission | Yes | Contractual |
Hypothetical example
HYPOTHETICAL allocation — not a rule of law.
SPA says buyer and seller each bear 50% of “transfer fees” as a commercial deal point. Counsel separately confirms SBT applies to the seller under RD 342. The parties still need a written reimbursement clause if the buyer will fund part of the seller’s tax economically.
Assumed numbers are omitted on purpose where not sourced.
Risks
- Oral “we always split 50/50” customs without SPA text.
- Misclassifying an SBT sale as stamp-duty-only.
- Receipts missing when claiming reimbursements.
- Foreign buyers assuming home-country closing customs apply.
Checklist
- Cost annex attached to SPA
- RD 342 / SBT path analysed
- Stamp-duty liable person identified
- Estimate refreshed within days of transfer
- Receipts stored
FAQ
Is 50/50 splitting required by law?
No general rule is asserted here. Allocation is largely contractual subject to mandatory tax incidence.
Can the buyer pay the seller’s tax?
Sometimes as an economic arrangement—but legal filing/liability may still sit with the legally liable person. Get tax advice.
Who decides at the Land Office if the SPA is silent?
Expect dispute and delay. Do not leave this silent.
Related reading
Claim ledger
Important factual claims planned for this guide, with support status and applicable location.
- SupportedThailand
SBT applies to defined businesses including certain immovable-property sales; English overview lists real-estate rate details and local tax on top of SBT.
Sources: rd-sbt
- SupportedThailand
Stamp duty liability falls on persons listed for each instrument in the stamp-duty schedule.
Sources: rd-stamp
- SupportedThailand
Royal Decree 342 defines which immovable-property sales are treated as commercial/profitable for SBT.
Sources: rd-342
Review flags
- Lawyer review required before status changes from needs-legal-review.
- Confirm any numeric tax or fee with Revenue Department / counsel before transactional reliance.
Sources and methodology
We prefer Thai government law and official procedures over secondary blogs. See also our methodology.
| Source | Publisher | Kind | Current as of | Limitations |
|---|---|---|---|---|
| Specific Business Tax overview (English) Sale of immovable property in a commercial or profitable manner (per royal decree) is an SBT category; English table lists real-estate tax base as gross receipts at 0.1%, with local tax at 10% imposed on top of SBT | The Revenue Department (กรมสรรพากร) Last updated 05.12.2020 on English page footer | primary | 2026-09-09 | English summary; confirm current Thai rates, local tax interaction, and exemptions with Revenue Department / counsel before relying on the numeric schedule |
| Stamp Duty overview (English) Stamp duty applies to listed instruments including transfers of land; receipt connected with transfer of immovable property when the juristic act is registered may attract duty | The Revenue Department English overview | primary | 2026-09-09 | Sample rates on English page are incomplete for property transfers; confirm schedule and interaction with SBT in Thai text |
| Royal Decree No. 342 B.E. 2541 (English translation PDF) — sale of immovable property for commercial/profitable purpose Defines categories of immovable-property sales treated as commercial/profitable for SBT, including condominium unit sales by condominium registrants/traders and certain short-holding patterns described in the decree | The Revenue Department (translation marked Thai official) B.E. 2541 / 1998 CE instrument (translation) | primary | 2026-09-09 | English translation expressly not official language; later amendments may exist; lawyer/tax adviser must map facts to current Thai text |
| Department of Lands official website National authority for land and condominium registration procedures | Department of Lands (กรมที่ดิน) Portal | primary | 2026-09-09 | Homepage is an entry point; deep-link the exact Thai instrument used for each claim |
Reviewed as of not yet professionally reviewed. Research as-of date: 2026-09-09.
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