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Articles
2025 Reduced Transfer and Mortgage Fees for Houses and Condominiums in Thailand
2025 Reduced Transfer and Mortgage Fees for Houses and Condominiums in Thailand
Global economic uncertainty brought on by increases in international tariffs and the collapse of a 30-story building under construction in Bangkok during an earthquake in March 2025 have combined to reduce an already depressed demand for new residential property in a challenging Thai property market.
On 21 April 2025, the Ministry of Interior issued two notifications (“Notifications”), effective 22 April 2025, reducing the registration fees for the transfer and mortgage of properties over the next 14 months. The Notifications were issued pursuant to:
1. the Land Code, in respect of residential or commercial buildings, or land with residential or commercial buildings; and
2. condominium laws, in respect of condominium units.
The rationale of the Notifications is to alleviate financial burdens on Thai nationals who wish to acquire residential properties by reducing the registration fees payable for transferring ownership and registering mortgages at the land office. The aim of the cost reductions introduced by the Notifications is to stimulate the domestic real estate sector and, in turn, support the Thai economy.
Reduction of Registration Fees
The Notifications provide for a temporary reduction of registration fees to 0.01% (“Reduced Rate”), applicable where neither the purchase price nor the appraisal price exceed THB 7 million. If a mortgage is concurrently registered in relation to the purchase, the mortgage limit must also not exceed THB 7 million.
A comparison of the normal and reduced fee rates is set out below:
Transaction |
Normal Rate |
Reduced Rate |
---|---|---|
Sale |
2.00% |
0.01% |
Mortgage |
1.00% |
0.01% |
Eligible Transactions
The Reduced Rate applies to the following property types:
1. condominium units;
2. detached houses, duplexes, townhouses, commercial buildings; and
3. land with detached houses, duplexes, townhouses, or commercial buildings.
Eligible Persons
The Reduced Rate are available only to Thai nationals. Thai companies and foreign nationals acquiring properties will not be eligible for the Reduced Rate.
Eligible Period
The Reduced Rate is effective from 22 April 2025 to 30 June 2026.
The Notifications are likely to be well received by property developers looking to clear a surplus of unsold condominium units and affordable housing, and can be expected to promote property sales over the next 14 months while the Reduced Rate applies.
Chris has been based in Thailand since 2001 and has more than two decades of experience working alongside Thai lawyers on cross-border M&A and regulatory matters, providing international-level solutions to companies entering the Thai market. His clients include global companies investing or acquiring assets in Thailand and Thai companies engaging in cross-border transactions. He advises international and Thai companies on the development, sale, and acquisition of renewable energy projects in Thailand and across Asia.
His M&A practice has included private M&A, advising institutional and activist investors on SEC/SET reporting requirements and acquisition thresholds, and strategic shareholders on synergistic de-layering of listed group structures. His sector expertise for M&A includes manufacturing, TMT, logistics, renewable energy projects, and the service sector for both buy-side and sell-side, share and asset sale transaction structures. He has advised overseas law firms on the acquisition of Thai law firms.
With a focus on renewables (including transition), Chris’ energy practice has more than 1 GW’s experience in onshore wind, solar (PV, thermal, ground mount utility scale, and C&I rooftop), and waste-to-energy projects. His experience has a broad reach, from due diligence of early-stage projects, advising on EPC/O&M, corporate PPAs, equity funding, and project finance, to pre- and post-commissioning exits and acquisitions.