Thailand’s Cabinet approved an extension of reduced property transfer and mortgage registration fees on June 30, 2026, keeping the discount in place until June 30, 2027. For anyone weighing property in Thailand, the extension matters, though the fine print determines exactly who benefits.
Government spokesperson Rachada Dhanadirek confirmed the decision, which cuts the property transfer registration fee to 0.01%, down from the standard 2%, and the mortgage registration fee to 0.01%, down from the standard 1%. The measure replaces a previous version approved in April 2025 that was set to expire the same day.
The qualification rules narrow quickly
The discount applies to two property categories. The first covers residential buildings such as detached houses, semi-detached houses, and townhouses, or commercial buildings, including the land they sit on. The second covers registered condominium units.
In both cases, the purchase price and the assessed value must not exceed 7 million baht, and any mortgage taken out against the property must also be capped at 7 million baht per contract. Partial unit sales are excluded.
This is where the measure narrows considerably for foreign buyers. The reduced fees are designed for individual buyers with Thai nationality who are purchasing a home for their own use, and for sellers looking to move residential or commercial property. The Ministry of Finance has structured this as a domestic affordability measure rather than a general property market incentive.
A foreign buyer purchasing a freehold condo priced well above the 7 million baht cap gets no benefit from this measure at all, regardless of nationality, since the discount is tied to both the price ceiling and Thai citizenship on the buyer’s side. That distinction matters most for the kind of purchase that tends to attract foreign capital in Bangkok, Phuket and other high-demand markets.
What the government expects from the extension
The Ministry of Finance estimates the measure will support property transactions worth approximately 540.81 billion baht per year, generate an additional 305.81 billion baht in investment, and add 1.06% to GDP annually compared to a scenario where the measure did not exist.
The government has framed this explicitly as economic support, intended to sustain activity in the property sector and related businesses during a period when the sector has slowed due to broader economic conditions and the impact of the conflict in the Middle East.
There is a cost on the other side. Cutting transfer and mortgage fees sharply reduces revenue for local administrative organisations, which collect a share of those registration fees under normal rates. The Cabinet has tasked the Bureau of the Budget and relevant agencies with arranging compensation so that local operations are not disrupted by the shortfall.
The practical impact for different buyers
For Thai buyers purchasing a primary residence under the 7 million baht threshold, the maths is straightforward. On a 6 million baht townhouse, the standard 2% transfer fee would run 120,000 baht. Under the reduced rate, that drops to 600 baht. The same logic applies to the mortgage registration fee.
For expats and foreign buyers, the practical impact is more limited. Foreign nationals are not the target of this measure, and most of the higher-value condominiums and houses that attract foreign buyers in Bangkok, Phuket, and other resort markets sit well above the 7 million baht cap.
Outside that narrow band, the standard transfer fee structure and who is responsible for paying it still applies, with transaction costs typically running between 2.5% and 6.3% of assessed value depending on how the cost is split between buyer and seller. That split is usually negotiated between the parties rather than fixed by law.
The extension is still useful context for anyone buying property at the lower end of the market, including expats purchasing a smaller condo unit that happens to fall under the cap. The legal mechanics work the same way regardless of nationality once a foreign buyer’s freehold condo purchase qualifies under the price threshold.
Why this matters for Phuket property
In Phuket, the 7 million baht cap limits the measure’s reach significantly. Most beachfront or sea-view condos, especially those marketed to foreign buyers, exceed that threshold by a wide margin. The same applies to detached villas and land-holding properties, where foreign ownership is already restricted or structured through leasehold and Thai entity arrangements.
The measure may have more relevance in secondary towns, smaller condo developments away from the coast, or studio and one-bedroom units in older buildings. But even there, the Thai nationality requirement on the buyer’s side excludes most foreign purchasers from the direct benefit.
What the extension does signal is continued government support for domestic property transactions at the mid-to-lower price range, which may indirectly support demand for entry-level units and help stabilise the broader market during a period of slower economic activity.
Frequently Asked Questions
Can foreign buyers use the reduced property transfer fee in Thailand?
The reduced fee is designed for buyers with Thai nationality purchasing property for their own use. Foreign buyers are not the target of the measure, and most properties that attract foreign capital exceed the 7 million baht price cap required to qualify.
What properties qualify for the transfer fee discount?
Residential or commercial buildings, including the land they sit on, and registered condominium units qualify, provided the purchase price and assessed value do not exceed 7 million baht. Any mortgage taken out against the property must also be capped at 7 million baht per contract.
How long does the reduced fee extension last?
The measure runs from the date it is published in the Royal Gazette until June 30, 2027. It replaces a previous version that was set to expire on June 30, 2026.
What are the standard property transfer fees in Thailand?
The standard property transfer registration fee is 2% of the assessed value, and the standard mortgage registration fee is 1%. Transaction costs typically run between 2.5% and 6.3% of assessed value depending on how the cost is split between buyer and seller.
Does this affect high-value property transactions in Phuket?
No. Most beachfront or sea-view condos, villas and land-holding properties marketed to foreign buyers in Phuket exceed the 7 million baht cap, so the reduced fee does not apply.
Sources
- Thaiger — Buying property in Thailand just got cheaper but does it apply to you? — link
