In July 2026, the Thai government extended two property-market stimulus measures through 30 June 2027. The transfer fee was cut from 2% to 0.01% of the appraised (official) value, and the mortgage registration fee dropped from 1% to 0.01%. On a property valued at 7 million THB, the combined saving exceeds 200,000 THB - a figure that understandably attracts attention. Our analysts monitor these regulations continuously, and the key detail that most promotional materials omit is this: the relief applies exclusively to Thai natural persons. For foreign buyers weighing a condo purchase in Phuket or Koh Samui, that single phrase changes the entire cost calculation.
Quick answer
- The reduced transfer fee (0.01% instead of 2%) and mortgage registration fee (0.01% instead of 1%) run from 1 July 2026 through 30 June 2027
- Eligibility condition: the buyer must be a Thai natural person - a Thai citizen individual; corporate entities and foreigners are not addressed in the same category
- Price cap: both the contracted sale price and the appraised value must each be at or below 7 million THB; the mortgage amount is likewise capped at 7 million THB per loan contract
- The relief covers both new and resale residential property: detached houses, semi-detached, townhouses, and condominium units
- The Bank of Thailand LTV 100% relaxation (applicable from the second mortgage contract for collateral below 10 million THB, and from the first contract for collateral at or above 10 million THB) targets Thai borrowers; foreign access to Thai bank mortgages remains minimal in practice
- A foreign buyer purchasing a freehold condo unit as an individual does not qualify for the reduced fees and should budget on the standard 2% transfer fee plus 1% mortgage fee where applicable
Options and scenarios
Scenario 1: Foreign buyer purchasing a freehold condo as an individual
This is the most common structure we observe among international investors in Phuket and Koh Samui. Foreigners may hold freehold title in a condominium building where foreign ownership does not exceed 49% of total saleable area. However, the reduced transfer fee does not apply. The Royal Gazette language - 'Thai natural person' - is unambiguous on this point.
For a condo priced at 5 million THB in Bang Tao, Kamala, or Surin, a foreign buyer pays the standard 2% transfer fee on the appraised value, and if a mortgage is registered, an additional 1% mortgage registration fee. On a straightforward cash purchase, the transfer cost alone comes to approximately 100,000 THB.
On the LTV relaxation: Bank of Thailand guidance applies to loans extended by Thai-licensed financial institutions. Based on our on-the-ground data, foreign nationals have very limited access to Thai bank mortgages. A small number of regional bank branches - primarily Singapore- and Hong Kong-domiciled institutions - offer financing to foreigners, typically at 50-70% LTV and at higher interest rates than domestic products. The LTV 100% measure does not alter this landscape for foreign buyers.
Scenario 2: Purchase through a Thai limited company
Some investors consider holding property through a Thai Co., Ltd. where a Thai citizen holds the majority stake. In theory, if the buyer of record is a Thai entity, some Land Offices may apply the reduced rates. In practice, our analysts flag three material concerns.
First, the ministerial regulation specifies 'Thai natural person', which on a literal reading refers to an individual, not a legal entity; actual treatment varies by Land Office and is not uniform across Phuket or Koh Samui. Second, company structures using nominee shareholders have been under sustained scrutiny by the Department of Special Investigation (DSI) for several years. Third, even in the optimistic case where a Land Office accepts the company structure for reduced fees, the legal risk attached to nominee arrangements substantially outweighs a saving of around 200,000 THB. We do not consider temporary fiscal incentives a sound basis for choosing a legal ownership structure.
Scenario 3: Purchase registered to a Thai spouse
A foreign buyer with a Thai national spouse faces a meaningfully different situation. If the property is registered in the Thai spouse's name - who qualifies as a Thai natural person - the transaction can access the reduced fees, provided the property falls within the 7 million THB cap. As of August 2026 data we track through legal practice sources, both the mortgage registration and the title transfer must be executed simultaneously for the 0.01% mortgage fee to apply. This scenario is legally straightforward, but carries the important consequence that legal title rests with the spouse, not the foreign partner.
Scenario 4: Properties above 7 million THB
In premium Phuket districts - Layan, Surin, Kamala - sea-view condo units routinely list above 10 million THB. In Koh Samui's Bophut and Chaweng, new poolside projects are priced from 8 to 12 million THB. Above the 7 million THB threshold, the reduced fees do not apply even to Thai buyers, since both the sale price and the appraised value must individually remain at or below that level. For this price segment, the only element of the stimulus package that potentially touches Thai buyers is the LTV 100% provision - which, for collateral at or above 10 million THB, applies from the first mortgage contract rather than the second.
Comparison table
| Parameter | Foreign buyer - freehold condo | Thai company structure | Thai spouse as registered owner | Thai citizen (reference case) |
|---|---|---|---|---|
| Transfer fee | 2% (standard rate) | 2% or 0.01% (Land Office dependent) | 0.01% (within 7 million THB cap) | 0.01% (within 7 million THB cap) |
| Mortgage registration fee | 1% if applicable | 1% or 0.01% (uncertain) | 0.01% (simultaneous registration required) | 0.01% (simultaneous registration required) |
| Saving on a 7 million THB deal | 0 THB | Legally uncertain | Approximately 208,600 THB | Approximately 208,600 THB |
| Access to LTV 100% | Negligible in practice | Bank-dependent | Yes, subject to bank approval | Yes, subject to bank approval |
| Property value cap for relief | Not applicable (no relief) | 7 million THB | 7 million THB | 7 million THB |
| Legal risk level | Low | High (nominee exposure) | Medium (title in spouse's name) | Low |
Risks and mistakes
Mistake 1: Assuming the reduced fee applies to all buyers. Our analysts regularly encounter developer marketing materials for Phuket and Koh Samui projects that reference 'reduced transfer fees' without clarifying that eligibility is restricted to Thai citizens. Any such claim should be verified against the primary Royal Gazette text before budget decisions are made.
Mistake 2: Treating LTV 100% as a credit guarantee. The Bank of Thailand relaxation permits banks to lend up to 100% of collateral value - it does not obligate any bank to approve a loan. Each application is subject to the lender's own credit assessment. For foreign nationals, access to Thai bank mortgage products remains marginal regardless of this policy adjustment.
Mistake 3: Building a company structure solely to capture a tax saving. A nominal saving of around 200,000 THB does not justify the legal exposure that comes with nominee shareholding arrangements. Enforcement action can result in transaction voidance and criminal liability for all parties involved.
Mistake 4: Registering the mortgage after the transfer. The 0.01% reduced mortgage fee applies only when the mortgage is registered at the same time as the title transfer - in a single Land Office session. If the mortgage registration is deferred, the standard 1% rate applies.
Mistake 5: Overlooking the appraised value cap. The 7 million THB ceiling applies to both the contracted price and the government appraised value independently. In fast-appreciating sub-markets such as Bang Tao and Bophut, appraised values have in some cases moved above transaction prices, disqualifying a deal even where the sale price remains under the limit. Our analysts recommend confirming the current appraised value through the local Land Office before assuming eligibility.
FAQ
Does a foreign buyer qualify for Thailand's reduced transfer fees in 2026?
No. The regulations published in the Royal Gazette in July 2026 require the buyer to be a Thai natural person - a Thai citizen individual. A foreign national purchasing a freehold condo unit pays the standard 2% transfer fee on the appraised value.
How large is the saving on a 7 million THB property?
For an eligible Thai buyer, the combined reduction in transfer fee and mortgage registration fee exceeds 200,000 THB. Based on calculations we track from legal practice data as of August 2026, at both a property value and mortgage of 7 million THB, total fees drop from approximately 210,000 THB to approximately 1,400 THB.
Until when are the reduced transfer fees in effect?
The measures run through 30 June 2027. They came into effect on 1 July 2026 following Royal Gazette publication. Any further extension would require a new cabinet resolution.
What is the LTV 100% rule and does it apply to foreigners?
The LTV 100% relaxation allows Thai-licensed banks to finance up to 100% of a property's appraised value. For collateral below 10 million THB, it applies from the second mortgage contract; for collateral at 10 million THB and above, from the first. In practice, this measure targets Thai borrowers. Foreign nationals have very limited access to Thai bank mortgage products under any conditions.
Can purchasing through a Thai company unlock the reduced fees?
The interpretation is not settled. The regulation specifies 'Thai natural person', which on a strict reading refers to an individual rather than a legal entity. Even where a Land Office accepts a company structure for the reduced rate, the legal risk profile of a nominee arrangement is considerably higher than the potential saving.
What is the price cap for the fee reduction?
Both the contracted sale price and the government appraised value must individually be at or below 7 million THB. The mortgage amount per loan contract is also capped at 7 million THB.
Does the relief cover resale properties?
Yes. The reduced fees apply to both new and second-hand residential property, including detached houses, semi-detached, townhouses, and condominium units.
How do the reduced fees affect the Phuket and Koh Samui condo markets?
The direct effect is a stimulus on demand from Thai buyers in the sub-7-million-THB segment. In Phuket, this covers smaller units in Rawai, Nai Harn, and Karon. In Koh Samui, it touches studio and one-bedroom condo stock in Maenam and Lamai. Increased local demand in these sub-markets can place upward pressure on appraised values and transaction prices, which indirectly affects the cost basis for foreign buyers entering the same segments.
Can the transfer fee be split between buyer and seller in Thailand?
The statutory rate itself is fixed. However, the parties to a transaction may negotiate which side bears the cost. In our observation of Phuket market practice, the 2% transfer fee is frequently split equally between buyer and seller, though this is a commercial arrangement rather than a legal default.
What should a foreign buyer budget for transaction costs in 2026?
Based on current rates and our analysis of deals tracked across Phuket and Koh Samui, a foreign individual buyer should plan for a 2% transfer fee on the appraised value and, if a mortgage is involved, a 1% mortgage registration fee. For a 5 million THB cash purchase, that equates to approximately 100,000 THB in government fees at closing, before legal and due-diligence costs.
Our summary assessment: the stimulus package running to 30 June 2027 delivers a concrete benefit to Thai citizen buyers in the sub-7-million-THB segment, but does not alter the transaction cost structure for foreign individuals purchasing freehold condos. When building a purchase budget for Phuket or Koh Samui, our analysts recommend using standard benchmark rates - 2% transfer fee and 1% mortgage fee where applicable - unless the buyer's legal structure clearly qualifies for the reduced schedule. The one scenario where a foreign buyer can access the saving indirectly is a purchase registered in the name of a Thai national spouse, with full awareness of the ownership implications that follow.
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