What Costs Should Buyers Consider?

Beyond the purchase price, buyers should budget for:

• Transfer fees and taxes: May include transfer fees, withholding tax, specific business tax or stamp duty, depending on the transaction.  The applicable charges may depend on factors such as the transaction details, the property value used for assessment, and the seller's circumstances.  Buyers should clarify which party will be responsible for each cost before signing the sale and purchase agreement.
• Common area fee: Regular payments for maintaining shared facilities.  These may cover the upkeep of common areas, security, lifts, swimming pools, gardens and other shared services.  Buyers should ask about the payment rate, billing frequency, and whether any common area fees remain unpaid on the unit.
• Sinking fund: A one-time contribution may be required when buying  a new unit.  This fund is generally intended to help cover major repairs, replacements or long-term maintenance of common property.  Buyers should confirm the required amount and payment terms with the developer or condominium juristic person.
• Utilities and maintenance: Water, electricity, internet, repairs and insurance, where applicable.  These costs can vary depending on the unit's size, occupancy, usage and condition.  Buyers should also consider the potential cost of replacing appliances, repairing air-conditioning systems or renovating the unit after taking ownership.
• Land and building tax: May apply depending on the property and its use.  The applicable tax treatment may differ according to whether the unit is used as a residence, rented out or held for another purpose.  Buyers who intend to rent out their condiminium should check the relevant tax obligations rather than assume that all units are treated in the same way.
• Rental income tax: May apply if the unit is rented out.  Owners should consider their tax obligations in Thailand and keep records of rental income and relevant expenses.  The applicable treatment may depend on the owner's circumstances and the rules in force.

Additional Costs to Consider

In addition to the costs listed above, buyers may need to budget for legal advice, document preparation, mortgage-related expenses if financing is used, and property management fees if the unit will be rented out and managed by a third party.  Some of these costs may not apply to every transaction, so buyers should identify which services they actually need.

For example, a buyer purchasing a condominium for investment should consider not only the initial transfer costs and common area fees, but also ongoing maintenance, possible periods without a tenant, and the cost of preparing the unit for new tenants.  These expenses can affect the net rental return even when the expected rental income appears attractive.