Foreigners Transferring Condominium Ownership to Heirs as a Gift: Which Taxes Must Be Paid and Which Are Exempt

A gift (gratuitous transfer) means transferring property to another person without consideration. In general, this is commonly seen in transfers to children, a spouse, or family members. However, for foreigners who wish to transfer ownership of a condominium unit in Thailand, this issue differs significantly from Thai nationals—especially in terms of tax. Even if the condo is transferred as a gift to pass it on to heirs, for non-Thai nationals

Thai law treats it, for tax purposes, as a transaction with the same characteristics as a sale. As a result, there is no tax exemption as in the case of Thai nationals, and tax must be paid at the same rate as a standard sale-and-purchase transaction. In summary:

• A gift (gratuitous transfer) does not create any entitlement to a tax exemption for foreigners.

• It is treated as a transaction with the same tax consequences as a sale.

• The transferor must be prepared to pay the relevant taxes and fees, such as the transfer fee, specific business tax, withholding income tax, and stamp duty.

If a foreigner plans to transfer a condo to heirs—whether to a child, spouse, or another person—they should calculate the tax costs in advance and also verify the transferee’s eligibility to hold ownership, because transferring condominium ownership in Thailand must also take into account the foreign ownership quota in the project (not exceeding 49%).

Although gifting a condominium unit is a transfer of property “without consideration”, for foreigners transferring condominium ownership to heirs in Thailand, the law treats it as a transaction with tax implications, the same as a normal sale and purchase. As a result, taxes and fees must be paid at the rates prescribed by law, with the key details as follows:

1. Transfer Fee

The transfer fee arises on the date the ownership transfer is registered at the Land Office. It is calculated at 2% of the Treasury Department’s appraised value, or the contract price/market price (based on whichever is higher). This cost is incurred immediately on the date the ownership transfer is carried out. In general, the donor/recipient may agree on who will be responsible, but if not specified, it is usually deemed payable by the donor.

2. Specific Business Tax / Stamp Duty

Upon the transfer of ownership, this tax item is one of the major components affecting total costs. Normally, Specific Business Tax (SBT) is payable at 3.3% of the appraised value or market price (whichever is higher is used as the tax base). If the ownership has been held for more than 5 years, it may qualify for an SBT exemption; however, stamp duty of 0.5% and personal income tax at progressive rates must be paid instead.

3. Withholding Tax or Personal Income Tax

Even though no actual sale takes place, the law views the transfer of condominium unit ownership as a form of income for the donor.

The transferor (a foreigner) will be assessed for withholding tax in cases where the property has been held for 5 years or more, calculated in accordance with the Revenue Department’s criteria based on the property value and the applicable income brackets, and paid on the date the transfer registration is completed, the same as other taxes.

A clear summary of a foreigner’s tax burden

This table provides an easy-to-understand overview of a foreigner’s tax burden to help you plan correctly and avoid unexpected costs later.

Many people mistakenly believe that transferring ownership of a condominium unit to heirs as a gift will be exempt from tax in the same way as in the case of Thai nationals—for example, a transfer to a child, spouse, or parents within the limits permitted under Thai law. In reality, however, such tax exemptions apply only to Thai nationals and do not cover a foreign transferor, even if the transferee is Thai.

Where the transferor is a foreigner gifting a condominium to an heir, regardless of how close the relationship may be, the tax treatment is still deemed a transfer of ownership in the same manner as a sale, and taxes must be assessed at the standard rates in every respect.

For this reason, anyone planning to transfer a condominium to heirs—whether in Thailand or overseas—should evaluate the tax cost-effectiveness before proceeding and thoroughly review the legal status to avoid unexpected expenses during the ownership transfer process.

To clearly illustrate that, in the case of a foreigner gifting a condominium, the tax burden will be the same as a typical real estate sale, let’s look at this case study together. Assume the condo value = THB 10,000,000 (based on the appraised value or the higher sale price).

Even though this is not a sale transaction—there is no payment—and it is a direct gift to heirs such as a child, spouse, or close relative, the transfer of condominium ownership by a foreigner in Thailand is not eligible for a tax exemption and will be assessed as if it were a sale transaction under Thai law.

Why You Should Plan Ahead Before Transferring a Condo to Heirs

Tax calculations can be complex and depend on several factors, such as:

• Treasury Department appraised value

• Property holding period

• Source of initial funds

• The transferor’s tax status in Thailand

Therefore, preparing complete information and consulting a real estate or tax specialist is the best approach to reduce the risk of retrospective tax liabilities.

Preparing complete documentation is a crucial step in a gratuitous transfer of condominium ownership, especially where the transferor is a foreign national, as the Land Office will thoroughly verify both the condominium ownership status and the accuracy of the transfer. If the documents are incomplete, the registration of the transfer and the payment of condominium ownership transfer tax may be delayed or may not be able to proceed.

Documents required from the transferor (foreign national)

A foreign-national transferor must prepare documents to confirm ownership and the right to transfer the condominium unit, including:

• Condominium unit title deed (original) showing no encumbrances, or with any encumbrances already properly discharged

• Passport (valid/unexpired), used to verify the transferor’s identity

These documents are essential for determining that a gratuitous condominium transfer is lawful and does not affect the assessment of condominium transfer tax and other related taxes.

Documents required from the transferee

The transferee must prepare documents to confirm their status and eligibility to receive the transfer of condominium ownership, including:

• Passport (valid/unexpired), used to verify the transferor’s identity

• Evidence of lawful condominium ownership such as proof of inward remittance at the time of purchase (FET) or documents previously recorded by the Land Office

• Documents evidencing the relationship between the transferor and transferee (if any), such as a birth certificate or marriage certificate, which affects the consideration of gift tax and eligibility for exemptions

• Documents confirming eligibility to hold condominium ownership under Thai law, such as documents showing the transferee’s nationality or ownership status

Preparing the transferee’s documents in full will help ensure a smooth gratuitous transfer of condominium ownership and reduce legal and tax risks later on.

Learn more about the documents used for registering a transfer of ownership: How do you buy and sell a condo? A guide to ownership transfer and key laws you should know—covering both Thais and foreigners

Although a gratuitous transfer of condominium ownership is a voluntary gift, in practice, if it is planned or carried out incorrectly, it may create both legal and tax risks—especially where the donor is a foreign national, as there are stricter ownership limitations and more rigorous scrutiny than in typical cases. Understanding these precautions will help reduce the risk of paying unnecessary condominium ownership transfer tax and gift tax (gratuitous transfer tax).

Risks if planning is done incorrectly

If a gratuitous condo transfer is not properly documented or structured, significant consequences may arise, such as:

• Back taxes: If the tax authority interprets the gift as a disguised sale or finds that it does not meet exemption criteria, additional taxes may be assessed along with penalties and surcharges.

• Transfer rejection: If the recipient does not meet the qualifications under the Condominium Act or the documentation is incomplete, the Land Office may refuse to register the transfer of ownership, causing delays or making the transfer impossible.

These risks affect not only finances, but also long-term confidence in holding the property.

Situations where you should consult a specialist

In some situations, handling the process on your own may carry high risk. You should therefore consider consulting a legal or real estate tax specialist, especially in the following cases:

• High-value property, where the condo transfer tax and gift tax (gratuitous transfer tax) may also be substantial.

• The recipient is a foreign national or holds multiple nationalities, requiring consideration of multiple legal systems in parallel, including Thai law and foreign laws.

Professional advice will help ensure that a gratuitous transfer of condominium ownership is carried out correctly, reduce tax risks, and prevent potential issues in the future.

The transfer of ownership of a condominium unit or condo to heirs in Thailand, where the transferor is a foreign national—whether as a gift, a gratuitous transfer, or without any consideration—has tax implications in the same way as the sale of real estate in Thailand, and does not qualify for tax exemptions in the same manner as Thai nationals.

Even if the recipient is a child, spouse, or relative holding Thai nationality, it does not change the tax treatment. This means the tax burden still includes the transfer fee, Specific Business Tax, and withholding income tax, at the applicable rates. Therefore, advance tax planning and ensuring all documents are complete are extremely important.

If overlooked or misunderstood, legal requirements may result in higher-than-expected tax liabilities or delays in processing documents at the Land Office. Therefore, anyone planning to transfer a condo to heirs or to transfer assets across countries should seek advice from tax and real estate professionals to ensure the most thorough planning.

If you are planning to transfer a condo to heirs or want comprehensive real estate information for foreigners, you can learn more or request guidance from experts at 9asset.com, a real estate platform ready to help make every step of owning and transferring property in Thailand easier and more secure.