Cabinet Slashes Property Registration Fees To 0.01%

Government spokesperson Ratchada Thanadirek announced on June 30, 2025, that the Cabinet has approved a residential property registration fee reduction measure for 2025, lowering transfer and mortgage registration fees to 0.01%. This initiative aims to promote first and second-hand property purchases while relieving the financial burden on citizens seeking homeownership, extending a similar measure from 2024 that expires today.

The new measure maintains the same structure as its predecessor, reducing property transfer fees from the standard 2% to 0.01%, and mortgage registration fees from 1% to 0.01%. Eligible properties include detached houses, townhouses, commercial buildings, and condominium units with purchase prices and appraised values not exceeding 7 million baht, with mortgage limits capped at 7 million baht per contract.

The Cabinet has also approved two ministerial announcements from the Interior Ministry governing fee collection procedures for residential properties and condominiums under both the Land Code and Condominium Act, effective from their publication in the Royal Gazette through June 30, 2026.

Ratchada noted the measure targets Thai nationals seeking their own residence while stimulating first and second-hand property transactions, promoting economic stability, and sustaining activity in the real estate and related sectors. Since local administrative organizations (LAOs) will lose revenue from reduced fees, the Cabinet directed the Budget Bureau and relevant agencies to allocate budget compensation to LAOs as appropriate.

The Finance Ministry projects the measure will generate property transactions valued at approximately 540.81 billion baht annually, increase investment by around 305.81 billion baht, and boost GDP by up to 1.06% compared to without the measure, while restoring confidence and supporting recovery in the slowing real estate sector.