Thailand real estate terms S
Letter S covers superficies, stamp duty, sale and purchase agreement, and servitude. These terms appear in villa leasehold packages, condo resales, and Land Office tax worksheets. The SPA is the binding contract before registration transfers ownership.
For broader context see our property hub and the full real estate glossary.
Registered right to own buildings on another person land.
Payable by seller when exempt from specific business tax.
Sale and purchase agreement before Land Office transfer.
Registered access or utility right across neighbouring land.
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Terms starting with S
Superficies (Sidhi-sit)
Superficies under the Civil and Commercial Code grants the right to own buildings on land belonging to another person. Foreign villa buyers commonly combine registered leasehold with superficies so they own the structure while leasing land. Both must register at the Department of Lands.
See letter L glossary page for leasehold context and ensure superficies term aligns with lease registration.
Stamp duty
Stamp duty at 0.5% of registered value is payable by the seller when specific business tax does not apply. Short holding periods often trigger specific business tax at 3.3% instead. Revenue Department rules determine which applies. Your lawyer calculates total seller tax before transfer.
Sale and purchase agreement (SPA)
The SPA is the binding contract executed before Land Office transfer. It defines price, payment schedule, condition precedents, penalties, warranties, and refund terms. Foreign buyer deals typically include Thai and English versions. Independent lawyer review before deposit is essential.
Servitude (easement)
Servitude registers a right of way or utility passage across neighbouring land. Rural villa plots and some land developments depend on servitude for road access. Title search at Land Office reveals servitudes benefiting or burdening the property you intend to buy.
Essential SPA clauses for expats
| Clause | Purpose |
|---|---|
| Payment schedule | Ties deposits to milestones or transfer date with default remedies |
| Condition precedents | Title search, foreign quota, and mortgage discharge before binding payment |
| Penalty and refund | Developer delay or buyer default consequences in Thai and English |
| Vacant possession | Seller delivers empty unit free of unauthorised occupants |
Transfer taxes related to stamp duty
- Transfer fee at 2% of registered value, typically buyer bears cost
- Specific business tax at 3.3% if seller held less than five years, otherwise stamp duty at 0.5%
- Withholding tax per seller type: progressive individual or 1% corporate
- Lawyer prepares worksheet comparing total tax under each scenario before transfer day
Legal context for foreign buyers
Superficies and servitude are registered real rights under Civil and Commercial Code Book III. Stamp duty implements Revenue Department transfer tax policy. SPA is contract law governing pre-registration obligations. Together they form the legal framework every expat buyer navigates from first offer to Chanote in their name.
Common mistakes foreigners make
- Signing SPA without independent lawyer review of penalty and refund clauses.
- Assuming villa ownership without registered superficies when only lease exists.
- Ignoring missing servitude for landlocked plot access across neighbour property.
- Paying deposit before SPA lists condition precedents for title and quota verification.
- Confusing stamp duty exemption rules with specific business tax on short-held resale.
Frequently asked questions
General answers for expats reading letter S terms in SPAs and transfer tax worksheets. This is orientation, not legal or tax advice.
Q:What is superficies (Sidhi-sit)?
Superficies is a registered right to own buildings on land belonging to another person. It pairs with leasehold in many villa structures so the foreign buyer owns the building while leasing underlying land. Registration at Land Office is required.
Q:When does stamp duty apply?
Stamp duty at 0.5% of registered value applies when the seller is exempt from specific business tax, typically when holding property more than five years for individuals under current rules. Your lawyer calculates which tax applies on your transaction.
Q:What must a sale and purchase agreement include?
SPA should cover purchase price, payment schedule, condition precedents, completion date, penalty clauses, defect warranty, refund terms, and governing law. Bilingual Thai and English versions are standard for foreign buyer deals.
Q:What is servitude or easement?
Servitude is a registered right of way or utility access across neighbouring land. Landlocked plots require servitude registration for legal road access. Title search reveals existing servitudes benefiting or burdening the property.
Q:Does SPA alone transfer ownership?
No. SPA is a binding contract obligation. Ownership transfers only at Land Office registration. See letter T for Torrens registration system and letter O for ownership transfer steps.
Q:Can superficies outlast the land lease?
Superficies term must align with lease and registration documents. Mismatch between lease expiry and superficies creates legal gaps. Independent lawyer coordinates both registrations together.
Q:Who pays stamp duty vs transfer fee?
Allocation is negotiable in SPA. Conventionally buyer pays transfer fee and seller pays income-related taxes including stamp duty or specific business tax and withholding. Confirm in SPA before signing.
Q:Where can I read more Thailand property terms?
Browse our full A to Z glossary index and property hub for related guides on leasehold, transfer fees, and due diligence. Start at glossary hub and property hub.