WHAT TAXES APPLY WHEN BUYING AND OWNING PROPERTY IN THAILAND?

When purchasing property in Thailand, investors face several types of taxes:

1. Property Transfer Tax:


Typically 2% of the appraised property value. This tax is paid when registering the sale-purchase transaction.

2. Rental Income Tax (Withholding Tax):


If you rent out your property, the income is taxed at progressive rates from 5% to 35%, depending on the amount.


Income range (THB) — Tax rate


Up to 150,000 — 0%


150,001-300,000 — 10%


300,001-500,000 — 10%


500,001-750,000 — 20%


750,001-1,000,000 — 25%


1,000,001-2,000,000 — 30%


2,000,001-5,000,000 — 35%


Over 5,000,000 — 35%

3. Property Tax:


Introduced in 2019 and applies to properties used for commercial purposes or rental. The rate depends on property type and usage, typically 0.02-0.1% of appraised value.

4. Specific Business Tax:


If the property is sold within 5 years of purchase, a 3.3% tax on the sale price may apply.

5. Capital Gains Tax:


If selling the property at a profit, the gain may be taxed up to 35%.

To minimize tax expenses and avoid mistakes, it’s crucial to consult with experts beforehand. Contact us, and we’ll help you navigate all the nuances to ensure your investments are as profitable and secure as possible.