Property Taxes in Thailand: Full Guide for Buyers and Owners
What Taxes Apply When Buying and Owning Property in Thailand
For foreign investors, understanding what taxes apply when buying and owning property in Thailand is critical to avoiding unexpected costs. Whether you’re purchasing a holiday home, rental unit, or investment condo, Thailand imposes a variety of taxes at both the purchase and ownership stages. Here’s a full breakdown of what to expect — and how to plan for it.
1. Property Transfer Tax in Thailand
When purchasing property, the buyer typically pays a transfer tax of 2% of the appraised value, as determined by the Land Department. This tax is payable at the time of ownership registration and is often split between buyer and seller — unless otherwise negotiated.
2. Rental Income Tax for Property Owners
If you rent out your property, your income is subject to personal income tax on a progressive scale:
| Annual Rental Income (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% |
| Over 2,000,000 | 35% |
Thus, reporting rental income annually is mandatory and penalties apply for non-compliance.
3. Property Tax and Local Levies
Introduced in 2019, Thailand’s Land and Building Tax applies to properties used for rental or commercial purposes. Rates typically range from 0.02% to 0.1% of the appraised value, depending on the property’s use and classification.
Residential properties used as primary homes may be exempt or taxed at reduced rates.
4. Specific Business Tax (SBT)
If you sell your property within five years of purchase, you may be liable for a Specific Business Tax of 3.3% of the selling price. This applies particularly to properties not used as a primary residence.
5. Capital Gains Tax in Thailand
Thailand doesn’t apply a separate capital gains tax for individuals. However, profits from property sales are treated as personal income, meaning gains are taxed according to the same progressive scale used for rental income.
Tips for Reducing Tax Liabilities
- Structure purchases correctly (e.g., in personal vs. company name)
- Claim deductions and allowable expenses for rental property
- Work with a qualified tax advisor familiar with Thai property law
- Keep proper documentation of all income and sale prices
Related Article
Also read:
How to Transfer Funds for Property Purchase in Thailand
Stay informed via the Thai Revenue Department.
Conclusion: Be Prepared for Taxes When Investing in Thailand
In conclusion, knowing what taxes apply when buying and owning property in Thailand allows you to invest wisely, budget accurately, and avoid penalties. From transfer taxes to income declarations, compliance is key.
📩 Need help planning your property tax strategy?
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