Guide to Property Taxes in Thailand
Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 3.30% | 11.90% | 16.10% |
Nonresident individuals are generally subject to Thai personal income tax on Thailand-source income, including rental income derived from real estate located in Thailand.
Spouses are generally able to file their personal income tax returns separately, subject to the applicable Thai rules. The older description that the wife's income is essentially attributed to the husband should not be used for the current system.
Income Tax
Thailand applies progressive personal income-tax rates to taxable income:
| Taxable Income (THB/US$) | Tax Rate |
| Up to 150,000 (US$4,152) | 0% |
| 150,001 – 300,000 (US$8,305) | 5% on band over US$4,152 |
| 300,001 - 500,000 (US$13,841) | 10% on band over US$8,305 |
| 500,001 – 750,000 (US$20,762) | 15% on band over US$13,841 |
| 750,001 – 1,000,000 (US$27,683) | 20% on band over US$20,762 |
| 1,000,001 – 2,000,000 (US$55,366) | 25% on band over US$27,683 |
| 2,000,001 – 5,000,000 (US$138,414) | 30% on band over US$55,366 |
| Over 5,000,001 (US$138,414) | 35% on all income over US$138,414 |
Rental Income Tax
Rental income from Thai real estate is generally taxable as income under Section 40(5) of the Thai Revenue Code.
For rental of a house, building or other structure, the taxpayer can generally claim a standard expense deduction equal to 30% of gross rental income.
The standard expense deductions depend on the type of property:
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Buildings and structures: 30%
-
Agricultural land: 20%
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Other land: 15%
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Vehicles: 30%
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Other property: 10%
Instead of using the standard deduction, a taxpayer can generally claim actual necessary and reasonable expenses incurred in earning the rental income, provided the expenses are properly documented and satisfy the applicable tax requirements.
For an ordinary residential apartment or house, the standardized calculation is therefore:
Gross rental income
– 30% standard expense deduction
= taxable rental income
The resulting taxable rental income is subject to Thailand's progressive 0%–35% personal income-tax rates.
Rental payments can also be subject to 5% withholding tax. This withholding is generally an advance payment of tax and can be credited against the landlord's final annual personal income-tax liability. It should therefore not normally be added as a separate 5% tax on top of the final progressive income tax.
Capital Gains Tax
Thailand does not impose a separate general capital-gains tax on an individual's disposal of Thai real estate.
Instead, gains or taxable proceeds from the transfer of immovable property can be subject to personal income tax collected through withholding at the Land Department, with the calculation depending on factors including the property's appraised value, acquisition method and number of years the property was held.
The tax treatment therefore should not simply be described as applying the ordinary progressive income-tax rates to the actual economic capital gain.
Corporate Taxation
The standard Thai corporate income-tax rate is 20% of net taxable profit.
A Thai company is generally subject to corporate income tax on its taxable income, including rental income and taxable gains from real estate.
Qualifying expenses incurred in generating taxable income are generally deductible, subject to Thai corporate tax rules.
Foreign companies carrying on business in Thailand can also be subject to Thai corporate income tax on profits attributable to their Thai business operations, while different withholding rules can apply to certain Thai-source payments made to foreign companies without a Thai business presence.
Property Buying and Selling Taxes/Costs
| Tax Type | Rate |
| Property Transfer Tax | 2.00% |
| Agent Fee (Buyer) | n/a |
| Agent Fee (Seller) | 3.00% - 5.00% |
| Legal Fees | 1.00% - 2.00% |
| Notary Fee | 0.10% - 0.20% |
| Costs Paid By Buyer | 3.10% - 4.20% |
| Costs Paid By Seller | 3.00% - 5.00% |
| Roundtrip Cost | 6.10% - 9.20% |
| Source: Global Property Guide, PWC | |
Annual Property Taxation
Thailand imposes an annual Land and Building Tax on land and buildings. The tax is calculated principally on the property's official appraised value, rather than its actual purchase price or current market value.
For residential property, the applicable tax rate depends on the property's value and whether the owner qualifies for preferential owner-occupied treatment.
For residential properties that do not qualify for the principal-residence exemptions, including many properties held as rental investments, the applicable rates generally range from approximately 0.02% to 0.10% of the official appraised value, depending on the property's value.
Land or buildings that are vacant or unused are generally subject to higher taxation. The initial rate is generally 0.30%, and the rate can increase by 0.30 percentage points for every three years that the property remains vacant or unused, subject to the statutory maximum rate.
The Land and Building Tax Act provides statutory maximum rates of 0.15% for agricultural property, 0.30% for residential property, 1.20% for other uses and 1.20% for vacant or unused property. The actual rates imposed are generally substantially below these ceilings.
Accordingly, for a nonresident investor holding a Thai apartment or condominium as a rental property, a reasonable general reference is the non-owner-occupied residential rate schedule of approximately 0.02%–0.10% of official appraised value
