Guide to Property Taxes in Thailand
Tax Rate on Rental Income |
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| Monthly Income | US$1,500 | US$6,000 | US$12,000 |
| Tax Rate | 7.24% | 20.40% | 25.20% |
Nonresidents are liable to tax on income derived from Thai sources. Married couples may opt to have joint tax liability; although the wife needs to file a separate tax return on her employment income, the couple's combined taxable income will essentially be credited to the husband's.
Personal income tax returns must be filed on or before 21 March in respect of taxable income received during the preceding calendar year.
Income Tax
Nonresident taxpayers can avail of the spouse allowance and child allowances only if their spouse or children are residents of Thailand. No other allowances are extended to nonresident taxpayers.
| Taxable Income (THB/US$) | 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
The taxable income is determined after deducting expenses incurred from gross income. A standard deduction of 10% to 30% is permitted for rental income depending on the type of property leased.
The standard deductions for rental income vary according to the rental income classification:
- Income from buildings and wharves - 30% of income
- Income from agricultural land - 20% of income
- Income from all types of land - 15% of income
- Income from vehicles - 30% of income
- Income from other types of properties - 10% of income
If houses, buildings, and floating houses are rented out by the owner, 30% of the gross rent can be deducted for expenses. The actual expenses incurred can be deducted, especially if it is higher than the standard deduction stated above, but it must be supported by documents.
Rental income is subject to a 5% withholding tax. This tax is then credited to the final tax liability of the taxpayer when they file an income tax return.
Capital Gains Tax
Capital gains derived from the sale of immovable property are taxed at the standard income tax rates.
Corporate Taxation
The standard corporate income tax rate is 20%, levied on income and capital gains earned by companies. This rate applies to companies incorporated in Thailand or foreign companies doing business in Thailand.
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 | |
Property Taxation
Land and Building Tax
The Land and Building Tax came into effect in 2020 and is based on the assessed value of the property. The tax rates are 0.15%-3.00% from the assessed value yearly. For residential properties, the rate is 0.30%. 3% annual property tax only applies to vacant unused land if certain conditions are met. Various deductions are available for residential property owners whose name is on the house registration book.
