Thailand – Property Taxes

What taxes and fees apply when buying a property in Thailand?

When a property changes hands in Thailand, four principal government charges are settled at the Land Office on the day of transfer: the Transfer Fee, either Specific Business Tax (SBT) or Stamp Duty (these two are mutually exclusive), and Withholding Tax. Beyond these government charges, buyers also typically pay for legal representation. Taken together, these additional costs can add a meaningful sum on top of the agreed purchase price.

Transfer (Registration) Fee: This charge covers the formal recording of a change in ownership at the Land Department and is set at 2% of the property’s official appraised value. Thai law is silent on how this fee should be divided, and in practice buyer and seller commonly each contribute half — effectively 1% apiece. That said, the split is entirely open to negotiation and should be explicitly agreed upon in the Sale and Purchase Agreement before contracts are exchanged.

Specific Business Tax (SBT) or Stamp Duty: Only one of these two levies applies to any given transaction — never both simultaneously. SBT is triggered when the seller has held the property for fewer than five years or where the sale has a commercial or profit-driven character; the rate is 3.3% of whichever is greater — the appraised value or the actual transaction price. Where the property has been held for more than five years, Stamp Duty applies instead at 0.5% of the higher of the appraised or actual value. The seller carries legal responsibility for these charges, though it is common for the arrangement to be adjusted during price negotiations.

Withholding Tax (WHT): Withholding Tax functions as a prepayment of income tax on the seller’s gain and is collected at the Land Department on transfer day. For a corporate seller, the rate is a flat 1% of the higher of the appraised or registered sale value. For an individual seller, a progressive formula is applied, factoring in the appraised value and how long the seller has owned the property. The resulting effective rate generally lands somewhere between 1% and 5% of the appraised value.

Legal and professional fees: Most buyers retain a Thai lawyer to carry out title searches, check contracts, and attend the Land Office for the transfer. Legal fees are not subject to any statutory cap but commonly run to around 1% of the purchase price. Confirm the exact fee arrangement in writing before the lawyer begins work.

Note on the tax base: SBT and Withholding Tax are calculated against whichever figure is higher — the declared sale price or the Land Department’s official appraised value. The appraisal figures used by the Land Department and the Treasury Department are updated on a four-yearly cycle.

Worked example — typical freehold condominium purchase (as of 2025)

Based on a property with a purchase price of THB 8,000,000 and an official appraised value of THB 6,500,000 (appraised values often sit below market prices), where the seller has owned the property for more than five years:

The combined government charges on a Thai property transfer generally range from 2.5% to upwards of 6.3% of the official appraised value. Where the seller has held the property for under five years, SBT at 3.3% replaces Stamp Duty and drives total costs higher. Always check current figures directly with the Thai Land Department and the Revenue Department of Thailand.

What taxes and fees apply when selling a property in Thailand?

One distinctive feature of Thailand’s property tax regime is that the tax obligations arising on a sale are not contingent on whether the seller actually makes a profit. Regardless of the outcome of the transaction — whether a gain or a loss — the applicable taxes and fees must still be paid. This sets Thailand apart from jurisdictions such as the UK, Australia, or Canada, where tax liability on real estate is calculated by reference to the actual profit realised.

The charges a seller must account for include the Transfer Fee (2%), either Specific Business Tax (3.3%) or Stamp Duty (0.5%) depending on how long the property has been held, and Withholding Tax (a flat 1% for companies; a progressive calculation for individuals). SBT and Stamp Duty are mutually exclusive and cannot both apply to the same transaction.

The 2% Transfer Fee is most commonly divided equally between the two parties, though this is a matter of negotiation rather than legal obligation. The seller bears primary responsibility for SBT or Stamp Duty and for Withholding Tax.

SBT exemptions for sellers: Certain circumstances allow individual sellers (not companies) to avoid SBT: where the seller has owned the property for over five years and treated it as their principal home; where the transfer passes property to a legal heir or is made under the terms of a will; or where the property is transferred to the seller’s own legitimate child (adopted children are excluded from this exemption).

Agent and professional fees: Estate agent commissions in Thailand are typically in the range of 3% to 5% of the sale price, though these figures are entirely negotiable and unregulated. Sellers dealing with complex transactions or company-held assets should also factor in their own legal costs.

As a rough guide, the combined tax burden falling on a seller usually amounts to somewhere between 5% and 7% of the sale price, with the exact figure depending heavily on how long the property has been owned. Sellers are strongly encouraged to request a personalised cost estimate from the Land Department or a qualified Thai tax adviser before committing to a sale price, as individual circumstances can produce quite different outcomes.

Is capital gains tax payable on property sales in Thailand?

Thailand does not maintain a standalone capital gains tax statute in the way that many other countries do. Instead, any profit realised from the disposal of assets — including real estate — falls within the ordinary income tax framework under the Revenue Code. Both individuals and companies are subject to this treatment. This is meaningfully different from the dedicated CGT regimes found in the UK, Canada, and Australia.

Gains on asset disposals are subject to progressive personal income tax rates running from 5% to 35% for individuals. There is no separate flat CGT rate. In practical terms, however, the Withholding Tax collected by the Land Office at the point of transfer serves as the mechanism through which this tax is gathered. For individual sellers, the WHT paid on transfer day is generally treated as the final settlement of tax liability on the gain — meaning the seller is not normally required to declare the transaction a second time in their annual personal income tax return.

How is the gain calculated? The taxable figure is derived from the property’s official appraised value and the period for which the seller has held it. A standard deduction — scaled according to years of ownership — reduces the assessable amount, and the balance is then taxed at Thailand’s progressive personal income tax rates, which range from 0% to 35%.

Are there exemptions? SBT exemptions are available to individual sellers who have held the property for more than five years and to those transferring to family members or institutions via a will. Unlike some jurisdictions that distinguish between short-term and long-term holdings for tax purposes, Thailand does not apply separate rates — all capital gains remitted into the country are taxed, regardless of the holding period.

For companies: The 1% WHT paid by a company is treated as a prepayment rather than a final settlement. The actual Corporate Income Tax liability — ordinarily 20% on net profit — is assessed against the true gain (sale proceeds minus allowable costs) at the end of the company’s fiscal year.

Practical example: If an investor sells a villa in Phuket for THB 5 million that was originally purchased for THB 3 million, the THB 2 million gain is assessable to personal income tax unless an applicable exemption applies. The effective rate will depend on the property’s appraised value, the number of years it was held, and the seller’s overall income during that tax year. A pre-calculation from the Land Department or a Thai tax specialist is advisable. Always verify the current position with the Revenue Department of Thailand.

Are there annual property taxes in Thailand?

From 1 January 2020, a unified Land and Building Tax (LBT) has been levied on virtually all land parcels and permanent structures in Thailand. Enacted under the Land and Building Tax Act B.E. 2562 (2019), the tax is collected annually by the local administrative body responsible for the area in which the property is located. It replaced the older House and Land Tax and Local Development Tax, substantially simplifying the annual cost of property ownership.

Who is liable? LBT falls on the owner of land and/or buildings, or on any person who holds proprietorial or beneficial rights over land and/or buildings — whether through ownership, possession, or use — as of 1 January of the relevant tax year. An assessment notice is generally issued in February, and payment (which may be made in a single sum or in up to three instalments) must be completed by 30 April. Owners are not ordinarily required to file a self-declaration unless the use of their property changes.

Tax rates by use (as of 2025): Residential property attracts rates of 0.02%–0.1%, while commercial and other uses attract 0.3%–1.2%, all calculated on the official appraised value. Land that is left unused is taxed at 0.30% as a “vacant” classification, rising by a further 0.30 percentage points every three years — a deliberate policy nudge designed to encourage owners to develop or put idle land to productive use.

Owner-occupier exemptions: Individuals who own both the land and the building they live in as their primary residence benefit from an exemption on the first THB 50 million of combined assessed value (or THB 10 million where only the building is owned on leasehold land). This exemption covers one dwelling per person, and the key eligibility test is registration in the house book as of 1 January each year.

What does this mean in practice? For the majority of overseas investors — whether renting out a condominium or using a villa as a holiday home — the starting rate of 0.02% of appraised value (applicable to values up to THB 50 million) produces an annual tax bill that is very modest by international standards, frequently amounting to only a few thousand baht.

As an illustration, a condominium with an official appraised value of THB 6,500,000 used as a secondary rather than primary residence would attract an LBT charge of just THB 1,300 per year at the 0.02% rate — approximately THB 108 per month. Always confirm current rates and thresholds with your local administrative authority or the Fiscal Policy Office, Ministry of Finance.

How is rental income from property taxed in Thailand?

Under the Revenue Code, rental income is classed as “assessable income.” Foreign landlords are subject to Thai tax on rent generated from Thai property regardless of where that rent is actually received. Owning and letting property in Thailand therefore creates a Thai tax obligation whether the landlord is resident in Bangkok or based entirely abroad.

Tax residents: Where the property owner is a Thai tax resident and the tenant is a Thai juristic entity such as a company, the tenant is required to withhold 5% of each monthly rental payment. The withheld amount is credited against the owner’s final personal income tax liability for the year. Residents include rental income alongside their other earnings when filing their annual personal income tax return, with progressive rates of 5% to 35% applying to total taxable income.

Non-residents: Where the owner spends fewer than 180 days per year in Thailand and is therefore a non-resident for tax purposes, the tenant must withhold 15% from each monthly rental payment and remit this directly to the Revenue Department. This withholding fully discharges the owner’s Thai income tax obligation on that rental income, and no further annual return is required in relation to it.

Deductible expenses: Thai tax residents may apply a standard 30% deduction against gross rental income without needing to provide supporting receipts, or alternatively claim actual expenses where these can be properly documented. Allowable costs typically include maintenance and repair costs, property management fees, insurance premiums, and building depreciation.

VAT threshold: Landlords whose annual rental receipts exceed THB 1,800,000 are required to register for and charge VAT at 7%. Most owners of a single residential property will sit comfortably below this level, but those operating several properties or running frequent short-term lets should review their position carefully.

Short-term rentals (Airbnb and similar platforms): The short-term rental of residential property through platforms such as Airbnb occupies an uncertain legal position in Thailand. Letting a private condominium for periods of fewer than 30 days per stay may fall foul of the Hotel Act B.E. 2547, which requires a hotel licence for such activity. Income from these arrangements remains taxable as assessable income and must be declared accordingly, but operators also need to seek specific legal guidance on licensing requirements and compliance with any relevant condominium by-laws. The regulatory environment in this space is under ongoing scrutiny and differs materially from standard long-term residential letting.

Always confirm your exact obligations with the Revenue Department of Thailand or a qualified Thai tax adviser, particularly if you are a non-resident or operating through a corporate structure.

Does inheritance tax apply to property in Thailand?

Thailand brought inheritance tax into force in 2016. The threshold at which it applies is set sufficiently high that the vast majority of estates — including those belonging to expatriates — will not reach it. The tax is administered by the Revenue Department under the Inheritance Tax Act B.E. 2558 (2015).

Rates and thresholds (as of 2025): Inheritance tax is triggered only where the total value of an estate exceeds THB 100 million. The rate is 5% for direct heirs (comprising the deceased’s spouse and children) and 10% for all other beneficiaries. Only the portion of the estate’s value above THB 100 million is subject to tax; everything below that level passes to heirs entirely free of inheritance tax.

Additional transfer fees: Even where inheritance tax does not apply, transferring the title deed (Chanote) to an heir still requires payment of the standard transfer fee at the Land Department — generally either 0.5% or 2%. For transfers to direct descendants or heirs made under the terms of a will, the reduced 0.5% transfer fee may be applied in place of the standard 2%.

Non-residents and foreign heirs: Thailand maintains Double Taxation Agreements (DTAs) with a substantial number of countries, generally providing that income arising from property in Thailand is subject to Thai tax. This means that even a foreign heir living abroad will be subject to Thai inheritance rules with respect to any Thai property forming part of the estate. The applicable DTA may influence the overall tax picture depending on where the heir is tax-resident — specialist advice from a qualified Thai tax adviser is essential in such cases.

Because Thai law significantly restricts the ability of non-Thai nationals to inherit land outright (as distinct from condominium units), foreign heirs may face additional legal steps in order to deal with a Thai estate. It is strongly advisable to seek professional guidance well ahead of any estate planning decisions. Verify current thresholds and rates with the Revenue Department of Thailand.

Does gift tax apply to property transfers in Thailand?

Personal income tax is charged on gifts made between living persons. The tax applies to the value of assets or cash given to parents, ascendants, descendants, a spouse, or any other recipient, to the extent that the value of the gift exceeds the relevant exemption threshold. The threshold that applies depends on the nature of the gift and the relationship between giver and recipient.

Key thresholds (as of 2025): Gifts from parents to a legitimate, non-adopted child are exempt up to THB 20 million. Income received by way of maintenance or as a gift from an ascendant, descendant, or spouse is likewise exempt up to THB 20 million per tax year. Income received by way of maintenance consistent with moral obligations, or gifts received on customary occasions or in accordance with tradition from persons who are not ascendants, descendants, or a spouse, is exempt up to THB 10 million per tax year.

Tax rate on amounts above the threshold: The portion of a gift’s net value that exceeds the relevant exemption is taxed at a flat rate of 5%.

Real estate gifts whose value exceeds THB 20 million in any given year are therefore subject to 5% tax, unless the transfer takes place between direct family members within the applicable exemption. In addition to any gift tax liability, a property transferred as a gift will also attract transfer fees at the Land Department — typically at the reduced 0.5% rate where the transfer is between family members. Always confirm the precise position with the Revenue Department of Thailand or a qualified adviser, as the interplay between gift tax rules and the Land Department’s procedural requirements can be intricate in practice.

Are there any tax advantages or incentives for buying property in Thailand?

Thailand provides a focused but genuine set of tax reliefs and incentives that are relevant to property buyers, owners, and investors. The most valuable of these concern the LBT exemptions available to owner-occupiers and the deductibility provisions that apply to rental income.

Owner-occupier LBT exemption: As outlined above, individuals who own both the land and the building used as their primary home currently benefit from an exemption covering up to THB 50 million of the combined assessed value. In practice, this means the great majority of owner-occupiers pay no Land and Building Tax at all on their principal residence.

Standard rental income deduction: Directly held freehold property in an individual’s own name is eligible for the 30% standard deduction against rental income, which can be claimed without producing expense receipts. The same ownership structure also potentially qualifies for the THB 50 million LBT exemption if the property serves as the owner’s principal home. This straightforward deduction simplifies tax compliance for individual landlords considerably.

Reduced transfer fees for low-value properties: For properties valued at under THB 3 million, the standard 2% transfer fee has been reduced to 0.01% as a measure to encourage market activity. It is important to note that government stimulus measures reducing transfer fees to 0.01% do not extend to foreign buyers, who should plan their finances on the basis of standard rates. Always confirm at the time of your transaction whether any current reductions apply.

BOI-promoted projects: Purchasing a property within a development that has received Board of Investment (BOI) promotion can open up access to tax exemptions. The Thailand Board of Investment periodically extends incentives to approved projects, which may include reduced fees or corporate tax holidays for eligible investors. These programmes are subject to frequent change, so it is worth checking the latest BOI announcements before proceeding.

Long-term ownership WHT reduction: For individual sellers, the standard deduction built into the Withholding Tax progressive calculation increases the longer a property has been owned — meaning that holding for more years reduces the effective WHT rate. This provides a tangible, if modest, financial reason to retain property over a longer period before disposing of it.

Do different rules apply to foreign buyers or non-residents purchasing property in Thailand?

Foreign ownership of property in Thailand is subject to important legal constraints that every prospective purchaser must familiarise themselves with before entering into any commitment. While the tax treatment of foreign buyers is broadly comparable to that of Thai nationals, the ownership structures open to foreigners each carry distinct tax and fee implications.

Condominium ownership: The most direct route for foreign buyers is purchasing a condominium unit in their own name. This is legally permitted up to the limit of 49% of the total floor area of a building. This structure attracts the same transaction taxes as a purchase by a Thai national. Holding property directly as a freehold in the individual’s name is the most transparent arrangement available, and it qualifies for the 30% standard deduction on rental income, as well as the potential THB 50 million LBT exemption for primary residences. The 49% ceiling on condominium ownership is, however, a hard constraint.

Land and villa ownership: Foreigners wishing to acquire land or villa properties generally do so via a leasehold arrangement (typically 30 years with provision for renewal) or through a Thai company structure. Leasehold transactions carry a 1% lease registration fee plus 0.1% stamp duty on the total lease value, rather than the full costs associated with freehold transfer. Holding property through a Thai company is a more complex arrangement and is not generally recommended in 2025 unless there is a genuine underlying business rationale.

Reduced-fee stimulus exclusion: Government-sponsored incentives that cut the transfer fee to 0.01% are not available to foreign buyers. Overseas purchasers should budget on the assumption that standard rates will apply.

Rental income for non-residents: As described in the rental income section, non-resident property owners face a flat 15% withholding tax on Thai rental receipts rather than the progressive scale available to residents. Double Taxation Agreements (DTAs) may provide relief against double taxation where the buyer is also subject to tax in their home country. Thailand has DTAs with more than 60 countries — checking whether one applies to your situation is an important step.

Foreign exchange requirements: Foreign purchasers of condominium units must be able to demonstrate that the funds used to acquire the property were transferred into Thailand from abroad in a foreign currency, converted into Thai baht by a Thai bank, and evidenced by a Foreign Exchange Transaction (FET) form or credit note issued by the bank. This documentation must be presented at the Land Office for the transfer to be completed and represents a compliance requirement unique to non-Thai buyers.

Given how significantly the choice of ownership structure affects the tax position — at purchase, during ownership, and on eventual sale — all foreign buyers are strongly advised to engage a qualified Thai property lawyer before signing any agreement. The Thai Land Department handles title and registration matters, while tax queries should be directed to the Revenue Department of Thailand.

How does the property transfer process work at Thailand’s Land Office?

1. Agree the sale and purchase contract: Sign a formal Sale and Purchase Agreement (SPA) specifying the price, deposit, completion date, and how transfer taxes and fees will be divided between buyer and seller. Have this reviewed by a qualified Thai lawyer before signing.
2. Conduct due diligence: Your lawyer should search the title deed at the Land Department to confirm the seller holds a full Chanote (title deed), check for mortgages or encumbrances, and verify that the property is within its designated zoning for your intended use.
3. Obtain necessary funds documentation (foreign buyers): If you are a foreign buyer purchasing a condominium, arrange for your purchase funds to be transferred into Thailand from abroad in foreign currency. Obtain a Foreign Exchange Transaction (FET) form or credit note from the receiving Thai bank — this document is required at the Land Office.
4. Calculate taxes and fees in advance: Ask the Land Office or your lawyer to run an indicative tax calculation before transfer day, so you arrive with the correct amount. Taxes are calculated on the official appraised value or declared sale price, whichever is higher.
5. Attend the Land Office on the agreed transfer date: Both buyer and seller (or their authorised representatives via power of attorney) must attend in person at the relevant Land Office. Bring all required documents: title deed, identity documents, FET form (if applicable), and the SPA.
6. Pay taxes and fees at the Land Office counter: All government taxes and fees are paid directly at the Land Office on the day of transfer. Payment is usually made in cash or by bank cashier’s cheque. The Land Office will issue receipts for all payments made.
7. Receive the updated title deed: Once all fees are paid and documents verified, the Land Office updates the Chanote with the new owner’s name. The buyer receives the original title deed — store this securely, as it is the primary proof of ownership.

Frequently asked questions: property taxes in Thailand

Do I have to pay tax on profits when I sell my Thai property?

Thailand does not operate a separate, dedicated capital gains tax in the way many other countries do. Rather than requiring sellers to calculate and declare a profit, the tax on any gain is gathered through the Withholding Tax mechanism at the Land Department on the day of transfer. For individual sellers, the WHT paid at that point is normally treated as the definitive settlement of tax liability on the gain, and the transaction does not need to be re-reported in the seller’s annual personal income tax return. Consult the Revenue Department of Thailand for guidance specific to your circumstances.

How much should I budget for taxes and fees on top of the purchase price?

Government charges on a Thai property transfer generally range from 2.5% to over 6.3% of the official appraised value. Bear in mind that official appraised values are frequently lower than the price actually agreed between buyer and seller, so these charges as a proportion of the amount you actually pay may be somewhat lower. In addition, budget around 1% for legal fees and, where applicable, agent commissions.

Is there an annual property tax in Thailand?

Yes. Annual property ownership costs are primarily driven by the Land and Building Tax (LBT), which superseded the previous property tax regimes. This levy is collected once a year and is typically due by April of the relevant tax year. It applies across virtually all land and structures, including condominiums, villas, and commercial premises. For most residential owner-occupiers, the annual bill is very small or nil, owing to the generous exemption thresholds built into the system.

Will I owe Thai tax on rental income if I live outside Thailand?

Yes. Non-resident property owners — meaning those who spend fewer than 180 days per year in Thailand — have Thai rental income taxed via a 15% withholding that the tenant deducts from each monthly payment and remits directly to the Revenue Department. This withholding satisfies the owner’s Thai income tax obligation on that income. You may also be required to declare the income in your country of tax residence — review the Double Taxation Agreement in force between Thailand and your home country to understand the full picture.

Does Thailand have inheritance tax on property?

Inheritance tax applies only to estates with a total value exceeding THB 100 million. Above that threshold, the rate is 5% for direct heirs — the deceased’s spouse and children — and 10% for all other beneficiaries. Separate transfer fees may also apply at the Land Department. The great majority of residential property estates fall well below the THB 100 million mark. Individual circumstances vary, so consult a Thai lawyer when undertaking estate planning.

Can foreigners own property freehold in Thailand?

Foreigners may hold condominiums outright in their own name, subject to a limit of 49% of the total floor area of any given building. Ownership of land or villa properties requires a different approach — most commonly a leasehold arrangement lasting 30 years (with renewal provisions) or a Thai company structure. Each of these routes carries different tax consequences at the point of purchase, during the period of ownership, and on eventual disposal. Independent legal advice is essential before making any commitment.

Is Airbnb-style short-term letting legal and taxed in Thailand?

Income generated from short-term rental activity is taxable as assessable income under the Thai Revenue Code regardless of the platform through which bookings are made. However, the legality of letting a private residential property for stays of under 30 days is a separate issue — such activity may fall within the scope of the Hotel Act, which requires operators to hold a licence. Legal compliance and tax compliance are therefore distinct concerns. Before establishing a short-term rental operation, seek advice from both a Thai tax adviser and a lawyer with expertise in hospitality regulation.

Are there any tax differences if I buy property through a Thai company?

Where property is held through a Thai company, rental income and capital gains are subject to Corporate Income Tax at a flat 20% rate, which is both higher than and more administratively demanding than the individual progressive tax rates. This structure is worth considering only if there is a genuine, commercially active business purpose behind it. Establishing a company purely as a device to work around foreign ownership restrictions is not advisable and carries significant legal and tax risk. Always take comprehensive advice from both a Thai lawyer and a tax specialist before selecting your ownership structure.