When real estate properties are sold, they are subject to property sales tax in Thailand. Understanding the property sales tax in Thailand for foreigners can provide information on how much their properties are being taxed in the country. This article will provide an overview of property sales tax in Thailand and their corresponding tax rates.
Types of property sales tax in Thailand
The property sales tax in Thailand properties are Transfer fee, Stamp Duty, Specific Business Tax, Withholding Tax, and Capital Gains Tax. The table below shows the type of tax, their Thailand sales tax rate, and the person liable to pay the tax:
| Property taxes | Tax rates | Liable persons |
| Stamp Duty | 0.5% of property’s market value or appraised value, whichever is higher | Seller |
| Specific Business Tax | 3.3% of the property’s appraised value or actual selling price, whichever is higher | Seller |
| Withholding Tax | 1% for company sellers and a progressive rate for individual sellers | Seller |
| Capital Gains Tax | 10% to 37% for individual sellers and 15% to 30% for company sellers. | Seller |
| Transfer fee | 2% of the property’s appraised value | Buyer or shared between buyer and seller |
Stamp Duty
When buying or selling a real estate property in Thailand, pertinent documents must be filed and submitted to the Revenue Department. Stamp Duty is a tax on instruments or legal documents necessary for the acquisition of real estate properties. It has a tax rate of 0.5%, and the total tax amount payable is calculated based on the property’s market value or appraised value, whichever is higher. The seller is responsible for paying the Stamp Duty but can be exempted if the sold property is already subject to a Specific Business Tax.
Specific Business Tax
An individual who owns a property and decides to sell it within five years of ownership will be subjected to a Specific Business Tax instead of the Stamp Duty. The tax rate for Specific Business Tax in Thailand is 3.3%. To calculate the tax amount payable, the tax rate is multiplied by the value of the property appraised by the government or its actual selling price, whichever is higher. Moreover, this tax also applies to companies in Thailand that do not pay Value-Added Tax (VAT). Properties sold by these companies are subject to a 3.3% Specific Business Tax.
Withholding Tax
Withholding Tax is a prepayment to the seller’s income tax on the sale of property. The Withholding Tax rate in Thailand varies depending on who sells the property. The calculation of this tax depends on different factors. If the seller of the property is a company, the withholding tax rate is a fixed 1% of the property’s registered value or appraised value, whichever is higher. If the seller is an individual, the Withholding Tax rate is calculated at a progressive rate ranging from 0% to 30%, depending on the appraised value of the property and the length of ownership.
Capital Gains Tax
Capital Gains Tax in Thailand property is imposed on the seller’s profit from the sale of the property. This transaction is better known as capital gains. Different rates for Capital Gains Tax are applicable for individual and company entities. An individual selling a property is subjected to a tax rate ranging from 10% to 37%, while a Thai corporation is subjected to a tax rate ranging from 15% to 30%.
Transfer fee
Another important cost to remember is the transfer fee in Thailand. A transfer fee is often paid by the property buyer, or it can be shared between buyer and seller. The transfer fee is 2% of the property’s appraised value, and if the buyer and seller decide to share the liability, each will pay a 1% transfer fee.
Get help with filing property sales tax in Thailand
Navigating the complexities of property sales taxes in Thailand, especially for those living abroad or with multiple investments, can be challenging. Own Property Abroad offers support for property owners, including assistance with all types of property sales taxes, such as Stamp Duty, Specific Business Tax, Withholding Tax, Capital Gains Tax, income tax, business taxes, and other taxes related to buying and selling properties.
Our legal team specializes in the Thai tax system, ensuring accurate, timely, and compliant tax filings. Whether you need help understanding obligations, optimizing payments, or managing filings, we’re here to help. Contact us at hello@ownpropertyabroad.com or leave your details below for expert assistance with property sales tax in Thailand.
Frequently Asked Questions (FAQs)
Do foreigners pay taxes in Thailand?
Yes, foreigners pay taxes in Thailand when they legally buy or sell property and/or derive income from conducting business inside the country, just like a normal Thai citizen.
How do you calculate property tax in Thailand?
To calculate property sales tax in Thailand, multiply the specific tax rate by the property’s market value or appraised value, whichever is applicable in the transaction.
What happens if you fail to pay property taxes in Thailand?
If you fail to pay property taxes in Thailand, which you are obligated to pay, it may result in penalties, fines, or legal consequences depending on the severity and case of neglect as a taxpayer. In order to avoid such complications, both foreigners and Thai citizens must settle their tax obligations with the government.
