Thailand property taxes
Below is a table of the property taxes in Thailand, including the tax amount and liable payer:
| Property tax | Tax amount | Liable payer |
| Transfer Tax | 2% of the property’s appraised value | Buyer or shared between buyer and seller |
| House and Building Tax | 0.15% for agricultural land;0.3% for residential property;1.20% for commercial property, and; 1.20% for vacant and unused land. | Property owner |
| Capital Gains Tax (CGT) | 10% to 37% for individual sellers and 15% to 30% for company sellers | Seller |
| Withholding Tax (WHT) | 1% for company sellers and a progressive rate for individual sellers | Seller |
| Special Business Tax (SBT) | 3.3% of the property’s appraised value or actual selling price, whichever is higher | Seller |
| Stamp Duty | 0.5% of property’s market value or appraised value, whichever is higher | Seller |
| Rental Income Tax | 0% to 37% for residents, depending on taxable income;15% for non-residents; and0% to 20% for corporations | Landlord |
1. Transfer Tax
A transfer tax is a property tax in Thailand levied to transfer property ownership from one party to another. The buyer typically pays the transfer fee of 2% of the appraised property value. However, if both parties agree, the seller and buyer can split this fee in half.
2. Land and Building Tax
In 2019, the Thai government introduced the Land and Building Tax Act to promote proper land utilization and prevent land hoarding. This property tax in Thailand is imposed on property owners, including individuals and businesses owning land, buildings, or condominiums. Property owners are required to pay this tax annually, with the deadline typically falling in April. Below is the breakdown of the land and building tax, depending on the property use:
- Agricultural: A 0.15% tax rate is imposed on agricultural land, including lands for crop farming and livestock (land and aquatic).
- Residential: A 0.3% tax rate is levied on properties for residential purposes.
- Commercial: A 1.2% tax rate on land and property used solely for commercial purposes.
- Vacant or unused land: A tax rate of 1.2% is imposed on land or properties left vacant or not reasonably used.
Tax exemptions
The following are exempted from paying land and building tax:
- Agricultural land valued at or below;
- Residential property whose owner’s name appears on the title deed and is valued at or below, and;
- A residential building valued at or below whose owner’s name appears on the title deed, but another person owns the land.
3. Capital Gains Tax (CGT)
While Thailand has no separate Capital Gains Tax for property sales, sellers are taxed on their profits. Profits from the sale of a property are generally considered taxable income. This means the gain is added to your overall income and taxed according to the progressive income tax rates. This profit, also known as capital gains, can be subject to income tax depending on the seller’s type:
- Individuals: The Capital Gains Tax in Thailand for individuals selling property can range from 0% to 35% based on the progressive income tax rate for personal tax. This tax is lowest at 0% for net income of and below and highest at 35% for income over .
- Companies: The Thailand corporate tax rate is 15% to 30% for companies paying CGT, which is 0% for net profit amounting to and below, 15% for profits ranging to and 30% for profits above .
4. Withholding Tax (WHT)
Individuals or companies selling a property are subject to income tax, and a portion of their income tax can be withheld upfront. This is known as withholding tax, and the government uses this mechanism for efficient tax collection and reduced tax evasion. It acts like a deposit towards the final income tax the seller owes on the property sale. The tax rate for withholding tax in Thailand depends on the seller’s type:
- Companies: For companies selling property, the withholding tax is a flat 1% of the property’s registered or appraised value (whichever is higher).
- Individuals: The withholding tax in Thailand for individual sellers is more complex. The rate is calculated progressively, depending on the length of ownership and the property’s appraised value.
5. Special Business Tax
If you sell your property in Thailand within five years of buying it, you’ll pay a Specific Business Tax (SBT) instead of a Stamp Duty. The SBT has a flat rate of 3.3% and is applied to the higher value between the government’s appraised value of the property and the actual selling price. Moreover, this tax applies to Thai companies that are not registered for Value-Added Tax (VAT).
6. Stamp Duty
Stamp Duty is a property tax in Thailand charged on instruments or legal documents required for a property sale. It has a 0.5% tax rate in Thailand, and the total amount is computed using the property’s market value or appraised value, whichever is higher. The seller is liable for paying Stamp Duty but may be excused if the sold property is already subject to a Specific Business Tax.
7. Rental Income Tax
Many foreigners are venturing into the rental business due to the high demand in the market. Rental income tax for foreigners in Thailand exists under the Thai Revenue Code section 40(5), stating that money gained from the property rent is taxable regardless of tax residency status or where the rent is deposited. The tax rates are specified for each taxpayer below:
- Thai residents: Rental income tax is determined based on the Personal Income Tax (PIT) for individuals. This tax applies progressively, meaning the tax rate increases as your rental income increases. The tax rate in Thailand for residents ranges from 0% to 35%.
- Non-residents: Non-resident individuals earning rental income are subject to a 15% flat tax rate on their gross rental income.
- Corporations: Foreign property owners who channel their rental income through a Thai company will be subject to Corporate Income Tax (CIT) instead of Personal Income Tax (PIT). The Thailand corporate tax rate ranges from 0% to 20% for CIT.
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Frequently Asked Questions (FAQs)
Does Thailand have property tax?
Yes, Thailand has property taxes, including Transfer Tax, Land and Building Tax, Withholding Tax, Capital Gains Tax (CGT), Special Business Tax (SBT), Stamp Duty, and Rental Income Tax.
Is there a tax for foreigners in Thailand?
Yes, there are property taxes in Thailand for foreigners, including Transfer Tax, Land and Building Tax, Withholding Tax (WHT), Capital Gains Tax (CGT), Specific Business Tax (SBT), Stamp Duty, and Rental Income Tax.
How much is property tax in Thailand?
Property taxes in Thailand are calculated based on real estate transactions and the type of taxable property. The property taxes on the sale of real estate can reach anywhere from 5.3% to 35.3%, depending on specific conditions. For rental income tax, the rate can be anywhere from 0% to 35%, depending on the type of taxpayer.
Where to pay property taxes in Thailand?
Property taxes in Thailand are paid to the Revenue Department (RD), a government agency under the Ministry of Finance. You can pay your taxes physically or online through their expanded systems, which include ATMs, internet banking, telephone banking, mobile banking, counter bank e-payment, and tax-smart cards.
2 Responses
how do you get back your withholding tax from the sale of property if you are selling it at a loss?
Hi Valfrido! If you’re selling property in Thailand at a loss, withholding tax is still calculated based on the assessed value, not the actual sale price. Unfortunately, withholding tax paid on a property sale is non-refundable, even if the transaction results in a financial loss. You may want to consult with a local tax professional to explore any possible options or deductions based on your overall tax situation.