Thailand - Tax Planning

Those living outside their home country may be currently free of the burdens of taxation, but future changes in personal circumstances may mean that tax could once again become payable, whether or not they plan to return “home”.
We strongly advise that all clients speak with our independent tax advice partners regarding their individual case.

Property Taxes and Costs

On all purchase/sale of property in Thailand Stamp Duty is payable at 0.5%. In addition, a Transfer Fee of 0.01% is charged and a Business Tax of 0.11%, which is levied against an owner who has been in registered possession of the property for less than 5 years.

Capital Gains Tax

There is no Capital Gains Tax in Thailand, unlike many other countries.

Income Tax

This is usually between 1.0 and 3.0% on property is the comparable replacement to capital gains tax. There are no established rules regarding who pays the income tax while this is simply another part of the bargaining process during purchase, as are all other costs relating to the transfer of ownership.

Property Tax

There are two types of tax levied for property in Thailand:

Land Tax

This is an annual tax levied on land ownership. The amount is often so small that in practice the body charged to collect it rarely bothers to do so. When they do collect it, it is usually after several years when the amount has accumulated.

Structures Usage Tax

This only applies to commercially used properties. The rate is 12.5% on the actual or assessed gross rental value of the property. However, this notional value is well below the commercial market rental value.
If the property is purchased through a company, you need to remember that corporate tax is higher than personal tax, and the cost of setting up the company must be considered as part of the initial investment.