Tax planning should be a core consideration during any form of property investment. The tax system in Thailand has many foibles - this section is designed to offer a general guideline in principle to the Thai property tax system.
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.
Stamp duty of 0.5% and transfer fees of 2% have, for now, been waived for the short term as the government entices buyers to the market.
Business tax of 3.3 % (levied against a vendor who has been in registered possession of the property less than 5 years) is also charged, along with income tax (similar to capital gains tax) at a variable rate.
Capital Gains Tax as such is not payable in Thailand, unlike many other countries.
This is usually between 1.0 and 3.0% on property and 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.
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.
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.
This tax is charged at between 10 and 30% of the rental income, depending on the type of property leased.
No inheritance tax is charged in Thailand for all family members.
Get the latest property and investment opportunities direct to your inbox for FREE (you can unsubscribe anytime)
Things You Didn't Know About Thailand
Thailand's Tourism Bounces Back
New Marriott Hotel for Thailand Holiday Hotspot
Marriott's Expansion in Thailand Continues
Thailand's New Super Tower among World's Tallest Buildings
Everyone Wants a Piece of Thailand's Coastline
All property news from Thailand
Subscribe to our RSS Feed
Fill out a requirements form and our experts will help you find a great selection of properties for sale in Thailand.
Help me find property in Thailand
Considering a property purchase in Thailand or need to transfer currency to/from Thailand?
Save Thousands in Currency Transfers
When considering a buying property in Thailand, you are well advised to get expert mortgage advice from a mortgage broker.
Get a mortgage quote in Thailand
Owners Direct is one of the UK's leading direct from owner rental websites and the first choice for holiday home owners who want a cost effective and easy way to fully book their properties.
Find out more
If you own or are about to purchase property in Thailand, you get an insurance quote using our online insurance quote form.
Get Insurance in Thailand
Do you have your British assets covered by a will?
Do you have your movable foreign assets covered by a will?
Have you made plans to protect your family in the event of your death?
Get more information on Wills
Everything you need to know about transferring your UK Pension is in our downloadable guide.
Get more information on Pensions
Ang Thong Property
Chiang Mai Property
Chon Buri Property
Krung Thep Mahanakhon Property
Nakhon Ratchasima Property
Nakhon Si Thammarat Property
Prachuap Khiri Khan Property
Surat Thani Property
Ubon Ratchathani Property
Subscribe to our newsletter and keep up to date with the latest and best investment opportunities around the world!