Taxes in Thailand for Foreigners in 2025
Paying taxes in Thailand is directly related to doing business and making a profit in the country, buying real estate, obtaining residency and staying in the kingdom as a tourist.
Thailand has one of the most lenient taxation systems among Southeast Asian countries. Income tax rates, property ownership, and VAT are among the lowest in the region, second only to those in Singapore.
Due to attractive tax rates, low land cost, and convenient transport accessibility, Thailand is one of the most popular places for relocation, real estate acquisition, and business planning in 2025.
Property tax in Thailand
The tax on residential property ownership has been introduced in Thailand since 2020. The tax rate on real estate depends on the form of ownership of the property by the owner.
There are 2 forms of ownership:
- freehold (full ownership of the property);
- leasehold (long-term lease for 30 years with the possibility of renewal 2 times).
Buying land in Thailand is only possible in a lease, whereas both forms are available for residential real estate: both freehold and leasehold.
Tax | Leasehold | Freehold | Who Pays |
Transfer fee tax | — | 2% | Buyer/Seller |
Lease registration fee | 1% | — | Buyer/Seller |
Stamp duty | 0.1% | 0.5% or not applicable | Seller (if owned for more than 5 years) |
Specific business tax | — | 3.3% | Seller (if owned for less than 5 years) |
Withholding tax | — | 1% (legal entity) or 5–35% (individual) | Seller |
Thus, owning a freehold gives the right to full ownership of the property, but requires more taxes, while owning a leasehold allows you to reduce tax payments.
Taxes on the purchase of real estate
- Registration fee, or tax on the transfer of ownership rights. This tax applies to both the purchase and sale of real estate, and is distributed by agreement between the seller and the buyer. Upon acquisition of primary real estate, the obligation to pay a tax in the amount of at least half of the prescribed amount is imposed on the developer. When buying property in a freehold, the rate is 2%, when buying in a lease — 1%.
- State duty. It is paid upon registration of the property. In the case of freehold — 6.3%, leasehold — 1.1%.
Taxes on property ownership
The tax rate on property ownership varies depending on whether you live in your own property (listed in the Tabien Baan house book) or own several apartments and rent out this property.
Individuals who own apartments for less than 10 million baht and villas for less than 50 million baht are exempt from property tax if they are registered in their apartment or villa.
Villa (owned by both real estate and land)
Cadastral Value (THB) | Tax Rate |
0–50 million | Not applicable if the owner is officially registered at the property |
0–25 million | 0.03% |
25–50 million | 0.05% |
Over 50 million | 0.1% |
Apartment (owned only by real estate)
Cadastral Value (THB) | Tax Rate |
0–10 million | Not applicable if the owner is officially registered at the property |
0–40 million | 0.02% |
40–65 million | 0.03% |
65–90 million | 0.05% |
Over 90 million | 0.1% |
Taxes on the sale of real estate
- Registration fee, or tax on the transfer of ownership rights. This tax applies to both the purchase and sale of real estate, and is distributed by agreement between the seller and the buyer. Upon acquisition of primary real estate, the obligation to pay a tax in the amount of at least half of the prescribed amount is imposed on the developer. When buying property in a freehold, the rate is 2%, when buying in a lease — 1%.
- Business tax. It is paid by all companies and individuals when selling real estate that has been owned for less than 5 years. The business tax is charged on the cadastral value or on the negotiated sale price, whichever is higher. An individual is also exempt from business tax if the property has been used as the seller's place of residence for at least a year or is inherited by a legitimate heir. The rate is 3.3%.
- Stamp duty. It is paid if the property has been owned for more than 5 years. When owning a freehold, the rate is 0.5%, and in a lease — 0.1%.
- The tax on the earned income. It is calculated based on the estimated value determined by the Land Department (Land office), according to a special table.
Years of Ownership | Deduction (%) | Profit (THB) | Personal Income Tax Rate |
1 | 92% | 0 — 150,000 | 5% |
2 | 84% | 150,001 — 300,000 | 5% |
3 | 77% | 300,001 — 500,000 | 10% |
4 | 71% | 500,001 — 750,000 | 15% |
5 | 65% | 750,001 — 1,000,000 | 20% |
6 | 60% | 1,000,001 — 2,000,000 | 25% |
7 | 55% | 2,000,001 — 5,000,000 | 30% |
8 or more | 50% | 5,000,001 and above | 35% |
Example: the estimated value of the property is 7,500,000 baht, and the ownership period is 3 years. The tax deduction for this property will be 77%, and the tax base for 3 years will be 1,725,000 baht, which corresponds to 575,000 baht per year of ownership. Then the calculation takes place at a progressive rate: 300,000×5% + 200,000×10% + 75,000×15% = 46,250 baht — annual tax. You will need to pay 138,750 baht for 3 years of ownership.
Taxes on the rental of real estate
The tax rate for renting out real estate in Thailand depends on whether you are a tax resident of that country or not.
Most often, this tax is paid by the management company of the complex, deducting the amount of tax from the investor’s profit:
- non-resident of Thailand — 15%;
- resident — 5%.
There are tax benefits that allow you to apply for a tax refund:
- an individual deduction is 30,000 baht per taxpayer per year.;
- Deduction of rental costs for freehold ownership: 30% of the income amount;
- Deduction of rental costs for leasehold ownership: calculated as the «cost of the apartment» / 30 years.
Thailand income tax for foreigners
Income tax is levied on residents and non-residents of Thailand who have the right to work and earn income in the country.
A tax resident is a person who stays in the country for more than 183 days a year.
Thai residents are required to pay income tax not only from a source of income within the country, but also from all external sources if income from them is transferred to accounts in Thailand. However, holders of the following LTR visas are exempt from paying tax from foreign sources: «pensioner visa», «wealthy citizens», «professionals working from Thailand».
New rule from January 1, 2024: Income earned abroad after this date and transferred to Thailand is subject to taxation in the year of transfer, regardless of when it was earned. This change eliminates the previous deferred tax option, where income was taxed only if it was transferred to Thailand in the same year it was received.
Taxable income
Among the possible sources of income in Thailand that are subject to income tax, the Thai Tax Code identifies the following:
- Wages and other income when applying for a job.
- Payment for a wide range of services provided.
- Income for the use of intellectual property.
- Interest from deposits, savings accounts, dividends on shares, income from the sale of the company.
- Income from rental of real estate.
- Income from the provision of professional legal, medical, engineering and architectural services.
- Income from the contract, when the contractor provides basic materials.
- Income from entrepreneurial, commercial, agricultural activities and other income in Thailand.
Personal income tax in Thailand
Thailand uses a progressive personal income tax scale from 0 to 35%.
Taxable income, THB | Rate |
0 — 150,000 | 0% |
150,001 — 300,000 | 5% |
300,001 — 500,000 | 10% |
500,001 — 750,000 | 15% |
750,001 — 1,000,000 | 20% |
1,000,001 — 2,000,000 | 25% |
2,000,001 — 5,000,000 | 30% |
Over 5,000,001 | 35% |
Tax deductions
Taxable Activity / Category | Deduction / Allowance |
Employment income | 50%, but not more than THB 100,000 |
Rental income | 30% standard deduction, or actual expenses incurred |
Professional or business activity | Standard deduction from 10% to 60%, depending on activity type |
Personal allowances | |
— Taxpayer | THB 60,000 |
— Non-working spouse | THB 60,000 |
— First child | THB 30,000 |
— Second and each additional child | THB 60,000 |
— Elderly parent care | THB 30,000 |
Pregnancy and childbirth medical expenses | Actual expenses up to THB 60,000 |
Life insurance | Up to THB 100,000 |
Health insurance | Up to THB 25,000 |
Mortgage interest | Actual interest paid up to THB 100,000 |
Social security contributions | Full amount contributed |
Voluntary Provident Fund | Up to 15% of taxable income or THB 500,000 (whichever is lower) |
Retirement Mutual Fund (RMF) | Up to 30% of taxable income or THB 500,000 (whichever is lower) |
Super Saving Fund (SSF) | Up to 30% of taxable income or THB 200,000 (whichever is lower) |
Thai ESG funds (TESG) | Up to 30% of taxable income or THB 100,000 (whichever is lower) |
Domestic purchases (Jan 1—Feb 15) | Up to THB 40,000 |
Charitable donations in Thailand | Up to 10% of net income |
The procedure for filing the declaration
The declaration must be submitted by March 31 of the year following the tax period in hard copy or by April 8 in electronic form. It is possible to file a joint declaration of the spouses (if desired).
Tax reporting Periods in Thailand
Period | Tax | Filing Deadline |
Monthly | Withholding tax | By the 7th of the following month |
VAT | By the 15th of the following month | |
Social security contributions | By the 25th of the following month | |
Semi-annual | Corporate income tax (advance payment) | Within 60 days after the half-year period (starting from the second year of activity) |
Annually | Corporate income tax (final return) | Within 150 days after the end of the fiscal year |
Personal income tax | By March 31 of the following year |
Corporate income tax in Thailand
Taxpayer | Rate |
Company registered in Thailand with net profit ≤ THB 300,000 | 0% |
Company registered in Thailand with net profit from THB 300,001 to 3,000,000 | 15% |
Company registered in Thailand with net profit > THB 3,000,000 | 20% |
Foreign company not operating in Thailand, receiving dividends from Thailand | 10% |
Foreign company not operating in Thailand, receiving other income (excluding dividends) from Thailand | 15% |
Foreign company repatriating profits from Thailand | 10% |
Effective January 1, 2025: Thailand has implemented a global minimum corporate tax of 15% for multinational enterprises with an annual global turnover of over 750 million euros. This is in line with the initiatives of the Organization for Economic Cooperation and Development (OECD) to establish a minimum tax rate for large corporations.
Petroleum income tax
The oil tax is levied on companies directly involved in the production and exploration of oil fields, as well as companies that buy crude oil for export. In the first case, companies are taxed at 50% of the annual net profit, and in the second — 20%.
Special business tax in Thailand
It is an indirect tax that replaces VAT for certain types of businesses in Thailand: commercial banks, financial organizations, insurance companies, and real estate sales. It varies from 0.01 to 3% depending on the company’s activities.
Thailand dividend tax
Dividends received from a company registered in Thailand are subject to a flat rate of 10%.
VAT tax in Thailand
Thailand’s indirect taxation system, along with Singapore, is the lowest in Southeast Asian countries at 7%. Many goods and services are subject to a zero rate, and some are not subject to value-added tax.
Type of Activity, Goods or Services | VAT Rate |
Sale of goods, provision of services | 7% |
Import of goods or services | 7% |
Taxpayer with annual turnover below THB 1.8 million | Exempt |
Educational services | Exempt |
Medical services | Exempt |
Auditing services | Exempt |
Domestic transportation | Exempt |
Rental of real estate | Exempt |
Import of goods under exemption (e.g., duty-free zones) | Exempt |
Export of goods | 0% |
Services provided in Thailand but fully consumed/used abroad | 0% |
International air or sea transportation | 0% |
Trade of goods or services between bonded warehouses or businesses in free trade zones | 0% |
Sale of goods or provision of services to the UN, its specialised agencies, or foreign embassies/consulates | 0% |
VAT tax refund in Thailand for purchase
When buying some goods in Thailand, foreign tourists automatically pay the included value added tax (VAT), which can later be refunded when leaving the country.
Any tourist who is not a resident of Thailand can apply for a VAT refund for a one-time purchase of a single receipt of goods worth more than 2,000 baht. You will receive a cash refund in the amount from 80 to 12,000 baht.
VAT refund at the airport
To make a refund, you must meet the following conditions:
- not being a Thai citizen;
- stay in Thailand as a tourist on a tourist visa that allows you to stay in the country for no more than 6 months;
- purchases must have been made no more than 60 days ago;
- purchases are made in stores participating in the VAT refund system for tourists.
You can receive a tax refund only through the airport terminal. When crossing the land border, you will not be able to issue a VAT refund.
- Receiving a tax refund form when making a purchase. It is necessary to ask the seller to issue a special yellow VAT Refund for tourists. They are most often issued by sellers in large shopping malls.
- Passing through customs control. Customs seals are most often placed before border control and baggage check-in, with the exception of Phuket Airport, where seals are placed after border control. The customs service may ask you to show the purchased items, they must be in branded boxes with a tag. A sign that you should use at the airport to receive your refund documents: customs inspection for VAT Refund.
- Receiving a refund. It is possible to receive a refund directly at the airport after passing through border control. It is necessary to find the VAT Refund for the tourist office, where it is possible to receive a refund based on the completed stamped form and passport. Refund amounts exceeding 30,000 baht can only be received by credit card or check.
Reasons for possible refusal to refund VAT
- the presence of a Thai residence;
- working for an airline / staying in Thailand for work;
- the items were purchased more than 60 days ago;
- departure from Thailand is not via the airport;
- errors in completed refund documents or missing receipts;
- the cost of the product is less than 2000 baht;
- the goods were purchased in a store that does not participate in the VAT refund system for tourists;
- the goods worth more than 10,000 baht were not checked by the customs inspector;
- prohibited goods, weapons, and jewelry.
Motorcycle and car tax in Thailand
The car tax rate in Thailand directly depends on the engine volume and the amount of CO₂ emissions, and for passenger cars it varies from 25 to 40%. At the same time, the rates for eco-friendly electric vehicles are lower and range from 8 to 40%.
Passenger Car | Excise Tax Rate |
Engine displacement ≤ 3,000 cm³ and CO₂ emissions ≤ 150 g/km | 25% |
Engine displacement ≤ 3,000 cm³ and CO₂ emissions > 150 g/km but ≤ 200 g/km | 30% |
Engine displacement ≤ 3,000 cm³ and CO₂ emissions > 200 g/km | 35% |
Engine displacement > 3,000 cm³ | 40% |
Motorcycle tax rates depend only on CO₂ emissions and can range from 3% to 18%. A motorcycle with an electric motor is subject to a 1% tax.
Motorcycles | Excise Tax Rate |
Electric motorcycles | 1% |
CO₂ emissions ≤ 50 g/km | 3% |
CO₂ emissions > 50 g/km but ≤ 90 g/km | 5% |
CO₂ emissions > 90 g/km but ≤ 130 g/km | 9% |
CO₂ emissions > 130 g/km | 18% |
Thailand tourist tax
From year to year, the Thai news discusses the possibility of introducing a tourist tax by the government to improve the country’s economy. This topic was raised in the first quarter of 2024, however, according to the latest government statement in June 2024, Thailand decided to abandon the idea of introducing a tourist tax due to concerns that this measure could scare away mass tourists.
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