Taxes for property buyers and owners in Thailand are low in comparison to many Western countries.

Transaction and registration taxes

In Thailand, property buyers share the registration fee with the seller.

Real estate purchase and sale taxes in Thailand,
%

Tax Sale
of freehold land
Transfer
of leasehold land
Sale
of building
Liable
for tax
Transfer tax 2 2 Seller/Buyer
Lease registration tax 1 Lessor/Lessee
Business tax 0–3.3 0–3.3 Seller
Stamp Duty 0–0.5 0.1 0–0.5 Seller
Witholding tax 1 or 0–35 - 1 or 0-35 Seller

Most taxes are paid by the seller. When selling freehold property, stamp duty is 0.5% of the assessed value or sale price, depending on which is higher. When buying leasehold land, stamp duty is 0.1%.

If you sell a freehold property within five years of buying it, you will be subject to a business tax of 3.3% of the assessed value or sale price, depending on which is higher.

The seller also pays a real estate sale tax worth 1% of the total assessed value or sale price, depending on which is higher (if the seller is a legal entity) or a withholding tax calculated at a progressive rate up to 35% (if the seller is an individual).

Ownership taxes

Land tax in Thailand is several tens of baht per rai (1,600 sq m), which is usually once every several years when the amount becomes significant.

Tax on commercial or rental residential property is 12.5% of its assessed value. There is no tax on homes used as primary residence.

As of 01 February 2016, there is a 5% estate tax for those with assets worth THB 20 million ($570,000) or more and 10% for assets over THB 100 million ($2.9M).

Withholding tax

If involved in commercial activity in Thailand, you must pay VAT (7%) and sales tax (calculated according to the tax on profits) ranging from 2% to 10% of the payment.

Corporate tax ranges from 0% to 20%. Small business owners (charter capital under THB 5 million or about $150,000) benefit from 0% tax on net profits under THB 300,000 ($8,500), 15% for net profit from THB 300,000 to THB 1 million ($8,500–28,600) and 20% for net profit exceeding THB 1 million (over $28,600).

For commercial companies with a charter capital of THB 5 million or more (from $143,000) are taxed at 20% of their net profit. Associations and foundations pay 2-10% of their revenue. Dividends received by foreign companies are taxed at a rate of 10%.

Personal income tax rates are progressive (up to 35%).

Income tax rates in Thailand,
2015–2016

Income,
THB thousands
Income,
USD thousands
Rate,
%
Under 150 Under 4.3 0
150–300 4.3−8.6 5
300–500 8.6−14.3 10
500–750 14.3−21.5 15
750–1,000 21.5−28.6 20
1,000–2,000 28.6−57.2 25
2,000–4,000 57.2−114.5 30
Over 4,000 Over 114.5 35

The material contained within this article is for informational purposes only.

Tranio strongly recommends contacting certified tax experts in Thailand before purchasing any property.