Property taxes in Thailand for foreigners: buying, owning, letting and selling

Buying property in Thailand costs more than the price on the listing. Taxes and fees arise when you buy, own, let and sell: the transfer fee, Specific Business Tax or stamp duty, withholding tax, the annual land and building tax and tax on rental income. The total depends on the type of transaction, who the seller is, how long they have owned the property, its appraised value and whether you live in it, let it or hold it as an investment.

Below we cover what is paid at the Land Department, how costs differ between freehold and leasehold, when a sale triggers tax and how rental income is taxed. Each stage comes with a worked example, and a separate section explains how the house registration book (Tabien Baan) affects your tax bill.

1. In brief

2. Freehold and leasehold: why ownership type changes the fees

What you pay depends on how the property is held. Freehold means outright ownership, and on completion the Land Department transfers title to you. Leasehold means a registered lease of up to 30 years: the lease agreement is registered instead, and different fees apply.

How the two forms differ, who can buy freehold and how the land under a villa is held, we explain in detail in Freehold vs leasehold in Thailand: what foreign buyers actually own. Here we focus on the money.

3. The example apartment used in every calculation

Every calculation in this article uses the same apartment:

• price: ฿7,600,000 (€201K / $225K);

• Land Department appraised value: ฿7,600,000;

• rental guarantee from the developer: 7% a year;

• sold 3 years and 6 months after purchase.

A note on the appraised value. The Land Department (Land Office) values apartments from its own register, and its figure is usually below the market price. We have set it equal to the price so the sums are easy to follow. Ask the Land Department or the lawyer handling your purchase for the real appraised value of your unit: with it, your costs will come out lower.

How to use the example: replace ฿7,600,000 with the price of your apartment and take the rates from the tables below. Euro and dollar amounts are for reference only.

4. Taxes and fees when you buy

Transfer fee

The main cost of a freehold purchase is 2% of the appraised value. The Land Department collects it on the day the transfer is registered, and the rate is the same for Thai and foreign buyers.

• The law does not say who pays the fee. The parties set the split in the contract and usually share it 50/50.

• A developer states how costs are split in the sale and purchase agreement: check this clause before you reserve.

• The seller’s taxes (Specific Business Tax of 3.3% and withholding tax) fall on the seller by law. Some developers absorb them; others pass them on to the buyer.

The 0.01% reduction: who qualifies

From 1 July 2026 to 30 June 2027, the transfer fee and the mortgage registration fee are cut to 0.01%. The conditions:

• the buyer is an individual with Thai citizenship;

• the price, the appraised value and the mortgage amount are each no more than ฿7 million (€185K / $207K).

A foreign buyer pays the full 2%. Sellers still benefit: a Thai buyer pays less for an apartment priced up to ฿7 million, so such an apartment is easier to sell.

Worked example: buying a freehold apartment from a developer

Step 1. Work out the transfer fee

• Formula: appraised value × 2% = fee

• Where to find the appraised value: in the Land Department documents (in our example it equals the price)

• 7,600,000 × 2% = ฿152,000 (€4.0K / $4.5K)

Step 2. Split the fee as the contract says

• Formula: fee ÷ 2 = buyer’s share

• 152,000 ÷ 2 = ฿76,000 (€2.0K / $2.3K)

Step 3. Work out the seller’s taxes

• Specific Business Tax: 7,600,000 × 3.3% = ฿250,800 (€6.6K / $7.4K)

• Withholding tax for a corporate seller: 7,600,000 × 1% = ฿76,000 (€2.0K / $2.3K)

Totals for the transaction

In money terms, the buyer of this apartment pays between ฿76,000 (€2.0K / $2.3K) and ฿478,800 (€13K / $14K), depending on the contract.

A freehold apartment from a developer usually costs more than the same unit on leasehold, so compare the full price including fees. On the resale market the seller is usually an individual, and their taxes are calculated differently: see section 7.

Worked example: buying a leasehold apartment

On a leasehold purchase two charges apply to the total rent for the full lease term: lease registration at 1% and stamp duty at 0.1%.

Step 1. Find the total rent for the full term

• Where to find it: in the lease agreement

• In our example: ฿7,600,000 for 30 years

Step 2. Work out the lease registration fee

• Formula: total rent × 1% = fee

• 7,600,000 × 1% = ฿76,000 (€2.0K / $2.3K)

Step 3. Work out the stamp duty

• Formula: total rent × 0.1% = duty

• 7,600,000 × 0.1% = ฿7,600 (€201 / $225)

Step 4. Add up and split

• 76,000 + 7,600 = ฿83,600 (€2.2K / $2.5K), or 1.1%

• Split 50/50, the buyer pays 83,600 ÷ 2 = ฿41,800 (€1.1K / $1.2K)

• Some contracts put the whole 1.1% on the buyer

A lease longer than 3 years must be registered with the Land Department. Without registration it is enforceable for the first 3 years only.

5. Land and building tax while you own the property

The annual land and building tax was introduced by the Land and Building Tax Act B.E. 2562 and has applied since 2020. It is charged on the appraised value, not the market price. Whoever owns the property on 1 January pays, and the local authority sends the bill.

Tax rates in 2026

The rates were set by a Royal Decree in 2021 and did not change in 2026. The main-home relief applies if the owner is listed in the house registration book at the property’s address on 1 January.

• The 0.3% rate applies to commercial use, not to a home without a house book entry.

• Some local authorities apply the ฿50 million threshold, rather than ฿10 million, to apartments with a house book entry. If your apartment is worth more than ฿10 million, check which threshold your authority uses.

• Under leasehold the owner is legally liable for the tax, but leases often pass it to the tenant. Check this clause before you sign.

Worked example: annual tax on a ฿7.6 million apartment

Option 1. Main home, owner listed in the house book

• Compare the appraised value with the threshold: ฿7,600,000 is below ฿10,000,000

• Tax: ฿0

Option 2. Apartment let out, or owner not listed in the house book

• Formula: appraised value × 0.02% = tax for the year

• 7,600,000 × 0.02% = ฿1,520 a year (€40 / $45)

6. Tax on rental income

Most apartments on Phuket are bought to let, so this section applies to most owners. Rental income from an apartment in Thailand is subject to Thai income tax wherever the owner lives. The type of ownership makes no difference: the rules for freehold and leasehold are the same.

Resident or non-resident: how to tell

• Tax resident: spent 180 days or more in Thailand in the calendar year.

• Non-resident: spent fewer than 180 days in Thailand.

• If the rent is paid by a company (a developer under a rental guarantee programme or a management company), it withholds tax at the time of payment.

• Withholding rate: 5% for residents, 15% for non-residents.

• The company issues a withholding certificate (Form 50 Tawi). Keep it: you need it for your tax return and any refund.

Deductions used in the calculation:

• standard deduction for letting expenses: 30% of income (or your actual documented expenses instead);

• personal allowance: ฿60,000 a year (€1.6K / $1.8K);

• allowances for dependants and other reliefs under the Revenue Code.

Personal income tax scale:

Worked example: tax resident

Step 1. Annual rental income

• Formula: apartment price × guaranteed rate = income for the year

• 7,600,000 × 7% = ฿532,000 (€14K / $16K)

Step 2. Tax withheld by the company

• Formula: income × 5% = amount withheld

• 532,000 × 5% = ฿26,600 (€702 / $788)

Step 3. Deduct standard expenses of 30%

• 532,000 × 30% = ฿159,600

• 532,000 − 159,600 = ฿372,400

Step 4. Deduct the personal allowance

• 372,400 − 60,000 = ฿312,400 (€8.3K / $9.3K)

• This is your taxable income

Step 5. Apply the scale band by band

• Band up to ฿150,000: 0%, tax ฿0

• Band from ฿150,001 to ฿300,000: 150,000 × 5% = ฿7,500

• Band from ฿300,001 to ฿312,400: 12,400 × 10% = ฿1,240

• Tax for the year: 0 + 7,500 + 1,240 = ฿8,740 (€231 / $259)

Step 6. Work out the refund

• Formula: tax withheld − tax due = refund

• 26,600 − 8,740 = ฿17,860 (€472 / $529)

• The refund is paid into your bank account once you file a return, or set against next year’s tax

Result for a resident

• Income for the year: ฿532,000 (€14K / $16K)

• Tax due: ฿8,740 (€231 / $259), about 1.6% of income

• Refund: ฿17,860 (€472 / $529)

This holds if the owner has no other income in Thailand. Other income and additional allowances change the result.

Worked example: non-resident

Step 1. Annual rental income

• 7,600,000 × 7% = ฿532,000 (€14K / $16K)

Step 2. The company withholds 15%

• Withholding is charged on the full rent, with no deductions

• 532,000 × 15% = ฿79,800 (€2.1K / $2.4K)

Step 3. What the owner receives

• 532,000 − 79,800 = ฿452,200 (€12K / $13K)

A non-resident can file a Thai tax return, have the tax recalculated on the scale and reclaim part of the amount withheld. The refund depends on the allowances you are entitled to, so work it out with a tax adviser before filing.

If you let the apartment yourself

• When the tenant is a private individual, nobody withholds tax on the rent.

• The owner declares the income by 31 March of the following year, in person or through a lawyer.

• Rates, deductions and the scale are the same as in the examples above.

Can you let an apartment by the night?

• In an ordinary condominium, nightly lets are not allowed. Under the Hotel Act B.E. 2547, letting a home for less than a month counts as hotel business and requires a licence.

• Letting for one month (30 days) or longer is legal.

• In some condominiums a separate building holds a hotel licence. It runs a reception desk and a management company, and nightly lets there are legal. Owners of such units receive income under the management programme.

• The Cabinet approved in principle a draft accommodation law on 29 September 2026. It does not legalise nightly lets in ordinary condominiums.

• Before you buy, ask the developer whether the building holds a hotel licence and what minimum letting period the condominium rules set.

7. Taxes when you sell

Who pays what on a sale

• By law the seller pays Specific Business Tax (or stamp duty instead) and withholding tax.

• The 2% transfer fee is split as the contract says, usually 50/50.

• The Land Department collects all amounts on the day the transfer is registered.

• Fix the split of every payment in the contract before you reserve, and there will be no surprises on completion day.

Specific Business Tax or stamp duty

The seller pays one of the two, never both.

Royal Decree No. 342 also exempts from SBT a seller who:

• inherited the property;

• transfers it free of charge to their legitimate children (adopted children excluded);

• passes it on by inheritance to legal heirs.

Withholding tax

A corporate seller pays 1% of the higher of the two values. For an individual seller, the tax is calculated by formula from the appraised value and the holding period: neither the purchase price nor the sale price enters the formula.

Deduction by holding period:

Tax scale on a sale:

Three rules of the calculation:

• a part year counts as a full year: 3 years and 6 months count as 4 years;

• no more than 10 years of ownership are taken into account;

• the tax cannot exceed 20% of the sale price.

The scale looks like the ordinary income tax scale, but it has no 0% band: the first ฿300,000 is taxed at 5%.

Worked example: selling after 3.5 years

Step 1. Holding period

• 3 years and 6 months round up to 4 years

Step 2. Find the deduction in the table

• 4 years = 71% deduction

Step 3. Work out the base for the whole period

• Formula: appraised value − (appraised value × deduction) = base

• 7,600,000 × 71% = ฿5,396,000

• 7,600,000 − 5,396,000 = ฿2,204,000 (€58K / $65K)

Step 4. Divide the base by the number of years

• Formula: base ÷ years = base per year

• 2,204,000 ÷ 4 = ฿551,000 (€15K / $16K)

Step 5. Apply the scale band by band

• Band up to ฿300,000: 300,000 × 5% = ฿15,000

• Band from ฿300,001 to ฿500,000: 200,000 × 10% = ฿20,000

• Band from ฿500,001 to ฿551,000: 51,000 × 15% = ฿7,650

• Tax per year: 15,000 + 20,000 + 7,650 = ฿42,650 (€1.1K / $1.3K)

Step 6. Multiply by the number of years

• 42,650 × 4 = ฿170,600 (€4.5K / $5.1K)

• About 2.24% of the appraised value

Step 7. Check the 20% cap

• 7,600,000 × 20% = ฿1,520,000

• ฿170,600 is below the cap, so the seller pays ฿170,600

What the seller pays: two scenarios

The seller has owned the apartment for 3.5 years and splits the transfer fee with the buyer 50/50.

• In scenario A the seller pays ฿497,400 (€13K / $15K), in scenario B ฿284,600 (€7.5K / $8.4K).

• The house book entry saves the seller ฿212,800 (€5.6K / $6.3K).

• The buyer of this apartment does not qualify for the 0.01% reduction even with Thai citizenship: the price is above ฿7 million.

• On the sale of a leasehold apartment, the lease is assigned to the buyer and the assignment is registered. The seller’s fees and taxes then depend on the lease terms, so have a lawyer calculate them for the specific deal.

8. Inheritance tax

In Thailand inheritance tax is paid by the heir when the inheritance received is worth more than ฿100 million (€2.64M / $2.96M). Only the part above ฿100 million is taxed:

• 5% for parents, children and grandchildren;

• 10% for other heirs.

An apartment at ฿7.6 million falls well below the threshold. And when an inherited apartment is sold, no Specific Business Tax is payable.

9. The house registration book (Tabien Baan) and tax relief

The Tabien Baan (house registration book) records an address and the people registered at it. It does not prove ownership.

• The blue book (Tor Ror 14) is for Thai citizens and foreigners with permanent residence.

• The yellow book (Tor Ror 13) is for foreigners on a long-term visa who live at that address. You do not have to own the home to be listed: a registered lease also qualifies.

• The yellow book is issued by the district office for the property’s address, which also confirms the list of documents.

Tax relief that comes with the yellow book:

• exemption from land and building tax on a main home worth up to ฿10 million, if you are listed on 1 January;

• exemption from the 3.3% Specific Business Tax on a sale, if the owner has been listed for at least a year from the date of purchase.

10. Checklist: tax points to check before the deal

1. Ask the Land Department for the appraised value of the apartment: almost every fee is calculated from it.

2. Write into the contract who pays each fee and tax.

3. For freehold, arrange the FET in advance: the bank’s confirmation that the funds came from abroad.

4. For leasehold, check who pays the land and building tax under the lease.

5. If you are buying to let, ask the developer about the hotel licence and the minimum letting period.

6. If you plan to live in the apartment, get the yellow house book before 1 January.

7. Keep the withholding certificates on your rental income (Form 50 Tawi).

Freehold and leasehold apartments, including units with rental guarantee programmes, are listed in our selection of projects. A KVARIS manager will calculate the fees and taxes for your chosen apartment, free of charge for the buyer.

This article is for general information only. Thai law and government practice change, so check current rates and requirements with a Thai lawyer before any transaction. Euro and dollar amounts are rounded and given for reference.

Author: KVARIS press office