Property Taxes in Thailand: 2025 Complete Guide

Understanding tax obligations is crucial for any property transaction in Thailand. Our new Fees & Taxes Guide breaks down every cost you'll encounter.

Major Tax Categories

Thailand property taxes fall into several categories depending on transaction type and timing:

Purchase Transactions

• Transfer fee (2% of appraised value)
• Specific Business Tax (SBT - 3.3% if applicable)
• Stamp duty (0.5% alternative to SBT)
• Withholding tax (varies by seller status)

Ownership Period

• Land & Buildings Tax (annual assessment)
• Personal income tax (on rental income)
• Corporate income tax (for company-owned properties)

The New Land & Buildings Tax (LBT)

Since 2020, Thailand has implemented a progressive Land & Buildings Tax system:

Residential Properties

• 0-50 million THB: 0.02%
• 50-200 million THB: 0.04%
• 200+ million THB: 0.06%

Commercial Properties

• 0-50 million THB: 0.3%
• 50-200 million THB: 0.4%
• 200+ million THB: 0.5%

Unused Land

• Higher rates to discourage speculation
• Progressive increases for extended vacancy

Transfer Fee Calculations

The 2% transfer fee applies to government-appraised value, not sale price:

Example: 5 million THB condo

• Appraised value: 4 million THB
• Transfer fee: 80,000 THB (2% of 4M)
• Note: Based on appraisal, not purchase price

SBT vs. Stamp Duty

You pay either Specific Business Tax or stamp duty, never both:

Specific Business Tax (3.3%)

• Applies if seller owned property less than 5 years
• Includes local maintenance tax (10% of SBT)
• Total effective rate: 3.63%

Stamp Duty (0.5%)

• Applies if seller owned property 5+ years
• Significantly lower cost
• Preferred option for established properties

Withholding Tax Variables

Withholding tax rates depend on seller classification:

Individual Sellers

• Thai nationals: 1% of appraised value
• Foreign nationals: 1% of appraised value
• Can be offset against income tax liability

Corporate Sellers

• Thai companies: 1% of appraised value
• Foreign companies: 1% of appraised value
• Corporate income tax implications apply

Cost Planning Example

Scenario: Foreign buyer purchasing 8 million THB Bangkok condo

Property price:        8,000,000 THB
Appraised value:       6,500,000 THB (typical discount)

Transfer fee (2%):       130,000 THB
Stamp duty (0.5%):        32,500 THB  
Withholding tax (1%):     65,000 THB
Legal fees (1%):          80,000 THB
Total transaction costs: 307,500 THB (3.8%)

Annual LBT Calculation

Same 8M THB condo - Annual Land & Buildings Tax:

Appraised value:     6,500,000 THB
LBT rate (residential): 0.02%
Annual LBT:             1,300 THB
Monthly equivalent:       108 THB

Professional Recommendations

Our guide connects you with:

• Tax advisors specializing in property transactions
• Qualified lawyers for complex ownership structures
• Accounting firms for ongoing compliance
• Licensed appraisers for accurate valuations

Common Mistakes to Avoid

❌ Underestimating total costs - Budget 3-6% of purchase price
❌ Ignoring annual obligations - LBT bills arrive yearly
❌ Misunderstanding appraisal vs. price - Taxes based on government appraisal
❌ Overlooking rental income tax - 5-35% progressive rates apply

Regional Variations

Tax rates are nationally standardized, but implementation varies:

• Bangkok: Efficient processing, online services available
• Phuket/Samui: Higher property appraisals, premium locations
• Pattaya: Established expat services, competitive professional fees
• Chiang Mai: Lower absolute costs, growing expat community

Property taxation in Thailand has become more transparent and systematic since LBT implementation, but proper planning remains essential for cost management.

Read the complete Fees & Taxes Guide for detailed calculations, exemptions, and planning strategies.