Owning property in Thailand involves three separate sets of tax rules: an annual Land and Buildings Tax while you own it, fees and taxes at the Land Office when it is transferred, and income tax on rent or on a sale. This guide takes each in turn, with the 2026 position and the points that matter for foreign owners.
Key Points
- Annual tax: Land and Buildings Tax is charged on the official appraised value. An individual who owns their home and is named in its house registration on 1 January is exempt on the first THB 50 million (THB 10 million if they own the building but not the land).
- On transfer: a 2% transfer fee on the appraised value, plus either Specific Business Tax (3.3%) or stamp duty (0.5%), plus withholding tax from the seller.
- 0.01% fee measure: until 30 June 2027, qualifying homes up to THB 7 million carry a 0.01% transfer and mortgage fee, but only for buyers who are Thai natural persons.
- Selling: an individual seller's withholding tax uses a special calculation based on the appraised value and years held. Company sellers have 1% withheld.
- Renting out: rental income from Thai property is taxable in Thailand whether or not you are resident.
Annual Land and Buildings Tax
Who pays
The owner of land or buildings on 1 January pays Land and Buildings Tax (LBT) for that year. It is collected by the local authority where the property is located: the district office in Bangkok, or the municipality or sub-district administrative organisation elsewhere.
How the tax is calculated
The tax base is the official appraised value of the land, building or condominium unit, as set by the Treasury Department for Land Office purposes. The current appraisal round applies from 2023 to 2026. Any exemption is deducted from that value, and the rate for the property's use is applied to the remainder. There is no general percentage reduction of the appraised value.
Exemptions for your home
- THB 50 million: an individual who owns the land and building, or a condominium unit, lives there, and is named in the house registration on 1 January of the tax year.
- THB 10 million: an individual who owns the building but not the land, on the same conditions.
- No exemption: other residential property, such as a second home, a unit you rent out, or a home where the owner is not in the house registration.
Rates for 2026
Rates are applied in bands to the value remaining after any exemption.
| Property use | 2026 rates |
|---|---|
| Main residence (land and building, or condo unit) with house registration | First THB 50m exempt; then 0.03%, rising to 0.05% and 0.1% on higher values |
| Main residence, building only, with house registration | First THB 10m exempt; then 0.02%, rising to 0.03%, 0.05% and 0.1% |
| Other residential | 0.02% up to THB 50m, rising to 0.03%, 0.05% and 0.1% |
| Agriculture | 0.01% to 0.1% (individuals' first THB 50m exempt) |
| Commercial and other use | 0.3% to 0.7% |
| Vacant or unused | 0.3% to 0.7%, plus 0.3% after every 3 years unused, up to 3% |
There was no general LBT reduction for 2026. A 50% reduction was proposed during 2026 but was not enacted.
Otherwise, for example if the unit is rented out: THB 4,500,000 × 0.02% = THB 900 a year.
When it is due
Under the Act, the local authority sends assessment notices by February and tax is payable by April. The Act allows payment by instalments in qualifying cases. For 2026, the extended instalment dates were July, August and September. Late payment attracts a surcharge and interest of 1% a month.
For 2026 only, the Ministry of Interior extended these dates: assessment notices to May 2026, payment to July 2026, and instalments to July, August and September 2026. These were one-off extensions; the normal timetable is February and April.
Taxes and Fees When Property Is Transferred
Transfers are registered at the Land Office, which collects the fees and taxes below at the time of transfer. Who bears each cost is often agreed between buyer and seller.
| Item | Rate | Calculated on | Applies to |
|---|---|---|---|
| Transfer registration fee | 2% (0.01% under the current measure, for qualifying Thai buyers) | Official appraised value | Every sale |
| Mortgage registration fee | 1% (capped at THB 200,000 for land and houses; 0.01% under the current measure) | Mortgage amount | Where the purchase is financed by a registered mortgage |
| Specific Business Tax (SBT) | 3.3% | Higher of sale price and appraised value | Seller, where the sale falls within the five-year rule and no exemption applies |
| Stamp duty | 0.5% | Higher of sale price and appraised value | Seller, where SBT does not apply |
| Withholding tax: individual seller | Special calculation (see below) | Official appraised value | Individual sellers |
| Withholding tax: company seller | 1% | Higher of sale price and appraised value | Company and other juristic-person sellers |
Specific Business Tax or stamp duty
SBT generally applies at 3.3% where an individual sells property within five years of acquiring it. It does not apply, even within five years, in cases including:
- the seller has been named in the house registration of the property as their home for at least one year from acquisition;
- the property was acquired by inheritance;
- the property is transferred without payment to the seller's legitimate (not adopted) child;
- the property is expropriated.
Where SBT does not apply, stamp duty of 0.5% applies instead. The two are never paid on the same sale. Holding a property for more than five years is therefore one way, but not the only way, of paying stamp duty rather than SBT.
Income Tax When You Sell
Thailand has no separate capital gains tax. For an individual, income from selling immovable property is assessable income under section 40(8) of the Revenue Code. It is not taxed as ordinary income on the accounting gain: the Land Office withholds tax using a special calculation based on the appraised value.
Individual sellers
- Start with the official appraised value.
- Deduct deemed expenses: for purchased property, according to years held (table below); for inherited or gifted property, 50%.
- Divide the result by the number of years held (counting no more than 10).
- Apply the property-sale rate table, which starts at 5% on the first THB 300,000 with no 0% band and rises through higher bands.
- Multiply the tax by the number of years held.
| Years held | Deemed expenses deducted |
|---|---|
| 1 year | 92% |
| 2 years | 84% |
| 3 years | 77% |
| 4 years | 71% |
| 5 years | 65% |
| 6 years | 60% |
| 7 years | 55% |
| 8 years or more | 50% |
Is the withholding final?
Not automatically. An individual selling inherited property, or property not acquired for trade or profit, may elect under section 48(4) to be taxed on the sale separately rather than include it with other income in the annual return. Where the taxpayer elects the separate property-sale calculation, the tax payable under that method is capped at 20% of the sale price. Property acquired for trade or profit is included in the annual return, with the tax withheld credited.
Company sellers
Where the seller is a company or other juristic person, 1% is withheld on the higher of the sale price and the appraised value. This is a separate rule; it is not a minimum for individual sellers.
Rental Income
Rent from Thai property is Thai-source income under section 40(5) and is taxable in Thailand whether or not the owner is a tax resident. Before tax, you can deduct either a standard percentage or actual expenses where the rules permit:
- houses and buildings: 30%;
- agricultural land: 20%;
- other land: 15%.
Withholding on rent
- Company tenant, resident landlord: a Thai company or other juristic person paying rent to an individual generally withholds 5%.
- Individual tenant, resident landlord: there is no equivalent withholding obligation under the same rule.
- Non-resident landlord: payments of Thai-source rental income to a non-resident can be subject to 15% withholding under the Revenue Code. The precise withholding obligation depends on the payer and circumstances.
Tax withheld is credited against your annual tax. Rental income may also need to be reported on the half-year return. See the filing guide for deadlines.
Gifts and Inheritance
Gift tax
- Gifts from a parent, child, grandparent, grandchild or spouse: exempt up to THB 20 million per tax year. The excess is taxable, and the recipient may elect a 5% rate on it.
- Customary gifts from other people: exempt up to THB 10 million per tax year, with 5% on the excess.
- Property transferred without payment to a legitimate child: the transferor is exempt on up to THB 20 million per child per tax year, and 5% applies to the excess, collected at the Land Office.
Gift tax is separate from the Land Office fee for the transfer itself, which is 0.5% of the appraised value for transfers between parents and children or spouses.
Inheritance tax
Each heir pays tax only on the value received above THB 100 million: 10% in general, or 5% for ascendants and descendants. A spouse is exempt. A foreign heir who is neither Thai nor resident in Thailand under immigration law is taxed only on inherited property located in Thailand.
Foreign Owners
- Foreigners generally cannot own land in Thailand directly.
- Foreigners can own condominium units, provided foreign ownership in the building does not exceed 49% of the total unit area.
- Leases of land or buildings can be registered for up to 30 years.
- Land and Buildings Tax, transfer taxes, withholding tax and tax on rental income apply to foreign owners in the same way.
- The 0.01% transfer and mortgage fee measure is restricted to Thai natural-person buyers.
For residence and foreign income rules, see tax for foreigners.