Thailand's property tax landscape involves three separate taxes: an annual Land and Buildings Tax (LBT) on ownership, transfer taxes when buying or selling, and withholding tax on the seller at point of sale. Each is straightforward individually; together, they require some planning, particularly for foreign owners.
Overview of Thailand's Property Tax Landscape
Thailand introduced the Land and Buildings Tax in 2020, replacing the older and long-stagnant House and Land Tax. The LBT is an annual ownership tax assessed by local authorities based on official appraised values. Transfer taxes apply at the point of each transaction. There is no standalone capital gains tax in Thailand gains from property sales are assessed under personal income tax rules (for individuals) or corporate tax (for companies).
Land and Buildings Tax (LBT) Introduced 2020
Who pays
The LBT is paid by the owner of land or buildings as of 1 January each year. If you own Thai property on that date, you owe LBT for that year regardless of how long you have held it. In Bangkok, collection is managed by the Khet (district) office covering the property's location not a central authority. Condo owners in Bangkok should expect an LBT notice from their local Khet office, typically issued and payable in April. Outside Bangkok, the relevant local authority (municipality or sub-district administrative organisation) handles collection on a similar April schedule.
How it's calculated appraised value, not market value
A critical point that is widely misunderstood: LBT is calculated on the official government appraised value, not the market purchase price or current market value. The appraised value is set by the Treasury Department and is typically substantially below market value often 50–70% of what a property would sell for. The calculation is: Official appraised value × 50% (appraisal base percentage) × applicable rate. Both steps reduce the taxable base significantly before the rate is applied.
If you bought your Bangkok condo for 8 million THB, the Treasury Department's appraised value might be 4.5 million THB. The taxable base is then 50% of that 2.25 million THB. At the standard 0.03% residential rate, your annual LBT is 675 THB. The LBT is not a significant ongoing cost for most residential condo owners.
Rates by property type
| Property Type | Rate Range | Notes |
|---|---|---|
| Residential (owner-occupied primary residence) | 0.02% – 0.1% | Exempt on first 50 million THB appraised value |
| Residential (non-primary / second home) | 0.02% – 0.1% | No exemption threshold |
| Agricultural land | 0.01% – 0.1% | Reduced rates for active agriculture |
| Commercial / industrial | 0.3% – 0.7% | Higher rates for business use |
| Unused / vacant land | 0.3% – 3% | Escalates by 0.3% every 3 years of vacancy, max 3% |
Transfer Taxes When Buying or Selling Thai Property
The following taxes apply at the point of property transfer at the Land Department:
| Tax | Rate | Basis | Who pays |
|---|---|---|---|
| Transfer fee | 2% | Appraised or sale value (higher) | Typically split 50/50 by agreement |
| Specific Business Tax (SBT) | 3.3% (incl. municipal tax) | Appraised or sale value | Seller applies if property held <5 years |
| Stamp duty | 0.5% | Appraised or sale value | Seller applies instead of SBT if held 5+ years |
| Seller withholding tax (WHT) | Progressive / 1% minimum | Appraised value × years held formula | Seller withheld by Land Dept at transfer |
SBT and stamp duty are mutually exclusive the seller pays one or the other depending on holding period. SBT is generally more expensive (3.3% vs 0.5%), so holding property for 5 or more years before selling significantly reduces transfer tax costs.
Property Tax for Foreigners and Non-Residents
Foreign ownership of Thai property is legally restricted: foreigners cannot generally own Thai land outright, but can own condominium units (in buildings where foreign ownership does not exceed 49% of total floor area). Foreigners can also own property through a leasehold structure.
Foreign condominium owners are subject to LBT on the same basis as Thai owners. Transfer taxes apply equally at point of sale. Rental income from Thai property held by a foreigner is assessable Thai income at standard PIT rates (with a 30% standard deduction on gross rent).
Inheritance and Gift Tax on Property
Thai inheritance tax (introduced 2016) applies to inherited assets exceeding 100 million THB total, at 10% (5% for direct descendants). Most expat property holdings in Thailand will fall below this threshold. Gift tax at 5% (gifts between parents and children) or 10% (other recipients) applies to gifts of property exceeding 20 million THB per year.