Taxes for Foreigners in Thailand in 2024

Taxes in Thailand for foreigners depend on various factors, such as doing business, generating income in the country, purchasing real estate, and long-term stays.

Thailand's tax system is considered one of the most favorable in Southeast Asia. The tax rates on income, property ownership, and VAT are among the lowest in the region, second only to Singapore.

Thanks to low tax rates, affordable land prices, and developed infrastructure, Thailand remains a popular destination for relocation, real estate purchases, and business ventures in 2024.

Property Tax in Thailand

Since 2020, Thailand has introduced property tax for residential real estate. The tax rate depends on the type of ownership: it can be either freehold or leasehold (long-term lease for 30 years with extensions available). Land can only be leased, while residential properties offer both options.

Transfer fee tax — 2% for freehold and 1% for leasehold, paid by both buyer and seller.
Stamp duty — 0.1% for leasehold and 0.5% for freehold if owned for more than 5 years.
Specific business tax — 3.3% for properties owned for less than 5 years.

Taxes on Buying and Selling Property

When buying or selling property in Thailand, the following taxes apply:

Registration fee — 2% for freehold and 1% for leasehold, split between buyer and seller.
Stamp duty — up to 0.5% for freehold if owned for more than 5 years.
Specific business tax — 3.3% for properties held for less than 5 years.

Taxes on Property Ownership

The property tax rate depends on whether you live in the property or rent it out. Owners of apartments valued under 10 million baht and villas under 50 million baht are exempt from property tax if they are registered in the property.

Rental Income Tax

Income from renting property is taxed. For tax residents, the rate is 5%, while non-residents pay 15%. Certain tax deductions are available in specific cases.

Taxes on Property Sales in Thailand

Transfer Fee or Property Ownership Transfer Tax. This tax applies to both the purchase and sale of property and is typically shared between the buyer and seller. For new property, the developer covers at least half of the tax. For freehold, the rate is 2%, and for leasehold, it’s 1%.
Business Tax. Companies and individuals selling property owned for less than five years must pay this tax. It is calculated on either the appraised or sale price, whichever is higher. Individuals are exempt if the property was their residence for at least one year or was transferred as an inheritance. The tax rate is 3.3%.
Stamp Duty. This is applied if the property has been owned for more than five years. For freehold, the rate is 0.5%, and for leasehold, it’s 0.1%.
Profit Tax. This is calculated based on the appraised value by the Land Department, with a progressive scale depending on the period of ownership. The longer the ownership period, the higher the tax relief.

Example of Profit Tax Calculation:
If the appraised value of the property is 7,500,000 baht and the ownership period is 3 years, the tax deduction would be 77%, leaving a taxable base of 1,725,000 baht over 3 years, or 575,000 baht annually. The calculation is progressive: 300,000 × 5% + 200,000 × 10% + 75,000 × 15%, resulting in an annual tax of 46,250 baht. Over three years, the total tax would be 138,750 baht.

Rental Property Taxes:
The rental tax rate depends on whether you are a tax resident of Thailand. Non-residents pay 15%, while residents pay 5%. Property management companies often deduct this tax from the owner's income.

Additional Tax Deductions:

Individual deduction: 30,000 baht per taxpayer annually.
Rental expense deduction for freehold properties: 30% of income.
For leasehold: The deduction is calculated as «property value / 30 years.»

Income Tax in Thailand:
Residents, those staying in Thailand for more than 183 days a year, must pay tax on income earned both domestically and abroad, if transferred to Thai accounts.