How rental yields, capital growth, ownership rules and taxes work for high-end property in Thailand
These government taxes and processing fees are paid when the title deed is transferred at the Land Department:
Paid at the Land Department on transfer
Applies if held for less than five years
Only if exempt from specific business tax
Withheld from the seller
Based on the registered value
The yearly taxes and holding costs of owning property in Thailand:
Annual land and building tax, typically 0.02-0.3% of the appraised value for residential use
Condominium common area fees, charged per square meter each year
Sinking fund contributions for major building works
Higher rates apply to vacant or commercially used property
The standard taxes on rental income earned in Thailand:
Rental income is taxable in Thailand on a progressive scale from 5% to 35%
A standard deduction of 30% of gross rent, or actual documented expenses, may be claimed
Corporate tenants may withhold tax at source from rent paid to non-resident landlords
Double taxation treaties may reduce or offset tax owed in your home country
Taxes charged when you sell a property and transfer the title:
Thailand has no separate capital gains tax on property for individuals
Instead, gains are taxed through withholding tax collected at the land office on transfer
Specific business tax of 3.3% applies to sales within five years of acquisition
Your home country may still tax the gain, so plan the exit before you buy
Agree in writing how transfer fees and taxes will be split with the seller
Understand the registered appraised value that taxes are calculated on
Take tax advice before choosing the ownership structure: personal, leasehold or company
Keep FET forms and transfer records to support future repatriation of funds
Include holding costs in your yield model, not just the purchase price
Keep detailed records of maintenance, furnishing and management expenses
Compare the 30% standard deduction against actual expenses each year
File Thai tax returns on time to preserve treaty relief at home
Separate long-stay and short-stay income, as licensing rules differ
Review the structure annually as rules and your residency status change
Our brokers in Thailand can introduce you to international tax specialists. They advise on company structures in Thailand, on the tax treatment of your rental income, and on how to avoid being taxed twice on the same income.