Real Estate in Thailand

Thailand is considered a fairly attractive country for real estate investment. An investor can earn not only on the growth in the value of real estate, but also from renting out his real estate during the period when it is empty.

Real estate rentals in Thailand are in great demand among tourists from all over Europe and the USA. This allows owners to get very good incomes without making any effort, because their real estate, especially the villa, can simply be transferred to the management of a real estate company for a fixed cost.

Ownership

Foreign citizens, without any restrictions, have the right to purchase the following types of real estate in their name: villas, apartments in condominiums, buildings, yachts, and so on. A non-resident of Thailand, a foreigner, cannot have ownership of land plots. HOWEVER, taking into account the legislation of Thailand, legal land acquisition schemes have been developed, upon completion of which, the foreigner enjoys all the rights of the owner of the land plot.

Taxation of real estate

When buying a property, you need to know about taxes and fees levied when buying and selling. There are two organizations that collect fees from the owners of real estate: the tax and land department. Taxes are paid by the owners of the property, subject to the extraction of profits from the property.

Taxes of the Tax Department

Withheld tax is the tax payable by the seller of real estate upon sale. The tax is paid in the following order:

• Withheld tax from the income of an individual: the calculation of the tax will be based on the valuation of the land carried out by the Land Department.
• Withheld corporate income tax: The calculation of the tax will be based on the valuation of the land carried out by the Land Department or the actual selling value. As a result, a large cost will be selected. The tax rate is 1%.

Taxes and fees of the Land Department

The rates of fees and taxes do not depend on the legal status of the seller, i.e. an individual and a legal entity pay taxes and fees at the same rates. Taxes of the Land Department are always determined from the value declared by the seller, but not lower than fixed in the Land Department at the moment and for a specific plot of land. Land Taxes are calculated based on the land area of 1,600 square meters. m = 1/6 hectare = 1 Rai.

The fee for the transfer of ownership (Transfer Fee) is 0.01% of the declared value of the property upon registration or the value of the land plot established by the Land Department. When renting, the fee is also 0.01% of the contract amount for the entire period.

Special Commercial Tax (SBT) - 0.1% of the value of real estate, applied to legal entities. From individuals, only if the term of ownership of the property was less than 5 years, that is, if the property has already been resold during the previous 5 years.

Stamp Duty (Duty Stamp Fee) - is charged only if the seller is not subject to business tax (SBT). When transferring ownership, the tax is 0.5% of the value. When transferring lease rights, the tax is 0.1%.

Please note that the amount of taxes can be reduced if:

• The property was used for personal residence for at least a year before the sale;
• The property has been in the possession of the seller for more than 5 years;
• The property was inherited;

*Payment of taxes and fees is distributed between the buyer and the seller, or one of them. Property tax is paid annually, when using real estate for commercial purposes or when renting out, long-term rental of real estate for the entire rental period, at the option of the payer. The tax is calculated based on a larger area, choosing between a plot of land and a house located on it. The tax is equal to 12.5% of the actual income or the amount of income declared by the owner for the year. Income can be confirmed by lease agreements, or other primary documents. The tax authority has the right to calculate the tax independently, based on generally accepted rental prices for such real estate. When concluding a long-term lease, as a rule, the parties distribute the tax equally among themselves.

Value Added Tax (V.A.T)

For private taxpayers it is – 3%
The rate for legal entities is 7%

According to information from the site thailandhouse.ru

🕒 17 April, 2026