While taxation on real estate in Thailand is relatively low, it is important to know your liability with any transaction. There are various taxes to consider so here are a few useful tools to help you understand what to expect when purchasing, re-selling, or renting a condo in Thailand.
Fees and Taxes Upon Transfer
Transfer Name Fee
2% of the land office appraised value of the property.
Income Tax
1% of the land office appraised or the actual transaction value of the property (whichever is higher) if the Seller is a juristic person. This is a withholding tax and it is credited to (i.e. deducted from) the company’s income tax payable for that year.
An incrementally applied personal income tax sliding scale from 0% – 35% based on the land office appraised value of the property, if the seller is an individual.
Stamp Duty or Specific Business tax / Local Development Tax
Stamp Duty: 0.5% of the land office appraised or the actual transaction value of the property (whichever is higher).
or **
Specific Business Tax/Local Development Tax: 3.3% of the land office appraised or the actual transaction value of the property (whichever is higher).
**in general, the Stamp Duty will apply if the land has not been transferred within the last five years, otherwise the Specific Business Tax/Local Development Tax will apply.
Personal or Corporate Income Tax on Re-Sale Profit
To be declared in annual tax return. Profits derived from property in Thailand are taxable in Thailand. According to Double Taxation Agreements, they are generally taxable only in Thailand.
- Tax rate for corporate taxpayer: 30% (reduced rate for small and medium-sized companies)
- Tax rate for individual taxpayer: 0-35% (sliding scale, new rates from 2013 onwards)
| Tax | Rate | Paid by Seller | Paid by Buyer |
|---|---|---|---|
| Transfer Name Tax | 2% | 1% | 1% |
| Stamp Duty (only payable if sold after 5 years) | 0.5% | 0.5% | 0% |
| Business Tax (only payable if sold before 5 years) | 3.3% | 3.3% | 0% |
| Witholding Tax (applied if seller is juristic person) | 1% | 1% | 0% |
| Income Tax rate for corporate taxpayer: 30% rate for individual taxpayer: 0-35% | 0-35% | 0-35% | 0% |
Tax On Rental Income
We recommend filing personal income tax returns with the Thai Revenue Department, this will allow you to claim tax refunds from your GROSS yearly income. Here are the refundable Items:
| Refundable Item | Rate |
|---|---|
| Rental Expenses | 30% (standard rate) |
| Taxpayer Allowance | THB 30,000 (standard rate) |
The NET amount of rental income received will be subject to the standard yearly rate of Personal Income Tax. A personal taxpayer can earn NET income up to Baht 150,000 (approx. USD 4,500) in a tax year and not pay income tax in Thailand. Unlike some countries that seek to tax foreigners at higher rates or deny them the tax free threshold, the tax scales for residents and non-residents are the same in Thailand.
| Taxable Income (Thai Baht) | Rate |
|---|---|
| 1 to 150,000 | Exempt |
| 150,001 to 300,000 | 5% |
| 300,001 to 500,000 | 10% |
| 500,001 to 750,000 | 15% |
| 750,001 to 1,000,000 | 20% |
| 1,000,001 to 2,000,000 | 25% |
| 2,000,001 to 4,000,000 | 30% |
| 4,000,001 and more | 35% |