Property Taxes in Thailand for Foreign Owners: 2026 Complete Guide

Foreign buyers in Thailand pay essentially the same property taxes as Thai nationals, with two important exceptions: they are excluded from the temporary transfer-fee stimulus rate (locked to 0.01% for Thai-national buyers only), and rental income for non-tax-residents is taxed at a flat 15% withholding rate.

This guide covers the five tax events that affect foreign owners: transfer fees at acquisition, annual ownership taxes, rental income taxes during ownership, taxes on sale, and inheritance.

Taxes at the moment of purchase

When the property is registered at the Land Office, the buyer and seller together pay four potential charges. Two are owed by the buyer, two by the seller, but in practice all four are negotiated as part of the deal and frequently shared 50/50.

Transfer fee. 2% of the appraised value of the property. Foreign buyers pay the full 2%. The current government stimulus that reduces the transfer fee to 0.01% for residential property under THB 7 million applies only to transactions where the buyer is a Thai national. Foreign buyers are excluded.

Stamp duty or Specific Business Tax — never both. If the seller has held the property for more than five years (or is registered as having residency in the property), 0.5% stamp duty applies. If the seller has held it for less than five years, the 3.3% Specific Business Tax (SBT) applies instead. Buyers should clarify in the sale and purchase agreement which one will be triggered, because the seller almost always pushes the burden of these charges to the buyer in negotiation.

Withholding tax on the seller's gain. For individual sellers, this is calculated on a progressive scale based on the appraised value and years of ownership. For corporate sellers, it is a flat 1% of the higher of selling price or appraised value. This is technically the seller's tax, but again, the burden allocation is a negotiating point.

For a typical THB 8 million condominium being sold by an individual who has held it for three years, the total Land Office charges run roughly 5 to 7% of the transaction value, split between the parties.

Annual ownership taxes

Thailand's Land and Building Tax Act B.E. 2562 (2019) replaced the older House and Land Tax in 2020. It applies to all property owners regardless of nationality.

For residential property used as a primary residence by the owner, the rate is between 0.02% and 0.10% of appraised value, with substantial exemptions for the first THB 10 to 50 million depending on ownership status.

For residential property that is not the owner's primary residence (which is the situation for almost all foreign-owned condominiums, since foreigners generally hold them as investment or vacation properties), the rate is 0.02% to 0.10% of appraised value with no exemption.

For a typical THB 8 million Phuket or Bangkok condo, annual tax runs roughly THB 1,500 to 8,000 per year. This is collected by the local municipality, not the Revenue Department.

Rental income tax during ownership

This is where foreign owners need to pay close attention.

A foreign owner who is a Thai tax resident (more than 180 days in Thailand in a calendar year) is taxed on rental income at progressive Thai personal income tax rates, ranging from 0% on the first THB 150,000 to 35% above THB 5 million. Standard deductions of 30% (for the property expenses category) are available, or actual expenses can be claimed with documentation.

A foreign owner who is a non-resident (less than 180 days in Thailand) is taxed at a flat 15% withholding rate on gross rental income. The tenant is technically required to withhold and remit this. In practice, owners typically arrange for a property management company to handle the withholding and filing.

Both categories must obtain a Thai Tax Identification Number (TIN) before renting out the property. Withholding cannot be remitted without one.

The Revenue Department has increased enforcement on undeclared rental income from foreign owners since 2024, using data shared by short-term rental platforms (Airbnb, Booking.com) and by condominium juristic persons. Foreign owners renting out units without declaring income are increasingly being assessed back taxes, interest (1.5% per month), and penalties (up to 100% of the tax owed).

Thailand has double tax treaties with over 60 countries, including the United States, United Kingdom, Canada, Australia, Germany, France, and most EU member states. Foreign-resident owners can usually credit Thai tax paid against their home-country tax liability.

Taxes on sale

When the foreign owner sells, the same four Land Office charges apply, with the foreign seller now paying the withholding tax on their gain.

For an individual foreign seller, the withholding tax is calculated using a progressive formula based on the property's appraised value and years of ownership. The formula effectively imposes a higher rate on shorter holding periods and on higher-value properties.

The 3.3% Specific Business Tax applies if the foreign seller has owned the property less than five years and has not registered residence in it for at least one year. The 0.5% stamp duty applies otherwise.

There is no separate capital gains tax in Thailand on real estate held by individuals. The withholding tax at the Land Office is the final tax on the gain for individual sellers. For corporate sellers, the gain is included in the company's annual corporate income tax filing at 20%.

Foreign sellers should also note that to repatriate the sale proceeds out of Thailand in foreign currency, the original Foreign Exchange Transaction Form (FET) from the purchase is required as proof that the funds were originally brought in from offshore. Lost FETs are a common and expensive problem at the point of sale.

Inheritance tax

The Inheritance Tax Act B.E. 2558 (2015) applies a 5% tax on inherited assets above THB 100 million for direct ascendants and descendants, and 10% above THB 100 million for other heirs. Property below the THB 100 million threshold is not taxed.

For foreign owners with significant Thai property holdings, estate planning becomes meaningful only at portfolio values approaching or exceeding THB 100 million. Most foreign owners of single condominium units will never trigger this tax. Where it does apply, the executor or heir must file with the Revenue Department within 150 days of inheriting the asset.

A Thai will covering Thai assets is strongly recommended for all foreign property owners, regardless of value. Without one, Thai courts apply local intestate succession rules to the Thai property, which can produce unexpected outcomes that override foreign wills.

The withholding tax math, worked

For an individual non-resident foreign owner selling an THB 8 million condominium held for three years, the rough Land Office breakdown looks like this:

- Transfer fee 2%: THB 160,000

- Specific Business Tax 3.3%: THB 264,000

- Stamp duty: not applicable (SBT triggered instead)

- Withholding tax on seller (individual, three years): roughly THB 80,000 to 150,000 depending on appraised vs sale value

Total Land Office charges: roughly THB 500,000 to 600,000, or 6 to 7.5% of the transaction value.

These costs are why holding period matters in Thailand. Selling before the five-year mark adds the 3.3% SBT, which is the single largest individual charge.

Verification and recordkeeping

Foreign owners should retain the original FET, the Chanote, the sale and purchase agreement, and all Land Office receipts in a single file for the entire ownership period. These documents are required for sale, refinancing, inheritance, and any tax dispute. Bektu (https://bektu.com) maintains records of Thai developer completion and project documentation that foreign buyers commonly need to retrieve years after purchase.