Editorial
Recurring Taxes on Thai Property: A 2026 Owner's Guide
By THAI.ESTATE Editorial Team15 min read
Foreign buyers often ask whether Thailand is a low-tax country for property owners. The short answer is: annual taxes are low by global standards, but the real recurring cost is the combination of land and building tax, common-area fees, and withholding tax on rental income. This guide walks you through every charge you face at purchase, during ownership, on rental income, and at sale - with an indicative numeric example so you can see the full cost stack in one place.
All figures below are marked as indicative and reflect conditions as of 2026. Tax law changes, and you should verify current rates with a licensed Thai lawyer and a tax adviser in your home country before committing funds.
Quick answer
- Land and building tax for residential property is capped at 0.02% to 0.1% of appraised value per year (as of 2026), making annual ownership tax very low in most cases
- Transfer fee at purchase is 2% of the appraised value, split by negotiation but often shared 50/50 between buyer and seller
- Specific business tax (SBT) of 3.3% applies if the seller has held the property for fewer than five years; stamp duty of 0.5% applies instead when SBT does not
- Withholding tax on rental income for non-resident foreign individuals is 15% withheld at source on gross rent if the payer is a company, or declared via annual personal income tax filing at progressive rates up to 35%
- Withholding tax on sale proceeds is deducted at source by the Land Department using a formula based on appraised value, holding period and a deemed income table
- Most foreign owners must also declare Thai-source income in their home country; double-taxation treaties (DTAs) may reduce the total burden - always consult a tax adviser in your home country
Options and scenarios
What taxes do I pay when buying a condo in Thailand?
Every residential property transfer in Thailand generates four possible charges at the Land Department. You need to know which ones apply to your transaction.
Transfer fee is 2% of the government appraised value (not the contract price). Market practice is for buyer and seller to split this 50/50, so you each pay 1%. On a condo appraised at THB 5,000,000 (indicative), the total transfer fee is THB 100,000 and your share is THB 50,000.
Specific business tax (SBT) is 3.3% (3% SBT plus a 10% municipal surcharge, totalling 3.3% of the appraised value or actual price, whichever is higher). SBT applies when the seller has owned the property for fewer than five years. By custom, the seller pays SBT, but this is negotiable. If you buy new from a developer, SBT almost always applies and is typically built into the developer's price.
Stamp duty of 0.5% applies when SBT does not (i.e., the seller has held the property for five or more years). SBT and stamp duty are mutually exclusive - you pay one or the other, never both.
Withholding tax is deducted from the seller's proceeds by the Land Department at the point of transfer. It is the seller's liability in law, but some buyers agree to share it through negotiation. The calculation uses a table of deemed annual income based on the appraised value and years of ownership, then applies Thai personal income tax rates. A licensed lawyer can calculate this for your specific transaction.
Indicative transaction cost example (as of 2026)
Assume: condo purchased for THB 5,000,000 contract price; appraised value THB 4,800,000; seller has owned for two years (SBT applies).
- Transfer fee (your 50% share): THB 48,000 (1% of THB 4,800,000)
- SBT (seller's liability, included here for total picture): THB 158,400 (3.3% of THB 4,800,000)
- Stamp duty: THB 0 (SBT applies, stamp duty does not)
- Withholding tax (seller's liability, indicative): THB 80,000 to THB 130,000 depending on the deemed income table - verify with your lawyer
- Your direct purchase-side cost at the Land Department: approximately THB 48,000 to THB 60,000, plus legal fees of THB 30,000 to THB 80,000 (market estimates)
Total buyer outlay beyond contract price: roughly 1% to 2% of the appraised value, plus legal fees. Budget 2% to 3% of the purchase price as a safe estimate for all closing costs on your side.
What is the annual land and building tax in Thailand?
Thailand replaced its old house and land tax and local development tax with the Land and Building Tax Act, which came into force in 2020. Under this law, residential property owned by an individual is taxed on the government appraised value at rates that increase with value.
For residential use, the rates as of 2026 are:
- Appraised value up to THB 50,000,000: 0.02% per year
- THB 50,000,001 to THB 75,000,000: 0.03% per year
- THB 75,000,001 to THB 100,000,000: 0.05% per year
- Above THB 100,000,000: 0.1% per year
For a condo with a government appraised value of THB 5,000,000, the annual land and building tax is THB 1,000 per year (0.02% x THB 5,000,000). This is a very modest annual charge.
If you own the property but do not use it as your primary residence (for example, it sits vacant or is rented), a higher rate schedule applies. Vacant or unused land faces rates rising to 0.3% per year and doubling every three years of vacancy up to a cap of 3%, so leaving property empty is penalised under Thai law.
Verify the current rate schedule with your lawyer or the local administrative authority (municipality or subdistrict office) before purchase, as local surcharges and rate adjustments are possible.
What are the real recurring costs of owning a Thai condo?
For most foreign buyers who own a condominium (the most common ownership structure for foreigners, permitted under the Condominium Act B.E. 2522 up to a 49% foreign quota in each building), the annual land and building tax is almost trivial. The far more significant recurring costs are:
Common-area management fee (CAM fee): Charged per square metre of your unit each month. Rates in Bangkok and resort areas range from THB 30 to THB 120 per square metre per month (market estimates, as of 2026). On a 50 sq m unit at THB 60/sq m, this is THB 3,000 per month or THB 36,000 per year. You pay this regardless of whether you occupy the unit.
Sinking fund: A one-time payment at purchase into the building's reserve fund for major repairs (roof, elevators, common infrastructure). The sinking fund is typically THB 400 to THB 800 per square metre (indicative), paid once at transfer. It is not an annual charge but is a real upfront cost.
Juristic person fees: The juristic person is the legal body that manages a condominium building on behalf of all owners. Annual or monthly fees to the juristic person cover building management, security, cleaning and maintenance of shared areas. These fees are the CAM fee described above.
Utility deposits and meters: If you buy a new unit, you may pay a meter deposit to the electricity authority directly. This is a one-time cost.
How is rental income from Thai property taxed for foreigners?
If you rent your Thai property to tenants, the income is Thai-source income and is taxable in Thailand regardless of where you live.
Non-resident individual (no Thai tax ID, rents collected informally): In practice, many foreign owners collect rent privately and do not file Thai returns. This creates tax risk. Thai law requires non-residents earning Thai-source income to file a Thai personal income tax return and pay tax at progressive rates from 5% to 35% on net assessable income. The first THB 150,000 of net income is exempt.
Withholding tax route (payer is a Thai company or hotel operator): If a licensed property manager or hotel operator pays you rent, they are legally required to withhold 15% of the gross rent and remit it to the Revenue Department. This withholding may not be your final liability - you can file a return and claim deductions (a flat 30% expense deduction is available for rental income under Thai Revenue Department rules, as of 2026 - verify the current allowable deduction). If the 15% withheld exceeds your actual liability after deductions, you can claim a refund.
Home country exposure: Thailand has double-taxation agreements (DTAs) with more than 60 countries as of 2026. Under most DTAs, rental income from Thai property is primarily taxable in Thailand, but you may still need to declare it at home and claim a foreign tax credit. The rules differ by country. A tax adviser in your home country is mandatory - this guide does not provide country-specific advice.
What withholding tax do I pay when I sell Thai property?
When you sell, the Land Department withholds tax from the seller's proceeds before paying you. The withholding is calculated by the Land Department using this method:
- Take the higher of the appraised value or the actual sale price
- Apply a deemed annual income figure from the Revenue Department's official table based on appraised value
- Multiply by the number of years held (minimum one year)
- Apply Thai personal income tax rates to get a gross tax figure
- Divide by years held to get annual withholding
- Multiply by years held to get total withholding
The result varies significantly depending on holding period and appraised value. A longer holding period generally reduces the effective rate per year. Your lawyer or a Thai accountant can run this calculation for your specific property before you decide to sell.
Capital gains are not separately taxed in Thailand. The withholding tax on sale is the primary exit tax for individuals.
Comparison table
| Tax or fee | Rate or amount | Who pays | When | Notes |
|---|---|---|---|---|
| Transfer fee | 2% of appraised value | Split by negotiation (often 50/50) | At Land Department transfer | Based on government appraisal, not contract price |
| Specific business tax (SBT) | 3.3% of appraised value or price (higher) | Seller (negotiable) | At transfer, if held fewer than 5 years | Replaces stamp duty when it applies |
| Stamp duty | 0.5% of appraised value or price (higher) | Seller (negotiable) | At transfer, if held 5 or more years | Only if SBT does not apply |
| Seller withholding tax | Variable (progressive rate table) | Seller | Deducted at Land Department | Buyer sometimes negotiates contribution |
| Land and building tax | 0.02% to 0.1% per year | Owner | Annual (assessed by local authority) | Very low for residential; higher for vacant property |
| Common-area management fee | THB 30 to THB 120 per sq m per month | Owner | Monthly | Largest recurring cost for condo owners |
| Sinking fund | THB 400 to THB 800 per sq m (one-time) | Buyer at purchase | One-time at transfer | Reserve fund for major building repairs |
| Rental income tax | 15% withheld (or progressive 5 to 35%) | Owner (non-resident) | Withheld monthly or annual filing | 30% expense deduction available; verify current rules |
| Withholding tax on sale | Variable (Revenue Dept table) | Seller | At Land Department transfer | No separate capital gains tax for individuals |
Risks and mistakes
Underestimating closing costs. Many buyers budget only for the contract price. Add 2% to 3% of the purchase price for Land Department fees on your side, plus legal fees. If you also agree to share SBT or seller withholding tax, the total rises further.
Ignoring the annual common-area fee. On a holiday condo used four weeks a year, you still owe 12 months of CAM fees. Request the current CAM fee rate and the building's maintenance fund balance before signing.
Assuming SBT or stamp duty does not apply to you. These are the seller's charges in law, but if you negotiate to share them or if a developer passes them through, they become your cost. Clarify in writing before signing the sale and purchase agreement.
Not filing Thai rental income returns. Thai tax authorities have access to land office records and bank data. Rental income earned in Thailand is taxable in Thailand. Non-filing creates back-tax risk with penalties and interest.
Relying on developer estimates of ongoing fees. Developers sometimes set artificially low CAM fees at launch to attract buyers, then raise them once the juristic person takes over. Ask for the fee schedule in the building's regulations, not just the developer's marketing sheet.
Overlooking home-country tax obligations. Even if Thailand's annual tax burden seems low, your home country may tax your worldwide income or capital gains. Failure to declare Thai rental income or sale proceeds at home can create serious penalties. A tax adviser in your home country is not optional.
Buying in a project with an underfunded sinking fund. If the sinking fund is depleted and the building needs a major repair, a special levy is raised from all owners. Ask the juristic person for the fund balance statement before purchase.
Misunderstanding the vacant property surcharge. If you buy a condo as an investment and leave it empty, the higher vacant-land tax rate applies. The rate doubles every three years up to a ceiling. Renting it out or using it personally avoids this escalation.
FAQ
How much is the annual property tax in Thailand for a foreign owner?
For a residential condo with a government appraised value of THB 5,000,000, the annual land and building tax is approximately THB 1,000 per year (0.02% of appraised value, as of 2026). This is one of the lowest residential property tax rates in Southeast Asia. The rate rises on a sliding scale for higher-value properties, reaching 0.1% above THB 100,000,000.
Do I pay capital gains tax when I sell property in Thailand?
Thailand does not have a separate capital gains tax for individual property sellers. Instead, the Land Department withholds income tax from the seller's proceeds using a formula based on appraised value, years held and a Revenue Department deemed-income table. A longer holding period generally results in a lower effective tax per year. Your lawyer or a Thai accountant can calculate the expected withholding before you decide to sell.
Who pays the transfer fee - buyer or seller?
The transfer fee of 2% of the appraised value is a Land Department charge that is legally payable at transfer. Market practice is for buyer and seller to share it equally, so each pays 1% of the appraised value. This split is negotiable and should be agreed in writing in the sale and purchase agreement.
Is rental income from a Thai condo taxable in Thailand?
Yes. Rental income earned from Thai property is Thai-source income and is subject to Thai personal income tax regardless of where you live. Non-resident individuals face progressive rates from 5% to 35% on net assessable income. A 30% flat expense deduction is available for rental income (verify the current deduction with a Thai accountant). If a Thai company or operator pays your rent, they must withhold 15% at source.
What is the sinking fund and do I pay it every year?
The sinking fund (sometimes called the maintenance reserve fund) is a one-time payment made at the point of purchase into the condominium building's reserve account. It covers future major repairs such as elevator replacement or roof waterproofing. It is not an annual charge. Typical rates are THB 400 to THB 800 per square metre of your unit (market estimates, as of 2026).
What is the difference between SBT and stamp duty on a Thai property sale?
Specific business tax (SBT) at 3.3% applies when the seller has owned the property for fewer than five years. Stamp duty at 0.5% applies when the seller has held the property for five years or more. The two charges are mutually exclusive - only one applies to any given transaction. Both are calculated on the higher of the appraised value or the actual sale price.
Can a foreign owner of Thai property reduce their rental tax bill?
Yes, within the rules. You can deduct 30% of gross rental income as a flat expense allowance under Thai Revenue Department rules (as of 2026 - verify the current allowable percentage). You can also claim personal allowances under Thai law. If your home country has a DTA with Thailand, you may be able to claim a foreign tax credit at home to offset double taxation. Consult both a Thai accountant and a tax adviser in your home country.
How do I pay land and building tax in Thailand as a foreign owner?
The land and building tax is assessed and collected by the local administrative authority - typically the municipality (tessaban) or subdistrict administrative organisation (Or Bor Tor) where your property is located. The authority sends an assessment notice, and you pay at their office or via designated bank channels. The payment deadline is typically April each year, though this has been extended in some years. If you are not resident in Thailand, your property manager or a local representative can handle payment on your behalf.
Do I need to file a Thai tax return if I only own property and do not rent it out?
If you earn no Thai-source income - no rental income, no employment income in Thailand - you generally do not need to file a Thai personal income tax return. The annual land and building tax is handled separately through the local authority, not the Revenue Department. However, if you earn any Thai-source income (rent, dividends, interest on Thai bank accounts above the tax-free threshold), you have a filing obligation. A Thai accountant can confirm your specific position.
Should I worry about taxes in my home country on my Thai property?
Yes. Most countries with residence-based or citizenship-based taxation require you to declare worldwide income, including Thai rental income and capital gains on sale. Thailand has DTAs with more than 60 countries (as of 2026) that can reduce or eliminate double taxation, but the rules differ by country and by income type. This guide cannot provide country-specific tax advice. Engaging a tax adviser in your home country before you buy is the minimum standard of due diligence.
Planning a property purchase in Thailand? Send us your requirements - the THAI.ESTATE team will reply with specific options and a safety checklist for your case.