What Foreigners Should Know About Property Tax in Thailand

Thailand continues to attract international property investors and retirees, thanks to its beautiful beaches, lifestyle, and relatively affordable real estate. But before making a property purchase, foreigners must understand the local taxation. While taxes in Thailand are generally considered low by global standards, they are still an essential part of property ownership and transactions. If you’re planning to buy, own, rent out, or sell property, knowing how property tax in Thailand works can save you from costly surprises and help you stay fully compliant with Thai law.

This guide simplifies the complexities of taxation in Thailand, especially for foreigners who may not be familiar with the system. It breaks down the types of taxes involved in property ownership, sale, and income from rentals. Whether you’re eyeing a city condo or a beachfront villa, understanding your financial obligations will allow you to make informed, confident decisions.

Overview of Property Taxation in Thailand

As of March 2025, the information presented in this article reflects the current tax structure enforced under Thailand’s Land and Building Tax Act B.E. 2562 (2019), which came into effect in January 2020. It replaced older forms of property taxation, including the previous House and Land Tax. Property owners—including foreigners—must stay informed about annual rates, transaction-related fees, and exemptions or reductions announced by the Thai government. 

A common question among buyers is, “Is there property tax in Thailand?” The answer is yes—but the structure is different from what many foreigners are used to. Rather than a single, flat annual tax, the Thai property tax system includes both recurring taxes and one-time fees, depending on how the property is used and whether it is being transferred or held long-term. These taxes apply to both Thai and foreign property owners, with some variations based on usage, location, and ownership structure.

Annual Property Tax in Thailand

The Land and Building Tax Act B.E. 2562 (2019) applies to all property owners, including foreigners, and covers a wide range of property types such as land, houses, condominiums, and commercial buildings. The new framework is part of an ongoing effort to modernize and streamline land and building tax Thailand regulations to better reflect property usage and market value.

The tax is assessed annually and calculated based on the official appraised value set by the local Land Office. The amount you pay depends primarily on how the property is used. Whether you’re an individual owning a residence in Hua Hin or an investor managing rental units, it’s important to understand which usage category your property falls into.

Land and Building Tax Rate by Property Use:

• Agricultural Use (e.g., farms or plantations): Up to 0.15% of the appraised value
• Residential Use (e.g., personal homes or owner-occupied condos): Up to 0.3% of the appraised value. If owned by an individual and used as a primary residence, the first THB 50 million may be exempted under certain conditions
• Commercial Use (e.g., rental properties, shops, hotels): Up to 1.2% of the appraised value
• Unused or Vacant Land: Up to 1.2%, with incremental increases of 0.3% every three years. Maximum capped at 3% to encourage landowners to develop or utilize their property

These rates apply to both Thai nationals and foreign owners, and in some cases, local authorities may offer temporary reductions or waivers—such as the 15% nationwide tax relief approved for the 2023 tax year. Exemptions are not automatic and must be applied for with the local Land Office.

Although the percentages may seem low, the total amount can add up, especially for high-value or undeveloped plots in popular locations like Hua Hin. For example, a foreigner owning a beachfront villa used for short-term rental may be taxed at the commercial rate, significantly higher than the rate for personal residential use.

One-Time Taxes and Fees on Property Transactions

When a property changes hands in Thailand, several one-time taxes and fees are triggered at the point of ownership transfer. These are typically paid at the Land Department in the province where the property is located—such as at the Land Office in Hua Hin for properties in Prachuap Khiri Khan province.

The exact amount depends on the property’s value, ownership structure, and how long the seller has held the asset. These costs apply equally to foreigners and Thai nationals and are especially important to understand if you’re planning to buy or sell property in Thailand. Collectively, these charges are often referred to as property transfer tax Thailand obligations, and they form a critical part of any real estate transaction.

• Transfer Fee: Typically 2% of the property’s appraised value, often shared between buyer and seller, though this can be negotiated. 
• Stamp Duty: Charged at 0.5% of the property’s appraised value. If the Specific Business Tax applies, the Stamp Duty is exempt.
• Specific Business Tax (SBT): Levied at 3.3% (including a 0.3% local tax) of the property’s appraised or actual sale price, whichever is higher. This tax applies if the property is sold within five years of acquisition.
• Withholding Tax: For individuals, this is calculated based on progressive personal income tax rates. For companies, it’s set at 1% of the sale price or appraised value, whichever is higher.

In Hua Hin, these taxes are normally shared equally between the buyer and the seller and should always be supplied to the buyer before they make any offer on a property. This ensures they are aware of all potential costs when purchasing a property. The specific business tax Thailand property rule, in particular, can significantly affect the amount of taxes payable. 

Do Foreigners Pay Property Tax in Thailand?

The answer is yes. Foreigners are legally required to pay property tax in Thailand, including both annual land and building tax and transaction-related taxes. While foreigners cannot directly own land, they can legally own condominium units and lease land under long-term agreements.

If a foreigner owns a structure on leased land, they are still responsible for the house and land tax Thailand applies to buildings. In practice, foreigners are taxed in the same manner as Thai nationals, and no separate “foreigner tax in Thailand” category exists.

Common Scenarios and Tax Considerations

Property taxation in Thailand can vary significantly depending on how the property is owned, used, or sold. Foreigners often find themselves in one or more of the following scenarios, each with unique tax implications. 

• Owning a Condo: Subject to annual land and building tax depending on use (residential vs. rental)
• Owning a House on Leased Land: Taxed on the structure under Thai law
• Selling Property: May trigger transfer fee, stamp duty, withholding tax, and SBT (if within 5 years)
• Rental Property: Rental income must be declared; tax rate depends on income level and ownership structure

Estimating What You’ll Pay by Thailand Property Tax Calculator

So, how much is property tax in Thailand really? The answer depends on several factors: the type of property, its appraised value, how it’s used, and how long you’ve held it. Thankfully, a Thailand property tax calculator can give you a useful estimate based on up-to-date rates from the Land Department. You can also consult your local land office in areas like Bangkok or Hua Hin or speak with a qualified real estate lawyer or accountant familiar with property tax in Thailand for foreigners.

Condo in Bangkok (THB 5 million, used as a residence):

• Annual land and building tax: Around THB 1,000–2,500
• One-time transfer fees when buying or selling: 2%–5% of the property’s appraised value (including transfer fee, stamp duty, and withholding tax)

Villa in Hua Hin (used as a rental property):

• Annual land and building tax: Taxed at the commercial rate, up to 1.2% of appraised value
• Rental income tax: Applicable depending on income level and ownership structure. If income exceeds the tax threshold, it must be declared on your annual personal or corporate tax return.

Being proactive and calculating these figures in advance helps you budget better and understand the long-term cost of ownership. It also reduces the risk of unexpected expenses when transferring or selling property in the future.

Navigating property tax in Thailand for foreigners can be complex but manageable. From annual obligations like the land and building tax to one-time charges like transfer and business taxes, each piece plays a role in your overall investment strategy.

If you’re seeking guidance on buying property in Hua Hin and need advice about Thai property tax, working with a knowledgeable and trustworthy agency makes all the difference. Location Real Estate Hua Hin is an independent agency dedicated to helping both international and local clients make confident, informed real estate decisions. With years of experience in the Hua Hin market, our team offers reliable advice on everything from selecting the right property to understanding local regulations and taxes. Our hands-on support ensures you’re not left navigating complex legalities or tax obligations alone.

What sets Location Real Estate apart is that we focus on your actual needs and goals—ensuring you’re presented with only suitable, well-researched options. Our team also assists with key aspects of the buying process, including connecting you with reputable lawyers, helping you understand property transfer costs, and explaining how Thai property tax applies to your specific situation. For example, if you’re buying a villa as a rental investment, our insights can help you plan ahead for commercial tax rates, rental income declarations, and annual land and building tax.

From the first inquiry to the final handover (and even beyond), our team remains accessible and supportive, helping you build a secure, tax-compliant investment in Thailand’s beautiful coastal region. Reach out to us today!