Property Tax in Thailand

14th Sep, 2020

Property Tax in Thailand

Table of Content

  1. Taxable Properties
  2. Tax Base
  3. Examples of Pricing Ranges for Property Taxes
  4. Do You Need Assistance with Tax Laws or Selling a Property?
  5. Taxable Properties
  6. Tax Base
  7. FAQ

At the start of 2020, a new property tax legislation was entered into law in Thailand. The law endeavors to encourage the productive use of land and improve tax collections.

Taxable Properties

The tax applies to land as well as condominiums, apartments, buildings, and houses. It also applies to any type of construction that functions as a residence or can be used for storage, commercial, or industrial purposes.

What this means is that people will potentially be liable to tax on their homes, but a generous tax threshold will apply.

Tax Base

Tax is currently imposed under the House and Land Tax Act on a property’s annual rental value at the rate of 12.5%.

Under the new law instated in early 2020, the tax base will be the appraised value of the property as determined for the purpose of collection registration fees under the Land Code. In the event that there is no appraised value, the tax base will be calculated based on criteria that meet Ministerial Regulations.

Property Tax in Thailand

Examples of Pricing Ranges for Property Taxes

Pricing ranges for property taxes vary on the type of property that it is. Compiled below is a list of examples of property taxes.

(1) Agriculture Land or Building
0.01% Appraised Value Not Excess THB 75,000,000.
0.03% Appraised Value THB 75,000,001 – 100,000,000.
0.05% Appraised Value THB 100,000,001 – 500,000,000.
0.07% Appraised Value THB 500,000,001 – 1,000,000,000.
0.1% Appraised Value above 1 Billion Thai Baht.

(2) Individual Residential Land and Building for residing & holding his/her name in the House Registration Book (Ta-bien-baan)
0.03% Appraised Value Not Excess THB 25,000,000.
0.05% Appraised Value THB 25,000,001 – 50,000,000.
0.1% Appraised Value above THB 50,000,000.

(3) Individual Residential Building for residing & holding his/her name in the House Registration Book (Ta-bien-baan)
0.02% Appraised Value Not Excess THB 40,000,000.
0.03% Appraised Value THB 40,000,001 – 65,000,000.
0.05% Appraised Value THB 65,000,001 – 90,000,000.
0.1% Appraised Value above THB 90,000,000.

(4) Other Residential Utilization of Land or Building than the above (1), (2) & (3)
0.02% Appraised Value Not Excess THB 50,000,000.
0.03% Appraised Value THB 50,000,001 – 75,000,000.
0.05% Appraised Value THB 75,000,001 – 100,000,000.
0.1% Appraised Value above THB 100,000,000.

(5) Other Utilizations of Land or Buildings other than Agriculture and Residential
0.3% Appraised Value Not Excess THB 50,000,000.
0.4% Appraised Value THB 50,000,001 – 200,000,000.
0.5% Appraised Value THB 200,000,001 – 1,000,000,000.
0.6% Appraised Value THB 1,000,000,001 – 5,000,000,000.
0.7% Appraised Value above 5 Billion Thai Baht.

(6) Inholdings or Non-Utilization Land or Building
0.3% Appraised Value Not Excess THB 50,000,000.
0.4% Appraised Value THB 50,000,001 – 200,000,000.
0.5% Appraised Value THB 200,000,001 – 1,000,000,000.
0.6% Appraised Value THB 1,000,000,001 – 5,000,000,000.
0.7% Appraised Value above 5 Billion Thai Baht.

Property Tax in Thailand

Do You Need Assistance with Tax Laws or Selling a Property?

Tax Laws in Thailand can be difficult to understand as they are often tricky. If you are looking to invest in a property and are not sure of the rules and regulations, Harwell Legal is here to help.

As Phuket’s premier international law office, the team at Harwell Legal is ready to offer a consultation or help you with a seamless transition when it comes to selling your property. Feel free to contact us today!

Taxable Properties

The tax applies to land as well as condominiums, apartments, buildings, and houses. It also applies to any type of construction that functions as a residence or can be used for storage, commercial, or industrial purposes.

Tax Base

Tax is currently imposed under the House and Land Tax Act on a property’s annual rental value at the rate of 12.5%.Property tax in Thailand applies to various forms of real estate, including land, condominiums, apartments, houses, and any construction used for residence, storage, commercial, or industrial purposes. The tax is based on the annual rental value of a property, with the current rate set at 12.5% under the House and Land Tax Act. However, changes introduced in 2020 shifted the tax base to the appraised value of the property, as determined by the Land Code for fee collection purposes. There are different pricing ranges for property taxes depending on the type and use of the property. Given the complexities of property tax laws, it is advisable to consult with a reputable legal team, such as Harwell Legal International, when planning to invest in property in Thailand.

FAQ

How is property tax calculated in Thailand, and what are the current rates?

In Thailand, the property tax is traditionally calculated based on a property’s annual rental value, with a rate of 12.5% under the House and Land Tax Act. However, with the new legislation introduced in 2020, the tax base has shifted to the appraised value of the property. This appraised value is determined according to the collection registration fees under the Land Code, or in the absence of an appraised value, based on criteria set out in the Ministerial Regulations.

What changes were introduced to the property tax system in Thailand in 2020?

The property tax system in Thailand underwent significant changes with new legislation that came into effect at the start of 2020. The law was designed to promote the productive use of land and enhance tax collection efficiency. Under the new system, the tax base is no longer the annual rental value but the appraised value of the property. This new approach was implemented with tiered tax rates depending on the type and value of the property, encouraging the proper utilization of land and real estate.

Can you describe the different types of Thai property that are subject to property tax?

Thai property subject to property tax includes land, condominiums, apartments, buildings, and houses, as well as any construction that functions as a residence or can be used for storage, commercial, or industrial purposes. The 2020 property tax reform in Thailand introduced different tax rates for various property types, encouraging the efficient use of real estate and attempting to align tax obligations more closely with the property’s value and use. The rates are progressive and vary for agricultural land, residential properties, and other types of land utilization, reflecting the government’s intent to tailor the tax burden accordingly.