Taxes in Thailand for a property owner are low by global standards, but understanding the structure matters: one-time transaction fees, the annual land and building tax, and rental income tax. Not knowing leads to budget “surprises.” Here’s every item — who pays how much, how freehold and leasehold differ — in clear figures.
Contents
1. Overview of taxes and fees
Taxes fall into three groups:
- One-time at the deal — transfer fee, stamp/business tax, leasehold registration.
- Annual — land and building tax, common area fee (a cost, not a tax).
- On income — income tax on rental and tax on sale.
2. One-time transaction fees
| Fee | Rate (indicative) | Who pays | Base |
|---|---|---|---|
| Transfer fee (freehold) | ~2% | Split / by contract | Appraised value |
| Leasehold registration | ~1.1% (every 30 yrs) | Buyer | Value |
| Specific Business Tax (SBT) | 3.3% | Seller | If held < 5 years |
| Stamp duty | 0.5% | Seller | If SBT doesn’t apply |
| Withholding tax | Progressive / 1% | Seller | At transfer |
On the primary market the transfer fee is often split 50/50 or covered by the developer as a promotion.
🔗 Full entry estimate: Phuket taxes & fees →
3. Who pays what
- Buyer: a share of the transfer fee (freehold) or leasehold registration (~1.1%), sinking fund, meters.
- Seller (resale): SBT/stamp and withholding tax.
- Developer (primary): often covers part of the transfer fee.
The final split is in the contract — the first thing to fix in writing.
4. Annual taxes and costs
- Land and Building Tax — the annual tax on land and buildings; residential rates are low, primary homes have exemptions and thresholds.
- Common area fee — the complex servicing charge (Phuket benchmark ~85 THB/m²/mo). A cost, not a tax, but recurring.
- Sinking fund — a one-time contribution to the capital-repair fund at purchase (e.g. 850 THB/m²).
- Utilities — water and electricity by meter.
5. Rental income tax
Rental income is subject to income tax. In a condo-hotel with a rental pool this is factored into net-yield: the owner receives their share (per the project model, ~60% of net profit) already net of taxes and the management fee. The resulting owner net-yield benchmark is ~8–10%.
🔗 How income is calculated: Rental management program → · Calculator
6. Tax on sale
On resale, fees arise (transfer fee, possibly SBT if held <5 years, withholding). The price gain is captured in the withholding tax. A detailed breakdown is in the dedicated article on tax at sale.
🔗 More: Capital gains tax in Thailand →
7. Pitfalls
- Counting only the price. One-time fees add percentages to the budget.
- Confusing freehold and leasehold fees. 2% transfer vs 1.1% lease registration.
- Forgetting the annual ones. Common area and land tax are recurring.
- Ignoring rental income tax. It lowers net yield.
- Not checking current rates. Rules and exemptions can change.
8. Case: a tax estimate
Consider a typical scenario. A buyer focuses only on the unit price and “yield,” without budgeting fees. In reality, a leasehold deal added: lease registration ~1.1%, sinking fund, meters; annually — the common area fee and a small land tax; on rental — income tax (already built into net yield via the rental pool). They accounted for none of it, and the “net” picture came in below expectations — not because of the taxes themselves, but because they weren’t calculated in advance.
Takeaway: taxes in Thailand are moderate, but you must build them into the estimate and the net-yield calculation from the start.
I’ll calculate a full tax estimate for your unit and ownership form together with a lawyer.
[ Enquiry form: per-unit tax estimate ]
Informational only, not tax advice; rates and exemptions can change — confirm current ones with a lawyer at the time of the deal.