A thorough analysis of the taxes and fees associated with owning property in Thailand is essential to accurately assessing the return on investment. Understanding the tax structure, calculation procedures, and the impact of the New Land and Building Tax Act allows investors to consider the true financial costs and optimize returns.
Property Ownership Taxes in Thailand
Calculated based on the estimated or cadastral value of the property and can be up to 0.3%. With the introduction of the new law from January 1, 2020, uniform taxation principles apply to both local residents and foreign investors. If the owner has a residence permit, he or she is exempt from tax if the cost of the villa does not exceed 50 million baht, and the cost of the apartment does not exceed 10 million baht. In the absence of a residence permit, the tax is calculated based on the cadastral value with progressive rates, which allows you to accurately assess expenses and calculate the return on investment.
| Property type | Progressive bets |
|---|---|
| Villas (The threshold for exemption upon registration is 50 million baht) | up to 50 million baht – 0.02% 51-75 million baht – 0.03% 76–100 million baht – 0.05% over 100 million baht – 0.10% |
| Apartments (The threshold for exemption upon registration is 10 million baht) | up to 50 million baht – 0.02% 51-75 million baht – 0.03% 76–100 million baht – 0.05% over 100 million baht – 0.10% |
| Second residential property | up to 50 million baht – 0.02% 51-75 million baht – 0.03% 76–100 million baht – 0.05% over 100 million baht – 0.10% |
Best Properties in Thailand
Tax on rental income
Rental income tax is a liability for owners who rent out property, and the tax is calculated on net income – the amount of rental payments minus the management company commission and other expenses . The tax rate depends on the tax residency status : non-residents are subject to a flat tax of 15%, while residents are subject to a progressive tax rate that takes into account the amount of annual rental income.
Tax residents are defined as individuals who spend more than 180 days per year in Thailand. Residents have a tax exemption threshold of up to 150,000 baht per year, and above this level, rates of 5% to 35% are applied depending on the amount of income. Tax is paid by filing the appropriate tax forms, and previously withheld tax is deducted from the final tax liability, ensuring transparency and accuracy of calculations.
| Status | Annual Rental Income (THB) | Tax rate |
|---|---|---|
| Residents (progressive scale) | Up to 150,000 | 0% |
| 150,001 – 300,000 | 5% | |
| 300,001 – 500,000 | 10% | |
| 500,001 – 750,000 | 15% | |
| 750,001 – 1,000,000 | 20% | |
| 1,000,001 – 2,000,000 | 25% | |
| 2,000,001 – 5,000,000 | 30% | |
| Over 5,000,000 | 35% | |
| Non-residents | Any income | 15% (single tax) |
Property Tax Payment Deadlines
The tax period for property owners starts on January 1 and ends on December 31. All tax liabilities for this period must be settled no later than March 31 of the following year. Particular attention is paid to taxes on rental income from villas and apartments, which are payable in February. Local tax offices send out notices in February, and the final payment must be made by April.
Payment methods:
Online payment via local bank account on the Tax Department portal;
Payment through major banks such as Bangkok Bank and Krungthai Bank;
For small amounts, payment is available via ATMs or online banking services;
It is also possible to make payments through trusted persons or specialized law firms.
General Property Maintenance Costs in Thailand
Owning a property in Thailand involves regular utility and maintenance costs that significantly impact the overall return on investment. This section covers the main costs associated with electricity, gas, water, internet and telephone services, taking into account regional tariffs. This allows investors to more accurately plan their budget and estimate future costs when operating real estate.
Electricity
There are two main electricity suppliers in Thailand: the Metropolitan Electricity Authority (MEA) , which serves Bangkok, and the Provincial Electricity Authority (PEA) , which provides electricity to the rest of the country with offices in each province. Payment is based on meter readings, with rates starting at $0.06 per kilowatt-hour. With active use of air conditioners, monthly costs can range from $100 to $200, but for apartments around 50 m², rational use of electrical appliances can reduce these costs to $30–60 per month. Up-to-date information on rates can be found on the suppliers’ websites.
Gas
There is no centralized gas supply in Thailand, so most permanent residents of resort areas use gas stoves that run on replaceable cylinders of liquefied gas. When first purchasing, owners must make a deposit for the cylinder rental, which is about 1,500 baht (approximately $43), and also pay for gas in the amount of 300 to 500 baht ($9-$15). Replacing a standard 15-liter cylinder, which usually lasts for 3-6 months, costs an average of 400-600 baht ($11-$18). To replace an empty cylinder, simply contact the supplier, who will deliver a new cylinder and take the empty one for refilling.
Water supply
In Thailand, water supply in the Bangkok metropolitan area and its suburbs is managed by the Metropolitan Waterworks Authority , and in other areas by the Provincial Waterworks Authority . Water is supplied cold, and heating is provided by electric heaters in apartments. Water bills are generated at the beginning of the month based on actual consumption for the previous period and must be paid within the first two weeks, otherwise penalties are assessed.
Water rates are based on municipal coefficients and consumption volume: the lower the consumption, the lower the final cost. The average cost of water is just under $1 per cubic meter, which is reflected in monthly costs of 100-200 baht (approximately $2-6). For example, in Phuket, with a monthly consumption of 10 m³ of water, the bill was 102 baht (about $3). Property management companies often require an upfront deposit covering several months of water use and provide detailed reports on actual consumption, and payment can be made at most supermarkets.
Internet and telephony
Landlines are rarely used in Thailand, especially by foreigners, so the focus is on mobile communications. The largest operators – AIS , DTAC , TrueMove and TOT – offer SIM cards that can be purchased both at their offices and in supermarkets, and domestic calls start from 1 baht (about $0.03).
Wired Internet is provided by popular providers such as TOT, NT , True and 3BB . Subscription fees range from $10 to $40 per month, depending on connection speed and TV package availability. Many residents choose combination packages, where the cost of Internet ranges from $20 to $35 per month, and the initial connection fee is about $150. Payment for services is usually made in advance at the operator's offices or directly through residential complexes.