Are you ready to invest in property in Thailand? While there is no doubt that owning property in Phuket, can be lucrative, it is also important to be aware of the property tax in Thailand.
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 which 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 upon criteria that meet Ministerial Regulations.
Examples of Pricing Ranges for Property Taxes
Pricing ranges for property taxes vary upon 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 Building 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.
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 which 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.
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