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Yes, Thailand has a property tax: the annual land and building tax, which foreign owners pay on the same terms as Thais. For homes, the rates actually applied are 0.02–0.10% of the government appraised value, and a principal home the owner lives in is exempt on the first THB 50 million. The local authority sends the bill in February, and payment is due by 30 April. If you rent the property out, the rent is taxed separately as income. This tax is the yearly cost of owning, not one of the one-off taxes and fees when buying.
In short
- Thailand has one annual tax on property: the land and building tax. Foreign owners pay it on the same terms as Thai owners.
- For homes the applied rate is 0.02–0.10% of the appraised value. A condo appraised at THB 5 million pays about THB 1,000 a year at the lowest rate.
- The exemption for a principal home is tied to living in it or being registered there; a property you rent out usually does not qualify, and the local authority decides its category and rate.
- The bill arrives in February and is due by 30 April; some municipalities allow until 30 June. Late payment adds a 40% surcharge (10% if paid before a warning notice) plus 1% a month, capped at the tax amount.
- Rent is taxed as income, separately. Condo common fees are paid to the building, not to the state, and are not a tax.
Land and building tax: who pays and how much
The land and building tax is charged every year on land, buildings and condominium units. The owner pays it, and a foreign owner of a freehold condo pays on the same terms as a Thai owner. The tax is based on the government appraised value, which is set by the authorities and is usually different from what you paid.
The law sets maximum rates (ceilings) for each category of use, and the rates actually applied are lower. Many owners read the 0.30% ceiling for homes and expect a large bill, but the applied residential rate starts at 0.02%.
| Category | Ceiling under the law | Rate actually applied |
|---|---|---|
| Agricultural | 0.15% | 0.01–0.10% |
| Residential | 0.30% | 0.02–0.10% |
| Commercial and other use | 1.20% | 0.30–0.70% |
| Vacant or unused land | 3% | 0.30%, rising by 0.3 point every 3 years of non-use, up to 3% |
An example shows the scale. A condo with an appraised value of THB 5 million, taxed at the lowest residential rate of 0.02%, pays THB 1,000 a year. This is an illustration only. The local authority decides the category of your property and the rate within the band, and it states both in the bill.
Appraised values are revised from time to time, and the tax base changes with them. The rates have not changed in recent years, and no reform of the rates has been announced. If an owner leaves land unused, the vacant-land rate applies and keeps rising, so a plot bought "for later" costs more each year than a home.
A home you live in vs a property you rent out
The exemptions depend on how the property is used and on whether the owner is registered at it.
- Principal home. An individual who owns a home and lives in it as the principal residence is exempt on the first THB 50 million of appraised value. If the exemption applies to you, a home appraised below THB 50 million pays no land and building tax. Our lawyers check whether it applies to your unit.
- Second home registered in the house book. A further exemption of THB 10 million applies to a second home registered in the house book (tabien baan).
- Property you rent out. The exemptions are tied to a home the owner lives in or is registered at. A unit let to tenants usually does not qualify, and the local authority decides its category and rate.
A common mistake is to assume that a condo owned by a foreigner gets the home exemption automatically. It does not: the exemption turns on how the unit is used and how it is registered. How these exemptions apply to a foreign owner registered in a yellow house book is something we confirm with the local authority for your unit. Our lawyers check your registration and the category the local authority uses, and we ask the authority directly when the bill looks wrong.
Many buyers in Phuket buy a villa on a leasehold. A registered lease gives you the right to the villa for up to 30 years under a contract registered at the Land Office, while the land stays with its Thai owner. The local authority bills the owner, and the lease should set out which party ultimately covers this cost; we read that clause before you sign, so it is clear who pays and what happens if the bill is not paid.
Tax on rental income
Rent from a Thai property is taxable income, declared on the annual personal income tax return. This is separate from the land and building tax: one is paid to the local authority for owning, the other to the tax authorities for earning. A rented unit can therefore bring two tax payments in the same year.
How you rent matters before tax does. A stay of under 30 days is hotel business, and renting a condo by the day without a hotel licence is illegal today. A lease of a month or longer does not need a hotel licence. Our page on renting out property legally explains both regimes.
Rental income goes on the annual personal income tax return. How to get a tax ID and file is set out on our page on filing a Thai tax return. If you live in Thailand for 180 days or more in a year and bring income from your home country into Thailand, read about foreign income tax as well, because that is a different rule.
When and where to pay
The land and building tax is paid to the local authority where the property is located: the municipality or the subdistrict administrative organisation (TAO). Phuket is divided among several local authorities. For a Phuket property tax bill, the authority is the one for the area of your building or villa, not the Land Office.
The owner's year looks like this:
- January. The local authority publishes the appraised values for the year.
- February. It sends out the tax bills. Make sure the local authority has an address where someone will receive yours.
- By 30 April. You pay. Some municipalities allow until 30 June, and the bill states the date.
- After the deadline. A surcharge of 40% of the unpaid tax applies, or 10% if you pay before the authority sends a warning notice. Interest of 1% a month is added, capped at the amount of the tax.
If you live abroad, arrange in advance for someone to receive the bill: the building's management or a person you trust, acting under a power of attorney.
Our lawyers can work through your property in a 45-minute consultation ([price]): which payments arrive each year, who receives them, and what you need to file. Send your question through tax advice for foreigners, and a lawyer replies within 24 hours.
What you pay when you sell
A sale brings one-off charges, paid at the Land Office on the day of transfer. The transfer fee is 2% of the appraised value. Specific business tax of 3.3% applies if an individual sells within 5 years of buying and has not been registered in the house book there for at least a year; otherwise stamp duty of 0.5% applies instead, never both. The Land Office also calculates withholding tax, for individuals from the appraised value and the holding period. Who pays each item is agreed in the contract; if the contract is silent, the costs are shared equally. The cut in the transfer fee to 0.01%, running until 30 June 2027, applies only to Thai individual buyers on a property priced and appraised at up to THB 7 million, so foreign buyers should not count on it. Our article on taxes and fees when buying explains each charge.
Condo fees are not a tax
Owners often count the condo's common fees as a property tax. They are not: common fees and the sinking fund go to the building's juristic person, not to the state, and the amount is set by the building's rules, not by a tax law. Before you sell, check that your fees are paid up and keep the receipts, because the buyer and the building will ask about them.
| What arrives each year | Who receives it | When | What it is based on |
|---|---|---|---|
| Land and building tax | Local authority (municipality or TAO) | Bill in February, due by 30 April | Appraised value, category and exemptions |
| Tax on rental income | Thai tax authorities | With the annual income tax return | Rent received during the year |
| Common fees and sinking fund | Condominium juristic person | As set by the building | The building's rules |
So for a typical condo the condo annual costs in Thailand break down into a small tax, or none if you live there, income tax only if you rent it out, and building fees, which are often the largest of the three.
What next
If you rent out your property or live abroad, our lawyers will go through your yearly payments in one consultation: the land and building tax, tax on rent and what to file. We agree the cost before we start, and a lawyer replies within 24 hours. Write to us through tax advice for foreigners.
If you are still choosing a unit, see how we handle buying a condo in Phuket. We give a free preliminary review of your contract within 48 hours, before you sign.
