Navigating Property Taxes & Closing Expenses in Thailand (2026 Fiscal Guide)

1. Annual Land & Building Tax Exposure Under the Land and Building Tax Act B.E. 2562, annual holding taxes are calculated from official municipal appraisals rather than market prices:

• Primary Residence Allowances: Individual owners with their name on the house registration qualify for tax-exempt thresholds up to THB 50 million for land-and-house properties, but only up to THB 10 million for condominium units (taxed at 0.02% on the excess).
• Second Homes & Investments: No statutory exemptions apply; progressive residential tax rates (0.02%–0.10%) apply immediately from THB 1.
• Condo vs. House Holding Costs: Houses incur higher recurring tax bills because updated 2025–2026 municipal appraisals assess both the land plot and building structure, whereas condos are taxed on building area alone.

2. Land Office Closing Expenses When registering property transfers at the Department of Lands, four standard fees and taxes apply:

• Transfer Fee: 2% of the Treasury Department's official appraised value.
• Stamp Duty: 0.5% of the contract or appraised value, payable if the seller owned the property for over 5 years.
• Specific Business Tax (SBT): 3.3% of the contract or appraised value, payable if the seller owned the property for 5 years or less.
• Personal Withholding Tax (PWT): Seller liability calculated on a progressive scale against appraised value based on holding period.

3. Critical Rules for Foreign Buyers

• Stimulus Exclusion: Government fee reductions lowering transfer fees to 0.01% for properties under THB 7 million are strictly restricted to Thai nationals; foreign buyers must pay standard rates.
• Rental Income Taxes: Foreign owners generating rental income face Personal Income Tax at progressive rates (5%–35%), with a fixed 30% statutory expense deduction available for residential lets.