In 2025, the property tax system in Thailand has been completely modernized. Old rules for stamp duty and SBT have been replaced with a new Unified Tax Model for Foreign Residents, aligned with the LTR program, digitization, and international transparency.
According to the Revenue Department of Thailand, all real estate transactions are now registered online via e-Tax.inland.go.th, with calculations based on market value confirmed by AI assessment.
1. Taxes When Buying a Condo (Individual)
- Transfer Fee: 2% of market value (AI-verified);
Paid by the buyer. Waived if transaction is via escrow and e-Chanote. - Special Business Tax (SBT): 3.3% — if property resold within 5 years;
Paid by the seller. - Stamp Duty: 0.5% — applies only if SBT does not apply and property held >5 years;
Paid by the buyer.
In practice: buyer pays either 2% Transfer Fee or 0.5% Stamp Duty — depending on conditions. Often split 50/50 between parties.
2. Buying via Thai Company (Houses & Land)
- Share transfer: 1% of market value (instead of 2%);
- Director/shareholder re-registration: ~20,000 THB;
- Obligations: annual audit, corporate tax (10–20%), social contributions.
Note: since 2024, the 'Substance Over Form' rule requires companies to have office, staff, and real operations; otherwise deemed a 'shell' and transaction void.
3. Ongoing Ownership Taxes
- Property Tax (PNT): 0.02–0.1% of assessed value (by type/use);
- Local Development Tax: 0.05% — for commercial properties;
- Rental Income Tax: 12.5% — paid by landlord; reducible to 5% under LTR package;
- Sinking Fund: mandatory repair fund (for condos) — collected biannually.
4. Taxes When Selling Property
- Withholding Tax:
- Individual: 1% of market value (flat rate since 2024);
- Company: 1% advance + 10–20% annual reconciliation.
- Personal Income Tax: waived for individuals if property held >3 years and used as primary residence (LTR status considered).
5. LTR Resident Benefits
- Exemption from Transfer Fee when buying one condo or house (investment >40M THB);
- Reduced rental tax to 5%;
- Simplified audit for companies with turnover under 5M THB;
- Right to hold e-Chanote in foreigner’s name.
Outlook 2025–2030
Expected:
- Introduction of NFT ownership certificates with automatic tax calculation;
- Development of real-time AI market valuation;
- Global recognition of Thailand’s tax system as one of the most transparent in the world;
- Growth in foreign residents (LTR) using Thailand as home base.
"Thailand is moving from complex formulas to simple, fair rules," said Revenue Department Director Chanathip Kuntananta. "Our goal is to make taxes clear, secure, and fair for everyone."
Buying property? My Thai Home helps calculate taxes, conduct due diligence, arrange escrow, and close legally. Your capital should be protected.
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