In 2025, renting property in Thailand remains a popular way for expats to earn passive income. However, the government actively monitors all rental income, especially via Airbnb, Booking.com, and banks. If you rent out your unit — you must pay taxes.
According to the Revenue Department of Thailand, since 2024, over 68% of foreign owners earning rental income undergo audits for tax filings. The tax authority receives data directly from banks and booking platforms.
Personal Income Tax (PIT): 2025 Rates
- 0 – 150,000 THB: 0%
- 150,001 – 500,000: 10%
- 500,001 – 1,000,000: 20%
- 1,000,001 – 4,000,000: 30%
- 4,000,001+: 37%
Rental income is eligible for the following deductions:
- Standard deduction: 30% of gross income;
- Fixed amount: 30,000 THB/year.
Example 1: Income 100,000 THB/year
100,000 – (100,000 × 30%) – 30,000 = 40,000 THB
40,000 < 150,000 → Tax = 0
Example 2: Income 1,000,000 THB/year
1,000,000 – 300,000 – 30,000 = 670,000 THB
- 150,000 — 0%
- 350,000 × 10% = 35,000
- 170,000 × 20% = 34,000
Total tax: 69,000 THB
Example 3: Income 10M THB/year (luxury units, 3+ properties)
10,000,000 – 3,000,000 – 30,000 = 6,970,000 THB
- 150,000 — 0%
- 350,000 — 10% → 35,000
- 500,000 — 20% → 100,000
- 3,000,000 — 30% → 900,000
- 2,970,000 — 37% → 1,098,900
Total tax: 2,133,900 THB (~60,500 USD)
How to Legally Reduce Tax?
If annual income exceeds 1M THB, we recommend registering a company (Co., Ltd.). Benefits:
- Deductible expenses: utilities, repairs, accounting, insurance, marketing;
- Corporate tax rate: 20% (for turnover up to 50M THB);
- Reporting: monthly VAT + annual financial statement;
- Long-term residency: company can support LTR visa application.
LTR: How Rental Income Affects Your Visa?
The LTR (Long-Term Resident) program considers rental income:
- Rental income: qualifies under "Wealthy Pensioner" or "Work from Thailand";
- Minimum income: 80,000 THB/month (~960,000 THB/year);
- Proof: bank statements, tax returns.
Risks of Undeclared Rent
- Fines: up to 200% of unpaid tax;
- Account freezes: during AML checks;
- Visa issues: denial of Non-B or LTR renewal;
- Loss of trust: banks may deny loans.
Outlook 2025–2030
Expected:
- Automatic integration of Airbnb & Booking.com with tax authority;
- Development of e-Filing and digital wallets for tax payments;
- Global recognition of Thailand’s tax system as one of Southeast Asia’s most transparent;
- Growth in foreign owners using companies to minimize tax.
"You can rent. But you must pay tax," said Revenue Department Director Chanathip Chaiyarat. "In 2025, the system will find you. It's better to be honest from the start."
Renting out your apartment? My Thai Home helps calculate tax, register a company, file returns, and get LTR status. Your income should be legal.
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