To revive the housing sector and attract both local and foreign buyers, the Thai government has approved a new economic support package. As reported by Bangkok Post, Finance Minister Promsi Navasirindarang said the measures aim to boost demand and stabilize the real estate market.
The program runs from April 1, 2025, to March 31, 2026, and includes fiscal incentives and mortgage reforms.
Tax Reductions on Property Purchases
New tax incentives apply to new homes priced under 5 million THB (~€137,000):
- Transfer Fee — reduced from 2% to 0.01% for off-plan units.
- Specific Business Tax — cut from 3.3% to 0% if resold within 5 years.
- Personal Income Tax on Sale — waived for first owners selling within 3 years.
Eligible projects must be registered with the Real Estate Information Center (REIC).
Relaxed Mortgage Rules
The Bank of Thailand and state lenders (including GHB) have eased mortgage terms:
- Maximum debt-to-income ratio increased from 30% to 40% (up to 45% for young families).
- Minimum down payment reduced to 5% for units under 5M THB.
- Subsidized interest rates starting at 4.25% p.a. (fixed for 3 years).
First-time buyers and young professionals receive subsidies for the first 24 months.
Incentives for Foreign Buyers
To attract international investors (especially from Russia, China, India, and GCC), new policies include:
- Faster D-I Visa processing for property purchases over 10M THB.
- Permission to own villas via BOI-approved companies with 50M THB+ investment.
- 10% VAT discount for foreigners buying in government-approved projects.
Goals and Expected Impact
According to REIC, the program aims to:
- Increase sales by 15–20% in 2025–2026.
- Reduce oversupply in Bangkok and Phuket.
- Attract 50,000 foreign buyers annually.
The Finance Ministry estimates a GDP boost of 0.3–0.4 percentage points.
Top Locations for Investment
Best value in:
- Bangkok — Ramkhamhaeng, Lak Si, Nava Nakorn
- Phuket — Chalong, Rawai, Kata
- Pattaya — Pratumnak, East Pattaya
- Chiang Mai — premium townhouses and eco-villas
Conclusion
In 2025, Thailand is actively boosting its property market through tax cuts, easier mortgages, and foreign investor incentives. This makes it a favorable time to buy — especially for investors and long-term residents. The program runs until March 2026, offering clear timing for decision-making.
Sources:
— Ministry of Finance Thailand, Press Release, March 28, 2025
— Bank of Thailand: «Housing Finance Policy Update», March 2025
— REIC: «Thailand Property Market Outlook 2025»
— Bangkok Post: «Govt approves property stimulus to boost economy»
— The Nation: «New mortgage rules to help first-time buyers»
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