A growing number of expats are choosing Thailand for longer stays, whether for business, as a retirement home, or for different purposes.
The best choice is to have a professional do your tax calculations, thus avoiding errors and hefty fines.
However, it would be great to know the basics of taxation for foreigners in Thailand.
- Foreigners can get automatic extension to file taxes
- Foreigners in Thailand required to file tax forms
- Thailand Individual Income Tax Rates
- Thailand Property Tax Criteria for Foreigners
- Other taxes
Property Taxes for Foreigners in Thailand
An expat living in Thailand gets an automatic extension to file taxes until June 15th of the following “calendar year” (One may not file using the calendar year as it is the standard in Thailand for foreign tax purposes).
Taxes must be paid by 15th of April though extensions can be obtained until the 15th of October.
You are required to file tax forms if you are a foreigner in Thailand and have:
- a foreign bank/financial accounts
- an investment company
- own 10% or more of a corporation or partnership,
Failure to comply incurs fines of $10,000 or more irrespective of your income tax.
Besides that, the expatriate'Foreign Earned Income Exclusion' can be availed by a taxpayer only if they punctually and rightly file their returns.
Some countries also allow for the reclamation of taxes paid in Thailand from their own annual return.
Read more: 3 Options Foreigners can Consider to Buy a House in Thailand
Thailand Individual Income Tax Rates:
Personal Income (PI) Tax
(rates can cumulate to35%.)
| Taxable Income (Baht) | Tax Rate |
| 0 - 150,000 | Exempt |
| 150,001 - 300,000 | 5% |
| 300,001 -500,000 | 10% |
| 500,001 - 750,000 | 15% |
| 750,001 - 1,000,000 | 20% |
| 1,000,001 - 2,000,000 | 25% |
| 2,000,001 - 5,000,000 | 30% |
| 5,000,001 and over | 35% |
Source: Asean Tax in Thailand
Expatriate employees of regional operating headquarters avail a flat PI tax rate of 15% for the first 4 years.
Thailand Property Tax Criteria for Foreigners
| Criteria | Description |
| Basis | Expats are taxed on their Thai-source income only. |
| Eligibility | If s/he resides in Thailand for more than 180 days in a calendar year. |
| Tax Filing status | A married couple can have a joint or separate return on employment. If the spouse obtains income passively, it must be declared in their partner's return even if they file separately. |
| Taxable income | These are generally are taxed under PI:- Employment income and related benefits
- profits derived from a trade or profession
Dividends and interest are taxed at source at rates of 10% and 15%, respectively. A person may choose not to report the investment income on their personal income tax return in that tax year. |
| Capital gains (CG) tax | Capital gains from shares of a Thai stock exchange-registered public company are exempt. Or else, they are subject to usual PI taxation. |
| Tax Deductions and Allowances | Deductions are granted for:- insurance
- mortgage interest
- retirement
- long-term equity plans
- charitable contributions, etc.
Personal allowances are available for the taxpayer, their spouse, children and parents. *Subject to terms and conditions. |
Other taxes
| Taxes | Description |
| Stamp duty | Stamp duty generally applies at a rate of 0.1% to leases, the hire of work, the transfer of shares/debentures, loans (capped at THB 10,000). |
| Real property tax | A tax of 12.5% is subject on the evaluated rental value of property. |
| Social security contributions | Employees must contribute 5% of their monthly compensation (up to THB 15,000). |
| Tax year | PI tax year is the calendar year. |
| Tax Filing and payment | Tax on employment income is done directly by the employer monthly and remitted to the tax authorities. The individual is responsible for filing an annual personal income tax return before 31 March of the following year and must pay any additional taxes due by then. |
| Penalties | A monthly surcharge of 1.5% applies to underpayments of tax for the amount that was due, and a penalty of up to 100% of tax applies after assessment. |
Individual taxation and corporate taxation vary from each other, and are both best evaluated professionally.
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FAQs
Your obligation to pay property tax in Thailand is determined by your tax entity type. These property and real estate tax laws are applicable to both Thai residents and foreigners in Thailand.
Is there an annual property tax in Thailand? ›
It is to be stated that there is no general annual property tax in Thailand, but if individual owners rent out or put their property to commercial use, housing and rent tax is imposed at the rate of 12.5% yearly. However, no general property taxes imposed by the government in Thailand is a piece of good news for many.
How much tax do foreigners pay in Thailand? ›
Thai citizens and foreigners who are permanent residents are subject to pay income tax, should they earn their annual income, at the following rates: 0 to 150,000 THB is exempted from income tax. 150,001 to 300,000 THB is subject to a 5% tax rate. 300,001 to 500,000 THB is subject to a 10% tax rate.
Can you own property in Thailand as a foreigner? ›
It is a commonly unknown fact that although a foreigner cannot own land in Thailand, he can own the house or structure built thereon. One only has to apply for a construction permit to build the house in his own name. The next step is to get well acquainted with the process of buying real estate in Thailand.
Do US expats pay taxes in Thailand? ›
Taxation of Global Income: U.S. citizens and residents are taxed on worldwide income, while Thailand taxes residents on global income and non-residents only on income sourced within the country. Social Security Contributions: The U.S. social security system includes contributions for social security and Medicare.
Is Thailand tax free for foreigners? ›
Thailand imposes an income tax on the Thai-sourced income of both resident and non-residents individuals, regardless of whether such income is paid in or outside of Thailand.
Can you own property in Thailand as an American? ›
In Thailand, foreigners cannot own land. Hence, for landed properties such as houses or villas, Thai law prohibits foreign ownership. However, there are some alternative structures that allow foreigners to have legal control over the property.
Do I need to pay tax on rental income in Thailand? ›
Rental Income in Thailand
All rental properties are subject to a House and Land Tax, which is 12.5% of the annual rental income.
Can expats buy property in Thailand? ›
Land ownership in Thailand is governed by the Land Code Act and under Thai land laws only Thai nationals are allowed to own land or have a confirmed right of possession of land. Foreigners may not own land unless there is a treaty or exemption allowing the foreigner to own land in Thailand (section 86).
What is the new tax law in Thailand 2024 for foreigners? ›
Now, any income earned overseas from employment, business, or property, regardless of when it enters Thailand, must be declared, and taxed in the year the income is earned. This new rule applies to all taxpayers in Thailand.
Income earned inside Thailand during retirement is the only income subject to tax, while personal income from pension, interest, or other income sources in your home country is not subject to income tax in Thailand. This creates a 100% tax-free retirement in Thailand.
Is it risky to buy property in Thailand? ›
Avoiding the purchase of property from a mismanaged project is paramount when going through the real estate landscape in Thailand. Investing in a development plagued by mismanagement can lead to a cascade of issues, ranging from construction delays to compromised quality.
Is it worth buying property in Thailand? ›
Thailand also has a strong rental market for Thai locals, tourists, and expats. This makes Thailand an excellent option for property investors. Short-term rentals are an option for some properties (but not all properties allow this). This means investors can access the tourist market.
How long can I stay in Thailand if I own a condo? ›
According to Royal Thai Police Bureau Order No. 327/2557, dated June 30, 2014 and effective Aug 29, foreign owners of condominium units in Thailand are eligible to extend their stay in the country for a period of one year, renewable each year, through means of a one-year visa.
Can a US citizen own property in Thailand? ›
Americans, including other foreigners, can still purchase land in Thailand provided they do so through a Thai national and follow any of the following courses of action: Apply for a long-term land lease of up to 30 years and erect structures on the land, or. Buy condominiums from property developers.
Can an American own a house in Thailand? ›
Can Americans buy property in Thailand? While U.S. citizens are prohibited from buying land in Thailand, they can, however, apply for long term land leases of up to 30 years and build structures upon the land. They can also buy condominiums from property developers.
What country pays no property tax? ›
All the countries without property tax for residents and non-residents are Bahrain, Cambodia, the Cayman Islands, Cambodia, Croatia, the Cook Islands, Fiji, Georgia, Dominica, Israel, Kuwait, Liechtenstein, Malta, Monaco, Oman, Qatar, the Faroe Islands, Fiji, Oman, Qatar, Saudi Arabia, the Seychelles, and Sri Lanka.
