Thai Property Taxes
Land & Building Tax (2020 onwards)
Thailand no longer levies the old “Housing & Land Tax” (and the Local Development Tax). Since 1 January 2020 every plot of land and every building is subject to the Land & Building Tax Act B.E. 2562 (2019). The applicable band depends on actual use; rates are applied to the Treasury appraised value (not to rental income).
Current tax bands (2023‑2026 cycle)
| Use of property | Standard annual rate* |
|---|---|
| Principal residence (owner’s name in tabien baan) |
% on the first THB 50 m value 0.02 to 0.10 % on the balance |
| Other residential property (second home, rentals, corporate use) | 0.02 to 0.30 % |
| Agricultural land & buildings | 0.01 to 0.10 % |
| Commercial / industrial | 0.30 % (Cabinet may lift to 0.70 %) |
| Vacant / under‑utilised land | 0.30 % + 0.30 pp every 3 yrs (capped at 1.20 %) |
* Local councils may charge building and land tax anywhere within each band. Emergency COVID discounts (2020‑22) have now expired.
Principal‑Residence Relief
Owner‑occupiers still benefit from a sizeable allowance rather than a full exemption: the first THB 50 million of the combined land‑and‑house value (or THB 10 million if you own only the building on leasehold land) is tax‑free, but only one dwelling per person. Registration in the house book on 1 January each year is the key test. Renting out the home for even a short period forfeits the relief for that year.
Assessment, payment & self‑reporting
- Assessment notice (ภ.ด.ส.06) arrives every February; payment is due by the last business day of April.
- If you change the use of the property (e.g. start renting it out) or acquire / dispose of it, you must file Form ภ.ด.ส.03 with the local municipality within 60 days.
- Late payment attracts a 40 % surcharge plus 1 % interest per month.
Company‑owned homes & holiday houses
A Thai limited company that holds land or a condominium is taxed at the commercial rate (0.30 %) even if the director lives there free of charge. The old argument of “owner‑occupied” no longer applies to juristic entities.
Land & Building Tax Where the Building on Leased Land Is Owned by the Lessee
Under the Land and Buildings Tax Act B.E. 2562 (2019), the taxpayer is the person who owns or possesses the land or building on 1 January of each year (Section 9). In a typical long-term land lease where the lessor owns the land and the lessee owns the house built on that land, the law treats the land and the building as two separate taxable assets.
In such a structure, the landowner (lessor) is liable for Land and Building Tax on the land value, according to how that land is actually used (for example, as residential land). The building owner (lessee) is liable for Land and Building Tax on the building value. The parties are free to arrange in the lease that the lessee reimburses some or all of the tax, but this does not change who is regarded as the taxpayer under the Act. A typical clause in a lease:
ผู้เช่าตกลงชำระภาษีที่ดินและสิ่งปลูกสร้างทั้งหมดที่เรียกเก็บจากทรัพย์สินที่เช่าตลอดอายุสัญญาเช่านี้
The Lessee shall pay all land‑and‑building taxes levied on the leased premises for the whole term.
For a natural person who owns only the building (for example, a house or villa on leased land) and uses it as a residence, with their name in the house registration (Tabien Baan) on 1 January, the current rules provide a tax exemption on the first THB 10 million of the building’s assessed value. Above that threshold, the tax is charged at the residential rates set by ministerial regulations, within the maximum residential ceiling rate of 0.3 percent in the Act. By contrast, where an individual owns both land and building for use as a main residence, the exemption is currently up to THB 50 million of combined land-and-building value. These thresholds come from subordinate regulations issued under the Act and are summarised in professional tax guidance for Thailand.
In practice, this means that for a typical villa on leased land where the lessee owns the house: the lessor will be assessed on the land portion, and the lessee will be assessed on the building portion. If the lessee uses the building as an owner-occupied residence and meets the house-registration conditions, tax on the building portion usually starts only on the value above THB 10 million. If the building is not used as a main residence, or the owner is a company, this exemption does not apply and the full assessed value of the building is subject to tax at the applicable residential or “other use” rates.
As with all Land and Building Tax, the key dates are fixed by law: the status as of 1 January determines who is liable, the local authority issues the assessment notice by February, and the tax is generally due for payment by April each year.
Sources: Land and Buildings Tax Act B.E. 2562 (2019), Sections 9 & 37 (Fiscal Policy Office, Ministry of Finance); Royal Decree and implementing regulations on residential exemptions as summarised in professional tax guides (e.g. PwC Thai Tax 2024/25 Booklet; Mazars Thailand – New Land and Building Tax Act).
Vacant land surcharge
The previous Local Development Tax was repealed. Unused land is now taxed as “vacant” at 0.30 % and rises by 0.30 percentage points every three years, a gentle nudge to develop or farm idle plots.
Rental income is still Income Tax
The Land & Building Tax is not an income tax. Rental income continues to be assessable under s.40 of the Revenue Code (PIT) or s.65 (CIT), and must be reported in the annual return.
Outlook
Rates and thresholds are reviewed every four years in line with updated Treasury appraisals (current cycle 2023‑2026). The Ministry of Finance has signalled that residential bands may tighten gradually to broaden the tax base, so keep an eye on the next Gazette notice due in late 2026.
FAQ: Land & Building Tax in Thailand
1) I am a foreigner and own a condominium in Thailand. Do I have to pay Land and Building Tax? How much if I live there myself versus if I rent it out?
Yes. Under the Land and Buildings Tax Act B.E. 2562 (2019), the tax applies to the owner of record as of January 1 each year (Section 9), based on the actual use of the property (residential, commercial, agricultural, or other).
• If the condominium is owner-occupied by a natural person whose name appears in the house registration (Tabien Baan) on January 1, the law grants an exemption on the first THB 10 million of building value (or up to THB 50 million if land + building under the same owner; Section 41).
• If the unit is rented out, the use remains “residential,” but this personal exemption no longer applies. The applicable tax rate falls within the residential category, with a legal ceiling of 0.3 percent of the assessed value (Section 37).
Final rates and appraised values are announced each year by the local administrative organization under guidance from the Ministry of Finance and Department of Local Administration.
Sources: Fiscal Policy Office (FPO), Land and Buildings Tax Act B.E. 2562 (2019), Sections 9, 37 & 41; Department of Local Administration (DLA) tax guidelines.
2) I live in a villa that is owned by a Thai company. Who must pay the Land and Building Tax, and at what rate?
The legal owner on January 1, in this case, the Thai company is responsible for paying the Land and Building Tax (Section 9). The property is taxed according to its actual use. If it is used as a residence, the residential rate category applies, subject to the statutory ceiling of 0.3 percent (Section 37).
The personal exemption under Section 41 applies only to natural persons who reside in the property and whose name is in the house register. Therefore, it does not apply to juristic persons such as companies. The exact tax due depends on the appraised value published by the local authority under Section 39.
Sources: Fiscal Policy Office (FPO), Land and Buildings Tax Act B.E. 2562 (2019), Sections 9, 37, 39 & 41; Department of Local Administration (DLA).
3) I lease land but own the house built on it. Who pays the Land and Building Tax, and from what value does the tax start?
Under the Land and Buildings Tax Act B.E. 2562 (2019), tax follows the owner or possessor as of 1 January (Section 9). In a structure where the lessor owns the land and the lessee owns the building (house):
• The landowner (lessor) is the taxpayer for the land. The land is taxed according to its actual use (for example, residential use if it is leased as a home).
• The building owner (lessee) is the taxpayer for the building. The house is taxed as a residential building if it is used as a residence.
If you are a natural person who owns only the building (on leased land) and you live in it as your residence with your name in the house registration on 1 January, current rules grant a tax exemption on the first THB 10 million of the building’s assessed value. Tax on the building portion therefore begins only on the value above THB 10 million. If the building is not your main residence or the owner is a juristic person, this exemption does not apply and tax is charged on the full assessed value of the building at the applicable residential or “other use” rates (subject to the residential ceiling of 0.3% in Section 37).
The lease agreement may state that the lessee must reimburse the landowner for some or all of the Land and Building Tax, but this is a contractual allocation of cost only. For legal purposes, the local authority will assess the tax separately to the landowner for the land and to the building owner for the house, based on ownership/possession on 1 January of the tax year.
Sources: Land and Buildings Tax Act B.E. 2562 (2019), Sections 9 & 37 (Fiscal Policy Office, Ministry of Finance); Royal Decree and implementing regulations on residential exemptions (main-residence exemption of THB 10 million where only the building is owned), as summarised in professional Thai tax guides (e.g. PwC Thai Tax 2024/25 Booklet; Mazars Thailand – New Land and Building Tax Act).
Related 
- ownership of a home (separate from the land)
- ownership transfer tax
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