Thai Property Tax Law

Land and Building Tax Act B.E. 2562

Property category: Residential use

Maximum statutory tax rate: 0.30%

Applicable / reduced tax rates based on the value of the property (in million THB):

If the property value is 0–50 million THB, the tax rate is 0.02%.
If the property value is 50–75 million THB, the tax rate is 0.03%.
If the property value is 75–100 million THB, the tax rate is 0.05%.
If the property value is more than 100 million THB, the tax rate is 0.10%.

Note: Tax exemption applies to the first/primary residence registered under the owner's name, up to a property value of 50 million THB (for land and house combined) and up to 10 million THB (for the house only).

Summary: Property tax is not payable for the first property valued at up to 50,000,000.

3. Commercial Use
Maximum legal tax rate: 1.20%

Applicable tax rates based on the property value (in million THB):

Property value 0–50 million THB → tax rate 0.30%
Property value 50–200 million THB → tax rate 0.40%
Property value 200–1,000 million THB → tax rate 0.50%
Property value 1,000–5,000 million THB → tax rate 0.60%
Property value over 5,000 million THB → tax rate 0.70%

4. Vacant / Unused Land
Maximum legal tax rate: 3.00%

Applicable tax rates based on the property value (in million THB):

Property value 0–50 million THB → tax rate 0.30%
Property value 50–200 million THB → tax rate 0.40%
Property value 200–1,000 million THB → tax rate 0.50%
Property value 1,000–5,000 million THB → tax rate 0.60%
Property value over 5,000 million THB → tax rate 0.70%

Note
If a property remains unused for more than 3 years, the tax rate will increase by an additional 0.30% every 3 years, up to the maximum rate of 3.00%.

The applicable tax rates after the end of the transitional period (i.e. from 2022) will be announced by Royal Decree. It is also worth noting that although the law allows local authorities to apply higher rates based on local legislation, these rates cannot exceed the maximum legal rate indicated in the table.

Do Foreigners Qualify for Tax Reductions?

Property Tax in Thailand: Do Foreigners Qualify for Tax Reductions?

In recent years, there has been a lot of confusion about whether property tax reductions in Thailand also apply to foreigners. Various online sources often provide contradictory information, so here is a clear and accurate explanation.

The law does NOT distinguish between Thais and foreigners

The Land and Building Tax Act B.E. 2562 does not differentiate tax rates based on nationality.

Foreigners pay the same property tax as Thai citizens.

All tax brackets and rules apply equally to everyone.
So why do foreigners often not receive tax reductions?
Property tax reductions for residential use (such as tax exemption up to 50 million THB) do not depend on citizenship, but on meeting two specific conditions:
The property must be owned by the person claiming the reduction.
The owner must have registered residence (Tabien Baan) at that property.

And this is where the key practical difference arises:

Foreigners usually do not qualify for reductions on houses built on land
Foreigners cannot own land in Thailand.
A foreigner may legally own a house, but without owning the land beneath it, the reduction cannot be applied.
Additionally, foreigners typically do not hold a Blue Book (Blue Tabien Baan) — the official house registration document.
Because of this, foreigners commonly do not qualify for tax reductions, even though the law does not exclude them.

When can a foreigner receive a tax reduction?
Foreigners are fully eligible for tax reductions when they own a condominium unit.

If a foreigner:
owns a condo,
and is registered in the unit through a Yellow Tabien Baan (or sometimes even a Blue Book),
then they meet both requirements, and the same tax reductions apply to them as to Thai citizens.

Summary

Tax rates are identical for Thais and foreigners.
Eligibility for reductions depends on residence registration, not nationality.
Foreigners usually cannot claim reductions for houses on land, because they cannot own the land.
For condominiums, foreigners can receive tax reductions — provided they are properly registered at the address.

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