Thailand's annual property holding tax is the Land and Building Tax, introduced in 2019/2020, assessed on the government-appraised value of land and buildings at progressive rates depending on use: up to 0.3% for residential property (with a further reduction/exemption for a primary residence under THB 50 million appraised value), up to 0.15% for agricultural land, and up to 1.2% for commercial property, with vacant/unused land taxed at a higher rate that escalates the longer it remains undeveloped. At time of purchase, transfer taxes/fees apply: a 2% transfer fee, a 0.5% stamp duty (or Specific Business Tax of 3.3% instead of stamp duty if sold within 5 years), and withholding tax calculated on the assessed value — together typically totaling several percent of the property value, conventionally split between buyer and seller.
Annual holding costs are low by many countries' standards, but transfer-time taxes and fees are a meaningful line item foreign buyers need to budget for on top of the purchase price.
Key Facts
Land and Building Tax (annual): up to 0.3% for residential property, up to 0.15% for agricultural land, up to 1.2% for commercial property, higher escalating rates for vacant/unused land.
A primary residence owned by an individual (and registered as such) generally receives an exemption/reduced rate up to a THB 50 million appraised value threshold.
Transfer-time costs: 2% transfer fee, plus either 0.5% stamp duty or 3.3% Specific Business Tax (if sold within 5 years) instead of stamp duty, plus withholding tax on the assessed value.
Transfer costs are conventionally split 50/50 between buyer and seller by custom, though this is negotiable rather than fixed by law.
Foreign condo owners pay the same Land and Building Tax rates as Thai owners — there is no separate foreigner surcharge on the annual holding tax.
Costs
Land and Building Tax (residential, annual): up to 0.3% of appraised value
Transfer fee: 2% of appraised value
Stamp duty (if held over 5 years): 0.5% of appraised/sale value
Specific Business Tax (if sold within 5 years, replaces stamp duty): 3.3% of appraised/sale value
Timelines
Annual Land and Building Tax assessment: billed annually by local municipal authority
Required Documents
Title deed / condo unit title
Land Department appraisal record
Transfer documentation for calculating transfer-time taxes
Common Mistakes
Not budgeting for the combined transfer fee, stamp duty/SBT, and withholding tax, which together can add several percent to the purchase price.
Assuming the annual holding tax is negligible for all property — vacant/unused land is taxed at meaningfully higher escalating rates.
Not registering a home as a primary residence when eligible, missing out on the reduced-rate/exemption threshold.