Century21 Sweet Home Blog

The Thai Tax System and Real Estate

Thailand has a unique tax system that makes investment in real estate very attractive. Today we’ll describe in short the how Thai taxation works and how it can be beneficial to you.

 

An Absence of Taxes on Capital Gains and Inheritance

In Thailand, the average gain on resale is around 3%, nevertheless for some well-located condominiums the gain can increase up to 20% or even 30%. The big highlight in this case is that there is simply no capital gains tax in Thailand!

Also, there is no inheritance tax as long as it does not exceed 100,000,000 Baht. If this limit is ever exceeded, 5% fees automatically apply.

 

Low Taxation on Property Purchases and Rentals

On a property purchase, the total amount of taxes is approximately 7-8% of the total price of the property and is shared 50% between the seller and the buyer. Note that there are no notaries in Thailand, which further reduces the costs associated with the purchase of real estate. Everything happens with the cadastre at the administrative procedure level. On the other hand, in Thailand, there is neither property tax nor housing tax.

If you would like more information, we suggest you take a look at our article on taxes and fees when buying real estate in Thailand.