Tax implications should be a chief concern while making any type of property investment in foreign countries including Thailand. Both resident and non-residents (those that have been living in Thailand with no resident visa or have been in Thailand for less than 180 days) are taxable. All income derived from a Thailand source, whether or not it was paid within or outside of Thailand, are taxable. Thailand has its set of own unique laws. Here is a list of taxes which foreigners are subject to pay while in the country.

Tax implications should be a chief concern while making any type of property investment in foreign countries including Thailand. Both resident and non-residents (those that have been living in Thailand with no resident visa or have been in Thailand for less than 180 days) are taxable. All income derived from a Thailand source, whether or not it was paid within or outside of Thailand, are taxable. Thailand has its set of own unique laws. Here is a list of taxes which foreigners are subject to pay while in the country:

Double tax treaties

Thailand has a double tax treaties with over 50 countries. This means that foreign expats may be exempted from tax on income earned if:

• the expatriate has been in Thailand less than 183 days in any twelve months period,
• if the employer who hired the expatriate is not a resident of Thailand
• the payment is not taken from a permanent business in Thailand

What are Considered Income?

There are 8 kinds of incomes:

1. hired services
2. work for hire (employees)
3. donations, intellectual properties, annuities
4. dividends from stocks;
5. property for hire (rent);
6. talent fees for performances
7. payment for supplies; and
8. business income

Tax exemptions

These are some exemptions that foreign expatriates may enjoy.

• income from selling a property an expatriate obtained by inheritance or as a gift
• income from selling a residential provided the money is used to buy a new residential building within one year from the date of sale
• income from selling stocks
• income from dividends if the source of the dividend is paying 10 percent withholding tax

Types of Taxes

Property Taxes and Costs

Home owners are normally expected to pay a stamp duty of 0.5 percent, withholding tax and a 2 percent transfer fee. For commercial properties, a business tax of 3.3 percent is levied against vendors who have registered possession of the property for a period less than 5 years.

Land Tax

This tax applies to land owners and is charged annually. The collecting body often skips years before collecting.

Capital Gains Tax

Capital Gains, simply put, is your net earnings from selling a property. Unlike other countries, however, Thailand considers this an income and is taxed as an income.

Structures Usage Tax

This tax is only applicable to commercial properties owners, where they are charged 12.5 percent of the actual or assessed gross rental value of the property. If you purchase the property through a company, you should note that corporate tax is higher than personal tax with the setting up cost deemed as part of the initial investment.

Inheritance Tax

There is no inheritance tax in Thailand.

Tax on Rental Income

This tax bracket applies to landlords in the area with tax on rental income charged at 10-30 percent of the rental income, depending on the type of property leased.

If you are a foreigner living in Thailand, you may be currently free from certain tax obligations, but we always advice clients to consult an independent tax adviser, to gain a deeper perspective on their individual circumstances, under the Thai tax laws.