Thailand Real Estate Land Taxes
Thai Real Estate Land Tax
In 2020, Thailand initiated the ‘land tax’, replacing the ‘household tax’, to collect tax on real estate. The move is meant to stimulate land improvement rather than allowing land to remain idle. Prior to 2020 Thailand did not have a land tax that was applicable to vacant land. Thus landowners could hold land indefinitely without paying a single baht in property or land tax. As of 2020 this has changed. While the Covid-19 pandemic induced the Thai government to reduce 2020 land taxes by 90% and looks to do something similar in 2021, from 2022 it seems that the land tax will proceed as planned. This article will be updated accordingly.
Land tax is calculated based upon the asset value comprised of land value and building value according to the government price. The tax rate will be applied based on the type of real estate, classified as: ‘Agricultural Use’, ‘Residential Use’, ‘Other Use’ e.g., commercial, and ‘Vacant Land’.
The government divides tax rate into two phases which are the year 2020-2021 and the year 2022 and after. The purpose is to let the people adapt to the new land tax. Here are the tax rates:
| Tax Ceiling Rate | |
| Agricultural Use | 0.15% |
| Residential Use | 0.30% |
| Other Use | 1.20% |
| Vacant Land | 3.00% |
| Agricultural Use (Individual Person) | |
| Land Value (THB) | Tax Rate |
| 0-50 million | Tax exemption |
| more than 50 million | 0.15% |
| Agricultural Use (Juristic Person) | |
| Land Value (THB) | Tax Rate |
| In 2020-2021 | |
| 0-75 million | 0.01% |
| 75-100 million | 0.03% |
| 100-500 million | 0.05% |
| 500-1,000 million | 0.07% |
| more than THB 1,000 million | 0.10% |
| From 2022 | |
| 0-unlimited | 0.15% |
| Residential Use (House that is registered by owner) | |
| Asset Value (THB) | Tax Rate |
| In 2020-2021 | |
| 0-50 million | Tax exemption |
| 50-75 million | 0.03% |
| 75-100 million | 0.05% |
| more than THB 100 million | 0.10% |
| From 2022 | |
| 0-50 million | Tax exemption |
| More than THB 50 | Within 0.30% |
| Residential Use (House that is not registered by owner) | |
| Asset Value (THB) | Tax Rate |
| In 2020-2021 | |
| 0-50 million | 0.02% |
| 50-75 million | 0.03% |
| 75-100 million | 0.05% |
| more than THB 100 million | 0.10% |
| From 2022 | |
| 0-unlimited | Within 0.30% |
| Other Use e.g., commercial | |
| Asset Value (THB) | Tax Rate |
| In 2020-2021 | |
| 0-50 million | 0.30% |
| 50-200 million | 0.40% |
| 200-1,000 million | 0.50% |
| 1,000-5,000 million | 0.60% |
| more than THB 5,000 million | 0.70% |
| From 2022 | |
| 0-unlimited | Within 1.20% |
| Vacant Land | |
| Land Value (THB) | Tax Rate |
| In 2020-2021 | |
| 0-50 million | 0.30% |
| 50-200 million | 0.40% |
| 200-1,000 million | 0.50% |
| 1,000-5,000 million | 0.60% |
| more than THB 5,000 million | 0.70% |
| From 2022 | |
| 0-unlimited | Within 1.20% |
| * If the land is left vacant for 3 years, the tax rate will increase another 0.30% each year thereafter until it reaches the maximum rate of 3.00% | |