When owning property in Thailand, whether it is land, a house, a condominium unit, or another type of building, property owners should be aware of the Land and Buildings Tax.
The Land and Buildings Tax is an annual local tax imposed on land and buildings based principally on the value of the property and how the property is used. The tax is collected by the relevant local authority, such as a municipality, Subdistrict Administrative Organization, Bangkok Metropolitan Administration, or Pattaya City.
Importantly, this tax is separate from the taxes and fees that may arise when purchasing or selling property, such as transfer fees, specific business tax, stamp duty, and withholding tax.
Who Is Responsible for Paying the Land and Buildings Tax?
Generally, the person who is the owner of the land or building on 1 January of the relevant tax year is responsible for the tax for that year.
For condominium units, the registered condominium unit owner is generally the person responsible for the Land and Buildings Tax.
The law also covers persons who possess or use land or buildings belonging to the State. In such cases, the person possessing or using the State property may have the tax liability.
This means that the timing of a property transfer can be important. A person who becomes the registered owner after 1 January will generally not become the taxpayer for that tax year merely because they acquired the property later in the year.
How Is Property Tax Calculated?
The amount of Land and Buildings Tax depends principally on:
- The assessed value of the land and/or building;
- The type of property; and
- The use of the property, such as residential, agricultural, commercial, or unused land.
Therefore, the tax is not simply calculated based on the purchase price stated in a Sale and Purchase Agreement.
For 2026 (B.E. 2569), the applicable rates vary depending on the classification and value of the property.
- Residential Property
Residential property is subject to relatively lower rates than commercial property. Certain residential properties may also qualify for statutory exemptions depending on the ownership and use of the property.
Owner of Land and Building Used as a Principal Residence
Up to THB 50 million : Exempt
Over THB 50 million – THB 75 million : 0.03%
Over THB 75 million – THB 100 million : 0.05%
Over THB 100 million : 0.10%
Owner of the Building but Not the Land
For example, where a person owns a house but does not own the land on which it stands:
Up to THB 10 million : Exempt
Over THB 10 million – THB 50 million : 0.02%
Over THB 50 million – THB 75 million : 0.03%
Over THB 75 million – THB 100 million : 0.05%
Over THB 100 million : 0.10%
Additional Residential Properties
Where an individual owns more than one residential property, different rates may apply:
Up to THB 50 million : 0.02%
Over THB 50 million – THB 75 million : 0.03%
Over THB 75 million – THB 100 million : 0.05%
Over THB 100 million : 0.10%
Important: The availability of an exemption depends on the statutory requirements, including the nature of the ownership and use of the property. Property owners should therefore check their individual circumstances rather than assuming that every residential property below THB 50 million is automatically exempt. - Commercial or Other Business Use
Properties used for commercial purposes, such as commercial buildings, hotels, serviced apartments, or rental properties, may be subject to higher rates.
The applicable rates are generally:
Up to THB 50 million : 0.30%
Over THB 50 million – THB 200 million : 0.40%
Over THB 200 million – THB 1 billion : 0.50%
Over THB 1 billion – THB 5 billion : 0.60%
Over THB 5 billion : 0.70%
The actual tax assessment should be checked against the property’s official assessed value and classification by the relevant local authority. - Agricultural Use
Agricultural property is subject to special rates and exemptions, particularly where the taxpayer is an individual.
For individuals:
Up to THB 50 million : Exempt
Over THB 50 million – THB 125 million : 0.01%
Over THB 125 million – THB 150 million : 0.03%
Over THB 150 million – THB 550 million : 0.05%
Over THB 550 million – THB 1.05 billion : 0.07%
Over THB 1.05 billion : 0.10%
For juristic persons, different rates apply. - Vacant or Unused Land
Owners should pay particular attention to vacant or unused land, as this category is subject to relatively high tax rates.
Up to THB 50 million : 0.30%
Over THB 50 million – THB 200 million : 0.40%
Over THB 200 million – THB 1 billion : 0.50%
Over THB 1 billion – THB 5 billion : 0.60%
Over THB 5 billion : 0.70%
In addition, land that remains unused for the period prescribed by law may be subject to an additional 0.30% increase in the applicable rate every three years, subject to the statutory maximum.
This mechanism is intended to encourage landowners to make productive use of their land.
What Happens If Property Tax Is Not Paid?
Failing to pay the Land and Buildings Tax is not merely a financial issue.
If the tax is not paid within the prescribed period, it becomes outstanding tax, and the taxpayer may also become liable for statutory penalties and surcharges.
More importantly for property owners, outstanding Land and Buildings Tax can affect the ability to carry out transactions involving the property.
Under Section 59 of the Land and Buildings Tax Act B.E. 2562 (2019), registration of a transfer of ownership or possessory rights in land or buildings may not proceed when the relevant local authority has provided evidence to the Land Office that there is outstanding Land and Buildings Tax in respect of that property, subject to statutory exceptions.
In practical terms, this can mean that a seller may be unable to complete the registration of a sale or transfer at the Land Office until the outstanding tax issue has been resolved.
The local authority is responsible for notifying the relevant Land Office of outstanding tax information. Once the outstanding tax, together with applicable penalties and surcharges, has been paid, the local authority can notify the Land Office so that the restriction can be lifted.
Why Is This Important When Buying Property?
For a purchaser, an outstanding property tax issue can create a significant practical problem.
For example:
Seller → Outstanding Land and Buildings Tax → Local Authority reports outstanding tax → Land Office restricts registration → Transfer cannot proceed
This is one reason why a purchaser should conduct appropriate legal due diligence before completing a property transaction.
A buyer should not assume that because the seller owns a valid title deed, the property can automatically be transferred on the scheduled completion date. The transaction may also depend on whether there are outstanding taxes, encumbrances, restrictions, or other issues recorded or notified to the relevant authorities.
What Should Buyers Check Before Transfer?
Before completing a property purchase in Thailand, buyers should consider checking:
- Whether Land and Buildings Tax has been assessed for the property;
- Whether all outstanding tax has been paid;
- Whether there are any penalties or surcharges;
- Whether the local authority has reported outstanding tax to the Land Office;
- Whether any restriction on registration has been placed on the property; and
- Whether the seller can provide the necessary evidence of tax payment before the transfer date.
This is particularly important where the transaction involves a tight completion deadline, a foreign purchaser, or a property that has previously been rented out or used for commercial purposes.
Conclusion
The Land and Buildings Tax is an annual tax that every property owner in Thailand should understand.
Although the amount payable may be relatively small for some residential properties, unpaid tax can have consequences beyond the tax liability itself. In particular, outstanding tax may prevent the registration of a transfer of ownership or possessory rights at the Land Office until the matter is resolved.
For property purchasers, checking the tax status of the property should therefore form part of the legal due diligence process before signing or completing a transaction.
If you are buying or selling property in Thailand, our legal team can assist with property due diligence, reviewing title and encumbrances, checking outstanding obligations, and coordinating with the relevant authorities to help ensure that the transfer can proceed smoothly.
This article is intended for general informational purposes only and does not constitute legal or tax advice. The applicable tax rate and exemptions may depend on the specific property, its assessed value, ownership structure, and actual use. Property owners should obtain confirmation from the relevant local authority for their specific circumstances.
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W Law and Real Estate International (Thailand) Co., Ltd.
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