Annual Land and Building Tax in Thailand: Rates, Exemptions and Deadlines

What This Tax Is and Where It Came From

From 1 January 2020, Thailand has operated a unified Land and Building Tax. It was introduced by the Land and Building Tax Act B.E. 2562 (2019) and replaced two earlier levies: the old House and Land Tax and the Local Development Tax. The previous system taxed only rental income and effectively left vacant land and owner-occupied housing untouched. The new Act shifted the tax base from income to the assessed value of the property, as determined by the Land Department.

The tax is collected by municipalities (thesaban) and sub-district administrative organisations (or.bor.tor.) in the locality where the property is situated. It is a strictly annual property charge and has no connection to the one-off costs incurred on purchase, such as the transfer-registration fee, stamp duty or withholding tax.

Who Pays and When

The taxpayer is whoever owns the property on 1 January of the relevant year. That means the registered owner or the holder of a real right: usufruct (Civil and Commercial Code, Section 1417) or superficies (Civil and Commercial Code, Section 1410). Someone who acquires ownership during the year owes nothing for that year - the liability rests with whoever held title at the start of the year.

The standard calendar is as follows:

• In February, the municipality dispatches an assessment notice with the calculation.
• Payment must be made by 30 April.
• Large amounts may be paid in instalments (typically up to three payments).

Failure to receive a notice does not extinguish the obligation. Owners of new or non-residential properties in particular should contact their local authority proactively if no notice arrives.

Rates: Residential, Condominium, Commercial and Land

Rates are progressive and depend on the category of the property and its assessed value. The key relief is the primary-residence exemption: for an individual owner, the first substantial tranche of assessed value is entirely excluded from the tax base.

Several practical points follow from the table:

• For most owners of a single condominium unit worth up to THB 10 million that they occupy themselves, the effective annual tax liability is zero.
• Vacant land is taxed heavily and becomes more expensive over time - the Act deliberately incentivises productive use of land rather than speculative holding.
• Agricultural land registered in the name of an individual benefited from additional temporary exemptions in the early years after the Act came into force. Companies enjoy no such concessions.

Primary-Residence Exemption: Conditions

The zero-rate threshold for a primary residence is not applied automatically. To qualify, the following conditions must all be met simultaneously:

• The owner must be a natural person, not a company.
• The owner's name must appear in the household registration document (tabien baan) for that address as of 1 January.
• The exemption is available for only one property nationwide as the owner's primary residence.

Any rental of the property, even for a single month, or transferring it into a company name, removes entitlement to the exemption. The property is then reclassified as 'other residential' or commercial, with the corresponding rate applying.

There is a separate point worth noting for foreign nationals. A foreigner who owns a condominium unit may register their name in the household register as owner by using the 'yellow tabien baan' (Tor.Ror. 13). Without that registration as of the start of the year, the zero-rate threshold for a primary residence is unavailable, even where the unit has been lawfully registered in the foreign owner's name within the 49-percent foreign-ownership quota under the Condominium Act.

Change of Use and Penalties

If the use of a property changes - for example, if an owner begins renting it out - the local authority must be notified within 60 days. This is done by submitting the prescribed form (Por.Dor.Sor. 03, written in Thai as ภ.ด.ส.03), which updates the property's classification in the register.

Failure to comply is costly. In addition to a back-assessment of tax at the correct rate, a surcharge of approximately 0.5 percent per month applies, along with penalties for late payment. It is therefore advisable to notify the municipality when a change of use occurs rather than waiting for an inspection.

Land and Building Tax and Rental Income Are Separate Matters

It is important not to conflate the annual property tax with income taxes. If you rent out property, the rental income constitutes taxable income and must be declared in the annual personal income tax return (PIT). On a sale, separate charges apply: the transfer fee (2 percent), stamp duty (0.5 percent) or, alternatively, specific business tax (3.3 percent where the property has been held for fewer than five years), together with withholding tax. The annual Land and Building Tax operates alongside all of these charges and does not replace any of them.

Key Points to Check

• Who held ownership on 1 January - that person is liable for the full year. When purchasing, confirm that the seller has settled any outstanding liability for their period of ownership.
• The property's registered category - residential, second home, commercial or vacant land: this determines the applicable rate directly.
• Household registration as of 1 January - without this, the zero-rate primary-residence threshold is unavailable. Foreign nationals require the yellow tabien baan (Tor.Ror. 13).
• Whether you are renting out your 'primary residence' - even a short-term letting removes the exemption.
• Deadlines: the assessment notice typically arrives in February and payment is due by 30 April. Non-receipt of a notice does not extinguish the tax obligation.
• Change of use - notify the local authority within 60 days using form ภ.ด.ส.03, otherwise a surcharge of approximately 0.5 percent per month applies.
• Vacant land - factor in the escalating rate over time if the land remains unused.