Renting out property in Thailand: landlord guide

Costs of buying

• The Land Department charges a 2% transfer fee on the appraised value, often split between buyer and seller.
• The seller pays specific business tax of 3.3% if selling within five years of buying (otherwise 0.5% stamp duty) and withholding tax.
• New condos also charge a one-off sinking fund contribution.

Buying as a foreigner

• Foreigners can own condo units freehold as long as foreign ownership in the building stays within 49% of the total unit area.
• The purchase money must come from abroad in foreign currency, with the bank's foreign exchange transaction certificate, to register the unit in a foreign name.
• Foreigners cannot own land. Houses are usually held on registered leases of up to 30 years.

Official guidance: Department of Lands · Bank of Thailand: foreign exchange rules

How rental income is taxed

• Rent from Thai property is taxable personal income at progressive rates up to 35%, whether or not you live in Thailand.
• The tax year is the calendar year. The annual return is due by 31 March (8 April for e-filing), and rental income also needs a half-year return by the end of September.
• Companies that rent from you withhold 5% of the rent and give you a certificate, which counts toward your tax.

Expenses claimable against rental income

• For a building you let, you can claim either your actual expenses with receipts or a standard deduction set by the Revenue Department, so keep receipts for common area fees, repairs and insurance.
• Land and building tax is charged yearly by the local authority.

Tenancy customs

• The usual deposit is two months' rent plus one month in advance; one-year contracts are standard.
• Leases longer than three years must be registered at the Land Department to be enforceable for the full term.
• Landlords must report a foreign tenant's address to immigration (form TM30) within 24 hours of arrival.

Key dates

• 31 March (8 April e-filing): Annual personal income tax return
• End of September: Half-year income tax return covering rental income
• Usually April: Land and building tax to the local authority
• Within 24 hours of a foreign tenant arriving: TM30 address report to immigration

Questions landlords ask

What is a good rental yield in Thailand?

Gross yields on Bangkok condos are commonly 4–6%; resort areas vary more with the season. Check it with your own numbers in the rental yield calculator for Thailand.

Can foreigners buy property in Thailand?

Yes, condo units freehold within the 49% foreign quota per building, paid with money brought in from abroad. Foreigners cannot own land; houses are usually leased for up to 30 years.

Do I pay tax on Thai rental income if I live abroad?

Yes. Rent from Thai property is taxable in Thailand at progressive rates, with an annual return and a half-year return, and you may also need to report it where you live.

What is the TM30 form?

A report the landlord makes to immigration within 24 hours when a foreign tenant moves in, giving the tenant's address.

Official sources

• The Revenue Department
• Department of Lands
• Immigration Bureau