The new Land and Building Tax law has generated the highest number of questions among Russian-speaking property owners in Thailand. There is a lot to consider: numerous scenarios and tax rates make it complex, even for lawyers. In this article, we aim to clarify the situation.

Below are the main scenarios for foreign-owned property, along with answers to frequently asked questions.

Scenarios

1. One condominium for personal use (value: 12 million THB)

Option A: Your name is in the Yellow House Book

You receive a 10 million THB tax exemption
Remaining 2 million THB taxed at 0.02%
Annual tax: 400 THB

Option B: Your name is NOT in the house book (Blue Book)

No tax exemption
Full 12 million THB taxed at 0.3%
Annual tax: 36,000 THB

2. Three condominiums for personal use

(Values: 12M, 10M, 2M THB; only the first has a Yellow Book)

First property:

10M exemption
Remaining 2M taxed at 0.02%
Tax: 400 THB/year

Second property:

Considered commercial use
No exemption
Tax rate: 0.3%
Tax: 30,000 THB/year

Third property (and any additional):

Also considered commercial
Tax rate: 0.3%
Tax: 6,000 THB/year

3. One property rented out (value: 3 million THB)

Rental use = commercial use
No exemption
Tax rate: 0.3%
Annual tax: 9,000 THB

4. House owned by a company (value: 5 million THB)

If the property is registered under a company name, it is always considered commercial
Even if used personally, it is treated as if you (as director) are renting it from the company
No exemption
Tax rate: 0.3%
Annual tax: 15,000 THB

5. One condo used occasionally (value: 1 million THB, no Yellow Book)

No exemption
Tax rate: 0.02%
Annual tax: 200 THB

⚠️ However:

If authorities determine the property is vacant,
the rate increases to 0.3%
Tax: 3,000 THB/year

Questions & Answers

1. Who can obtain a Yellow House Book?

A foreigner with a long-term visa
Not available for tourist visas or visa exemption
Only for one property (others receive a Blue Book without the owner’s name)

2. What is the process?

In addition to property documents, you need:

passport translated into Thai and certified by your consulate
legalization at the Thai Ministry of Foreign Affairs
Residence Certificate from Immigration
photograph
Thai witnesses

3. Can I get a Yellow Book for a house owned by my company?

Yes, but:

you must have a lease agreement with the company

⚠️ Important:

This does NOT reduce the tax rate
It remains 0.3% (commercial rate)

4. Can I reduce tax for property owned by a company?

No.

All company-owned property is considered commercial
No exemptions apply
Tax rate: 0.3%

5. Who determines property value?

Taxes are calculated based on the cadastral value
Or the declared value (if higher)
The value is set by the Land Department
Can be checked using the title deed (Chanote)
Reassessment occurs every 4 years

Additional Notes

The above information is based on:

analysis of the new law
responses from Pattaya City Hall

However, many procedural details were not yet clarified at the time.

Further updates were expected in January 2020, when implementing regulations and official procedures would be finalized.

Recommendation

Due to current uncertainty, it is recommended to obtain a Yellow House Book before 2020.

Important:

Property status is determined as of January 1 of the tax year
If the Yellow Book is issued on January 5, it will not apply for that year

For questions about taxes or obtaining a Yellow House Book, contact:
+66 65 665 1970