Starting next year, a new property tax law will come into effect in Thailand. Under this legislation, private houses and agricultural land with an assessed value of 50 million Baht or more will be subject to taxation.
Tax Rates
- 0.2% – agricultural land
- 0.5% – residential property
- 2% – commercial property
- 5% – unused or undeveloped land
Owners of private homes and farms valued below 50 million Baht will be exempt from this tax.
Additional Rules for Multiple Properties
The tax will also apply to owners of more than one residential property. For the second and subsequent homes, a progressive tax rate will apply:
- From 0.03% to 0.30% for properties valued between 5 million and 100 million Baht
Tax on Unused Land
For unused or undeveloped land, the tax increases over time:
- 1% – ownership from 1 to 3 years
- 2% – ownership from 4 to 6 years
- 3% – ownership for more than 7 years
Additional Notes
At the time of publication, it remained unclear how the new tax would apply to properties used for rental income.
The government aims to reduce speculative investment—where investors hold land or property for long periods before reselling at a profit—by increasing the cost of ownership under the new system.
At the same time, the reform is intended to encourage more efficient use of land and real estate, which should benefit Thailand’s property sector in the long term.
Source: The Bangkok Post