When Land and Building Tax Is Paid

If the owner personally resides in the property, land and building tax is not payable. However, any second and subsequent properties owned by the same person are automatically considered commercial properties and are not exempt from taxation.

Land and a house owned by a foreigner through a company structure, in which the foreigner resides either temporarily or permanently, are also not considered residential property for personal use.

In this case:

the company must pay land and building tax
regardless of whether it generates income or not

Local authorities may conduct random inspections.
If taxes are not paid:

the company will be required to pay tax for all years of use by its director
plus penalties for late payment

A company is exempt from land and building tax only if the property is used as the company’s office.

Key Principle

Any property may be classified as commercial if it is:

not used for personal residence by the owner, or
not used as an office by the owning company

Tax Optimization Option

The only way for a foreigner to reduce tax costs when purchasing land and a house through a company is:

In this case:

the foreigner lives in their own house
and leases only the land from the company

⚠️ Important:

Ownership or transfer of a house without land in Thailand is only possible if
ownership of the house was legally separated from the land at the time of construction

Penalties

Failure to file a land and building tax declaration:
- fine of 200 THB
Late payment penalties:
- 2.5% if delay is up to 1 month
- 5% if delay is up to 2 months
- 7.5% if delay is up to 3 months
- 10% if delay exceeds 3 months

After 4 months of non-payment:

authorities have the right to seize and sell the property to recover the debt

For inquiries regarding land and building tax payments, please contact:
+66 87 348 5703.