Maintaining property in Thailand is an important aspect for investors seeking to preserve and increase the value of their assets. Key points related to managing and servicing a home are worth considering while you are still choosing what to buy. Thailand has both independent landlords and professional management companies offering a wide range of services, from regular technical maintenance to finding tenants. Find out how to manage your property effectively and get the most out of your investment.
Content:
- Taxes on property ownership
- Who is actually exempt from the tax
- When to pay property taxes
- One-off payments when you collect the keys
- Maintenance costs
- What it adds up to per month
- What happens if you stop paying the fees
- Frequently asked questions
Taxes on property ownership
Property ownership taxes in Thailand are relatively low. They are based on the assessed value of the property and can reach up to 0.3%.
Since January 1, 2020, a law on land and building taxes has been in effect in Thailand. Ownership type does not affect tax rates. The tax rate varies depending on the price and purpose of the property. For the first few years it was collected with discounts, but from 2026 the relief is gone: the tax is charged at the full statutory rate, and many owners will see the real figure on the bill for the first time.
Who is actually exempt from the tax
The exemption is often described in shorthand: "villas below 50 million baht and apartments below 10 million are not taxed". In practice it does not work for everyone, and for an investor that wording is misleading.
- The 50 million baht threshold (about $1.51 million) applies to a main residence where the person owns both the land and the house and is listed in the house book (Tabien Ban). A foreigner cannot own land, so this relief almost never applies to them.
- The 10 million baht threshold (about $302,000) does apply to an apartment, but again only if it is your main home and your name is in the house book.
- An investment unit, a second property or a house for rent is taxed from the first baht: the rate starts at 0.02% and rises to 0.1% for properties above 100 million baht.
A concrete example: a unit with an appraised value of 5 million baht bought for rental costs about 1,000 baht a year — roughly $30. The sum is small, but it exists, and you should not budget a zero on that line.
Taxes on rental income
Property owners renting out their properties must pay income tax. The tax rate depends on the owner's residency status. Non-residents are subject to a flat 15% tax on income, while residents follow a progressive tax scale. Residents are defined as those who spend more than 180 days in the country annually.
Income up to 150,000 baht ($4,530) is tax-free. For rental income exceeding this amount:
- 5% for income between 150,001 and 300,000 baht ($4,530–9,060);
- 10% for income between 300,001 and 500,000 baht ($9,060–15,100);
- 15% for income between 500,001 and 750,000 baht ($15,100–22,645);
- 20% for 750,001 to 1 million baht ($22,645–30,200);
- 25% for 1 to 2 million baht ($30,200–60,400);
- 30% for 2 to 5 million baht ($60,400–151,000);
- 35% for income exceeding 5 million baht ($151,000).
One detail people tend to forget: a standard deduction of 30% is allowed against rental income without any paperwork. The tax is therefore calculated on 70% of what you receive, and you do not need receipts to claim it.
Inheritance tax
Inheritance tax is not applied to estates valued at 100 million baht (about $3.02 million) or less. Above that threshold the rate is 5% for direct relatives and 10% for everyone else.
Taxes and fees when changing property ownership
Taxes on property sales depend on several factors, including the type of property, the owner's status, the duration of ownership, and the appraised value set by the Land Department.
| Payment | Amount | Who usually pays |
|---|---|---|
| Registration (transfer) fee | 2% of the appraised value; for registering a leasehold agreement — 1% of the contract amount | By agreement, often split |
| Specific Business Tax (SBT) | 3.3% if the property was owned for less than 5 years | Seller |
| Stamp duty | 0.5%, charged only when SBT does not apply | Seller |
| Withholding tax | 1% of the value for companies; a progressive scale for individuals | Seller |
SBT and stamp duty are never charged together: you pay one or the other. That is why selling after five years of ownership is noticeably cheaper for the seller — 0.5% instead of 3.3%. Every rate is applied to the higher of the appraised value and the sale price.
When to pay property taxes
It is important not to confuse two different taxes, as their deadlines differ.
- Land and building tax. The local authority sends an assessment notice by April and payment is due by June. Bills of 3,000 baht and above can be paid in instalments.
- Income tax on rental income. The return for the previous year is filed by 31 March; the tax year runs from 1 January to 31 December.
Payment methods:
- Online payment via a local bank account on the Revenue Department's website;
- Through major banks like Bangkok Bank and Krungthai Bank;
- For small amounts, payments can be made via ATMs or bank websites;
- Through legal representatives or firms.
An owner who lives outside Thailand should arrange things with the building's management: the notice goes to the owner and late payment carries a penalty. In most buildings the juristic person is willing to receive and forward such notices.
One-off payments when you collect the keys
Besides the monthly costs there are sums paid only once, when the unit is handed over. Budget them together with the price of the property, or they turn into an unpleasant surprise.
- The sinking fund — a one-off contribution towards future major repairs, usually 500–1,000 baht per square metre. For a 45 m² apartment that is 22,500–45,000 baht, or $680–1,360.
- Maintenance fees paid in advance: developers often ask for a full year, sometimes two.
- Deposits for the electricity and water meters and for connection — normally a few thousand baht, refundable when you sell.
- Furniture and appliances, if the unit is handed over unfurnished.
Maintenance costs
Common area maintenance includes services such as pool cleaning, garbage removal and garden care. Costs vary by property type and location. Apartment owners generally pay between 2,000 baht ($60) and 7,000 baht ($211) monthly. Villa maintenance starts at 7,000 baht per month.
Breakdown of maintenance costs by property type:
- Condominiums: Owners of apartments in development projects in Thailand share the cost of maintaining common areas based on the size of their units. The rate depends on the class of the building: 25–50 baht per square metre per month in mid-market projects, 50–80 baht in newer complexes with extensive facilities, and up to 150 baht in branded Bangkok towers. The more pools, lifts and security a building has, the higher the rate.
- Villas in gated communities: Maintenance costs may be calculated based on the house and garden size or determined by house type. Services such as garden and pool care may or may not be included.
The juristic person can raise the rate by a vote at the annual general meeting, usually by 10–20%. Before buying, ask when it was last raised and whether an increase is under discussion.
Electricity
There are two main electricity providers in Thailand: The Metropolitan Electricity Authority (MEA), which serves the Bangkok metropolitan area, and the Provincial Electricity Authority (PEA), which supplies electricity to the rest of the country and maintains offices in every province. Electricity bills are based on meter readings. The tariff is progressive: about 3.25 baht per kWh for the first 150 kWh, rising to 4.4 baht above 400 kWh. The Ft fuel surcharge and 7% VAT are added on top, so a bill works out at roughly 4 baht per kWh (about $0.12). Monthly electricity comes to 2,000–5,000 baht ($60–150), particularly if air conditioning runs constantly. Used carefully, appliances bring that down to 1,000–2,000 baht a month for an apartment of around 50 square metres. Current rates can be found on the providers' websites.
Check separately which rate your management company applies. Some complexes resell electricity to residents at their own rate, which can be higher than the state one — and that is legal if it is written into the building regulations.
Water supply
The water supply in Bangkok and its suburbs is managed by the Metropolitan Waterworks Authority (MWA), while the Provincial Waterworks Authority (PWA) provides water services in other regions of the country. Water is supplied cold, with heating done in apartments using electric heaters. Water bills are issued in the first few days of each month based on actual usage during the previous month and must be paid within the first two weeks. Late payments incur penalties and fines. At the state tariff a cubic metre costs roughly 9–15 baht, but in condominiums the management company often charges 25–30 baht per cubic metre. Average monthly water costs run to 200–500 baht ($6–15). Property management companies typically collect a deposit covering several months of water usage in advance and provide detailed reports on actual consumption. Payments can be made at most supermarkets.
Gas
There is no centralised gas supply in Thailand, so owners of gas stoves purchase and refill gas cylinders. For first-time purchases, a deposit for the cylinder rental is required (approximately 1,500 baht or $45) along with the cost of the gas itself (300–500 baht or $9–15). To replace an empty cylinder, the owner simply contacts the supplier who delivers a new cylinder and takes away the empty one for refilling.
Internet and telephone
Foreigners rarely use landline telephones in Thailand. The mobile market is now shared by three operators: AIS, True and the state-owned NT. The former DTAC and TOT brands no longer exist — DTAC merged with True in 2023, and TOT and CAT combined into National Telecom back in 2021. SIM cards are available at operators' offices as well as in supermarkets. Home internet costs around 600–1,000 baht a month ($18–30), with payment typically made in advance at the provider's office or directly at the residential complex.
What it adds up to per month
So the figures do not stay scattered across sections, here are three typical scenarios. Amounts are monthly, with the land and building tax converted from the annual figure.
| Item | Studio 30 m², rented out | Apartment 60 m², lived in | Villa 200 m² with a pool |
|---|---|---|---|
| Maintenance fees | 900–1,500 baht | 1,800–4,800 baht | from 7,000 baht |
| Electricity | 1,000–2,500 baht | 2,000–5,000 baht | 5,000–12,000 baht |
| Water | 150–300 baht | 300–600 baht | 600–1,500 baht |
| Internet | 600–800 baht | 600–1,000 baht | 800–1,500 baht |
| Land and building tax | 50–80 baht | usually 0 with the exemption | 250–600 baht |
| Total | about 2,700–5,200 baht ($80–155) | about 4,700–11,400 baht ($140–345) | from 13,600 baht ($410) |
Count the management company's commission as a separate line if you rent through one: usually 10–20% of the rent for long-term lets and up to 30–40% for short stays, where cleaning and guest handling are part of the job.
What happens if you stop paying the fees
Maintenance fees are not a subscription you can cancel. The debt is attached to the unit rather than to the person, and that changes the whole picture.
- Interest is charged on arrears. Building regulations usually let the juristic person set the rate itself, and it can be steep.
- A debtor is cut off from shared facilities: the pool, the gym, parking, sometimes even the lift access card.
- Most importantly, the juristic person will not issue a debt-free certificate, and without it the Land Department will not register the transfer. In other words, a unit with unpaid fees cannot be sold until the debt is cleared.
The same rule works in reverse for anyone buying a resale unit: request the debt-free certificate before the deal, not after. Someone else's arrears come with the apartment.
"Buyers work out the yield from the rent and the purchase price, then wonder at the real figure. Fees, electricity and the management commission eat one and a half to two and a half percentage points a year. That is not a rounding error — it is the difference between a good investment and a mediocre one."
— a rental portfolio manager working in Thailand
Frequently asked questions
Does a foreigner pay the annual tax on an apartment?
Yes, unless it is their main home with their name in the house book. The rate starts at 0.02% of the appraised value: for a unit worth 5 million baht that is about 1,000 baht a year.
How much are the maintenance fees?
From 25 to 150 baht per square metre per month depending on the class of the building. Mid-market projects charge 25–50 baht, newer complexes with extensive facilities 50–80.
What is the sinking fund?
A one-off contribution towards future major repairs, 500–1,000 baht per square metre. It is paid once when the unit is handed over, on top of the purchase price.
Can I skip the fees while the unit sits empty?
No. The debt attaches to the unit and accrues interest, and without a debt-free certificate the Land Department will not register a sale.
What do the utilities cost per month?
For a studio that is rented out, roughly 2,700–5,200 baht including all fees. For a 60 m² apartment lived in full time, 4,700–11,400 baht. The main variable in every case is the air conditioning.