
Maintenance of real estate in Thailand is a critical factor for investors aiming to preserve and grow the value of their assets. Key aspects of management and upkeep should be considered during the property selection process. Thailand offers options for both self-management and professional property management companies, providing a wide range of services - from regular technical maintenance to tenant acquisition. Here's how you can manage your property effectively and maximise your investment returns.
Content:
- Taxes on property ownership
- Taxes on rental income
- Inheritance tax
- Taxes and fees when changing property ownership
- Registration fee
- Specific Business Tax (SBT)
- Stamp duty
- When to pay property taxes
- Maintenance costs
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.
Some property owners are exempt from taxes, including:
- Owners of villas in Thailand valued at less than THB 50 million (approximately USD 1.3 million);
- Owners of apartments priced at no more than THB 10 million (approximately USD 271,300).
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 THB 150,000 (USD 4,365) is tax-free. For rental income exceeding this amount:
- 5% tax for income between THB 150,001–300,000 (USD 4,365 – USD 8,730);
- 10% tax for income between THB 300,001–500,000 (USD 8,730 – USD14,551);
- 15% tax for income between THB 500,001–750,000 (USD 14,551 – USD 21,827).
For higher income levels, the rates are as follows: - 20% for THB 750,001–1 million (USD 21,827 – USD 29,103);
- 25% for THB 1–2 million (USD 29,103 – USD 58,207);
- 30% for THB 2–5 million (USD 58,207 – USD 145,518);
- 35% for income exceeding THB 5 million (USD 145,518).
Inheritance tax
Inheritance tax is not applied to properties valued at THB 100 million (approximately USD 2.95 million) or less. For properties valued above this threshold, the tax rate ranges from 5% to 10%.
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.
Registration fee
Both the buyer and the seller share the registration fee, which is about 2–3% of the property's value. For leasehold agreements, the cost is 1% of the total contract amount.
Specific Business Tax (SBT)
This tax applies to both individuals and entities if the property has been owned for less than five years. The rate is 3.3% of the transaction amount or the appraised value, whichever is higher.
Stamp duty
Stamp duty is paid by property sellers who have owned the property for more than five years and are exempt from SBT. The rate is 0.5% of the transaction price or appraised value, whichever is higher.
When to pay property taxes
The tax year for property owners runs from January 1 to 31 December, with payments due by 31 March of the following year. Rental income taxes from villas and apartments in Thailand must be paid in February. Local authorities send out tax notifications in February, and payments must be completed by April.
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.
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 THB 2,000 (USD 59) and THB 7,000 (USD 146) monthly. Villa maintenance starts at THB 7,000 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. Fees range from THB 25 to 60 per square metre, depending on the building's age and facilities.
- 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.
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, with costs starting at USD 0.06 per kilowatt-hour. Monthly electricity expenses can range from USD 100 to USD 200, particularly if air conditioning is used frequently. However, by using appliances efficiently, these costs can be reduced to USD 30 – USD 60 per month for apartments with an area of approximately 50 square metres. Current electricity rates can be found on the providers' websites.
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. The cost of water in Thailand is slightly less than USD 1 per cubic metre, with average monthly expenses amounting to THB 100–200 (USD 2 – USD 6). 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 THB 1500 or USD 43) along with the cost of the gas itself (THB 300–500 or USD 9 – USD15). 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 country has four major telecom operators: AIS, DTAC, TrueMove, and TOT. SIM cards are available at their offices as well as in supermarkets. Domestic calls cost from THB 1 (USD 0.03). Internet services are priced at approximately USD 20 – USD30 per month, with payments typically made in advance at the provider's office or directly at the residential complex.