Glossary, tax and fees

Inheritance tax in Thai property

ภาษีการรับมรดก

Thai inheritance tax applies to the part of an inheritance above THB 100 million received by any one heir. The rate is 5% for parents and descendants and 10% for other heirs, and a surviving spouse is exempt.

The tax was introduced by the Inheritance Tax Act B.E. 2558 (2015) and has applied since 1 February 2016. It is charged on the heir, not the estate, and the THB 100 million allowance applies to each heir separately. For a foreigner who is not resident in Thailand it reaches only assets located in Thailand, which include land and buildings, condominium units, Thai securities and bank deposits.

Most foreign-owned property falls below the threshold once it is divided among heirs, so Thai inheritance tax is seldom the main issue. Two other points usually matter more. Your home country may tax your worldwide estate, Thai property included. And succession itself needs planning: a will that covers your Thai assets makes the transfer to heirs far simpler, while leases and usufructs can end on death.

Heirs must also qualify to hold what they inherit. A foreign heir can keep a condominium unit only within the rules for foreign ownership, and one who inherits land is in practice required to sell it. See inheritance and wills.

General guidance, not legal or tax advice. Take independent legal advice before you commit to a purchase.

Terms related to inheritance tax

Usufruct: A usufruct is a registered right to possess, use and take the income from property owned by someone else, under sections 1417 to 1428 of the Civil and Commercial Code. It lasts for a fixed term of up to 30 years or for the holder's lifetime.
Leasehold: Leasehold is the right to occupy and use property for a fixed term under a lease. In Thailand the longest term that can be registered is 30 years, and a lease of more than three years is enforceable beyond three years only if registered at the land office.
Double taxation agreement (DTA): A double taxation agreement is a treaty between two countries that settles which of them may tax each type of income and how the other gives relief, so that the same income is not taxed twice. Thailand has agreements with 61 jurisdictions.