Glossary, tax and fees

Tax residency in Thai property

A person is a Thai tax resident for any calendar year in which they spend 180 days or more in Thailand, whatever their visa or nationality. Residents are taxed on Thai income and on foreign income they bring into the country.

The test is in section 41 of the Revenue Code and is purely a day count. The days need not be consecutive, and holding a long-stay visa or owning property makes no difference either way.

Non-residents pay Thai tax only on income that arises in Thailand, which includes rent from Thai property. Residents pay progressive personal income tax of up to 35% and, since 1 January 2024, are also taxed on foreign income earned from that date when they remit it to Thailand, in whatever year the transfer happens. Income earned before 2024 is outside the rule. Holders of a Long-Term Resident visa in three of its four categories are exempt on overseas income.

This matters when funding a purchase. A resident who brings in current foreign earnings to pay for a property may create a Thai tax liability. A non-resident, or someone remitting pre-2024 savings, should not. Changes to the remittance rule have been proposed more than once, so check the current position and take advice in both countries. See rental income and tax and sending money to Thailand.

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

Terms related to tax residency

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.
Withholding tax: Withholding tax is income tax deducted from a payment before it reaches the person who earned it. On a Thai property sale the land office collects it from the seller at transfer: 1% for a company and a sliding-scale amount for an individual. Rent paid from Thailand to a non-resident owner carries 15% withholding.
Long-Term Resident (LTR) visa: The Long-Term Resident visa is a 10-year Thai visa administered by the Board of Investment for wealthy individuals, pensioners, remote workers and highly skilled professionals. It costs THB 50,000 and carries tax and immigration privileges.