The new Thailand property tax relevant in 2020
2020 is the first year homeowners will have to pay under this new real estate tax in Thailand
After much negotiation, planning and complaints, the new land and building tax in Thailand came into effect in 2019. However, 2020 will be the first year that landowners pay taxes under the new law.
Regarding residential real estate, the main changes concern ultra-luxurious properties and the tax rate on additional residential units owned by a single owner.
1) The vast majority of owners will not be impacted:
this new tax targets owners of luxury real estate as well as individuals who own multiple residential units.
Individuals who own only one residential property whose value is less than THB 50 million are exempt from this new tax. Vacant properties priced at THB 10 million or less are exempt from tax, but more on this a little later.
Those who own an ultra-luxurious residence worth between 50 and 75 million THB fall into the 0.03% tax bracket while units of 75 and 100 million THB are taxed at 0.05% and anything over 100 million THB is subject to a tax of 0.1%.
2) The owners of several properties will be impacted
If you own several residential properties, you will have to pay this property tax. Any additional property owned by an owner whose property is valued at THB 50 million or less is taxed at 0.02%. Anything above this value is taxed at the ultra-luxury residence rate indicated above.
3) Vacant units to be taxed
Those who own vacant residential property may be subject to payment under the new property and property tax in Thailand. Vacant dwellings worth THB 10 million or less are exempt from the tax as long as the individual does not own more than one dwelling. Empty properties valued between 10 and 50 million THB are taxed at 0.02%, the rate increasing from there.
It is important to note that vacant properties valued at 10 million THB or less are not exempt from this tax if they are counted as an additional unit. If an owner already owns a unit, all empty properties are taxed at the additional property rate.
4) Transition period in force
Homeowners don't have to worry about paying more in property taxes right now. This new tax includes a 3-year transition period during which landowners are entitled to pay what they should under the old property and real estate tax, plus additional costs that will increase each year.
This is only applicable if the tax imposed under the new law is higher than the old law. After the third year, the owner is subject to the payment of the new tax.