• Elephant Bricks Hua Hin - Real Estate Agent

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Select one of the frequently asked questions below to learn more about buying, selling, and renting real estate. Also, begin to think about important things to consider when diving into your real estate search.

Questions about this Website

Do I need to pay Tax on my Rented Property / Resale Property

Taxation of Income Derived from the Unit

Rental income, as well as proceeds of a resale, are subject to income tax. Profits derived from property in Thailand are taxable in Thailand. According to Double Taxation Agreements, they are taxable only in Thailand.

Generally, the tax rates are as follows:

a. Tax rate for corporate taxpayer: 20% (current rate, reduced for small and medium-sized companies)
b. Tax rate for individual taxpayer: 0-35% (sliding scale, please see above regarding the discharge from tax liability in case of a resale)

Rental income must be declared in an annual tax return. For a corporate taxpayer, also the proceeds from a sale must be declared.

Furthermore, Land and House Tax (often referred to as “Structure Usage Tax”) is imposed on the owners of a condo unit, except for the first residential place. The tax rate is 12.5% of actual or assessed annual rental value of the property. The annual value is the amount a property may reasonably gain in rent for one year if the property is offered for lease.

There are approved plans to introduce an entirely new system of property taxation, including a more general (yearly) property tax with a tax rate of 0,1 % of the appraised value (land office assessed value) if the unit is used for residential purposes, and a higher rate if it is put to commercial use.

Can a Foreigner Buy a Condo in Hua Hin

In short, yes you can.

Question about renting

How long does the loan process take?

Most mortgages originated today calculate interest in arrears, unlike consumer loans which calculate interest to the date of payment receipt. As an example, when borrowers pay their February mortgage payments, they are paying the January interest. This method of calculating interest is based on a 360 day year in which each month has 30 days.