Capital Gains Tax in Thailand: What Foreign Investors Actually Pay in 2026

Thailand has no standalone capital gains tax on property sales — and that single fact tends to both reassure and mislead international investors in equal measure. While the Thai Revenue Code contains no line item called 'capital gains tax,' selling a condominium in Phuket or Bangkok is far from a tax-free event.

Profit from a property sale is subject to Personal Income Tax (PIT) and a series of transfer-related levies. Depending on how long you have owned the asset, your legal structure, and the gap between the government-appraised value and your actual sale price, the combined tax burden at the point of sale can range from 3.3% to 8% of the assessed value.

This guide breaks down every component — what foreign buyers pay at purchase, during ownership, and at the point of sale — with concrete numbers and real scenarios.

Quick Answer

• No standalone capital gains tax exists in Thailand. Profit from a property sale is taxed under Personal Income Tax (PIT), which follows a progressive scale from 0% to 35%.

• Transfer Fee — 2% of the government-appraised value, typically split 50/50 between buyer and seller.

• Stamp Duty — 0.5% of appraised value, applicable only when the property has been held for more than 5 years.

• Specific Business Tax (SBT) — 3.3% of the higher of appraised or sale price, charged when the property is sold within 5 years of registration.

• Withholding Tax (WHT) — calculated on a progressive PIT scale after deductions based on years of ownership; withheld at the Land Department during registration.

• Rental Income Tax — progressive PIT from 5% to 35% on rental income exceeding 150,000 THB per year.

Scenarios and Options

Scenario 1 — Selling a Condominium Within 5 Years

A foreign national buys a Phuket condo for 5,000,000 THB and sells it three years later for 6,500,000 THB. At the Land Department registration, the following are withheld:

• Transfer Fee — 2% of appraised value (assumed 5,500,000 THB) = 110,000 THB (seller's share: 55,000 THB)
• SBT — 3.3% of 6,500,000 THB (sale price is higher) = 214,500 THB
• Withholding Tax — The appraised value is reduced by a deduction tied to years held. At 3 years, the deduction is 60% (20% per year). Taxable base: 5,500,000 × 40% = 2,200,000 THB ÷ 3 years = 733,333 THB/year. PIT on that annual slice: approximately 77,000 THB/year × 3 = 231,000 THB

Total seller liability: approximately 500,500 THB — or roughly 7.7% of the sale price.

Scenario 2 — Selling After 5+ Years of Ownership

The same property, sold after six years. The critical difference: SBT (3.3%) is replaced by Stamp Duty (0.5%). The Withholding Tax deduction also increases with additional years of ownership. Total tax burden drops to approximately 3.5–4.5% of the sale price.

Scenario 3 — Selling Through a Thai Company

If the property is held under a Thai legal entity, the Withholding Tax rate for companies is a flat 1% of the higher of appraised or sale price. However, the company must declare the transaction income and pay Corporate Income Tax (CIT) at 20% on net profit. Annual company maintenance costs typically run 30,000–80,000 THB, which should factor into any holding-structure analysis.

Comparison Table — Tax Scenarios by Structure

Main Risks and Mistakes

1. Misunderstanding the Government Appraised Value. The Land Department uses its own internal valuation — the Government Appraised Value — which is often below market price. However, SBT and some other charges are calculated on whichever is higher: the appraised value or the declared sale price. Deliberately understating the contract price to reduce tax is a criminal offence under Thai law.

2. Overlooking Double Taxation Treaties. Thailand has tax treaties with numerous countries. Depending on your country of tax residence, income from a Thai property sale may be reportable in both jurisdictions. In many cases, taxes paid in Thailand can be credited against your home-country liability — but only if you file the required declarations. Failing to report can result in being taxed twice on the same income.

3. Miscounting the 5-Year Threshold. The five-year clock starts from the date of registration at the Land Department — not from the date of the sale agreement, reservation deposit, or off-plan booking. For pre-construction purchases, this distinction can shift the effective holding period by one to two years, which has a direct impact on whether SBT applies.

4. Poor Timing of the Sale. Selling at four years and eleven months rather than waiting until five years and one month can cost an additional 2–3% of the property value in avoidable SBT. Tax planning around the five-year threshold is one of the highest-value decisions a property investor can make in Thailand.

5. Failure to Document the Original Fund Transfer. Thai banks require documentation of the lawful origin of funds when repatriating sale proceeds abroad. Without a Foreign Exchange Transaction (FET) certificate — issued at the time of the original inbound transfer — withdrawing or sending proceeds overseas may be blocked. This is a frequently overlooked step, particularly for investors who brought funds in informally or via third parties.

FAQ

Does Thailand charge capital gains tax on property sales? No standalone capital gains tax exists. Profit from selling property is instead subject to Withholding Tax calculated under the progressive PIT scale, and to Specific Business Tax if the property is sold within five years of registration.

What is the total tax burden when selling a Thai condo? Typically between 3.3% and 8% of the property value, depending on the holding period, whether the seller is an individual or a company, and the difference between the government-appraised value and the actual sale price.

Is rental income taxable in Thailand? Yes. Rental income above 150,000 THB per year is subject to progressive PIT rates from 5% to 35%. Non-residents may satisfy this through withholding by the tenant or by filing a tax return. A standard deduction of 30% (or actual documented expenses) applies.

Do foreign investors need to file a tax return after selling property in Thailand? For non-resident individuals, generally no — all relevant taxes are withheld and settled at the Land Department during registration. However, if you are a Thai tax resident (present in Thailand for 180 days or more in a tax year), you are required to file Form PND.90.

Does nationality affect the tax rate? No. Tax rates are identical for Thai nationals and foreign nationals. The determining factor is tax residency status, which is based on the number of days spent in Thailand during the calendar year.

Is it always better to wait 5 years before selling? In most scenarios, yes. Waiting beyond the five-year mark eliminates SBT (3.3%) and increases the Withholding Tax deduction, reducing overall tax liability by 2–4 percentage points — a meaningful saving on any mid-to-high-value asset.

What happens if the sale price is higher than the appraised value? SBT and certain other charges are calculated on whichever figure is higher. A significant gap between the two — common in high-demand markets like Phuket and Bangkok — can increase the effective tax burden materially. Buyers and sellers should obtain an independent assessment before agreeing final terms.

What is the minimum tax a seller must pay regardless of structure? At minimum, every seller pays the Transfer Fee (2%) and Withholding Tax. There is no scenario under Thai law where a property sale incurs zero taxes.

Before purchasing or divesting Thai property, commission a formal tax liability calculation from a licensed Thai lawyer or tax adviser. Professional fees of 5,000–15,000 THB are negligible relative to the cost of poor planning on a multi-million baht transaction.

Ready to invest in Thailand? Our experts will help you find the perfect property.