1. Introduction
Thailand reintroduced inheritance tax under the Inheritance Tax Act B.E. 2558 (2015), effective from 1 February 2016.
Although often perceived as broadly applicable, the tax applies only where specific thresholds are exceeded.
For foreign investors holding Thai real estate, company shares, or financial assets, inheritance tax should be considered within a structured estate planning framework.
This article supports our Private Client and Cross-Border Estate Advisory framework and should be read together with:
➡ See Inheritance rights in Thailand
Where Thai property is involved:
➡ See Buying a condominium in Phuket
2. When Does Inheritance Tax Apply?
Inheritance tax applies only if all of the following conditions are met:
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The deceased died on or after 1 February 2016.
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The recipient is not the lawful spouse.
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The net inheritance received exceeds THB 100 million.
If the value received does not exceed THB 100 million, no inheritance tax is payable.
This threshold significantly limits the number of taxable estates.
3. Who Is Exempt?
The following are exempt:
• Lawful spouses (fully exempt regardless of amount)
• Beneficiaries receiving less than THB 100 million
• Estates of persons who died before 1 February 2016
A lawful spouse includes marriages legally registered under applicable law.
Unregistered relationships do not qualify for exemption.
4. What Assets Are Taxable?
Inheritance tax may apply to:
• Land and real estate in Thailand
• Condominium units
• Shares in Thai companies
• Bank deposits
• Investment instruments
• Registered vehicles
It applies to both:
• Heirs at law
• Heirs under a will
Nationality is irrelevant. Foreign beneficiaries may be liable.
5. Applicable Tax Rates
Two rates apply:
• 5% – for ascendants or descendants
• 10% – for other beneficiaries
The rate applies only to the portion exceeding THB 100 million.
Example:
If a non-lineal heir receives THB 150 million:
Tax applies to THB 50 million at 10%.
6. Payment Timeline and Penalties
Inheritance tax must be paid within 150 days from the date of receipt of inheritance.
Failure to comply may result in:
• Tax surcharge (up to 100% of unpaid amount)
• Administrative penalties
• Criminal fines up to THB 500,000
• Possible imprisonment in cases of intentional false declaration
Even during appeal proceedings, payment is generally required unless deferment is approved.
7. Strategic Implications for Foreign Investors
For foreign property owners in Thailand, inheritance tax planning becomes relevant where:
• Thai real estate value exceeds THB 100 million
• Thai company shareholding is substantial
• Family succession planning involves multiple jurisdictions
Estate structuring may involve:
• Ownership restructuring
• Corporate holding vehicles
• Lifetime asset transfers
• Wills aligned across jurisdictions
➡ See Superficies vs usufruct in Thailand
Proper structuring may materially affect exposure.
8. Interaction with Cross-Border Tax Systems
Foreign investors should consider:
• Double taxation exposure
• Foreign estate tax regimes
• Tax residency of heirs
• Reporting obligations in home jurisdiction
Thai inheritance tax does not operate in isolation.
Cross-border coordination is essential for high-value estates.
9. Practical Observations
In practice:
• Few estates exceed THB 100 million per beneficiary
• Most mid-market foreign property owners are not affected
• However, high-value Phuket villas and company shareholdings may trigger liability
Inheritance tax should therefore be viewed as a high-net-worth planning issue rather than a general ownership concern.
10. Conclusion
Thailand’s inheritance tax regime is limited in scope but strategically significant for high-value estates.
The key threshold is THB 100 million per beneficiary.
For foreign investors holding Thai assets, estate planning should be structured proactively, particularly where real estate or company shares are involved.
Professional advice ensures alignment between:
• Thai succession law
• Tax exposure
• Cross-border estate planning
• Asset protection objectives
