Annual Property Tax Under the Land and Building Tax Act B.E. 2562 (2019)
Thailand’s Land and Building Tax Act B.E. 2562 came into force on 1 January 2020, replacing:
• The House and Building Tax Act B.E. 2475
• The Local Development Tax Act B.E. 2508
The Act modernised Thailand’s annual property taxation system.
This tax applies to ownership and utilisation of land and buildings, distinct from transfer-related taxes.
1. Who Is Liable?
The taxpayer is generally:
• The owner of the land
• The owner of the building
• The possessor (in certain cases)
Liability depends on actual use classification, including:
• Residential use
• Commercial use
• Industrial use
• Vacant land
Unlike transfer taxes, this is an annual holding tax.
2. Filing & Payment Procedure
Land and Building Tax is payable to the local administrative authority where the property is located.
Typical annual process:
• January–February: Notification period
• Tax assessment issued by local authority
• Payment deadline specified in assessment notice
Some local authorities allow:
• E-filing
• Postal filing
• Electronic communication channels
Payment may be allowed in instalments (usually up to three).
3. Tax Rate Structure
Rates vary depending on use classification.
Residential Use
Lower progressive rates apply, with exemptions for owner-occupied principal residences under certain value thresholds.
Commercial Use
Higher progressive rates apply.
Vacant Land
Progressively increasing rates apply, increasing over time if land remains unused.
Rates are based on government appraised value.
Local administrative authority determines assessment.
4. Penalties for Non-Compliance
Failure to file or pay may result in:
• Administrative fines
• Surcharges for late payment
• Interest penalties
• Notification to Land Department
• Potential property seizure or auction (after escalation)
False declarations may attract criminal penalties.
5. Foreign Investor Considerations
Foreign investors holding property should assess:
• Whether property is classified as commercial or residential
• Impact of rental activity on tax rate
• Corporate ownership implications
• Vacant land escalation risk
• Multi-property portfolio exposure
Land and Building Tax affects long-term holding cost modelling.
6. Interaction with Transfer Taxes
Land & Building Tax is separate from:
• Transfer fee
• Specific Business Tax
• Stamp duty
• Withholding tax
For transaction-stage tax analysis, see:
→ Property Transfer Fees & Transaction Taxes Thailand
Conclusion
Land and Building Tax represents Thailand’s annual property holding regime.
Investors must integrate annual tax exposure into:
• Yield modelling
• Rental structuring
• Corporate ownership planning
• Long-term land banking strategy
FAQ – Land & Building Tax Thailand
Is Land & Building Tax payable every year?
Yes. It is an annual property tax assessed by local administrative authorities.
Does rental property trigger higher tax?
Yes. Commercial or rental classification may increase applicable rate.
What happens if I do not pay?
Late payment penalties apply and enforcement may escalate to property seizure procedures.
Does owner-occupied residence qualify for exemption?
Certain thresholds apply under the Act, subject to current regulations.