Main Expenses
In a humid tropical climate, it is important to monitor the technical condition of the property, ventilate it regularly, maintain gardens and pools, and conduct treatments against insects and local fauna. Consequently, property ownership involves several recurring and periodic expenses that need to be considered.
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Sinking Fund
Sinking Fund: A one-time contribution to the capital repair fund paid by the first buyer (starting from 100,000 THB). This serves as a reserve account used for major structural repairs, elevators, corridors, access roads, and general facility overhauls over time.
Property Taxes & Rental Income Tax
- Property Tax: Ownership tax is relatively low in Phuket and is calculated based on property value. The annual property tax rate in Thailand is up to 0.3% of its appraised value.
- Rental Income Tax: When renting out your property, income tax must be paid. The tax rate for non-residents is 15%, while for residents, it is calculated using a progressive scale depending on total income.
Common Area Maintenance Fee
An annual Maintenance Fee (also referred to as the Common Area Fee or CAM Fee by developers) covers the maintenance and upkeep of shared facilities: pool cleaning, landscaping, security, garbage disposal, and common area lighting. Paid in advance for the year ahead, costs depend on location, property size, and amenities:
- For Apartments / Condos: Typically 2,000–5,000 THB per month.
- For Villas: Typically starting from 5,000 THB per month.
Recurring Maintenance & Utility Expenses
- Air Conditioning Maintenance: 2,000–3,000 THB / month
- Pest / Insect Control: 1,000–2,000 THB / month
- Wi-Fi Internet: ~1,000 THB / month
- Cleaning Services (2x per week): Up to 5,000 THB / week
- Utilities:
- Electricity: From 4.5 THB per 1 kWh (depends on location and management billing).
- Water: From 25 THB per 1 m³ (depends on the management company).
Additional Expenses for Villa Owners
- Garden Maintenance: ~1,000 THB / week
- Pool Cleaning & Maintenance: ~1,000 THB / week
Expenses for Rental Property Owners
For owners renting out their properties to short-term or long-term guests, additional operational turnover expenses apply:
- Welcome Pack: ~2,000 THB
- Check-out Deep Cleaning: Up to 3,000 THB
- Marketing & Promotion: From 1,000 THB / month (advertising, attracting guests, boosting ratings)
- Replacement of Linens, Towels & Cutlery: 7,000–10,000 THB / year
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Property Insurance
Additionally, properties can be insured against major damage or loss due to natural disasters, fire, or theft. Insurance premiums vary based on property value and chosen coverage levels and are tailored individually.
