Taxes on renting out

Rental Property Taxes in Phuket: What Owners Need to Know

Many property owners in Phuket contemplate renting out their units to generate income. Before embarking on the rental journey, it’s crucial to comprehend the tax aspects of this process.

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Taxation Overview for Property Owners in Thailand

Property owners in Thailand encounter four main types of taxes:

One-time taxes during property purchase or sale.
Property ownership tax.
Tax on profit from property resale.
Income tax from property rental.

Two of these taxes are paid annually:

Income tax from property rental.
Property ownership tax.

For more details on property ownership tax, refer to our article on “Property Ownership Taxes in Thailand”.

Income Tax from Property Rental

1. Non-Residents (Staying under 180 days per year)

Foreign non-residents who reside in Thailand for less than 180 consecutive days per tax year are subject to a flat tax rate:

Tax rate: 15% of profit.
Example: If your rental income is 694,800 THB annually, the net profit after tax deduction would be 590,580 THB.

Note: Property management companies often serve as tax agents and handle tax payments on your behalf. If managing individually, a direct tax declaration to the Revenue Department is required.

2. Residents (Staying 180 days or more per year)

Foreign residents staying in Thailand for more than 180 days per year must obtain a Thai Tax ID. Rental income is taxed using Thailand’s progressive personal income tax scale:

Annual Income (THB)	Tax Rate
1 – 150,000	0% (Exempt)
150,001 – 300,000	5%
300,001 – 500,000	10%
500,001 – 750,000	15%
750,001 – 1,000,000	20%
1,000,001 – 2,000,000	25%
2,000,001 – 5,000,000	30%
5,000,001 and above	35%