New tax rules and incentives for investors in Thailand in 2025

Thailand Continues to Create Attractive Conditions for Investors and Property Owners

Starting from 2025, important changes in tax legislation and property ownership rules will come into effect, opening new opportunities for foreign investors.

Exemption from personal income tax on foreign-sourced income

The Thai government is considering a bill that would exempt tax residents from paying personal income tax on foreign-sourced income, provided these funds are transferred into Thailand within two years of being received.

The law is expected to come into force as early as 2025 and may also have retroactive effect. This means investors and repatriates will be able to legally transfer capital and use it for real estate investments without additional tax burdens.

Temporary incentives for property registration

From April 22, 2025, to June 30, 2026, reduced registration fees will apply:

• 0.01% instead of 2% for property ownership transfer.

This presents a unique opportunity for those planning to purchase real estate in the near future.

Annual property taxes

Thailand applies a unified Land & Building Tax (LBT), charged annually as follows:

• 0% on the first 50 million THB for primary residences.

• 0.02–0.10% on amounts exceeding this threshold.

• 0.02–0.30% for secondary residences, rental properties, and villas.

• 0.30–1.20% for vacant land, with annual increases.

Starting in 2025, an annual property tax of 0.3–1% of the appraised value will also be introduced, replacing the previous practice of paying tax only upon property sale.

New opportunities for foreigners

• Discussions are underway to extend land lease terms up to 99 years (compared to the current 30). This could serve as a strong incentive for foreign investors.
• Investments in condominiums and villas are also becoming more transparent and predictable due to a unified tax base.

What this means for the market and investors

• Investors will gain new incentives for real estate acquisitions: tax reliefs and reduced fees lower costs and increase returns.
• Foreign buyers will enter the market with greater confidence, supported by long-term lease opportunities and a transparent taxation system.
• Overall, the property market is expected to see a revival, as reduced transaction costs and tax incentives stimulate activity.

Let's sum it up

2025 will be a turning point for Thailand’s real estate market: a combination of tax incentives, digitalization, and new ownership regulations is creating unique opportunities for investors.

If you are considering buying or renting property in Thailand, now is the perfect time to act. The GetYourPhuket team will help you navigate the details of tax regulations, select the right property, and complete the transaction in the safest and most profitable way.