Rental Income Tax in Thailand for Expats: 2026 Rates and Deductions

Renting out a condo in Phuket and unsure how much of that income the Revenue Department will claim? The answer hinges on one number: 180 days. That is how long you need to stay in Thailand within a calendar year to become a tax resident, which triggers an entirely different set of rules.

Rental income from Thai property is taxed under a progressive personal income tax system, with rates ranging from 0% to 35%¹. Non-residents are taxed only on Thailand-sourced income. Since 1 January 2024, residents must also declare foreign-sourced income if it is remitted into the country³. The gap between these two statuses can mean tens of thousands of baht in tax liability every year.

Quick Answer

• Progressive scale: rental income in Thailand is taxed at rates from 0% to 35% depending on annual income¹

• Non-residents are taxed only on Thai-source income, with a flat 15% withholding tax on rental income² when the tenant is a company or management agency

• Residents (180+ days in Thailand per year) face broader obligations, including tax on foreign income remitted into Thailand³

• Land and Building Tax for 2026: assessment notices go out in May, with payment due by the end of July 2026⁴

• Double Taxation Agreements (DTAs) exist with over 60 countries and can reduce or eliminate double taxation⁵

• Foreign income earned before 2024 and remitted to Thailand later is not taxable under current rules⁵

Scenarios and Options

Scenario 1: Non-resident investor (fewer than 180 days in Thailand)

You live abroad, say in the UAE or the UK, and own a Phuket condo rented out through a management company. That rental income is Thai-sourced, and Thailand withholds 15% at the point of payment². No annual filing is needed if tax has already been withheld in full. Check your home country's DTA with Thailand, since many agreements allow this withheld tax to be credited against your domestic tax bill.

Trade-off: minimal paperwork, but the flat 15% rate can end up higher than the effective rate a resident would pay after deductions.

Scenario 2: Tax resident renting out property in Thailand

You have relocated to Bangkok or Koh Samui, spend more than 180 days a year in the country, and rent out an apartment. Rental income joins your total taxable income and is taxed progressively. The first 150,000 baht is tax-free. Income up to 300,000 baht is taxed at 5%, up to 500,000 baht at 10%, rising step by step to 35% for income above 5 million baht¹.

Trade-off: deductions are available (repairs, depreciation, insurance), but you must file form PND.90 by the end of March the following year, and since 2024 there is added exposure if you remit worldwide income into Thailand.

Scenario 3: Property owner on an LTR (Long-Term Resident) visa

An LTR visa holder in the Remote Worker category pays a flat 17% on foreign salary under the special BOI regime³. Rental income from Thai property, however, still falls under the standard progressive scale. The upside is that passive income kept offshore can remain untaxed.

Trade-off: attractive for those combining remote work with property investment, but the LTR visa requires proof of income from $80,000 a year or investments from $500,000.

Scenario 4: Retiree resident with pension plus rental income

A retirement visa does not determine your tax status; days of physical presence do⁵. If you live in Thailand more than 180 days and receive a pension from abroad, remittances into a Thai bank account after 2024 are, in theory, taxable. In practice, most DTAs allow government pensions to be taxed only in the source country. Rental income from a Thai condo is added to other income and taxed progressively.

Trade-off: with modest rental income the effective rate can be as low as 0-5%, but you must keep meticulous records of remittances and proof of the origin of funds.

Comparison Table

Main Risks and Mistakes

1. Ignoring the 180-day rule. Many expats lose track of days and miss the point at which they become residents. Keep a spreadsheet of entry and exit dates; passport stamps count as evidence.

2. Transferring large sums into a Thai bank account without proof of origin. Since 2024, Thailand's Revenue Department has been tracking incoming transfers more closely. Keep foreign bank statements and documentation proving funds were earned before 2024 or fall outside taxable remittance rules⁵.

3. Not having a Tax Identification Number (TIN). Without a TIN you cannot file a return, and the penalty for non-filing can reach 200,000 baht. Getting a TIN at a local Revenue Department office typically takes one working day.

4. Double taxation from not using a DTA. Many countries, including Russia, have an active agreement with Thailand. To claim a credit you need a Certificate of Residence from one of the two countries; without it, you risk paying tax twice.

5. Confusing Land and Building Tax with income tax. Land and Building Tax is charged automatically on all owners, including foreign condo owners. Rental income tax is a completely separate system requiring its own annual filing⁴.

6. Renting out property without a registered lease. Without a proper agreement, you cannot legally substantiate expenses or claim deductions, and the tenant cannot register with immigration, which creates problems for both sides.

FAQ

What tax does a foreigner pay on rental income in Thailand?

Non-residents pay a flat 15% withholding tax². Residents (180+ days in the country) must file a return and pay under the progressive scale, from 0% to 35%¹.

Do I need to file a tax return in Thailand if I rent out a condo?

If you are a non-resident and tax was withheld by the management company, no filing is required. If you are a resident, you must file form PND.90 by 31 March of the following year.

How is tax residency determined in Thailand?

By physical presence: 180 days or more in a calendar year makes you a tax resident⁵. Your visa type is irrelevant.

Is a foreign pension taxable in Thailand?

Under most DTAs, a government pension is taxed only in the source country. Private pensions may fall under Thai taxation if remitted into the country after 2024.

What deductions are available when renting out property?

Residents can deduct actual expenses (repairs, maintenance, insurance, management fees) or apply a standard deduction. The first 150,000 baht of income is tax-free.

When is Land and Building Tax due on a condo in 2026?

Assessment notices are sent out in May 2026, with payment due by the end of July 2026⁴.

Is there capital gains tax when selling property in Thailand?

Thailand does not impose a separate capital gains tax on individuals². However, income from a sale is included in overall taxable income, and withholding tax is deducted at the point of transfer, calculated on a progressive basis.

Can Thai tax be credited against tax owed at home?

Yes, provided an active DTA exists and you hold a Certificate of Residence. The credit mechanism reduces your home-country tax liability by the amount already paid in Thailand.

What happens if I don't pay tax on rental income in Thailand?

Penalties can reach 200,000 baht, plus a 1.5% monthly surcharge on unpaid tax. The Revenue Department is increasingly sharing data with banks and immigration authorities.

Source: Brer Rabbit Legal

Ready to invest in Thailand property? Housebook's experts will shortlist projects and run the deal with you.