# Rental income tax for foreign property owners in Thailand

> How Thailand taxes rental income for foreign owners — progressive rates, 30% standard deduction, PND.94 and PND.90 filings, WHT, VAT thresholds.

Rental income from Thai property is taxable in Thailand regardless of where the owner lives. The mechanics are well-defined: a 30% standard deduction off gross rent (or actual expenses), Thailand's progressive personal income tax brackets, mid-year and annual filings. Short-stay rentals can also trigger VAT registration alongside the [[short-term-rental-license-thailand|Hotel Act]] exposure.

This article covers the full tax treatment for foreign property owners earning rental income from Phuket and other Thai property.

## Is rental income from Thai property taxable for foreign owners?

Yes. Rent from property in Thailand is assessable income under Revenue Code Section 40(5), whether the owner is resident or non-resident.

| Question | Verified answer | Primary source |
|---|---|---|
| Is rent taxable? | Yes. Rent of property is assessable income under Revenue Code Section 40(5). | [Revenue Code Sections 38–64](https://www.rd.go.th/english/37749.html) |
| What is the standard deduction? | 30% for buildings and wharves, or actual documented expenses. | [Revenue Department PIT guide](https://www.rd.go.th/english/6045.html) |
| What is the rental withholding rate? | 15% on rent paid to a non-resident taxpayer under Section 50(3). In the ordinary domestic case, a Thai juristic-person tenant withholds 5% from rent paid to a resident individual landlord. Either amount is a credit against final tax. | [Revenue Code Section 50(3)](https://www.rd.go.th/english/37749.html); [Revenue Department PIT guide](https://www.rd.go.th/english/6045.html) |
| When is an individual tax-resident? | At 180 days or more in Thailand during the calendar year. | [Revenue Code Section 41](https://www.rd.go.th/english/37749.html) |

## What rental payments count as taxable Thai-source income?

Rent from property in Thailand is Thai-source income, including payments received from abroad or in another currency.

It includes:

- Long-term residential leases (1+ year tenants)
- [[airbnb-legality-thailand|Short-term rentals (Airbnb)]], Booking.com, daily/weekly
- Furnished and unfurnished
- Direct-to-tenant or via property management
- Rent paid in THB or in any other currency (converted to THB at receipt)

The taxable income is the **gross rent received**. Returnable security deposits are not income. Pre-paid rent is income in the year received. Tenant-paid utilities billed at cost are usually not income (verify with your accountant); markups are.

Thai-source rental income is **always taxable in Thailand** — including for non-resident owners, owners abroad most of the year, and owners who never visit Thailand. The property is in Thailand; the rent is Thai-source.

## How does the 30% standard deduction work for Thai rental income?

Landlords can deduct 30% of gross rent automatically, or claim higher actual documented expenses instead.

Thai personal income tax law gives landlords a choice between:

**Option 1 — 30% standard deduction.** Automatic, no documentation required. Covers maintenance, repairs, depreciation, property management fees, insurance, and other holding costs. Apply to gross rent; the remaining 70% is the deemed net rental income.

**Option 2 — Actual documented expenses.** Track actual costs with receipts: management fees, common area maintenance, sinking fund contributions (annualized), utility deductions, property tax, insurance, maintenance, advertising, depreciation. The total deductible amount is the actual deduction.

For most foreign owners, the 30% standard is simpler and often higher than actual costs would be. Only switch to actuals if you have reason to believe your real costs exceed 30% — e.g., significant renovation work, major management fees, or specific high-cost circumstances.

## What progressive personal income tax rates apply to rental income?

After deductions, net rental income is added to the landlord's total Thai-assessable income and taxed at progressive rates from 0% to 35%.

Thailand's progressive personal income tax brackets are:

| Net assessable income | Marginal rate |
|----------------------|---------------|
| 0–150,000 THB | 0% |
| 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+ | 35% |

The first THB 150,000 of net assessable income is exempt. Personal allowances (THB 60,000 personal, plus dependents) further reduce the taxable base.

For most foreign owners renting one property, the rental income falls in the 5%–15% marginal bracket — and after the 30% deduction and the 150k exemption, the effective tax rate is typically 5%–10% of gross rent.

## When must a foreign owner file PND.94 and PND.90?

Foreign landlords file PND.94 for January–June income by 30 September and PND.90 for the full year by 31 March of the following year.

Thai personal income tax requires two filings for landlords:

**PND.94** — half-year return, due **30 September** of the current year. Reports income earned January–June. Tax paid is a prepayment of the annual obligation.

**PND.90** — full-year return, due **31 March** of the following year. Reports total income (full year) including the half-year reported on PND.94. Final tax owed is calculated; PND.94 prepayment is credited; balance is paid (or refund claimed).

Both filings are made at the local Revenue Department office, online via the e-Filing system, or through a tax agent. Foreign owners typically use a tax agent — fees THB 5,000–15,000 per filing for routine returns.

## What rent withholding tax applies to foreign landlords?

Rent paid to a non-resident landlord is subject to 15% withholding under Section 50(3), while 5% applies in the ordinary domestic juristic-person-payer case.

When rent is paid to a landlord who is **not resident in Thailand**, Revenue Code Section 50(3) requires the payer to **withhold 15%** from Section 40(5) rent. The payer remits it to the Revenue Department and gives the landlord a withholding certificate. The landlord claims the withheld amount as a credit against the final liability; it does not replace the return or the progressive PIT calculation.

The often-quoted **5% rental withholding rate is a different, ordinary domestic case**: when a Thai juristic-person tenant pays rent to a resident individual landlord. An individual tenant generally has no withholding obligation in that domestic arrangement.

Residency of the recipient therefore matters. Do not apply the 5% domestic rate to a non-resident landlord: Section 50(3)'s 15% rule controls. Keep every withholding certificate and claim the amount actually withheld on the applicable Thai return.

## Does spending 180 days in Thailand make a foreign rental owner tax-resident?

Yes. Spending 180 or more days in Thailand in a calendar year makes a person a Thai tax resident.

Thailand treats you as a tax resident if you spend **180 or more days in Thailand in a calendar year**. Tax residents are taxed on:

- Worldwide income to the extent remitted to Thailand (the remittance rules changed sharply in 2024 — see below)
- All Thai-source income

Non-residents are taxed only on Thai-source income.

For property owners specifically, **rental income is Thai-source regardless of residency**. The 180-day question affects how your other income (foreign salary, dividends, [[capital-gains-property-thailand|capital gains]]) is treated, not your rental income.

The 2024 change: Revenue Department Order Por. 161/2566 (effective 1 January 2024) closed the long-standing loophole where foreign income remitted to Thailand was tax-free if brought in after the calendar year it was earned. From 2024, any foreign income remitted by a Thai tax resident is taxable regardless of when earned. LTR visa holders are exempt from this remittance tax — see [[ltr-visa-thailand-property]].

Foreign owners filing Thai rental income should also note that Thai banks report account balances and income to the owner's home tax authority under the OECD Common Reporting Standard and (for US persons) FATCA — see [[crs-fatca-thai-property]] for the practical implications of declaring Thai rental income that's already reported abroad.

## When does VAT apply to rental income in Thailand?

Pure residential rent is exempt from VAT, but hotel- or serviced-apartment activity must register once gross VAT-able revenue exceeds THB 1.8 million per year.

**Pure residential rental (lease of immovable property) is exempt from VAT.** Long-term tenants paying rent for a residence trigger no VAT.

VAT becomes mandatory when the rental activity is treated as **hotel or serviced-apartment business** — typically when:

- Rental terms are short-term (under 30 days, daily/weekly)
- Services are provided alongside (cleaning, breakfast, concierge, daily towel/linen change)
- The property is operated hotel-style

When the activity counts as VAT-able and **gross VAT-able revenue exceeds THB 1.8 million per year**, VAT registration is mandatory. The 7% VAT then applies to revenue from that taxable activity. The owner can claim input VAT on certain expenses.

The 1.8M threshold is per owner, across all properties. For owners with multiple short-term-rental units exceeding the threshold, registration is unavoidable.

For Phuket short-term rental investors: the VAT threshold combines with the [[short-term-rental-license-thailand|Hotel Act]] exposure. Operating short-term rentals above 1.8M revenue without VAT registration adds tax-fraud exposure on top of the unlicensed-hotel exposure.

## Does the old 12.5% House and Land Tax still apply to rental property?

No. The Land and Building Tax Act 2019 abolished it and replaced it with the Land and Building Tax.

Thailand previously had a House and Land Tax (12.5% of annual rental value). This was abolished by the Land and Building Tax Act 2019 — replaced by the [[annual-property-tax-thailand|Land and Building Tax]] which is much lower (~0.02% of appraised value for most foreign-owned condos) and applies to ownership rather than rental income.

Some older online sources still reference the 12.5% rate. It does not exist anymore. Don't double-count.

## What Thai tax would a foreign owner pay on rental income?

The tax depends on total Thai-assessable income, deductions, allowances and whether any short-term rental revenue is VAT-able; these examples show the calculation.

**Example 1 — Resident foreign owner, 1 property, 800k THB annual rent**

- Gross rent: 800,000
- 30% standard deduction: -240,000
- Deemed net rental: 560,000
- Personal allowance (single): -60,000
- Net assessable income: 500,000
- PIT calculation:
  - 0–150,000 at 0% = 0
  - 150,001–300,000 at 5% = 7,500
  - 300,001–500,000 at 10% = 20,000
  - Total: 27,500
- **Effective tax on rental: ~3.4% of gross rent**

**Example 2 — Resident foreign owner, 2 properties, total 2.5M THB rent, 1.9M of which is short-term**

- Gross rent: 2,500,000
- 30% standard deduction: -750,000
- Net rental: 1,750,000
- Personal allowance: -60,000
- Net assessable income: 1,690,000
- PIT calculation:
  - 0–150k at 0%, 150–300k at 5%, 300–500k at 10%, 500–750k at 15%, 750k–1M at 20%, 1M–1.69M at 25%
  - Total: ~258,000
- VAT exposure: the VAT-able short-term portion (1.9M) exceeds the 1.8M threshold — registration is required and 7% on that portion is ~133,000
- **Combined effective tax: ~16% of gross including VAT**

The short-term-rental portion drives much of the complexity in the higher-revenue case. Long-term rental keeps tax simpler.

## What tax mistakes do foreign rental-property owners make?

The common mistakes are skipping required filings, using the wrong rental classification or withholding rate, and claiming both deduction methods.

**1. Not filing at all.** Hoping the Revenue Department won't notice. The Department is increasingly cross-referencing rental listings with tax filings; non-filers face back-tax assessments with penalties.

**2. Filing only annually (PND.90) without the half-year (PND.94).** PND.94 is required for landlords with significant rental income. Skipping it triggers penalties.

**3. Treating short-term as long-term for tax purposes.** The Revenue Department audits rental classifications. Daily/weekly bookings are short-term and trigger different VAT and Hotel Act analysis.

**4. Claiming both the 30% standard deduction and actual expenses.** It's one or the other. Pick the higher one.

**5. Treating withholding as the final tax — or using the wrong rate.** Withholding is 15% for rent paid to a non-resident taxpayer under Section 50(3), while 5% applies in the ordinary domestic juristic-person-payer case. Either is a credit against the final liability, not a substitute for calculating and filing the return.

**6. Not declaring at the home country.** Many foreign owners must also report Thai rental income to their home tax authority (US, UK, Australia, etc.). Tax treaties often provide credits for Thai tax paid, but the obligation to declare typically remains.

## What should a foreign buyer do before earning Thai rental income?

Get a Thai Tax ID, file the required returns and keep separate records for short-term and long-term rental income.

Three rules:

1. **Get a Thai Tax ID and file PND.94/PND.90 properly.** Keep every withholding certificate so the amount actually withheld — 15% for a non-resident recipient or 5% in the ordinary domestic case — can be credited against the final liability.

2. **Use the 30% standard deduction unless you have specific reasons not to.** Simpler, usually higher than actual costs.

3. **Track short-term vs long-term rental separately.** Different tax treatment, different VAT exposure, different [[short-term-rental-license-thailand|Hotel Act]] exposure. Mixing them in your records creates audit problems.

For broader tax context: [[taxes-buying-property-thailand]]. For the Hotel Act and short-term rental (STR) exposure: [[short-term-rental-license-thailand]]. For yield context: [[rental-yields-phuket]]. For the LTR visa tax exemption that affects only foreign-source income: [[ltr-visa-thailand-property]].

## Links

- [Revenue Department of Thailand — Personal Income Tax](https://www.rd.go.th/english/6045.html)
- [Revenue Code — Sections 38–64](https://www.rd.go.th/english/37749.html)
- [Revenue Department — 2024 PND.90/91 filing guide](https://www.rd.go.th/fileadmin/download/english_form/2024/GUIDE_90_67_Complete.pdf)
- [PwC Thailand — Individual income determination](https://taxsummaries.pwc.com/thailand/individual/income-determination)
- [HLB Thailand — Thai rental properties and personal income tax](https://www.hlbthai.com/thai-rental-properties-and-personal-income-tax-2/)
- [PwC Thai Tax Booklet 2025–26](https://www.pwc.com/th/en/tax/assets/thai-tax/2025-2026/thai-tax-booklet-2025-26.pdf)
- [Expat Tax Thailand — Property sales and rental tax](https://www.expattaxthailand.com/property-sales-rental-tax/)