Investing & renting out
How rental income from a Koh Samui villa or condo is taxed in Thailand, for individual and company owners, residents and non-residents, with the standard deduction, rates, filing, withholding and VAT explained.
In short
- Rental income from Thai property is taxable in Thailand, whether or not you live there.
- Individuals pay progressive personal income tax after a standard deduction for expenses.
- Company tenants usually withhold 5% of the rent, which counts towards your tax.
- Long-term residential rent is generally exempt from VAT; short-term accommodation can be subject to VAT above the registration threshold.
- You may also owe tax at home; tax treaties usually give credit for Thai tax paid.
Rental income is one of the main reasons people buy on Koh Samui, and one of the most commonly overlooked parts of owning. Thai tax applies to rent earned from Thai property, and the rules differ depending on whether you own personally or through a company, whether you let long-term or to holiday guests, and where you are tax resident. This guide explains the framework so you can plan, and know what to ask your accountant. For returns and costs, see our property investment guide.
General information, not tax advice. Rates, allowances and procedures change. Use a Thai accountant, and take advice in your home country too.
Who pays tax on rental income
| Owner | How the rent is taxed |
|---|---|
| Individual, Thai tax resident | Personal income tax on Thai rental income, filed annually |
| Individual, non-resident | Personal income tax on Thai-source rental income, filed in Thailand |
| Thai company | Corporate income tax on its profits |
| Foreign company | Tax on Thai-source income, depending on the structure; take specialist advice |
Rental income from Thai property is Thai-source income, so it is taxable in Thailand regardless of where you live.
How individual landlords are taxed
- Add up the gross rent received for the year.
- Deduct expenses: either a standard deduction set by law for rental of buildings, or actual documented expenses.
- Deduct personal allowances you’re entitled to.
- Apply the progressive personal income tax rates, which rise in bands from 0% up to 35% on higher incomes.
- Subtract any tax already withheld by tenants.
Most individual landlords use the standard deduction, because it needs no receipts. Actual expenses can be better if your costs are high and well documented.
Filing and paying
- Annual return: individuals file a personal income tax return for each calendar year, usually by the end of March the following year.
- Half-year return: rental income is one of the types of income that also needs a mid-year return, with tax paid on the first six months.
- A Thai tax ID is needed; your accountant can register you.
Withholding tax on rent
If your tenant is a company (for example, a business renting your villa for staff, or a management company paying you rent), it usually withholds 5% of the rent and pays it to the Revenue Department. You receive a withholding certificate, which you use as a credit against your annual tax.
Holiday letting is treated differently
Income from short stays can be treated as business or hotel income rather than simple rent, with different deductions, licensing rules and potential VAT. If you let to holiday guests, especially through a management company or rental programme, take advice on how your income is classified. See hotel licences and short-term rentals.
VAT
- Long-term residential rent is generally exempt from VAT.
- Short-term accommodation is a taxable service. Once income passes the VAT registration threshold, the operator must register and charge VAT.
- In managed rental programmes, VAT is usually handled by the operator. Check the agreement.
Companies
A Thai company that owns and lets property pays corporate income tax on its net profit, files annual accounts and returns, and must have its accounts audited. Profits paid out to shareholders as dividends carry withholding tax. A company only makes sense for a genuine business; see Thai company property ownership.
Tax at home and tax treaties
- Many countries tax their residents on worldwide income, including Thai rent.
- Thailand has double tax treaties with many countries. Rental income from property is usually taxable where the property is, with a credit at home for Thai tax paid.
- If you are a Thai tax resident (180+ days a year), income you bring into Thailand from abroad can also be taxable. Take advice on both sides.
Records to keep
- Every rental agreement and booking statement.
- Bank statements showing rent received.
- Withholding tax certificates from company tenants.
- Receipts for actual expenses, if you’ll claim them.
- Management company statements and fees.
- Your Thai tax returns and payment receipts.
Other taxes on let property
- Land and Buildings Tax applies every year, at rates based on use. See property taxes and transfer fees.
- Selling a property carries its own taxes. See selling property in Koh Samui.
Frequently asked questions
Yes. Rental income from Thai property is taxable in Thailand, whether or not the owner lives there.
After a standard deduction for expenses and any personal allowances, individuals pay progressive rates from 0% up to 35%.
Company tenants usually withhold 5% of the rent and pay it to the Revenue Department. It counts as a credit against your annual tax.
Long-term residential rent is generally exempt. Short-term accommodation can be subject to VAT above the registration threshold.
Possibly. Many countries tax worldwide income, usually with a credit for Thai tax under a tax treaty.
Planning to let your property?
We’ll explain the letting options and introduce you to accountants on Koh Samui.
General information only, not tax advice.