In 2020, a long-overdue change to property taxes will take effect in Thailand.
The new land and building taxes will make landlords and other property owners pay taxes now based on appraised property value rather than income.
The new taxes will generally only apply to properties valued at more than 50 million baht or more, which only accounts for 0.04% of properties in Thailand.
According to Bangkok real estate lawyers, the government hopes the new property tax regime will reduce the staggering income disparity in Thailand.
Residences, farmland, commercial buildings and land, and undeveloped land all are included in the changes to the property tax code.
Land and buildings used as residencies are appraised at 50-75 million baht at 0.03% of their total appraised value, 75-100 million baht at 0.05%, and 100 million baht or more at 0.1%.
Those who own houses only and not land will be taxed 0.02% for if the appraisal is between 10-50 million baht, 0.03% if between 50-75 million baht, and 0.1% if more than 100 million baht.
Commercial land valued at up to 50 million baht is taxed at 0.3%, 50-200 million baht at 0.4%, 200 million-1 billion baht at 0.5%, 1-5 billion at 0.6%, 5 billion and up at 0.7%.
Vacant land will be taxed at 0.3% and will increase by another 0.3% every three years, with a cap of 3%.
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