Phuket Property & Land Taxes: 2025 Complete Guide for Buyers & Owners
Owning property in Phuket comes with specific tax obligations. Whether you’re buying a villa, condo, or land, understanding Phuket property taxes is crucial to avoid penalties and maximize investment returns. This guide covers all taxes, fees, and legal requirements for Phuket property ownership.
Types of Phuket Property Taxes
| Tax Type | Who Pays? | Rate | When Due? |
|---|---|---|---|
| Transfer Fee | Buyer/Seller | 2% of appraised value | At property transfer |
| Stamp Duty | Seller | 0.5% of sale price (if no business tax applies) | At sale |
| Specific Business Tax (SBT) | Seller (if owned <5 years) | 3.3% of sale price | At sale |
| Withholding Tax | Seller | 1-5% (based on property type & ownership duration) | At sale |
| Land & Building Tax | Owner | 0.02-1.2% (based on usage) | Annual |
| Local Maintenance Tax | Owner | 0.25-0.95% of rental income | Annual |
Key Phuket Property Tax Rules
1. Transfer Fees & Stamp Duty
- 2% Transfer Fee → Paid to Land Department when ownership changes hands
- 0.5% Stamp Duty → Applies if the seller is exempt from SBT
2. Specific Business Tax (SBT)
- 3.3% of sale price if sold within 5 years of purchase
- Exemptions: Inherited property, primary residences held >5 years
3. Withholding Tax
- Individuals: 1% (resale), up to 5% (corporate-owned)
- Companies: Up to 5% of appraised value
4. Annual Land & Building Tax (New 2025 Rates)
| Property Use | Tax Rate |
|---|---|
| Primary Residence | 0.02-0.1% |
| Commercial/ Rental | 0.3-1.2% |
| Vacant/Unused Land | 0.3-0.7% |
Note: First 50 million THB of primary residence value is tax-free
5. Local Maintenance Tax
- 0.25-0.95% of annual rental income
- Applies if renting out Phuket property
How to Reduce Phuket Property Taxes
✅ Hold property for >5 years → Avoids 3.3% SBT
✅ Register as primary residence → Lower land tax rate
✅ Use a Thai company structure → Legal tax optimization (consult a lawyer)
✅ Declare lower appraisal value → Possible for long-term owners
Phuket Property Tax Payment Process
- Assessment: Land Office calculates tax based on official value
- Notification: Tax bill sent by mail or online
- Payment: At local Phuket Land Office or via bank transfer
- Deadline: Usually April each year (late fees apply after 30 days)
FAQ: Phuket Property Taxes
Q: Do foreigners pay higher taxes on Phuket property?
A: No—same rates apply, but foreigners cannot own land (only condos or leasehold).
Q: Is rental income taxable?
A: Yes—15% withholding tax + local maintenance tax (0.25-0.95%).
Q: Can I avoid taxes by buying under a Thai company?
A: Possible, but risky if not properly structured. Consult a lawyer.
Verdict: Smart Tax Planning for Phuket Property
Understanding Phuket property taxes ensures compliance and cost efficiency. Key takeaways:
✔ Transfer fees = 2% + possible 3.3% SBT
✔ Annual land tax = 0.02-1.2% (depends on use)
✔ Rental income taxed at 15% + local fees
Next Steps:
- Consult a Phuket property lawyer for tax optimization
- Check Land Office records for accurate appraisal values
- Plan long-term ownership to reduce capital gains taxes