Leasehold
Registered leaseholds are secure and relatively straightforward. Typically, the land is leased for a period of 30 years, renewable a further two times giving a total of 90 years. Security of the possession of land is assured by the fact that you are the legal owner of the buildings which occupy the land. Therefore, the lessor cannot take possession of the property upon expiration of the lease as the property is separated from the land and will not be a component part under the Civil Law.
Property Taxes
Once you have acquired the property, there are 2 different types of tax levied on property in Thailand that you need to be aware of:
Land Tax
This is an annual tax levied on land ownership equivalent
to just a few Baht per rai. The amount is often so miniscule
that in practice the body charged to collect it, rarely bothers
to do so. When they do collect it, its usually after several
years when the amount has accumulated.
Structures Usage Tax
This only applies to properties used for commercial purposes.
This is applicable at the rate of 12.5% on the actual or assessed
gross rental value of the property. However, this notional
value is well below the commercial market rental value.
