What are closing costs in Thailand?

Typically 1.5–3.5% of the price on a $300,000 purchase.

Longtail boats on Thailand's Andaman coast

Buying property in Thailand as an American

Q: How is rental income taxed in Thailand?

Thai personal income tax on rental income: Rent is taxed at progressive rates (0–35%, bands shown in USD) after a 30% standard deduction. When the owner is not a Thai tax resident, tenants must withhold 15% of the rent (creditable on the owner's Thai return); the 5% rate applies only to resident owners paid by companies. Since 2024, foreign income brought into Thailand by Thai tax residents (180+ days a year) is taxable when remitted. US–Thailand tax treaty in force; Thai tax on Thai rent is creditable against US tax.

Thailand is a favourite of American retirees and remote workers, with low living costs and a large expat community. Foreigners can own condo units outright but not land, and short-term rentals without a hotel licence are illegal.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Key numbers

Gross rental yield

5.0–7.0%

Closing costs

1.5–3.5%

On a $300,000 purchase

Tax on rent (gross basis)

0%–35%

Thai personal income tax on rental income

Entry prices from

$80,000

4–8 weeks to close

Can Americans buy?

Restricted in some areas

Foreigners can own condo units freehold within the 49% foreign quota of each building; land and houses can only be leased (typically 30 years).

Retirement visas (50+) and the Long-Term Resident visa are common routes; owning a condo does not grant residency.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: The Revenue Department (Thailand); US Department of State – country information

How rent is taxed

Rent is taxed at progressive rates (0–35%, bands shown in USD) after a 30% standard deduction. When the owner is not a Thai tax resident, tenants must withhold 15% of the rent (creditable on the owner's Thai return); the 5% rate applies only to resident owners paid by companies. Since 2024, foreign income brought into Thailand by Thai tax residents (180+ days a year) is taxable when remitted.

US–Thailand tax treaty in force; Thai tax on Thai rent is creditable against US tax.

As a US taxpayer you also report the rent on Schedule E. Your free ranking estimates the combined effect for your state and income.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: The Revenue Department (Thailand); PwC Worldwide Tax Summaries; IRS – United States income tax treaties

Main risk

Foreigners cannot own land, and renting for under 30 days needs a hotel licence.

Renting for less than 30 days without a hotel licence breaks the Hotel Act, and many condo bylaws forbid it; a few projects hold hotel licences.

Data last verified on October 19, 2026 · AbroadYield research desk – public sources cited in each section

Sources: US Department of State – country information; Global Property Guide (yields, transaction costs)

Cities we cover

Bangkok$3,289/m² · gross 6.0%
Phuket$4,037/m² · gross 4.4%
Chiang Mai$1,794/m² · gross 7.3%
Pattaya$2,093/m² · gross 6.0%

Is Thailand right for you?

Get your free ranking of all destinations in 3 minutes, with after-tax estimates for your US state and income.

Get my free ranking