It’s a tax that a property owner will be expected to pay and the amount is typically calculated by the local government based on the value of the land and/or the property. An assessor will be requested to give a fair valuation of the value of the property. The tax money is usually used to help fund local services such as schools, hospitals, and roads.
The property tax in Thailand is not imposed on residences that are occupied by the owner of the property. However, if the land is used for commercial purposes, such as when it is being rented out, then the tax will be imposed. The tax is collected yearly according to the rental value, although the local authority can adjust the value if they deem appropriate.
Property taxes in Thailand are favorable when they are compared with many other countries, including Hong Kong. In Thailand, the property tax rate is 12.5% of the yearly rental. In Hong Kong, property tax is also based on rental income and it currently stands at 15%.