How much is the inheritance tax in Thailand?

Inheritance taxes in Thailand are 5% for spouses and direct descendants and 10% for other heirs on amounts above 100 million baht (THB).

For expats and foreigners, the exact rules, exemptions and ownership restrictions can affect how much tax you actually pay.

This article covers:

• Do you pay inheritance tax in Thailand?
• How much do I have to pay in inheritance tax in Thailand?
• Who is excluded from inheriting on the basis of a will?
• What exemptions are there for inheritance tax?

Key Takeaways:

• Direct descendants and spouses can inherit up to THB 100 million tax-free.
• Other heirs pay 10% on amounts above the threshold.
• Foreigners can inherit property, but must follow Thai property rules.
• Legal planning strategies can reduce estate taxes without breaking the law.

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The information in this article is intended as general guidance only. It does not constitute financial, legal or tax advice, and is not a recommendation or invitation to invest. Some facts may have changed since the time of writing.

What are the inheritance tax rules in Thailand?

Inheritance tax in Thailand is levied on the transfer of assets from a deceased person to his heirs.

The tax rules depend on two important factors:

1. Relationship with the deceased: Spouses, children, parents and other close relatives benefit from higher exemptions than distant relatives or unrelated heirs.
2. Residence status: Residents of Thailand and foreigners can inherit property, but for non-residents certain rules apply, especially regarding real estate.

Inheritance taxes must be reported within 150 days of the date of death and payment is usually made before the transfer of ownership.

Thailand adopts a progressive tax approach for certain categories of beneficiaries, with different exemptions for each category.

What is the inheritance tax rate in Thailand?

The Thai inheritance tax rate amounts to 5% for spouses and direct descendants and 10% for other heirs on amounts above THB 100 million.

• Direct descendants (children, grandchildren, spouses): 5% on amounts above THB 100 million
• Other heirs (siblings, nieces, nephews, non-relatives): 10% on amounts above THB 100 million

Thailand offers generous exemptions for immediate family members, making inheritance taxes less burdensome for spouses and children.

What is the inheritance tax in Thailand for foreigners?

Foreigners in Thailand are subject to the same inheritance tax of 5% and 10% once the inherited wealth exceeds THB 100 million, without preferential treatment based on nationality.

Foreign spouses and children of the deceased are taxed at 5% above the exemption threshold, while foreign siblings, extended family members or unrelated heirs are taxed at 10%.

The main difference for foreigners is not the tax rate itself, but how Thai law treats the location and ownership of assets, especially for real estate.

Inheritance tax only applies to assets located in Thailand, such as Thai real estate, bank accounts, shares and other domestic investments.

Assets held entirely outside Thailand are not subject to Thai inheritance tax, although they may be taxable in the heir’s home country.

For foreign heirs, inheritance tax must be paid before ownership is legally transferred, and additional legal approvals may apply when inheriting limited assets.

Can foreigners inherit property in Thailand?

Yes, foreigners can inherit Thai property, but there are restrictions.

• Land ownership: Foreigners generally cannot own land directly, but can inherit land through a lease or through a Thai corporate structure.
• Apartments and buildings: Foreigners can inherit condominium units in accordance with Thai foreign ownership rules.
• Bank accounts and securities: Financial assets can be inherited indefinitely, but taxes may apply on amounts exceeding the thresholds.

Estate planning is crucial for expats who want to ensure that their heirs can legally inherit their assets in Thailand.

Who is not allowed to inherit from his parents?

A person may not inherit if he is not legally recognized as a child under Thai law or if he is disqualified under the rules of succession.

This includes individuals who have never been legally recognized or legitimized, as well as those expressly excluded by a valid will.

Heirs may also lose their inheritance rights if they deliberately committed serious offenses against the deceased, such as fraud, coercion or causing death, as determined by Thai inheritance law.

Foreign nationality alone does not disqualify someone from inheriting, but legal status, documentation and compliance with Thai inheritance procedures are critical.

In the absence of a valid will, Thai rules on wills determine who qualifies as legal heir.

How much can you inherit from your parents without paying inheritance tax?

If you are a child or spouse of the deceased, you can inherit up to THB 100 million in Thailand without paying inheritance tax.

This threshold applies per inheritance event, meaning that multiple inheritances from different family members can each benefit from the exemption.

For other family members or unrelated heirs, the threshold is the same, but the tax rate applied above is higher, namely 10%.

Example calculation:

• If a child inherits THB 120 million from a parent, the first THB 100 million is tax-free.
• The remaining THB 20 million is taxed at 5%, resulting in THB 1 million inheritance tax.
• If a brother or sister inherits the same THB 120 million, the tax rate is 10% on the excess THB 20 million, resulting in a tax of THB 2 million.

Who is exempt from inheritance tax in Thailand?

Spouses, children and parents are fully or partially exempt from inheritance tax in Thailand.

Specifically:

• Spouses, children and parents can inherit up to THB 100 million tax-free.
• Other family members, such as siblings or nieces, are generally not completely exempt, although certain deductions may apply depending on the total value of the estate.
• Charitable donations can also reduce the taxable portion of the estate, providing additional planning opportunities.

This structure ensures that immediate family members benefit from generous exemptions, while more distant relatives or non-family beneficiaries may be taxed based on the remaining value of the estate.

How to avoid inheritance tax in Thailand?

For foreigners and expats, careful estate planning with a qualified Thai tax advisor is recommended.

Conclusion

Inheritance tax in Thailand is simple for the immediate family, but can become complex for other heirs and foreigners.

Understanding rates, exemptions and legal restrictions early can help expats and non-residents protect their assets and plan efficiently.

Proactive estate planning, proper documentation and professional guidance are the keys to minimizing tax liabilities and ensuring the smooth transfer of wealth.

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