Inheritance tax in Thailand is 5% for spouses and direct descendants and 10% for other heirs on amounts exceeding 100 million baht (THB).
For expats and foreigners, the exact rules, exemptions, and property restrictions can affect how much tax you actually pay.
This article covers:
Key Takeaways:
My contact details are hello@adamfayed.com and WhatsApp +44-7393-450-837 if you have any questions.
The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Inheritance tax in Thailand is applied to the transfer of assets from a deceased person to their heirs.
The tax rules depend on two main factors:
Inheritance tax must be declared within 150 days from the date of death, and the payment is generally made before the transfer of ownership.
Thailand uses a progressive tax approach for certain categories of beneficiaries, with different exemptions for each.
The Thai inheritance tax rate is 5% for spouses and direct descendants and 10% for other heirs on amounts above 100 million THB.
Thailand offers generous exemptions for immediate family members, making inheritance tax less burdensome for spouses and children.
For foreigners in Thailand, the same 5% and 10% inheritance tax rates apply once inherited assets exceed 100 million THB, with no 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 key difference for foreigners is not the tax rate itself, but how Thai law treats asset location and ownership, especially for real estate.
Inheritance tax applies only to assets located in Thailand, such as Thai property, bank accounts, shares, and other domestic investments.
Assets held entirely outside Thailand are not subject to Thai inheritance tax, though they may be taxable in the heir’s home country.
For foreign heirs, inheritance tax must be settled before legal transfer of ownership, and additional regulatory approvals may apply when inheriting restricted assets.
Yes, foreigners can inherit Thai property, but there are restrictions.
Inheritance planning is crucial for expats who want to ensure that their heirs can legally inherit their assets in Thailand.
A person is not allowed to inherit if they are not legally acknowledged as a child under Thai law or if they are disqualified under succession rules.
This includes individuals who were never legally recognized or legitimated, as well as those expressly excluded by a valid will.
Heirs can also lose their inheritance rights if they intentionally committed serious wrongdoing against the deceased, such as fraud, coercion, or causing death, as provided under Thai succession law.
Foreign nationality alone does not disqualify a person from inheriting, but legal status, documentation, and compliance with Thai inheritance procedures are critical.
In the absence of a valid will, Thailand’s intestacy rules determine who qualifies as a lawful heir.
If you are a child or spouse of the deceased, you can inherit up to 100 million THB in Thailand without paying inheritance tax.
This threshold applies per inheritance event, which means multiple inheritances from different family members can each benefit from the exemption.
For other relatives or unrelated heirs, the threshold is the same, but the tax rate applied above it is higher at 10%.
Example calculation:
Spouses, children, and parents are fully or partially exempt from inheritance tax in Thailand.
Specifically:
This structure ensures that immediate family members benefit from generous exemptions, while more distant relatives or non-family beneficiaries may face taxation based on the remaining estate value.
You can legally reduce Thailand IHT through lifetime gifting, trusts, insurance, and charitable donations.
1. Lifetime gifting: Transfer assets to heirs during your lifetime, ensuring proper documentation and compliance with Thai tax laws.
2. Trusts and foundations: Establishing a Thai foundation or trust can help structure the inheritance more tax-efficiently.
3. Insurance policies: Life insurance payouts to beneficiaries can sometimes be structured to avoid inheritance tax.
4. Charitable donations: Donations to approved charities may reduce taxable amounts.
Careful estate planning with a qualified Thai tax advisor is recommended for foreigners and expats.
Inheritance tax in Thailand is straightforward for immediate family but can become complex for other heirs and foreigners.
Understanding the 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 a smooth transfer of wealth.
Yes, the UK and Thailand do have a double tax treaty, but it only covers income tax matters (such as business profits, dividends, interest, and royalties).
However, there is no treaty between the UK and Thailand that covers inheritance tax, so UK residents inheriting assets in Thailand must still follow UK inheritance tax rules without treaty relief.
The right to inherit property, also known as succession rights, refers to the legal entitlement of heirs to receive the deceased’s assets under Thai inheritance law.
This is governed by the Thai Civil and Commercial Code and can be affected by wills, intestacy rules, and applicable tax regulations.
Foreigners can reduce Thai tax on foreign income by ensuring proper residency planning and understanding the sources of their income.
Income earned outside Thailand and not remitted may not be subject to Thai income tax, but inheritance and gifts originating within Thailand remain taxable.