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PROPERTY RENTAL AND LEASING TERMS

1. Types of Rental Lease Agreements
There is a wide variety of leases used in Bangkok. We understand the most common problems and misunderstandings that can occur between a landlord and tenant, and our standard leases are drafted to reflect this and clearly set out each party’s obligations. Most lease agreements are short and in English. It is not usual for either the landlord or the tenant to use a lawyer.

Most leases are broken up into three agreements:

  • Space rental
  • Furniture rental
  • Management / service

This is done to reduce the landlord’s liability to household tax (local property tax), which applies to space rental only.

CBRE has been servicing the ex-pat Bangkok apartment rental market for over 25 years and consequently we understand the common problems/ and misunderstandings that can occur therefore we have developed a standard lease set which is drafted to reflect all the vagaries of renting a Bangkok apartment/property and which clearly sets out each party’s obligations.


2. Rental Taxes
For residential property rentals in Thailand, different taxes are paid depending on whether the lease agreement is made with an individual tenant or a company.
 

Lease TypeWithholding TaxVATHousehold Tax
Individual   
Lease for Space--Landlord pays
Lease for Furniture-7% 
Management/Service-7% 
Company   
Lease for Space5%- 
Lease for Furniture5%7% 
Service Agreement3%7% 
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Theerathorn Prapunpong
Director
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