Thailand Inheritance Tax for Expats in Phuket: 2026 Guide

Nobody likes thinking about this, but if you're living in Phuket long-term — with a condo, a bank account, or a vehicle in your name — you need to know what happens to those assets when you're gone, and what happens to your estate back home from a Thai tax perspective.

The good news: Thailand's inheritance tax threshold is very high, and most expats won't be directly affected by Thai inheritance tax at all. The important stuff is actually about your Thai will, succession planning, and whether your home country will try to tax your Thai assets.

Thailand's Inheritance Tax: The Basic Framework

Thailand introduced inheritance tax under the Inheritance Tax Act B.E. 2558 (2015), effective February 2016. Before that, Thailand had no inheritance tax at all.

The current framework:

What counts as part of the "estate" for Thai inheritance tax purposes: immovable property (land, condos) registered in Thailand, securities registered in Thailand, deposits in Thai financial institutions, vehicles registered in Thailand, and financial assets in Thai entities.

The threshold applies per beneficiary — so if the total estate value is ฿150 million and there are two equal beneficiaries, each receives ฿75 million, which is below the threshold, and no inheritance tax is owed.

What This Means for Most Phuket Expats

For the large majority of expatriates in Phuket, Thai inheritance tax will not apply. A condo valued at ฿4 million, a bank account with ฿500,000, and a car worth ฿800,000 would total approximately ฿5.3 million — less than 6% of the ฿100 million threshold.

Even expats who have purchased high-end property — say, a Surin villa for ฿25 million — are well below the threshold. You'd need to be in a very small, very wealthy bracket to actually trigger Thai inheritance tax.

Your Home Country's Inheritance Tax on Thai Assets

This is where it gets more important for most expats. Several countries claim inheritance tax on worldwide assets of their residents or citizens — regardless of where those assets are located.

United Kingdom

UK Inheritance Tax (IHT) applies to the worldwide estate of UK-domiciled individuals. If you're a British expat who moved to Phuket but is still considered UK-domiciled (which can take many years to change legally), your Thai condo, Thai bank accounts, and Thai assets may all be subject to UK IHT at 40% above the £325,000 nil-rate band.

Changing UK domicile is complex and requires demonstrating a permanent intention to remain outside the UK. Speak to a UK-qualified international tax adviser before assuming your Thai assets are outside HMRC's reach.

United States

The US estate tax applies to US citizens and permanent residents on their worldwide assets regardless of where they live. The federal exemption for 2026 is approximately $13.6 million per person (subject to change after 2025 TCJA provisions), so most individuals won't owe federal estate tax. However, state-level estate taxes vary significantly — check your state of last domicile.

Germany, France, Sweden

EU countries vary significantly. Germany has relatively high inheritance tax rates and can claim tax on assets in Thailand if the deceased was a German resident. France has inheritance tax rules that can apply to French nationals abroad. Sweden abolished its inheritance tax in 2004, making it one of the more expat-friendly estates in Europe. Always consult a tax adviser in your home country.

Thai Wills: Why Every Expat in Phuket Needs One

This is the single most important action item from this entire article. If you have any assets in Thailand — even just a bank account and a motorbike — you need a Thai will.

What Happens Without a Thai Will

Without a valid Thai will, your Thai assets go through Thai intestate succession under the Civil and Commercial Code. Thai law divides the estate among statutory heirs in a specific order. This process requires Thai probate court proceedings, which are time-consuming (often 6–18 months), require a Thai lawyer throughout, and cost your estate in legal fees and court costs.

Your foreign will — the one you have back in the UK, Australia, or US — does not automatically apply to your Thai assets. Thai courts will recognise a foreign will that meets Thai formalities, but the safest and most practical approach is a separate Thai will for your Thai assets.

What a Thai Will Covers

• Thai bank account balances
• Condo unit (if in your name as foreign quota)
• Vehicles registered in Thailand
• Leasehold interests
• Business interests in Thai companies
• Personal property in Thailand

Cost and Process in Phuket

A straightforward Thai will typically costs ฿8,000–฿25,000 depending on complexity. It must be made in writing, dated, and signed by the testator in the presence of at least two witnesses who sign simultaneously. The witnesses cannot be beneficiaries. A lawyer will handle the wording and formalities. Recommended firms in Phuket include Sunbelt Asia and several established Phuket law offices — see our guide to Phuket lawyers.

Foreigners Inheriting Property in Thailand

A common question: what if a foreigner is the beneficiary of a Thai estate? Can they inherit property?

Condo Units (Condominium Act)

A foreigner can inherit a condo unit in Thailand if it falls within the foreign ownership quota (up to 49% of total floor space in the building must remain in foreign quota). Inheritance of a condo unit in the foreign quota is generally permitted and the title can be transferred to the foreign heir. This requires going through Thai probate, which the family's Thai lawyer will handle.

Land (Land Code Act)

Foreigners cannot hold freehold land in Thailand in their own name. If a foreigner inherits land (for example, from a Thai spouse), they must sell the land within 1 year of acquisition. Failure to sell can result in the land being auctioned by the Department of Lands. This is an area where legal advice is particularly important — there are specific exemptions for certain visa categories, but they are narrow.

Practical Estate Planning Steps for Phuket Expats

1. Write a Thai will — Cover all Thai assets. Keep it separate from your home-country will (or have both documents reference each other to avoid conflicts).
2. Tell someone where the will is — Your family needs to know it exists and where to find it. Consider giving a copy to a trusted person and your lawyer.
3. Review your home-country domicile status — Understand whether your home country can claim inheritance tax on your Thai assets. Consult a cross-border tax adviser, not just a Thai lawyer.
4. Consider a double taxation treaty — Thailand has inheritance-related provisions in tax treaties with a limited number of countries. Your tax adviser can check if your home country has a relevant treaty that reduces double taxation on the same assets.
5. Register property in the right structure — If you hold significant Thai property assets (condo portfolio, business interests), discuss with a lawyer whether a Thai company structure or other arrangement better suits your estate planning goals.
6. Keep financial records updated — Make sure a family member or trusted person knows about all Thai bank accounts, investment accounts, and property holdings.