Nation Thailand
Thai property groups seek mortgage tax relief and property tax changes
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Three property associations, the Housing Business Association, the Thai Real Estate Association and the Thai Condominium Association, have proposed additional government support for the housing market.
Key facts
- They are focusing on two measures: raising the annual mortgage interest tax deduction ceiling from THB100,000 to THB200,000, and aligning land and building tax classifications with actual property use, as consumers face constraints on
- Soonthorn illustrated the potential benefit with a buyer purchasing a THB7 million home, earning about THB100,000 a month and falling within the 25% tax bracket.
- Soonthorn put the mortgage rejection rate in the first half of 2026 at 44.9%, up from about 40% in 2025, indicating that some prospective homebuyers remained unable to meet financial institutions’ lending criteria.
- If the programme delivers positive results, the association proposed considering an extension until at least the end of 2027 and increasing its total lending limit from THB50 billion to THB100 billion in the following year, while
- Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas told the 50th House and Condo Expo that residential ownership transfers had increased by about 17% in the first half of 2026, while property sector lending had expanded by
- Under the first proposal, the three associations want the annual personal income tax deduction ceiling for mortgage interest increased from THB100,000 to THB200,000.
Summary
They are focusing on two measures: raising the annual mortgage interest tax deduction ceiling from THB100,000 to THB200,000, and aligning land and building tax classifications with actual property use, as consumers face constraints on purchasing power and access to credit.
Soonthorn Sathaporn, president of the Housing Business Association, explained that prioritising two measures did not mean the industry wanted the government to withdraw or stop considering its earlier proposals.