Short-Term Rentals Laws in Thailand

Short-Term Rentals Laws in Thailand

Thailand

Introduction
Introduction to Short-Term Rentals in Thailand

Thailand, with its vibrant culture, stunning landscapes, and world-famous hospitality, has become a hotspot for *บ้านเช่าระยะสั้น* (short-term rentals) and *ที่พักรายวัน* (daily accommodations). Popular destinations like Bangkok, Phuket, Chiang Mai, and Pattaya attract millions of visitors each year, many of whom opt for the unique and flexible lodging options offered by short-term rentals. In 2023, the Thai government reported significant revenue from this growing sector, reflecting its impact on the local economy. Platforms like Airbnb and Agoda have become the go-to choices for travelers seeking diverse and affordable accommodations, making the short-term rental market an integral part of Thailand’s tourism industry.

Overview

Thailand, with its vibrant culture, stunning landscapes, and world-famous hospitality, has become a hotspot for *บ้านเช่าระยะสั้น* (short-term rentals) and *ที่พักรายวัน* (daily accommodations). Popular destinations like Bangkok, Phuket, Chiang Mai, and Pattaya attract millions of visitors each year, many of whom opt for the unique and flexible lodging options offered by short-term rentals. In 2023, the Thai government reported significant revenue from this growing sector, reflecting its impact on the local economy. Platforms like Airbnb and Agoda have become the go-to choices for travelers seeking diverse and affordable accommodations, making the short-term rental market an integral part of Thailand’s tourism industry.

Property
Overview

Yes, Thailand has a national association dedicated to short-term rental owners and operators known as the Thailand Short-Term Rental Association (TSTRA). This organization provides support, resources, and advocacy for hosts, helping them navigate regulations and improve their rental practices. Membership requirements may vary, and the association offers various resources, including training and networking opportunities.

Property
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short term rentals
What is Short-Term Rentals in Thailand?
What are short Term Rentals in the Country?

In Thailand, short-term rentals are commonly referred to as "เช่าระยะสั้น" (Chao Raya San), which translates to "short-term rental" in Thai. Other local terms include "บ้านพักตากอากาศ" (Ban Phak Tak Akat), meaning "holiday home," and "ที่พักนักท่องเที่ยว" (Thi Phak Nak Thong Thiao), which translates to "tourist accommodation." On popular booking platforms such as Airbnb and Booking.com, the term “vacation rental,” “holiday rental,” and “transient rental” are frequently used.

Short-term rentals, in Thailand, are defined as the leasing of furnished accommodations, ranging from individual rooms to entire houses, typically for periods of less than 30 days. However, specific regulations may vary across provinces, with some areas implementing stricter definitions that limit rentals to under 15 or 20 days. Notably, major tourist destinations like Bangkok, Chiang Mai, and Phuket have specific local regulations governing short-term rentals, reflecting the unique demands of their tourism sectors.

Is Subletting Legal?
Is Subletting Legal in Thailand?

Subletting is a complex issue in Thailand. Generally, tenants are not permitted to engage in short-term rentals or sublet properties without the explicit permission of their landlords. Local laws stipulate that if a tenant leases a property for residential purposes, they cannot sublet it for short-term tourist rentals unless they have received consent from the landlord. Moreover, homeowners’ associations may have their own restrictions regarding short-term rentals, emphasizing the need for tenants to verify and obtain any necessary permissions prior to subletting.

National Association for STR Owners
What is the maximum length of stay in Thailand?
What is the maximum length of stay?

The nationwide limits on the maximum length of stay for short-term rentals in Thailand is 30 days. However, specific local jurisdictions, such as Bangkok and Chiang Mai, impose limits ranging from 15 to 30 days for short-term rentals. The regulations often specify that guests may only stay for a short duration and may require hosts to renew rental agreements for longer stays. The maximum length of stay may also vary depending on the type of property, with guesthouses often having stricter limitations than entire home rentals.

Is there any National Registration Requirement or Permit?

Thailand's Hotel Act B.E. 2547 (2004) requires all businesses offering temporary paid accommodations (including some short-term rentals) to obtain a license. Key points:

  • Licensing: Mandatory license from the Registrar (valid for 5 years, renewable). Applicants must meet age, residency, and legal standards. Modifications (name, rooms, category) and transfers require approval.
  • Management: Each hotel must have a qualified manager.
  • Lodger Records: Detailed lodger records (including signatures) must be kept and submitted weekly to the Registrar. Managers can refuse certain guests (e.g., suspected criminals, those unable to pay).
  • Standards: Hotels must meet environmental and safety standards. A committee oversees these standards and handles appeals.
  • Cessation/Transfer: Licenses expire upon business dissolution or hotel damage. Business cessation requires advance notice.
  • Enforcement: The Registrar can order operational changes or license suspension/revocation for violations. Appeals can be made to the committee.
  • Fees/Penalties: Licensing costs 50,000 baht (renewal is half), with annual fees based on room count. Violations can lead to fines, suspension/revocation, and even imprisonment for severe offenses.
  • Inspections: Authorized officials can inspect facilities, review records, and question staff.

This act applies to businesses offering temporary paid accommodation, and while not explicitly using the term "short-term rentals," if the activity falls under the definition of "hotel business," it is subject to this act.

Is there a need for Permission from Landlord/Local Council/Neighbors?

Hosts are generally required to obtain permission from landlords if they are renting out properties that they do not own. Local councils may also impose additional regulations that necessitate obtaining permission or notifying neighbors about short-term rental activities. This is particularly relevant in residential areas where neighbors might raise concerns regarding noise or disturbances caused by guests. In gated communities or housing estates, homeowners' associations may set regulations that restrict or prohibit short-term rentals to preserve community standards and safety. These guidelines are typically documented in community agreements or covenants. Some communities may require homeowners to seek approval from the association before leasing their properties, ensuring compliance with community standards.

Is Short-term rental Income taxable?

Taxes can be confusing, and what you owe depends on your situation. It's a good idea to look up information or ask a tax expert for help.

Generally, the money you earn as an Airbnb host is taxable. You may need to pay income tax and possibly withholding tax. If you make over 1.8 million Baht per year as a host, you also need to register for VAT (Value Added Tax).

For individual hosts, you’ll need to report your hosting income:

- In a mid-year tax form by September (Phor. Ngor. Dor. 94)

- In an annual tax form by March of the following year (Phor. Ngor. Dor. 90)

Your yearly income after certain deductions is taxed at rates up to 35%.

For business hosts, you report hosting income:

- On a mid-year corporate tax form (Phor. Ngor. Dor. 51)

- On an annual corporate tax form (Phor. Ngor. Dor. 50)

Business profits are taxed at 20%. Taxes must be paid within two months for mid-year and within 150 days at the end of the tax year.

To check if you need to declare income, contact the Thailand Revenue Department. They also offer resources, like a "tax literacy academy" for small businesses to help with understanding tax rules.

Is there any National Tourism Fund or Tourist Tax?

In Thailand, a local hotel tax (up to 3% of the room rate, managed by the Provincial Administrative Organization/Orborjor) functions as a tourist tax. The rate varies by province (e.g., 1% in Phuket). Hotel managers must collect the tax from guests and remit it to the Orborjor by the 10th of the following month. Non-payment can result in penalties for both guests (up to 1-month jail/2,000 baht fine) and managers (up to 6-month jail/10,000 baht fine for avoidance). Only registered hotels are subject to this tax; unregistered establishments may face other legal issues.

Is there any Guest Registration and Reporting Requirement?

In Thailand, hotels and STR must collect and report guest information, especially for foreigners, to comply with immigration laws and maintain public safety. Upon check-in, guests provide their passport/ID, visa details (TM.6 card), and contact information. The accommodation keeps records of this information and must notify the local immigration office within 24 hours of a foreign guest's arrival. This notification (using the TM.30 form) can be done online, by registered mail, or in person.

Is there any National Health and Safety Requirements?

Thailand has established health and safety standards for short-term rental properties, which include:

  • Fire Safety: Properties must comply with fire safety regulations, including the installation of fire alarms and extinguishers.
  • Health Regulations: Properties must meet local health and sanitation standards, ensuring guest safety and well-being.
Is there any Platform Accountability Requirement?

Yes, online platforms operating in Thailand are required to ensure that listings comply with national laws and regulations. This includes verifying that hosts have the necessary licenses and registrations for short-term rentals. Platforms may also be obligated to assist local authorities in monitoring compliance and reporting issues related to illegal listings.

Is there any Anti-Discrimination Law?

Thailand does not have specific national laws prohibiting discrimination against guests in short-term rentals. However, the Thai Constitution and other laws advocate for equal treatment and non-discrimination, which can be applied in the context of hospitality services. Hosts should ensure compliance with general anti-discrimination principles in their operations.

Is there any Data Sharing Requirements?

Currently, there is no specific mandate for short-term rental platforms in Thailand to share guest data with national government authorities. However, platforms may be required to cooperate with local law enforcement or government agencies during investigations or audits related to compliance with local regulations.

Is there any National Insurance Requirement?

While there is no explicit national requirement for hosts to obtain liability insurance for short-term rental properties in Thailand, it is strongly recommended. Hosts should consider acquiring insurance to protect against potential damages, liability claims, and guest-related incidents to mitigate financial risks.

Is there any National Zoning law/Cultural Heritage law?

Yes, there are regulations in Thailand aimed at protecting culturally and historically significant areas from the impact of short-term rentals. Local zoning laws may restrict short-term rentals in heritage sites and other sensitive areas. Hosts should consult local authorities to understand any applicable restrictions and ensure compliance with cultural heritage preservation laws.

Is there any Environmental Regulations that affects STR?

Yes, there are environmental regulations that may affect short-term rentals in Thailand, focusing on sustainability practices. Hosts are encouraged to implement eco-friendly practices, such as waste reduction, energy efficiency, and conservation efforts. Some municipalities may have specific guidelines promoting sustainable tourism and environmental protection.

Is there any National Tenant Protection Law?

In Thailand, there are no specific laws protecting long-term tenants from eviction due to short-term rental activities. However, general tenant protection laws exist, ensuring that landlords must follow proper legal processes for eviction. It is advisable for landlords to communicate clearly with tenants about any short-term rental activities to avoid conflicts.

Is there any Reporting Requirements for Foreigners?

Yes, hosts in Thailand are required to report foreign guests to national immigration authorities. This involves collecting guest information and submitting it to local immigration offices, typically within 24 hours of arrival. Compliance with these reporting requirements is crucial for maintaining legal operations.

Is there any Digital Platform Regulation Compliance?

Yes, platforms facilitating short-term rentals in Thailand must verify compliance with national regulations before listing properties. This includes confirming that hosts have the necessary licenses and registrations. Failure to comply can result in penalties for both the platform and the host.

Is there any Consumer Protection Law that affect STR?

Yes, there are consumer protection laws in Thailand that ensure short-term rental contracts comply with national standards. These laws mandate that hosts provide clear information about their properties, including terms of service, pricing, and guest rights. Additionally, hosts must maintain accurate guest registers and adhere to national market requirements.

Is there any Law that applies to Non-resident Owners?

Regulations targeting non-resident owners of short-term rental properties in Thailand include:

  • Residency Requirements: Non-resident owners may need to provide proof of legal residency or work permits.
  • Taxes: Non-residents are charged a flat rate of 15% STR tax.

Penalties for non-compliance can be severe, including fines, legal actions, or restrictions on future rental operations.

Is there any classification of STR in the country?

Yes, short-term rentals in Thailand are classified into various categories based on the type of property and its usage:

  • Entire Home: This includes standalone houses, villas, and apartments rented out entirely to guests.
  • Shared Rooms: This classification pertains to shared accommodations, where guests rent a bed in a room that may be shared with others.
  • Guesthouses and Hostels: Smaller properties that may offer private or dormitory-style accommodations are also classified as short-term rentals.

Local authorities may enforce specific rules and standards for each classification, such as safety requirements, maximum occupancy limits, and registration processes. For instance, Bangkok’s regulations emphasize the registration of guesthouses and hostels with the Ministry of Tourism and Sports, alongside a licensing requirement.

Are there Special National Event Regulations?

During national events or holidays, additional regulations may be imposed on short-term rentals in Thailand. These can include:

  • Stricter ID Verification: Enhanced checks on guest identification during busy periods.
  • Noise Restrictions: Increased enforcement of noise regulations during festivities.
  • Curfews: Temporary curfews may be established in specific areas.

Hosts should stay informed about any changes to regulations during such events.

Is there any Penalty for Violating National Rules?

Non-compliance with Thailand's short-term rental regulations (under the Hotel Act B.E. 2547) can result in serious penalties such as:

  • Operating without a license: Up to 1 year imprisonment, up to 20,000 baht fine, or both, plus up to 10,000 baht daily fine for continued operation.
  • Unregistered manager: Up to 6 months imprisonment, up to 10,000 baht fine, or both.
  • False information: Up to 6 months imprisonment, up to 10,000 baht fine, or both.
  • Administrative fines: 5,000-200,000 baht, plus possible daily fines for ongoing infractions (e.g., failing to meet operational requirements or Registrar's orders).
  • License suspension/revocation: For repeated or severe violations.

Severe offenses (e.g., criminal activity) can result in imprisonment and high fines. Operators must familiarize themselves with the Act to avoid these penalties.

Are there National Rules or Regulations Governing Short-Term Rentals in Thailand?
Are there National Rules or Regulations Governing Short-Term Rentals in the Country?

Thailand regulates short-term rentals (under 30 days) mainly via the Hotel Act. You generally need a hotel license, but smaller places (up to 8 rooms, 30 guests) can notify local authorities instead. Short-term rentals are usually banned in regular condos unless the building is a licensed hotel. You must pay income tax on rental income, and VAT might apply if you offer extra services. Your rental must also comply with local zoning. Get legal advice, register/notify your property, keep tax records, and stay updated on the rules.

Is there any National Tax that affects short-term rental?

Nationally in Thailand, short-term rental income is subject to:

  1. Income Tax: 0-35% progressive rates for individuals (with a standard 30% expense deduction), 20% flat rate for companies.
  2. VAT: 7% if the rental is a business with over 1.8 million THB annual revenue and offering additional services.
  3. Specific Business Tax (SBT): 3.3% (3% SBT + 0.3% municipal tax on SBT) if the rental is considered a business activity.
  4. Land and Building Tax: 0.02-0.1% for residential properties (higher for commercial).
  5. Withholding Tax (WHT): 5% if rental payments are made by companies or organizations.

Nationally, hosts must register with the Revenue Department, file taxes annually, and maintain accurate records. Consulting a tax professional is recommended.

permits, license
Are there any Permits, Licenses, or Registrations for Short-Term Rentals in Thailand?
Are there any Permits, Licenses, or Registrations for Short-term Rentals in the Country?

Thailand's Hotel Act B.E. 2547 (2004) requires all businesses offering temporary paid accommodations (including some short-term rentals) to obtain a license. Key points:

  • Licensing: Mandatory license from the Registrar (valid for 5 years, renewable). Applicants must meet age, residency, and legal standards. Modifications (name, rooms, category) and transfers require approval.
  • Management: Each hotel must have a qualified manager.
  • Lodger Records: Detailed lodger records (including signatures) must be kept and submitted weekly to the Registrar. Managers can refuse certain guests (e.g., suspected criminals, those unable to pay).
  • Standards: Hotels must meet environmental and safety standards. A committee oversees these standards and handles appeals.
  • Cessation/Transfer: Licenses expire upon business dissolution or hotel damage. Business cessation requires advance notice.
  • Enforcement: The Registrar can order operational changes or license suspension/revocation for violations. Appeals can be made to the committee.
  • Fees/Penalties: Licensing costs 50,000 baht (renewal is half), with annual fees based on room count. Violations can lead to fines, suspension/revocation, and even imprisonment for severe offenses.
  • Inspections: Authorized officials can inspect facilities, review records, and question staff.

This act applies to businesses offering temporary paid accommodation, and while not explicitly using the term "short-term rentals," if the activity falls under the definition of "hotel business," it is subject to this act.

Is there any National Association for Short-Term Rentals owners in Thailand?
Is there any National Association for STR owners in the Country?

Yes, Thailand has a national association dedicated to short-term rental owners and operators known as the Thailand Short-Term Rental Association (TSTRA). This organization provides support, resources, and advocacy for hosts, helping them navigate regulations and improve their rental practices. Membership requirements may vary, and the association offers various resources, including training and networking opportunities.

National Association for STR Owners

Disclaimer

Lodge compliance is not a licensed tax or financial advisor. Therefore nothing in the above article should be construed as tax, legal, or financial advice. Contact your local tax office for information regarding your personal circumstance.

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