Investing in a Pattaya Condo: Net Yield, Taxes and Risks
Net yield is a year of rent minus every cost of owning the unit, divided by the purchase price plus the one-off entry costs. In our worked example a THB 2,400,000 studio shows a gross yield of 6.9% and a net yield of 4.5%, which is a payback of about 22 years. Put your own numbers into the calculator below.
Gross vs net yield: why they are different numbers
Gross yield is a year of rent divided by the price of the unit. It is the figure most listings quote. It ignores the monthly building fee (CAM fee), the management company's commission and taxes, so it is almost always well above what the owner keeps.
Net yield is the fairer number: every annual cost comes off the rent, and the denominator is the price plus the one-off entry costs — transfer fee, the building's sinking fund contribution and legal fees. Payback in years is 100 divided by the net yield in percent, and it is harder to dress up than a percentage.
Gross yield = monthly rent × occupied months / price × 100
Net yield = (annual rent − annual costs) / (price + entry costs) × 100
Payback, years = 100 / net yield, %
Net yield calculator
The fields hold a worked example for a 28 m² studio, not the data of a specific unit. Replace the values with your own and the result updates instantly.
Purchase and rent
Annual ownership costs
Entry costs (one-off)
Net yield
4.5%
- Gross yield
- 6.9%
- Annual rent
- 165 000 ฿
- Annual costs
- 54 440 ฿
- Price plus entry costs
- 2 459 400 ฿
- Payback
- 22.2 years
Annual costs, ฿
| CAM fee | 21 840 |
| Management commission | 24 750 |
| Rental income tax | 0 |
| Land and building tax | 400 |
| Insurance | 2 500 |
| Repair reserve | 4 950 |
| Total per year | 54 440 |
Rental income tax is calculated after the standard 30% deduction and on a progressive scale. The scale here is approximate: a tax adviser will work out the exact figure for your situation.
The calculation is based on the figures you enter and Apartwell's method. It does not account for changes in the unit's value, exchange rates or vacancy beyond the occupancy you set. Yield depends on occupancy, rental rate and exchange rates and is not guaranteed. Past performance does not guarantee future results.
How a THB 2.4m studio goes from 6.9% to 4.5%
The calculation is for a 28 m² studio let long-term at THB 15,000 a month, occupied 11 months of 12, with an appraised value of THB 2,000,000 for land tax. All amounts in baht.
| Item | Calculation | ฿ |
|---|---|---|
| Annual rent | 15,000 × 11 | 165,000 |
| CAM fee | 65 ฿/m² × 28 m² × 12 | 21,840 |
| Management commission | 15% of rent | 24,750 |
| Rental income tax | 165,000 × 70% = 115,500, 0% band up to 150,000 | ≈ 0 |
| Land and building tax | ≈ 0.02% of appraised value | 400 |
| Insurance and repair reserve | 2,500 + 3% of rent | 7,450 |
| Annual costs | sum of the items above | 54,440 |
| Entry costs | transfer fee 1% + sinking fund 500 ฿/m² + legal | 59,400 |
| Net yield | (165,000 − 54,440) / (2,400,000 + 59,400) | 4.5% |
| Payback | 100 / 4.5 | ≈ 22 years |
This illustrates the method. It is not an offer of a specific unit and not a market average. Gross yield on the same data: 165,000 / 2,400,000 = 6.9%.
What an owner actually pays in tax
Land and building tax (in force since 2020) is paid by the owner of the unit. For residential property that is not the owner's primary home the rate starts at roughly 0.02%, applied to the Land Department's appraised value rather than the purchase price. The amount for a studio is small, but it belongs in the calculation.
Rental income is taxable in Thailand. If you are not a tax resident, the tenant or management company withholds 15% of the rent, but that is an advance, not the final tax. After the annual return (PND 90, plus PND 94 for the first half-year) the 30% deduction and the progressive scale apply, and part of the amount withheld is typically refunded. A tax adviser works out the refund for your situation.
Inheritance tax normally does not arise for one or two apartments: it starts above THB 100 million per estate. The real inheritance question is the 49% foreign quota at the time of re-registration, not tax.
Mortgages for foreigners: why they rarely help an investor
Most Thai retail banks do not lend to foreigners for home purchases as a rule, so buyers mostly pay with their own funds or a developer's instalment plan. The lenders that do work with foreigners charge rates of around 8–10% or more, while the net yield in our example is 4.5%. When the rate is above the yield, leverage works against the investor.
If part of the price arrives as a loan rather than a transfer from abroad, it affects the currency paperwork (an FET form is needed for transfers of USD 50,000 or more). Have a lawyer check that structure before you sign the sale and purchase agreement.
Risks to weigh before buying
Supply and rental rates
A building can have many similar units for rent, which keeps rates down. Before you calculate yield, check what comparable units in the same building are letting for today.
Seasonal vacancy
Eleven occupied months out of twelve in the example is an assumption. For short-term lets, work out high and low season separately rather than using the best month.
Exchange rate
Income is in baht while you count in your own currency. A large currency move can eat a big share of the yield.
Off-plan completion
A developer can miss deadlines or fail to finish the project. Check the developer's licence and the EIA before you sign.
Liquidity on exit
A condo does not sell in a day. Build months of exposure into your plan, not weeks.
The 49% quota on resale
A unit can be sold to a foreign buyer only if the building's quota (calculated by floor area, Condominium Act section 19) is not full at the time. Find out the remaining quota before you buy.
CAM fee arrears block a sale
Unpaid building fees carry a penalty of up to 12% a year, rising to 20% after 6 months. The Land Department will not register a sale without a certificate that no debt is owed. On resale purchases, check the seller's arrears before you sign.
Who this investment does not suit
- Anyone who may need the money back sooner than 5–7 years: with a payback of around 20 years, liquidity is lower than with exchange-traded assets.
- Anyone unwilling to take any part in running the building, or to give a power of attorney to someone who will vote for them at the owners' meeting.
- Anyone who needs a guaranteed return. We do not promise one: the figures depend on occupancy, rental rate and exchange rates.
Frequently asked questions
- How does net yield differ from gross yield?
- Gross yield is a year of rent divided by the price of the unit. Net yield subtracts the CAM fee, management commission, taxes, insurance and repair reserve, and adds the one-off entry costs to the price. In our example of a THB 2.4m studio, gross yield is 6.9% and net yield is 4.5%.
- How much does it cost to keep a condo in Pattaya?
- For the 28 m² studio in the example: a CAM fee of about THB 21,840 a year at 65 THB/m² a month, land and building tax of about THB 400 and insurance of about THB 2,500. The management commission (15% of rent in the example) and rental income tax are calculated separately. CAM fees differ by building and are usually in the range of 20–70 THB/m² a month.
- Do I pay tax on rental income if I do not live in Thailand?
- Yes, rental income is taxable in Thailand. A non-resident has 15% withheld as an advance, then after the annual return the 30% deduction and a progressive scale apply, and part of the amount withheld is usually refunded. A tax adviser works out the exact figure for your situation.
- Can a foreigner get a mortgage for a condo in Pattaya?
- Rarely. Most Thai retail banks do not lend to foreigners for home purchases, and the lenders that do charge around 8–10% or more. Most buyers pay with their own funds or a developer's instalment plan during construction.
- What happens if the 49% foreign quota in a building is full?
- A foreigner cannot take freehold title to a unit in that building: the quota is calculated by the building's floor area, not by the number of units (Condominium Act, section 19). The options are a building with quota left, or a 30-year lease. We check the remaining quota before you pay a deposit.
- How many years does a condo in Pattaya take to pay back?
- Payback is 100 divided by the net yield in percent. At 4.5%, as in our example, that is about 22 years. A rise in the unit's price could shorten it, but that is a forecast, not a guarantee.
- What happens if I do not pay the CAM fee?
- The fee for common areas is mandatory for every co-owner (Condominium Act, section 18). Late payment carries a penalty of up to 12% a year, rising to 20% after 6 months, and the Land Department will not register a sale without a certificate that no debt is owed.
The calculations on this page are based on the figures you enter and an illustrative studio example. Yield depends on occupancy, rental rate and exchange rates and is not guaranteed. Past performance does not guarantee future results.
This information is general and educational, compiled from public sources as of 4 October 2026. It is not legal or tax advice and does not replace review of your specific situation by a licensed Thai lawyer. Thai tax rates, thresholds, and legal requirements may change — confirm current conditions with independent legal counsel before signing any document.
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