Giving a House or Land to Your Children — Fees, Gift Tax, Inheritance Tax and How to Keep Living There Safely

Many Thai parents start thinking about passing homes and land to their children while still alive — to reduce future sibling conflict, avoid estate administration that may involve courts and administrators, and sometimes to let children use the property as collateral to build their own families. Gifting has benefits and risks worth understanding before visiting the Land Office. This guide brings costs, taxes and parental safeguards together.

Costs on Transfer Day

Transferring real estate to a legitimate child without consideration enjoys several fee and tax advantages compared with a normal sale:

Item	Gift to legitimate child	Sale to anyone (comparison)
Registration fee	0.5% of appraised value	2% of appraised value
Specific business tax	Exempt	3.3% if held under 5 years
Stamp duty	As assessed by the Land Office	0.5% (where SBT doesn't apply)
Income tax (gift tax)	None if total gifts don't exceed THB 20m per year	Withholding based on appraised value and years held

Note that "legitimate child" means a child of parents who registered their marriage, or a child the father has legally acknowledged. Adopted children don't receive some of these benefits, and gifts to grandchildren or other relatives use standard fees.

Gift Tax: the THB 20 Million Threshold

Since Thailand introduced inheritance and gift tax reforms, gifts to children are taxable only when the total value given in a tax year exceeds THB 20 million, at 5% of the excess. For real estate, value is the official appraised value, and the tax is collected at the Land Office on registration day. Gifts to people other than ascendants, descendants or spouses have a lower exemption of THB 10 million a year.

For most families, whose home's appraised value is under THB 20 million, there is no gift tax. For high-value estates, spreading transfers over several tax years is a lawful way to manage the burden.

Compared With Leaving It as an Inheritance

Without a lifetime transfer, the property becomes part of the estate. Inheritance tax applies only where an individual heir receives more than THB 100 million in total, at 5% of the excess for descendants and ascendants (10% for others) — a far higher threshold than gift tax. On tax alone, waiting isn't necessarily worse for ordinary families. The difference is process: an administrator must be appointed (often through court), all heirs must agree, and it takes months — the stage where family disputes most often erupt.

The Parents' Risk: Gifts Are Hard to Revoke

Once registered, a gift is complete; ownership belongs to the child immediately, who may sell, mortgage or pledge it without asking. The law allows revocation for ingratitude as legally defined — serious criminal offences against the giver, grave defamation, or refusing the necessities of life to a giver in need when the recipient could provide them — but claims must be brought within strict time limits and are hard to prove. In practice, don't rely on revocation.

Gifting While Keeping Parents Secure

1. Register a lifetime usufruct for the parents — they can keep living there or let it and collect rent for life; the child can't sell free of this burden.
2. Or register a right of habitation — if only the right to live there is needed, not rental income.
3. Do both on the same day — register the gift and the usufruct together at the Land Office.
4. Talk openly with all children — explain the reasoning to reduce perceptions of unfairness, and consider a will for remaining assets.
5. Check any mortgage first — agree with the bank on transferring subject to the mortgage or redeeming it beforehand.

FAQ

Can we gift to a minor child?

Yes, but any future sale or mortgage of a minor's property requires the legal representative to obtain court permission, making management much harder.

Can the child sell a house in which the parents hold usufruct?

Legally yes, but the buyer takes it subject to the parents' usufruct, so buyers are very hard to find until the right ends — strong protection for the parents.

Can we record a low-price sale instead of a gift to avoid something?

Not advisable. Sales are taxed on appraised value and may cost more than a gift, and a sham transaction can create legal problems later.

Conclusion

Gifting a home or land to children in your lifetime costs far less than a sale, and most families pay no gift tax. The point to think through is the parents' security afterwards; registering usufruct or habitation alongside the gift is simple and effective. For high-value assets or complex families, consult a lawyer or tax planner. Read more on real rights and inheritance on the MyProperty blog.