Thailand’s new solar tax incentives offer more than just environmental benefits—they open the door to real financial savings and a competitive edge for Airbnb property owners and operators. Whether you manage one villa or a portfolio of short-term rentals, installing solar panels could reduce your tax bill, cut energy costs, and help attract eco-conscious travellers.
Note: As of July 2025, the official Royal Decrees detailing these incentives have not yet been published. The information is based on a Cabinet approval dated June 24, 2025. Operators should confirm the final before taking any action. To keep fully informed and up to date, sign up to receive our tax and compliance update alerts directly to your inbox.
Understanding Airbnb Taxation in Thailand
If you’re operating an Airbnb property in Thailand, your rental income is taxable. Most individual hosts report this income under personal income tax (PIT), where income from property rentals is taxed progressively, ranging from 5% to 35%. You can deduct a flat 30% of your rental income or claim actual expenses.
Suppose you run your Airbnb business as a company (a juristic person). In that case, you’re taxed under the corporate income tax (CIT) system at a flat 20%, with a broader range of deductible expenses available.
Foreign owners who spend more than 180 days in Thailand are considered tax residents and must declare their global income remitted into Thailand. Non-residents are subject to a 15% withholding tax on income sourced in Thailand. Additionally, VAT registration is required for rental revenues exceeding THB 1.8 million annually.
What the New Solar Incentive Offers
Approved by the Thai Cabinet, the new tax incentive allows individual property owners to deduct up to THB 200,000 from their taxable income for rooftop solar installations.
Who’s eligible?
- Individual (non-juristic) owners of residential properties
- Airbnb properties that remain classified as residential (e.g. villas, homes or condos)
- Systems must be grid-connected and under 10 kWp
- Certified providers must do the installation with correct documentation
When?
- Expenses incurred from June 24 2025, to December 31 2027, can be claimed in the relevant tax year.r
For Airbnb hosts, this means your solar installation expenses could directly lower the income you pay tax on. In the 20% tax bracket, a full THB 200,000 deduction could save you up to THB 40,000.
Real Tax Benefits for Hosts
Let’s say you earn THB 2 million per year from Airbnb rentals. You spend THB 150,000 on a rooftop solar system for your property. As an individual filer, you apply the 30% flat expense deduction to your rental income and also deduct the THB 150,000 from your total taxable income.
At the 20% tax rate, this additional deduction saves you THB 30,000. If you install a system costing THB 200,000, your savings could rise to THB 40,000. These are direct tax savings—and that’s before you even factor in lower electricity bills.
Operational Savings That Add Up
Short-term rentals in Thailand often incur high electricity costs due to the use of air conditioning, pool pumps, and water heaters. Solar panels can offset 50–100% of this usage, significantly reducing your monthly outgoings. Some properties can also sell excess electricity back to the grid.
For example, upgrading a villa in Pattaya can save over THB 50,000 per year in utility costs, thereby boosting your profit margins without the need to raise your prices.
Sustainable Properties Attract Guests
Eco-conscious travellers are an increasingly influential part of the tourism market. By promoting your listing as a solar-powered or eco-friendly property, you can attract this growing segment and command a premium on nightly rates.
Airbnb’s platform already includes filters for sustainable stays. Listings that highlight solar energy and reduced carbon footprints can achieve higher occupancy rates—some studies suggest a 10–20% improvement—alongside stronger reviews and repeat bookings.
Example: A host in Chiang Mai installs solar panels and advertises the listing as a “Net-Zero Energy Villa.” The result? A bump in occupancy from 67% to 80%, thanks to sustainability-focused travellers.
What About Companies?
If you operate as a company, you won’t be eligible for the individual solar deduction—but you may qualify for an even more generous 150% deduction on approved energy-efficient equipment, including air conditioners, lighting and appliances. These must be installed by December 31, 2028, and supported with proper documentation.
You may also be eligible for Board of Investment (BOI) privileges, such as duty exemptions or even CIT holidays for larger sustainability-driven projects.
Key Considerations Before You Act
- Property Type: The solar incentive applies only to properties classified as residential. If your Airbnb is reclassified as commercial, you may lose eligibility.
- Legal Compliance: Properties offering stays under 30 days typically need a hotel licence. Non-compliance could complicate tax filings or eligibility.
- Documentation: You’ll need complete tax invoices and grid-connection approvals to claim the deduction. Missing paperwork could result in denied claims.
- Remitted Funds: If using overseas income to pay for the system, ensure it’s properly declared to avoid audit issues.
For businesses, registering as a juristic person can unlock wider incentives, but it also brings additional filing requirements. Either way, professional advice is highly recommended.
Don’t Miss Out on This Triple Win
Thailand’s renewable energy tax incentives present a compelling opportunity for Airbnb operators to:
- Reduce tax on rental income
- Cut monthly operating costs
- Attract more guests with sustainable listings
With incentives running through 2027 (or 2028 for businesses), now is the time to start planning. Speak with a tax advisor to ensure you meet the criteria, gather the proper documentation, and maximise the return on your investment.
By going solar, you’re not just saving money, you’re making your property more competitive in an evolving market and contributing to Thailand’s transition toward a greener future.
To keep up with the latest news on Thai tax and how it affects you, sign up for our tax alerts, and if you have any questions on this or other tax matters, book a free call to speak with our team.
