Thailand's nominee crackdown: what foreign buyers of land and villas should know

Thai law does not let a foreigner own land. For years a popular workaround was a Thai company that was Thai-owned on paper and foreign-controlled in practice, or land registered in the name of a Thai person. That arrangement is called a nominee structure, and since 2025 the authorities have been going after it. This article explains how it works, what the authorities have done, what a buyer risks and what is lawful. It is general information, not legal advice, and it is based on law-firm summaries and press reports: the rules and the enforcement picture change, so confirm everything with an independent Thai lawyer.

What a nominee structure is

• A Thai company, or a Thai individual, holds land that is in reality paid for and controlled by a foreigner.
• The Thai shareholders hold their shares for the foreigner rather than as genuine investors. A Bangkok law firm puts the test simply: officials ask not what the shareholder register says, but who paid and who actually runs the business.
• The foreigner usually holds side papers: share transfer forms, loan agreements to the company, powers of attorney.

A Thai company that owns land is not unlawful. One whose Thai shareholders are decorative is. Our general warning about such structures is in nominee ownership risks when buying abroad, and the Thailand checklist is in buying property in Thailand safely.

What the law says

As summarised by law firms, not from the statutes themselves:

• Land Code, sections 111 to 113: a foreigner who unlawfully acquires land and the Thai nominee can each face up to two years in prison and a fine of up to THB 20,000, and a company can be fined up to THB 50,000. Where a nominee arrangement is found, the authorities can order the land to be disposed of within about 180 days to one year (Luther, June 2026).
• Foreign Business Act: the nominee penalty is reported as up to three years in prison and a fine of THB 1 million, for both the Thai nominee and the foreigner who allows it, with a court order to end the arrangement (Nishimura, 2024).

What has happened since 2024

• Court judgment, September 2024: a Phuket criminal court found 23 individuals and companies guilty of nominee activity under the Foreign Business Act. Each was fined THB 200,000, the companies were ordered dissolved and the sentences were suspended (The Phuket News and the Department of Business Development, October 2024). The Department later spoke of more than 60 companies in the same case (May 2025).
• Company registration rules, 2026: from 1 April, company founders have to declare in writing that every shareholder has really invested and is not holding shares for a foreigner, with up to three years in prison for false information. From 1 August, companies with foreign investors or signatories must also submit a written explanation of the investment and three months of bank statements (Thairath, Luther and LexBangkok summaries; the sources differ on order numbers).
• June 2026: a police operation in Phuket, Phang Nga and Krabi covered 89 plots of about 49 rai, valued at roughly THB 1.05 billion, and the Department of Business Development identified 66 companies using Thai shareholders as proxies (Khaosod English, 20 June 2026, and Thairath). A deputy interior minister said land held by nominees would have to be sold.
• August 2026: a raid on a Hua Hin pool-villa development reportedly found at least 33 suspect companies (MGR Online, 10 August 2026). On 25 August the Ministry of Interior sent provincial governors a circular on enhanced enforcement: investigators are to look beyond the shareholder register to the source of funds, the actual business and whether a foreigner lives at the address (Tilleke & Gibbins and Formichella & Sritawat summaries). The Land Department also introduced stricter screening before and after registration (Luther, June 2026).

We found no reporting later than August 2026, so treat the picture as still moving.

What a buyer risks

• Forced disposal of the land, and a company that can be dissolved.
• Criminal exposure for the Thai nominee and for the foreigner, at the levels above.
• A property you cannot lawfully sell or pass on, if the structure is challenged.
• Trouble at the bank or with a notary. We found no source on bank policy, so ask your own bank and lawyer rather than assume.

The lawful routes

• A condominium in your own name inside the 49% foreign quota, paid for with money remitted from abroad. Explained in the 49% quota. A quota condo is a lawful route; we do not claim it is immune from future changes.
• A registered lease of up to 30 years. Renewal is by agreement and not guaranteed; see land in Thailand for foreigners.
• Usufruct or superficies (a right to use, or to own the building on land you do not own), for terms of up to about 30 years or for life depending on the right. Sources differ, so confirm the terms.
• A Thai spouse. The Land Department asks both spouses to certify that the purchase money is the Thai spouse's personal property. That declaration removes the foreigner's claim, can leave you without rights after a divorce and is false if the foreigner actually paid. This is not a safe shortcut.

For what each option gives you, see also what foreigners can hold where they cannot own land.

How to check a seller and a structure

• Ask for a recent company extract and the list of shareholders, and ask who paid the capital and where it came from.
• Ask whether the company has a real business and whether the villa is sold with the company or the land is transferred.
• Be careful if the Thai shareholders are an agent, a lawyer or a relative with no other business, if the seller says everyone does it, or if you are asked to sign blank or undated documents.
• Confirm the title and the registered rights at the Land Office, not only in the contract.
• For new builds, also read buying off plan in Thailand and how to verify a developer abroad.

If you already hold land through a nominee structure

Do not ignore it and do not improvise. See an independent Thai lawyer who is not connected to the seller or the agent, bring all the documents and ask what lawful options exist in your case. We do not give instructions on restructuring: the right answer depends on your documents. Compare notary or lawyer: who do you need abroad.

FAQ

Is a condo affected? As reported, the crackdown targets Thai shareholders holding land-owning companies for foreigners. A condo in your own name inside the quota is a lawful route, but check the quota in writing.

Can I still lease? Yes, a registered lease is lawful, but it is capped at 30 years and renewal is not guaranteed.

Is a Thai spouse a safe way? No. The purchase money must be the spouse's own, the declaration removes your claim and a divorce can leave you with nothing.

What this means for a normal buyer

• If the structure depends on Thai shareholders who do not really invest, it is the structure under attack.
• Prefer a condo within the quota or a registered lease to anything that relies on someone else's name.
• Ask who paid, and keep the money trail clean.
• Use your own Thai lawyer, not the seller's.

Independent buyer-side help can compare the options and bring in a local lawyer: D.H. Realting works from Warsaw as an independent consultant, and you should ask us, as you would ask anyone, how we are paid.