Family Renting in Bangkok
Thailand has significantly increased enforcement against the use of Thai “nominee” shareholders to acquire land and real estate on behalf of foreigners. During 2025 and 2026, government agencies have stepped up investigations of companies in Bangkok, Phuket, Koh Samui, Koh Phangan, Pattaya, Chonburi, Hua Hin, Chiang Mai, and other areas popular with foreign property buyers.
For foreigners who already own property in Thailand—or are considering buying—the crackdown deserves attention. However, it is important to understand what Thailand is actually targeting.
Foreigners are not being prohibited from investing in Thai real estate. Foreign ownership of qualifying condominium units remains legal. Long-term leases and several other property arrangements also remain available.
The authorities are primarily targeting structures in which Thai citizens appear to own a company or property on paper. These paper Thai owners are actually acting on behalf of a foreign investor.
A nominee arrangement generally involves a Thai person being listed as a shareholder or owner. These shareholders are not genuine investors, but the foreigner is.
A typical structure might look like this: a foreign buyer wants to purchase a villa and the land beneath it. Because foreigners generally cannot directly own land in Thailand, a Thai limited company is created. The foreign investor owns 49% of the shares, while Thai individuals hold the remaining 51%. On paper, the company therefore appears Thai-owned.
The problem arises when the Thai shareholders did not actually invest their own money. They have no genuine financial interest in the business, or are simply holding their shares for the benefit of the foreign investor.
In other words, having 51% of a company’s shares registered to Thai citizens does not automatically make the arrangement legal. Authorities increasingly want to know who actually provided the capital. They was to know who controls the company, who receives the economic benefit and whether the Thai shareholders are genuine investors.
Thailand’s Department of Business Development has specifically identified real estate and land-related businesses as a high-risk area for nominee investigations. Its 2025 annual report described investigations designed to identify Thai nationals holding shares on behalf of foreigners to circumvent the Foreign Business Act.
Nominee companies are not a new issue in Thailand. Structures involving Thai majority shareholders have been used for decades. What has changed is the scale and sophistication of enforcement.
The Department of Business Development has made nominee prevention a major enforcement priority for 2026. Its program includes deeper screening of high-risk companies, examination of accounting records and financial statements. They conduct further investigation of accounting and law offices believed to organize nominee structures. There is now information sharing with agencies including the Department of Special Investigation and anti-money-laundering authorities.
The Department of Lands has also introduced measures intended to prevent land being held by Thai nationals on behalf of foreigners.
The result has been a series of highly publicized investigations. In June 2026, police investigated suspected nominee structures in Phuket, Krabi and Phang Nga. They reported seizing 89 land plots and buildings valued at more than 1 billion baht. In July, authorities investigated 33 companies in Chonburi. These properties were connected with land and luxury properties reportedly worth more than 5 billion baht. Another investigation involved 33 luxury houses in eastern Bangkok reportedly worth approximately 1.275 billion baht. In August 2026, authorities reported on a Koh Samui nominee investigation. This investigation expanded to 60 cases involving 59 companies and 88 suspects. These properties were valued at approximately 1.2 billion baht.
These actions make it clear that nominee enforcement is no longer confined to an occasional investigation.
Yes.
For most foreign buyers, a condominium remains the simplest way to obtain direct freehold ownership of Thai real estate.
Under Thailand’s Condominium Act, foreigners may own condominium units provided total foreign ownership does not exceed 49% of the aggregate unit area of the condominium building.
Before a transfer, the condominium juristic person normally provides documentation confirming that the unit falls within the available foreign ownership quota. The Department of Lands requires this documentation when registering the transfer. Foreign buyers also generally need to properly document money transferred into Thailand for the purchase.
A condominium purchased correctly within the foreign quota is fundamentally different from purchasing land through Thai nominee shareholders.
This is where foreign buyers need to be particularly careful.
A house and the land underneath it are legally distinct assets. A foreigner may own a building but cannot directly own the underlying land.
Foreigners are generally prohibited from owning land except under limited statutory exceptions. One such exception allows qualifying foreigners who invest at least 40 million baht, meet other requirements and obtain government approval to acquire up to one rai of residential land. This is a specialized exception rather than the normal route used by foreign homebuyers.
Other legitimate structures can include registered leases and certain rights relating to use or ownership of buildings. A land lease can generally be registered for up to 30 years. A renewal may be possible by agreement, but a promised future term should not be treated as guaranteed ownership. Buyers should understand, however, that a lease is not the same as freehold ownership, and promises concerning future renewals should be reviewed carefully by an independent Thai property lawyer.
A Thai citizen married to a foreigner can own land in Thailand. However, using a Thai spouse’s name does not mean that the foreign spouse secretly owns the property.
When land is acquired in the Thai spouse’s name, documentation may be required. This will proove that the purchase money is the Thai spouse’s separate property. They conform the foreign spouse has no ownership claim over the land.
This is very different from creating an artificial Thai owner whose only role is to hide foreign ownership.
Foreigners who purchased houses, villas or investment properties through Thai companies years ago should not automatically assume they have done something illegal.
A legitimate operating company with genuine Thai shareholders, genuine capital contributions, proper accounting, actual business activity and commercially realistic corporate governance is not the same thing as a shell company created simply to hold a foreigner’s home. But this distinction is exactly why older structures deserve review.
Potential warning signs include Thai shareholders who cannot explain their investment, shareholders who contributed little or no capital, foreign investors funding the Thai shareholders’ shares, unusual voting arrangements giving the foreign shareholder complete control, companies with no genuine commercial activity, and Thai shareholders appearing across large numbers of unrelated foreign-owned companies.
Authorities are increasingly examining the financial reality behind the shareholder register rather than simply accepting the percentages printed on company documents.
The safest approach is straightforward: structure the transaction legally from the beginning rather than attempting to manufacture Thai ownership.
Before transferring substantial funds, buyers should confirm the title, ownership history, condominium foreign quota when applicable, building permissions, encumbrances, company structure, source of shareholder capital and any lease or other registered property rights.
Buyers purchasing through a company should have independent legal counsel determine whether there is a genuine commercial reason for the company and whether the Thai shareholders are actual investors rather than nominees.
Foreign owners who already hold property through a Thai company may also want their corporate structure reviewed before selling, restructuring or purchasing additional property.
Thailand continues to welcome foreign residents, retirees and investors, and foreigners can still legally purchase many types of Thai property.
What is changing is the government’s willingness to look beyond paperwork. The old assumption that placing 51% of a company’s shares in Thai names automatically makes foreign-controlled land ownership acceptable is increasingly dangerous.
For most individual foreign buyers looking for secure ownership, a properly registered foreign-quota condominium remains one of the clearest options. For houses, villas, land and company-owned property, professional legal advice is becoming increasingly important.
BangkokFinder has been helping people find property in Bangkok since 2004. Whether you are looking to rent, purchase a condominium or evaluate an investment property, understanding the ownership structure before committing to a transaction can prevent expensive problems later.
Important: This article is provided for general information and should not be considered legal advice. Thai property and corporate laws can be complex, and buyers should obtain advice from a qualified Thai lawyer regarding their individual circumstances.
Official Regulatory Publications and Reference Materials
· Thailand Department of Business Development – Annual Report 2025
· Thailand Department of Business Development – 2026 nominee-prevention measures
· Thailand Department of Lands – Anti-nominee foreign land ownership
· Thailand Government – Foreign condominium ownership information
· Thailand Government – Foreign land ownership information
· The Nation Thailand – Phuket, Krabi and Phangnga nominee enforcement, June 2026
· The Nation Thailand – Chonburi nominee investigation, July 2026
· The Nation Thailand – Eastern Bangkok luxury housing investigation, 2026
· The Nation Thailand – Koh Samui nominee investigation, August 2026
