BANGKOK – Thailand has launched a broad enforcement push against the use of Thai “nominees” to get around strict rules on foreign land ownership. The move has stirred concern among expats and property investors across the country.
With artificial intelligence now reviewing thousands of company files, officials have flagged more than 46,000 suspicious entities, and many more may face review.
Several agencies are leading the campaign, including the Department of Business Development (DBD), the Land Department, and the Revenue Department. Together, they are moving away from years of light oversight and toward much tougher checks.
As a result, foreigners who bought homes or villas through Thai companies with nominee shareholders may now face company closure, asset seizure, financial penalties, and criminal cases.
This article covers why the crackdown is happening, the lawful ways foreigners can own property in Thailand, and the steps buyers should take if they used a nominee setup.
Why Thailand Is Moving Against Nominee Ownership
For many years, some foreign buyers used Thai companies to hold land. On paper, Thai shareholders owned 51 percent of the shares, while the foreign buyer funded the purchase and kept control behind the scenes. That setup gave the foreigner indirect control of land, even though the Land Code does not allow direct land ownership by non-Thais.
Now that route is closing quickly. During 2025 and early 2026, the DBD rolled out its Intelligence Business Analytic System (IBAS). The system checks company filings, tax data, and land records to spot warning signs.
For example, it can identify inactive companies, Thai shareholders with little money, or cases where a foreigner appears to be the real owner.
Officials plan to review 21,459 foreign-linked cases. At the same time, they are paying close attention to high-risk markets such as Phuket, Hua Hin, Koh Samui, Pattaya, and Bangkok. So far, more than 852 cases have already led to legal action, with reported damages above 15.1 billion baht.
At the same time, proposed changes to the Land Code may allow the state to take property obtained through illegal nominee deals, without paying compensation. Violations under the Foreign Business Act (FBA) can bring fines of up to 1 million baht, jail terms of up to three years, and daily fines if the breach continues. In some cases, the Anti-Money Laundering Office may also freeze or seize assets if FBA offenses count as predicate crimes.
Legal specialists say the core issue is simple: authorities will look at what a company really does, not just how it appears on paper. If the company exists mainly to hold land for a foreign buyer, it may breach both the FBA and the Land Code.
Legal Property Ownership Options for Foreigners in Thailand
Foreigners usually cannot own land in Thailand directly, except in limited cases. Even so, there are several lawful ways to invest in Thai real estate. These are the main options.
- Freehold condominium ownership: Foreigners may buy and own condo units in their own name with full freehold title (Chanote). However, the building must remain within the 49 percent foreign ownership quota of total saleable space. For many expats, this is the easiest and safest route. Ownership includes the unit itself and a share of the common property.
- Long-term leasehold for land and houses: A foreigner may lease land for up to 30 years, with renewals by agreement, often set up as three 30-year periods. In many cases, the foreigner can own the house separately from the land. This approach is common for villas and private homes. To make the lease enforceable, it should be registered at the Land Office.
- Superficies or usufruct rights: A superficies gives someone the right to own and use buildings on another person’s land for a fixed term or for life. A usufruct allows use of the property and the right to benefit from it, without owning the land. Both rights can be registered and can offer solid legal protection.
- Thai company ownership, if fully compliant: A Thai limited company may own land, but the structure must be real and lawful. Foreigners may hold up to 49 percent of the shares. Thai shareholders must invest genuine funds and hold real control, not act as stand-ins. The company must also run an actual business, rather than exist only to hold a house or plot of land. Because of the risk, this option needs careful legal planning and ongoing compliance.
- Board of Investment (BOI) promotion: BOI-promoted companies may receive exemptions from some foreign ownership limits, including full foreign ownership in approved sectors. In some cases, those benefits can extend to land ownership for approved projects, often in manufacturing, technology, or tourism.
- Investment-based exceptions: With approval and an investment of about 40 million baht in approved activities, a foreigner may apply for permission to own land in narrow circumstances.
- Treaty-based rights: Nationals from certain countries, such as the United States under the U.S.-Thailand Treaty of Amity, may receive limited added rights. Still, those rights rarely override the main restrictions on land ownership.
Before buying, foreign purchasers should work with a licensed Thai lawyer. They should also confirm the condo quota or check that any Thai company is lawful and active. Nominee structures are not a safe shortcut.
What to Do if a Property Was Bought Through a Nominee Setup
If a home sits inside a Thai company that uses Thai nominees to hold shares on behalf of a foreign buyer, fast action matters. Waiting will not make the risk go away. Authorities are looking at older deals as well as new ones, and their tools are getting better.
Immediate steps to consider
- Get legal advice right away: A reputable Thai law firm with experience in real estate and foreign investment can review company papers, shareholder arrangements, funding records, and land title documents. That review can help show how much risk the buyer faces.
- Review legal restructuring options: In some cases, it may be possible to shift to a lawful long-term lease, separate ownership of the building from the land, or dissolve the company and rebuild it with real Thai investors. Some owners are also moving toward registered lease or superficies arrangements.
- Collect all supporting records: Buyers should gather proof of where the money came from, along with contracts, emails, and other related records. Clear paperwork may help show good faith if officials ask questions.
- Prepare for possible outcomes: In serious cases, authorities may dissolve the company and cancel the land title. That could force a sale or even lead to forfeiture. Both the foreign buyer and the Thai nominees may face fines or criminal charges. Early voluntary action may help reduce the damage in some situations.
- Think about selling or exiting: If restructuring is too difficult or too risky, selling the property, or selling the shares to a compliant buyer, may be the cleanest path out. Still, taxes and official review may apply.
- Watch for official notices: Letters from the DBD or the Land Department should never be ignored. Any response should go through legal counsel and be filed quickly.
Property lawyers in places such as Phuket and Hua Hin report a sharp rise in urgent calls from worried owners. At a recent seminar in Hua Hin, speakers warned that informal nominee setups could trigger frozen bank accounts, visa trouble, or even deportation risk in extreme cases.
What This Means for Thailand’s Property Market
The government says the crackdown protects national interests, supports fair competition, and improves tax collection. It also pushes foreign investment into legal channels, such as BOI-backed projects or freehold condo purchases.
Real estate agents say demand for legal freehold condos remains healthy. At the same time, villa buyers are asking for properly documented 30-year leases or clearly compliant company structures. Because of this shift, developers are starting to offer clearer leasehold packages and more BOI-linked options.
For the wider market, the change could create a more rules-based system. That may attract long-term investors who want certainty, while pushing out buyers who relied on legal gray areas.
Protecting a Property Investment During a Tougher Enforcement Period
Owning property in Thailand has always required care, especially because foreigners face strict limits on land ownership. The current enforcement push makes one point clear: buyers need a lawful structure from the start.
Foreign purchasers should:
- Work only with licensed agents and qualified lawyers.
- Check all title and registration records at the Land Office.
- Stay away from verbal side deals that promise control through nominees.
- Set aside money for legal review and due diligence, because cheap setups often create bigger costs later.
As one legal expert recently put it, the nominee model is “effectively dead” in 2026. Buyers who shift to lawful structures can still take part in Thailand’s property market with far less risk.
Thailand’s multi-agency task force shows no sign of slowing down. Because agencies now share data and use AI-based review tools, detection will likely become more accurate over time.
Foreign owners with existing nominee arrangements should not wait. Early action may protect their investment and help them avoid expensive legal disputes later.
