180 Days to Sell Your Land: How Phuket's Nominee Crackdown Works in 2026

A plain envelope arrives by regular mail at the company's registered address. One page, a reference to a governor's order, and a one-line conclusion: the company is classified as a foreign juristic person, and the land plot must be disposed of. The deadline to sell is from 180 days to one year. Over recent months, dozens of Phuket companies have received such notices.

The short answer to the key question: sell inside the voluntary period. While the deadline is running, the price and the buyer are decided by the beneficiary, meaning the foreigner. Once it expires, the plot enters the procedure under Section 94 of the Land Code: the Land Department (or the governor on its behalf) runs the sale, chooses the pricing method, and in practice this most often means an auction below market value. Costs and a fee of up to 5% of the sale amount (Section 50) are deducted, and the remainder is returned to the owner.

A forced sale is not confiscation. It is a loss of control over the price.

The wider context matters for global buyers. Since April-May 2026, Thai authorities have reportedly begun systematic screening of land-holding companies tied to foreigners, flagging those with foreign control or benefit through leases, loans, mortgages, powers of attorney, or management agreements, even where share limits are formally respected. Reports describe tens of thousands of foreign-linked companies with Thai land in the screening pool. Another report cites seven enforcement rounds that identified 297 companies and 632 companies linked to nominee use for property and land worth about 6 billion baht, with the Phuket phase starting on 20 June. Bangkok Post notes that agents on Phuket, Koh Samui and Koh Phangan report foreign buyers pausing villa purchases as the loophole closes. Commentators have also pointed out a quirk of Section 94: after a forced sale, the original offender can still recover principal and gains, which is why enforcement increasingly runs on a parallel criminal track.

Quick Answer

• Deadline in the notice: 180 days to 1 year. This is not a recommendation. It triggers the Section 94 procedure.
• Forced-sale fee: up to 5% of the transaction amount (Section 50), plus procedure costs, plus the usual transfer taxes and fees.
• The money is returned to the owner after deductions. The state does not keep the land.
• Only the foreigner or foreign company agrees the price and buyer and receives the proceeds. A Thai nominee shareholder named on the title deed has no right to choose the buyer.
• A criminal track almost always runs in parallel: nominee-ownership cases, Sections 111-113 of the Land Code. Thai nominees fall under them alongside the foreigner.
• Selling to a genuine Thai owner, followed by a registered leasehold of up to 30 years, is not prohibited by law, provided the buyer is real and not the next nominee.

Scenarios and Options

1. Sale to an independent Thai buyer at market price. The cleanest exit. You keep control of the price, lock in the cash, and close the land issue. Expect the price to slip roughly 10-20% versus a calm sale, because the buyer sees the deadline in your notice and negotiates. That is the price of staying out of an auction.

2. Sale to a Thai company or a developer completing a project. Works when a villa stands on the plot or construction has started. A developer or local investor pays real money and you exit the asset entirely. Downside: the pool of such buyers on Phuket is narrow, timelines are tight, and every party knows it.

3. Sale to a Thai individual with a 30-year leasehold or superficies for the building. Legally permissible: the new owner may register a lease and a building right for the foreigner. But this is exactly the structure that land offices and the DSI are now examining most closely. They check who paid, where the money came from, whether the buyer has genuine economic interest and independence, and how the follow-on lease is documented. If the Thai acquaintance effectively remains a nominee (no own funds invested, no risk borne, managed by the foreigner), the deal is treated as a continuation of the same violation, and you face a second round of scrutiny on top of the first.

4. Do nothing and wait. The deadline expires and Section 94 kicks in. The price is formed through auction or another method at the Department's discretion, costs and up to 5% are deducted, and the balance goes to the beneficiary. This only makes sense when the plot's market value is small and legal and preparation costs are comparable to auction losses. In every other case it is the worst option.

Transactions at the Land Office are signed in person or via a Thai power of attorney drawn up strictly in the required form. If you live outside Thailand, build travel into the schedule early: moving a registration date because of flights when three weeks remain costs more than the flight itself.

Comparison Table

Main Risks and Mistakes

Treating the letter as a formality. The notice period starts the procedure automatically. Mitigation: count the deadline from the date of the letter and schedule registration at least one month before it ends.

Reselling to a new nominee. The most common and most expensive mistake. Mitigation: the buyer must pay with their own money at market price, via a transparent bank transfer and with no side agreements returning control to you.

A parallel criminal case you learn about last. Nominee files are prepared alongside the land procedure, and Thai shareholders are subjects of it too. Mitigation: align your position with the Thai shareholders before the sale, not after.

Restructuring the company instead of selling the land. Re-registering shares, changing directors, or converting to a 100% foreign-owned structure does not give the right to own land: a foreign juristic person cannot hold land. Mitigation: separate the issues, fixing the corporate structure on its own track while closing the land question by disposal.

Underestimating tax. When a company sells a plot, add a 2% transfer fee on appraised value, 3.3% specific business tax if held under 5 years (otherwise 0.5% stamp duty), and withholding tax. These are standard corporate rates as of early 2026, and residential relief rates do not apply. Mitigation: calculate your net proceeds before price negotiations, not after signing.

DIY quick fixes. Schemes from online chat groups backfire in the current wave of checks: extra DBD queries, DSI attention, and scrutiny spreading to related companies. Mitigation: use a Thai lawyer who regularly handles Phuket Land Office cases and understands how sequential deals are being read now.

Source: Nation Thailand

FAQ

Is this confiscation of land by the state?

No. Under Section 94 the plot is sold and the proceeds, less costs and a fee of up to 5%, are returned to the beneficiary. What you lose is control over price and timing, not the asset's value outright.

How much time do I actually get to sell?

The period is stated in the notice itself: in practice from 180 days to one year. The clock runs from the date of the letter, not the date you read it.

Can the Thai shareholder find a buyer and sign the deal alone?

No. The Land Office states that the foreign beneficiary agrees the price and buyer and receives the money. The nominee holder named on the title deed has no such right.

Can I sell to a Thai friend and lease the land back?

The law does not prohibit selling to anyone entitled to own land, and the new owner may register a lease of up to 30 years or a superficies for the building for the foreigner. What is prohibited is the buyer remaining a figurehead with no real money and no economic interest.

What do authorities check in such deals?

Who paid, where the funds came from, whether the buyer is independent of the seller, and how the follow-on leasehold is documented. Sequential transactions on one plot are reviewed as a whole, not individually.

How far below market do forced-sale plots go?

The Land Office publishes no single statistic. Market estimates suggest such sales close noticeably below a calm-sale price because buyers can see both the deadline and the seller's obligation.

Will converting the company to 100% foreign ownership help?

For certain business activities such a structure may be possible, but it gives no right to own land. It does not solve the land issue.

What if I built the house and it is registered separately?

Buildings and land are registered separately in Thailand, so the house can remain with you through a superficies or a long-term lease from the new landowner. Register those rights at the same Land Office, ideally in one package with the sale.

If you already hold a notice, take one step first: record the letter date, calculate your net proceeds after tax, and start looking for a genuine Thai buyer this week. A 15% discount on your own terms is always cheaper than an auction on someone else's.

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