Thailand Tightens the Net: New Directives Target Nominee Land Ownership in 2026

In May 2026, Thailand's Department of Lands issued a series of 'Most Urgent' circulars to every provincial land office in the country. It is the strictest enforcement move in Thai history against nominee land ownership by foreigners. Anyone still relying on Thai shareholders as a shield to hold land should treat this as a call to review their structure immediately.

The new directives do not change the law itself. They convert long-standing rules into an active enforcement mechanism. For the first time, land offices nationwide are required to build a unified database of landholding companies and systematically flag nominee structures that conceal foreign control.

For international investors who have spent years using Thai companies as a wrapper to buy land in Phuket, Koh Samui, or Chiang Mai, this is a signal to audit their holdings without delay.

Key Facts

• May 2026: Thailand's Department of Lands issued 'Most Urgent' circulars to all provincial land offices nationwide.

• The directives consolidate existing rules into a single operating framework, requiring land offices to actively build a nationwide database of landholding companies.

• The legal basis is Sections 97 and 98 of the Thai Land Code, which restrict land ownership exclusively to Thai nationals.

• Land offices have been instructed to identify and report nominee structures holding land on behalf of foreigners.

• This is not new legislation but a fundamentally new level of enforcement of existing prohibitions.

• Thailand's Department of Business Development (DBD) is separately scrutinizing 36,277 foreign-linked landholding firms nationwide, with a focused review of 31,516 companies where foreign shareholding sits at or below 49 percent.

• On Phuket alone, more than 600 companies have come under intensified regulatory review for suspected nominee arrangements.

• Violators face penalties up to forced divestment of land under the existing Land Code.

Story and Context

Nominee land ownership through Thai companies is not a recent workaround. The practice dates back to the 1990s, when the first wave of foreign investors arrived on Thailand's coasts following the 1997 Asian financial crisis. The mechanics are simple: a foreigner sets up a Thai company in which 51% of shares belong to Thai nationals (often nominal holders with no real stake), while 49% belongs to the foreigner. The company buys the land. Actual control stays with the foreign investor through preference shares, shareholder agreements, and powers of attorney.

Thai authorities never formally endorsed this practice. Sections 97 and 98 of the Land Code clearly prohibit foreign land ownership, and the 1999 Foreign Business Act explicitly names nominee holding as a violation. But there was always a wide gap between the letter of the law and its enforcement. Provincial land offices operated in isolation, without a shared tracking system or standardized verification procedures. A foreigner could register a shell company in Phuket, and the land office in Krabi would have no way of knowing.

The May 2026 directives change exactly that dynamic. For the first time, a centralized system is being built. Every land office must now proactively verify ownership structures, cross-check data against company registries, and report suspicious arrangements. In effect, Thailand is shifting from a model of 'we know but look away' to one of 'we know, we record, we act.'

The timing reflects a broader policy context. Thailand has been actively courting foreign investors through Long-Term Resident (LTR) visa programs and discussions about raising the foreign quota for condominium ownership, while simultaneously tightening controls on shadow structures. The government's logic is straightforward: legitimate investment is welcome, opaque workarounds are not.

The scale of enforcement backs that up. The DBD is reviewing 36,277 foreign-linked landholding companies nationwide, concentrating on 31,516 firms where foreign shareholding does not exceed 49 percent, with hotspots in Bangkok and its surrounding provinces as well as tourist and investment hubs like Chonburi. On the Andaman coast, a joint police operation across Phuket, Phang Nga, and Krabi, its third phase, deployed more than 500 officers, issued 59 arrest warrants and 60 search warrants, and led to 48 arrests (27 Thai nationals and 21 foreigners). The raids seized land and structures worth roughly 1.05 billion baht across 89 plots totaling about 49 rai.

For foreign owners of villas and land plots held through Thai companies, the moment calls for a clear-eyed assessment. One path is a legal audit of the current structure with a qualified Thai lawyer, confirming the company conducts genuine business activity, files proper accounts, and can demonstrate a real economic purpose. A second path is transitioning to fully legal ownership models, such as a 30-year leasehold with renewal options, or purchasing a condominium unit within the foreign ownership quota. A third path, doing nothing and hoping the new database never reaches a particular plot, becomes a riskier bet with each passing month as the nationwide database takes shape.

The scale of the underlying issue helps explain the political urgency. Estimates suggest thousands of land plots in resort areas including Phuket, Koh Samui, Krabi, and Hua Hin are held through nominee arrangements. This is not only a legal matter but a politically sensitive one. Thai society is attentive to the question of foreign land ownership, and any government demonstrating firmness on the issue gains domestic political traction.

Source: Nation Thailand

FAQ

Is nominee land ownership in Thailand now illegal?

It always was. Sections 97 and 98 of the Thai Land Code restrict land ownership to Thai nationals. The May 2026 directives do not introduce a new prohibition; they create a mechanism for systematically identifying and acting on existing violations.

What exactly changed in May 2026?

The Department of Lands ordered all provincial offices to build a unified database of landholding companies and actively flag nominee structures. Previously, each office operated in isolation; now a centralized monitoring system is being created.

Can a foreigner legally own land in Thailand?

In exceptional cases, yes, through an investment of at least 40 million baht under a special permit. For the vast majority of foreigners, direct land ownership is not possible. Legal alternatives include long-term leasehold and condominium purchase.

What penalties do owners of nominee structures face?

Under current law, penalties include fines and forced divestment of the land. A foreign owner can be ordered to sell the property within a set timeframe.

Does this affect condominium ownership?

No. Foreigners retain the legal right to own condominium units within the foreign quota (no more than 49% of a project's total floor area). The new directives apply strictly to land plots.

How can I check if my Thai company qualifies as a nominee structure?

Key red flags include a company with no genuine business activity, Thai shareholders who never contributed real funds for their shares, and a foreigner who effectively controls decisions through powers of attorney or side agreements. An audit with a Thai lawyer is essential.

Should I act now or wait?

Act now. The directives are already in effect, and land offices have begun building the database. A legal audit of the ownership structure is strongly recommended, along with an assessment of options for bringing the situation into compliance.

Does the crackdown apply nationwide or only to resort areas?

Nationwide. The circulars were sent to every provincial land office in Thailand without exception, making this a countrywide initiative rather than a targeted check on specific tourist zones.

The May 2026 directives send a clear message that the era of quiet tolerance for nominee structures is ending. The only sound strategy now is to audit existing ownership arrangements and move toward legally sound forms of property ownership in Thailand.

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