36,277 Companies Under Review: Thailand Cracks Down on Nominee Land Ownership in 2026

Thailand's Department of Business Development (DBD) has placed 36,277 foreign-linked companies holding land under formal review, marking the largest enforcement sweep in years against nominee structures used to sidestep the country's ban on direct foreign land ownership. For international investors who have relied on Thai limited companies for years to buy villas and land, this is a signal that can no longer be ignored.

The primary target is 31,516 companies where foreign capital officially stays below the 49% threshold, the exact ceiling that allows a firm to register as Thai and legally hold land. The problem: in thousands of these structures, the Thai shareholders are nominees on paper only, with real control resting in foreign hands. DBD intends to identify and shut down these arrangements.

According to reporting by Thairath, the review spans 16 provinces, including Bangkok and five surrounding provinces, plus ten major tourist provinces such as Chonburi, Surat Thani, and Phuket. This confirms that the crackdown is not limited to a single resort market but reflects a nationwide policy shift.

Quick Answer

• 36,277 companies with foreign participation are under DBD review for compliance with Thai land law

• The core focus is 31,516 firms with foreign shareholding under 49%, a structure often used with nominee Thai shareholders

• The Land Code bans direct foreign land ownership; a Thai-majority company is the only legal workaround, and its misuse is now being targeted

• Penalties for nominee structures reach up to 1 million THB and/or 3 years imprisonment under the Foreign Business Act, with the harsher risk being forced land sale within 180 days

• The review covers 16 provinces, including Bangkok's metro area and tourist hubs like Phuket, Surat Thani (Koh Samui), and Chonburi

• Owners using Thai companies to hold land should arrange an urgent legal audit of their structure

Key Facts

• The Foreign Business Act (1999) defines a foreign company as any entity with more than 49% foreign capital; companies below that line are treated as Thai and may own land

• DBD is examining not just shareholder registers but actual control: who makes decisions, who financed the purchase, and who receives the income

• The Land Code Act B.E. 2497 (1954) bans foreigners from owning land outright, with a narrow exception for Board of Investment approved projects requiring a minimum 40 million THB investment

• Market estimates suggest up to 60-70% of foreign-owned villas in Phuket are registered through Thai companies with nominee shareholders

• In a related enforcement action, a phase-4 crackdown on Phuket's nominee network in August 2026 led to 16 people prosecuted (10 Thai, 6 foreign nationals, including Canadians, Russians and a Kazakh national) tied to businesses run under nominal ownership

• A broader Phuket probe into land holdings examined 361 companies, resulting in 149 legal entities identified as owning land with suspect foreign shareholding, with 114 lawsuits filed and 39 fines issued

• Condominiums are unaffected by this review: foreigners can hold freehold units directly as long as the foreign quota in the building stays under 49%

FAQ

Can my land in Thailand be taken away if my company fails the review?

Yes. If DBD determines that the Thai shareholders in your company are nominees, the Land Department can order the property sold within 180 days. If no sale takes place, authorities can auction the land themselves.

What exactly does DBD check in these companies?

The Department of Business Development examines shareholder structure, the source of funds used to buy the land, actual management control, meeting minutes, and financial records. The central question is whether Thai shareholders are genuine investors or simply nominees.

How can a foreigner legally own a villa in Thailand?

There are several lawful routes. One is a long-term land lease (leasehold) for 30 years with renewal options. Another is owning the building separately from the land while leasing the plot. A third is forming a genuine joint venture with a Thai partner who actually participates in the business and financing. A fourth option is buying a condominium unit under freehold ownership.

Will this review affect my condominium unit?

No. The DBD review applies exclusively to companies holding land. Direct condominium ownership under the Condominium Act (1979) is a separate regime that allows foreigners to own up to 49% of a building's total area.

What should I do if I already hold land through a Thai company?

Start with an independent legal audit of the structure. If the arrangement is vulnerable, a lawyer can propose restructuring options such as converting to leasehold, bringing in a genuine Thai partner, or selling the land while retaining rights to the building.

How much does leasehold cost and how does it differ from freehold?

Leasehold grants land rights for up to 30 years, typically with two renewal terms, though renewal is not legally guaranteed. Properties sold under leasehold are usually 15-30% cheaper than equivalent freehold properties. The key difference is that you rent the land rather than own it.

Why has enforcement intensified now?

Pressure on nominee structures has been building since 2022, when parliamentary committees began debating large-scale foreign land acquisition in resort areas. Political pressure, rising land prices, and public concern over foreign capital concentration in premium locations accelerated the process.

Is there criminal liability risk for foreign directors?

Yes. The Foreign Business Act carries criminal penalties of up to 3 years imprisonment for conducting business prohibited to foreigners. Using nominee shareholders to circumvent the law qualifies as a violation of the Act.

How will this affect the villa markets in Phuket and Koh Samui?

In the short term, supply may increase as some owners choose to sell before receiving an order. In the medium term, the market is likely to shift toward leasehold structures and condominiums, which could push up demand and prices in those segments.

Should I plan an inspection trip before buying?

Absolutely. Before any property transaction in Thailand, you should personally inspect the asset, meet with a lawyer, and verify all documentation on the ground.

The scale of this review, spanning 36,277 companies across 16 provinces, points to a systemic, long-term policy shift rather than a one-off campaign. For international investors, the takeaway is clear: the era of unchecked nominee structures for buying Thai land is ending. Those who restructure early will protect both their assets and their peace of mind, while those who ignore the signal risk forced sales and criminal prosecution.

Source: Thairath

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