Thailand's Nominee Crackdown: Why 2026 Is the Year of Reckoning for Foreign Property Owners

Thai authorities have moved from warnings to enforcement. Since 2025, the Land Department and the Department of Business Development (DBD) have merged their databases and begun systematically auditing companies through which foreigners hold land. If you own property through a nominee structure with Thai shareholders on paper, your asset is now squarely in the regulator's sights.

This is not an abstract threat. As of June 17, 2026, Thailand has not liberalized its land ownership laws for foreigners in any way. Instead, regulators have tightened enforcement of existing rules against workaround structures. For anyone who already owns property, or is planning to buy, what has changed is not the law itself but how aggressively it is applied. That shift is far more consequential.

Key Facts

• Since 2025, Thai authorities have intensified scrutiny of nominee shareholding structures used by foreigners to acquire land.

• The Land Department has updated internal procedures for reviewing foreign-linked transactions and expanded real-time data sharing with the Department of Business Development (DBD).

• As of June 2026, foreigners still cannot own land directly in Thailand. There are no exceptions.

• Buying a condominium under personal freehold ownership remains fully legal, provided the foreign quota in a project does not exceed 49% of the total saleable area.

• Deals involving Thai spouses, nominee shareholders, or shell companies are now subject to heightened scrutiny at every stage.

• Foreigners have three realistic paths to ownership: condominium freehold, long-term leasehold of up to 30 years with renewal options, and usufruct rights.

• The crackdown, which began concentrated on Phuket, Koh Samui, and Koh Phangan, has since expanded to Krabi, Phangnga, Bangkok, and Chiang Mai, according to international reporting.

Story and Context

Nominee structures are not new in Thailand. For decades, foreign buyers used Thai Limited Companies in which 51% of shares were formally held by Thai nationals, while actual control and economic benefit stayed with the foreign investor. It was a gray zone: the law prohibited foreign land ownership, yet thousands of villas across Phuket, Samui, and Bangkok's outskirts were structured exactly this way.

The turning point came in 2025. Authorities stopped looking the other way. The DBD launched mass reviews of companies registered by or on behalf of foreigners, focusing on one key question: does the company conduct genuine commercial activity beyond simply holding real estate? If a firm's only asset is a plot of land, and its Thai shareholders cannot demonstrate the source of funds used to pay for their shares, regulators now have grounds to investigate.

The scale of this campaign is significant. According to international coverage of the crackdown, authorities have uncovered landholdings worth billions of baht, made dozens of arrests, and placed thousands of firms under review, with the effort expanding well beyond its original resort-island focus into Krabi, Phangnga, Bangkok, and Chiang Mai. Some Bangkok-based lawyers estimate that up to 40% of nominee-style structures on resort islands may show signs of illegitimate foreign control, though the Land Department itself has not published exact figures. One structural weakness fueling the problem: Section 94 of the Land Code allows illegally acquired land to be sold off without severe financial penalties, which has historically blunted the deterrent effect of enforcement.

What actually happens to those caught in the net? Forced sale of the land within a set period. Fines. In theory, criminal liability under the Land Code Act. In practice, criminal prosecution remains rare, but the mere existence of an investigation can freeze a property, making it impossible to sell or mortgage.

For international investors, the situation is complicated by how these structures were originally sold. Many buyers purchased property through intermediaries who arranged 'turnkey' corporate structures without explaining the underlying legal risk. Now, as regulators apply more pressure, it often emerges that the Thai shareholders listed on the company documents are an agent's driver or housekeeper, and the corporate paperwork does not withstand even basic scrutiny.

Alongside the crackdown, market demand has shifted. Developers report rising interest in condominiums, where foreign freehold ownership is unambiguously legal. High-rise projects in Phuket, once considered less appealing than standalone villas, are gaining traction precisely because investors are prioritizing clean legal title over lifestyle appeal.

Leasehold remains a separate, functioning path. A 30-year land lease registered with the Land Department is a legitimate tool, and renewal for a further 30 years, while not guaranteed by statute, is standard practice in contracts offered by major developers. The critical step is reviewing the actual contract language and distinguishing marketing promises from legally binding renewal clauses.

If you are planning a trip to inspect properties, start with an independent lawyer's consultation before booking flights. Understanding the legal structure of a deal should come before choosing an apartment, not after.

Source: Thai Examiner

FAQ

Can a foreigner buy land in Thailand in 2026?

No. As of June 2026, direct land ownership by foreigners remains prohibited. No exceptions have been introduced.

What changed with nominee structures?

Since 2025, the Land Department and the DBD have strengthened joint oversight. Companies with foreign involvement are now checked for genuine commercial activity and the authenticity of their Thai shareholders.

What are the risks of using nominee shareholders?

Forced sale of the land, fines, and in extreme cases criminal liability under the Land Code Act. Even the start of an investigation can block any transaction involving the property.

What is the safest way for a foreigner to buy property?

Condominium freehold within the foreign quota (up to 49% of a project's total area). It is the only fully legal ownership form available without intermediaries or workaround structures.

Is leasehold a viable alternative?

Yes. A land lease of up to 30 years, registered with the Land Department, is a legal instrument. Renewal is not guaranteed by law, only by contract terms.

What is usufruct and who is it suited for?

Usufruct grants a foreigner lifetime use of land and any structure on it without formal ownership. It suits situations where land is registered in a Thai spouse's name.

Should I restructure an existing nominee arrangement?

It is worth consulting a lawyer without delay. Options depend on the specific situation: some owners can shift to leasehold or usufruct, others may choose to sell and purchase a condominium instead.

Are older companies being audited too, or only new ones?

Older companies are included. The DBD can initiate a review of any company, particularly if its sole asset is a piece of land.

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