Thailand's Nominee Crackdown 2026: What Foreign Property Owners Need to Know

As of 17 June 2026, Thailand has not opened its land market to foreign ownership. There has been no broad liberalization. Instead, authorities have chosen a different route: a systematic crackdown on nominee structures that expats have relied on for decades to sidestep the ban on foreign land ownership.

If you bought a villa through a Thai company with proxy shareholders, 2026 is the moment to seriously reassess your strategy. The Department of Lands and the Department of Business Development (DBD) have, for the first time, begun exchanging data in real time.

For investors operating through transparent structures, nothing has changed. But for those who have spent years hiding behind a 'Thai partner' holding a 51% stake, a very different story is beginning.

Key Facts

• Since 2025, Thai authorities have intensified scrutiny of nominee ownership structures used by foreigners to hold property

• The Department of Lands has updated guidance for foreign buyers and expanded real-time data sharing with the Department of Business Development (DBD)

• Freehold condominium ownership remains fully open to foreigners, provided the foreign quota in the building does not exceed 49%

• Direct land ownership by foreigners remains effectively impossible; the underlying law has not changed

• More than 850 companies have already been investigated this year over suspected nominee arrangements, with damages to the Thai state estimated at over 15 billion baht

• In Phuket alone, more than 600 companies are under special regulatory review, with Thailand's Department of Special Investigation (DSI) and the Ministry of Commerce examining ownership structures tied to landholding

• Prime Minister Anutin Charnvirakul has ordered nationwide audits of nominee structures, extending checks beyond the Eastern Economic Corridor (EEC) to all 77 provinces, with particular focus on resort hubs like Phuket, Koh Samui, and Chiang Mai

• Foreigners still have three legal pathways: freehold condominium ownership, long-term leasehold (up to 30+30+30 years), and corporate ownership structured in genuine compliance with the law

Story and Context

Nominee structures in Thailand are as old as the ban on foreign land ownership itself. The mechanics are simple: an expat sets up a Thai Limited Company in which Thai nationals formally hold 51% of the shares, while real control and capital rest with the foreign buyer. The company purchases the land, the foreigner builds the villa. On paper, the law is satisfied. In practice, it is not.

For decades this system worked almost without friction. Thai nominee shareholders, often drivers, housekeepers, or acquaintances of a lawyer, received a token fee and signed powers of attorney. Land offices looked the other way. Market estimates suggest thousands of properties across Phuket, Koh Samui, and Pattaya have been registered through such arrangements.

The shift began in 2025. The Department of Lands, working alongside the DBD, launched cross-referencing checks. The logic is straightforward: if a Thai company owns land but shows no genuine business activity, its only asset is a plot with a villa, and its Thai shareholders cannot demonstrate the source of funds used to buy their shares, that is a red flag. Regulators now also draw on anti-money-laundering data through AMLO, using digital tools to trace banking records tied to these structures.

This is no longer limited to a single economic zone. Following directives from Prime Minister Anutin Charnvirakul, audits have expanded from the Eastern Economic Corridor to all 77 provinces, with resort destinations such as Phuket, Koh Samui, and Chiang Mai drawing particular attention. In Phuket alone, over 600 companies are currently under review by the DSI and the Ministry of Commerce for suspected nominee ownership designed to bypass the rule limiting foreign shareholding to 49% under the Foreign Business Act.

An important nuance: authorities are not mass-annulling deals that have already closed. The focus for now is on new registrations and structures that look openly fabricated. But precedents already exist. In several provinces, land offices have refused to register a transfer of rights when a company's paperwork raised questions.

For international buyers who purchased villas in Phuket between 2018 and 2023, a significant share of those deals were structured through nominee companies. Those who worked with competent lawyers and built a structure around a genuine Thai partner and real business activity are in relatively safe territory. Those who cut corners on legal advice are now exposed.

What should owners do right now? There are three practical options. First, commission an independent audit of the existing structure with a Thai lawyer who was not involved in setting it up. Second, consider converting to a leasehold arrangement if the company structure looks questionable. Third, for new purchases, favor freehold condominiums, where the ownership mechanism is fully transparent from the outset.

Notably, the condominium markets in Bangkok and Phuket have not softened amid the tighter enforcement. If anything, demand for freehold units has risen as investors pivot toward compliant formats. This is a healthy correction: the market is shedding gray-area structures, which should strengthen confidence in Thai real estate as an asset class over the medium term.

Long-term leasehold deserves separate attention. A 30-year lease with a 30+30 renewal option remains a workable tool for villas and townhouses. But there are pitfalls here too: renewal is not guaranteed by law and depends on the landlord's goodwill. That makes contract structure and developer reputation critically important.

If you are planning a viewing trip to Thailand in the coming months, prepare a checklist for your lawyer in advance: the status of the owning company, the foreign quota in the condominium building, and the terms of any leasehold contract. Without that groundwork, any deal in Thailand's 2026 market is a walk through a minefield without a map.

Source: internationalinvestment.biz

FAQ

Can foreigners buy land in Thailand in 2026?

No. As of June 2026, the law has not changed. Direct land ownership by foreign individuals remains prohibited. There has been no broad liberalization of the rules.

What is a nominee structure and why is it risky?

A nominee structure is a Thai company in which Thai nationals formally hold 51% of the shares but contribute no real capital and make no real decisions. Since 2025, authorities have actively investigated such arrangements and can refuse to register a transaction built on one.

What ownership options are actually available to foreigners?

Three main paths: freehold condominium ownership in your own name (within the 49% foreign quota), long-term leasehold, and corporate ownership through a Thai company with genuine business activity and real Thai partners.

What has changed at the Department of Lands?

The Department of Lands has updated its guidance for foreign buyers and, for the first time, established systematic data sharing with the Department of Business Development (DBD). This allows fabricated companies to be flagged at the registration stage.

Can a deal already completed through a nominee company be annulled?

There is no mass annulment underway. The primary focus is on new registrations and clearly fictitious structures. But the risk exists, especially if the company shows no business activity and files no reporting.

Should I switch from corporate ownership to leasehold?

It depends on your specific situation. If your company has genuine Thai shareholders and real business activity, the structure may hold up. If not, it is worth consulting a lawyer about converting to leasehold.

How can I check whether my current ownership scheme is safe?

Commission an independent legal audit from a Thai lawyer who was not involved in creating the structure. Check whether the Thai shareholders file tax returns, whether the company conducts real business, and whether registered capital was properly deposited.

Is a 30+30+30 year leasehold really safe?

The initial 30-year contract is protected by law. However, the additional 30+30 year renewals carry no legal force until they are actually exercised. Everything depends on the contract terms and the landlord's willingness to renew in the future.

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