Thailand is tightening controls on foreigners who attempt to circumvent the ban on direct land ownership by using Thai nominee owners or specially created companies. Authorities are moving toward systematic inspections of land transactions, corporate structures, sources of financing, and actual control over real estate.
According to market operators, special inspection committees are being established in every province of the country, comprising representatives from land authorities, the police, the tax service, and other agencies. Their task is to identify schemes in which a foreign buyer effectively controls a land plot but formally registers it in the name of a Thai individual or a company with Thai shareholders.
Legal consultants in Thailand also note that starting in 2026, controls will be tightened regarding company registration and land transactions. The Department of Business Development requires confirmation of the actual source of funds and investment declarations when establishing or amending companies, while the Department of Land Resources cross-checks corporate data against land titles.
The focus is on so-called nominee structures, where Thai citizens or companies act as nominal owners of land on behalf of a foreigner. Thai law generally prohibits foreigners from directly owning land, although foreigners may own condominium units within established quotas, enter into long-term land leases, or own a building separately from the land.
The new checks will apply not only to future transactions but also to existing arrangements. Authorities intend to analyze the source of funds, the composition of shareholders, the family and business ties of the parties, the actual use of the land, as well as signs that the Thai nominee owner has no independent economic interest in the property.
For foreign buyers, this means a sharp increase in legal risks. The use of Thai nominee shareholders or fictitious structures may lead to criminal prosecution, liquidation of the company, forced sale of the land, and loss of control over the asset. Lawyers advise investors to review old ownership structures and bring them into compliance with the law in advance.
This is particularly important for Thailand’s real estate market amid growing foreign demand. In recent years, foreign buyers—including investors from Russia, China, Europe, and the Middle East—have shown strong interest in properties in Phuket, Bangkok, Pattaya, Samui, and other tourist destinations. Part of the demand has been for villas and land plots, where legal restrictions are significantly stricter than in the apartment segment.
Tighter controls could cool some villa and land transactions, especially if they were based on informal agreements with nominal owners. At the same time, this could increase demand for more transparent formats—such as purchasing condominium units within the foreign quota, long-term land leases, officially structured investments, and projects with legally verified ownership models.
