NOMINEES BEWARE

As can be seen in the news, the era of using Thai nominee structures to hold land and luxury property is facing its biggest reckoning yet.

9/24/20261 min read

As can be seen in the news, the era of using Thai nominee structures to hold land and luxury property is facing its biggest reckoning yet.
For decades, the "51% Thai shareholder / 49% foreign director" corporate setup was treated across many resort markets as a routine workaround for Thailand’s restrictions on foreign land ownership.
That dynamic has drastically changed.
Over recent months, Thai authorities—led by the Department of Business Development (DBD), the Land Department, the DSI, and law enforcement—have deployed coordinated, data-driven investigations targeting nominee-held real estate across Phuket, Koh Samui, Koh Phangan, Pattaya, and Bangkok.
What is driving the crackdown:
Real-time data sharing: The DBD and the Land Department now cross-reference corporate registries and property titles automatically. A red flag in corporate filings instantly triggers scrutiny at the Land Office.
Proof of funds & capital scrutiny: Authorities are no longer looking just at nominal share percentages. Thai shareholders must now provide documentary proof (bank records, source of funds, Investment Confirmation Letters) showing genuine capital contributions rather than acting as proxy paper holders.
Broad legal exposure: Under the Foreign Business Act and the Land Code, both the foreign beneficial owner and the local nominee face potential criminal liability, substantial fines, company dissolution, and forced asset liquidation.
The takeaway for buyers and investors:
If you are entering the Thai property market, rely strictly on compliant, recognized legal routes—such as freehold condominium ownership (within the 49% foreign quota) or properly structured registered long-term leases.
For anyone currently holding assets through legacy company structures, proactive review and regularisation with qualified legal counsel is no longer optional—it’s critical.
Are you seeing this shift impact buyer sentiment in your region?