Ownership & Legal
Is Thai company ownership of land legal for foreigners?
Direct Answer
A genuinely Thai-majority company (with active Thai shareholders, real capital and bona-fide commercial purpose) can legally own land. Using Thai nominee shareholders to give a foreigner de-facto control while satisfying the 51% Thai threshold on paper is illegal under the Foreign Business Act and increasingly enforced.
Detailed Explanation
The Land Code prohibits foreign land ownership, but Thai limited companies (51%+ Thai-owned) can own land. The structure is legitimate where the Thai shareholders are real, contribute capital, and the company has genuine commercial activity.
Nominee structures — Thai shareholders holding shares on behalf of a foreigner, with no real capital contribution, voting alignment with the foreigner, and no commercial purpose — are illegal under the Foreign Business Act. Enforcement has tightened, with audits and unwinding of nominee-held land.
Even where the structure is genuine, ongoing compliance costs (audited accounts, annual filings, tax returns, work-permit considerations for foreign directors) make it heavier than the leasehold alternative for purely residential property.
Investor Considerations
- Prefer leasehold for landed residential property — cleaner and lower compliance overhead.
- Use genuine Thai-company structures only where commercial activity justifies them.
- Independent legal counsel is non-negotiable for any company-holding structure.
Risks & Limitations
- Nominee structures can be unwound by authorities with loss of the land asset.
- Ongoing compliance failures (filings, audits) can dissolve the company and force liquidation.
- Marketed Thai-company structures from agents often mask nominee arrangements.
Related Pillar
Thailand Property Investment Guide →Related Frameworks
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