Why Thailand Is Cracking Down on Nominee Land Ownership
Nominee land ownership in Thailand is under unprecedented scrutiny. As a result, the government is intensifying its crackdown on proxy arrangements used by foreign nationals. In February 2026, the Cabinet reviewed a progress report on new enforcement measures. These include legislative amendments and AI-powered screening tools designed to identify foreigners who hold land through Thai nominees. If you currently use, or are considering, a nominee structure to own property in Thailand, the legal landscape has shifted dramatically.
This article explains what nominee land ownership in Thailand involves, the enforcement actions now in effect, the proposed legal changes that could result in land confiscation without compensation, and the compliant alternatives available to foreign investors.
What Is Nominee Land Ownership in Thailand?
Nominee land ownership in Thailand refers to an arrangement where a foreign national uses a Thai citizen or Thai-majority company as a proxy to hold land on their behalf. Under the Foreign Business Act and the Land Code, foreigners are generally prohibited from owning freehold land in Thailand. To circumvent these restrictions, some investors set up structures where Thai individuals or entities nominally hold the land title, while the foreigner retains effective control and beneficial ownership.
This practice is illegal. The Thai authorities have long been aware of nominee arrangements, and the government is now deploying technology and cross-agency coordination to detect and penalise them more effectively than ever before.
How Thailand Detects Nominee Land Ownership Structures
AI-Powered Corporate Screening: The IBAS System
Since October 2025, the Department of Business Development (DBD) has operated the Intelligence Business Analytic System (IBAS). This AI-driven platform cross-references corporate registry data with government databases. Consequently, it flags companies that show indicators of nominee ownership. The system analyses shareholder structures, capital flows, and directorship patterns. As a result, this makes it significantly harder to conceal nominee arrangements behind complex corporate layers.
Cross-Agency Data Sharing and Enforcement
Thailand’s enforcement approach now involves coordinated data sharing between the Land Department and the Department of Business Development. Furthermore, a memorandum of understanding between the DBD and the Central Investigation Bureau (CIB) also targets nominee structures. In other words, information flagged in business registrations can now trigger investigations by both agencies simultaneously.
Therefore, for foreign investors who assumed their structures were private, this represents a significant shift. Authorities can now trace beneficial ownership across multiple government data sources.
Six Priority Sectors Under Heightened Scrutiny
The Thai government has identified six sectors where nominee structures are most prevalent and where enforcement will be most aggressive:
- Tourism
- Land trade and real estate
- E-commerce, logistics, and warehousing
- Agriculture
- Hotels and resorts
- Construction
If your business or property investment falls within any of these sectors, your structure faces a higher probability of review. Read our guide on Thailand’s DBD nominee rules in 2026 for a deeper analysis of the current regulatory framework.
Nominee Land Ownership Thailand: Proposed State Forfeiture Without Compensation
The most consequential proposed change involves Section 94 of the Land Code. Currently, when the government identifies unlawfully held land, the owner is required to dispose of the property, but they can receive proceeds from the sale. The proposed amendment would eliminate this entirely.
Under the new proposal, land held illegally by foreigners through nominees would be forfeited to the state without any compensation. This means a foreign investor who purchased property through a nominee structure could lose the entire asset, and all money invested in it, with no financial recovery.
This represents a fundamental change in the risk calculus for nominee land ownership in Thailand. Previously, the worst-case scenario was a forced sale; now, the worst case could be total forfeiture.
Foreign Business Act Amendments and Increased Penalties
In parallel, the DBD is studying amendments to the Foreign Business Act (FBA) that would introduce stricter definitions of nominee arrangements, increased financial penalties, and expanded enforcement authority for regulators.
Looking further ahead, the government is exploring whether to classify FBA violations as predicate offences under the Anti-Money Laundering Act (AMLA). If implemented, authorities could freeze and seize assets linked to nominee structures. In effect, this would add another powerful enforcement tool. Those who hold director positions in Thai companies should be particularly aware of these evolving liabilities.
What Nominee Land Ownership in Thailand Means for Foreign Investors
Foreign investors who currently hold land through nominee structures in Thailand face three converging risks:
- Detection risk is rising sharply. The IBAS system and cross-agency data sharing mean that structures which were previously difficult to identify are now being systematically flagged.
- Penalties are becoming more severe. Proposed amendments would eliminate compensation for unlawfully held land, replacing forced disposal with outright state forfeiture.
- Criminal exposure is expanding. Potential AMLA classification could transform what was once treated as a regulatory violation into a serious criminal matter with asset seizure consequences.
Ultimately, the combination of these factors means that the status, holding land through a nominee and hoping for the best, is no longer a viable strategy.
Legal Alternatives to Nominee Land Ownership in Thailand
Foreign investors do have legitimate options for accessing the Thai property market. These structures comply with Thai law and avoid the escalating risks associated with nominee arrangements:
BOI-Promoted Investment
The Board of Investment (BOI) offers promoted status to qualifying foreign investments. BOI-promoted companies can own land directly for approved business activities. Our comprehensive BOI Thailand 2026 investment guide covers the latest eligibility criteria and application process.
Long-Term Lease Arrangements
Foreigners can secure leasehold interests in Thai land for up to 30 years, with options for renewal. A well-drafted lease agreement, prepared by an experienced contract lawyer, provides secure occupancy rights without the legal risks of nominee ownership.
Condominium Ownership
Thai law permits foreigners to own condominium units in freehold, provided that foreign ownership in the building does not exceed 49 percent of the total unit space. This is one of the most straightforward paths to foreign property ownership in Thailand.
Superficies Rights
A superficies right under Section 1410 of the Thai Civil and Commercial Code allows a person to own buildings or structures on another person’s land. This can be a practical solution for investors who want to develop property without holding the underlying land title.
Properly Structured Thai Companies
A legitimately structured Thai limited company — with genuine Thai shareholders who have real investment and participation — can hold land lawfully. The key distinction is between a company with legitimate Thai ownership and a company that merely uses Thai names as fronts. If you are considering this route, consult our guide on buying land through a Thai company and ensure your company registration is fully compliant.
Frequently Asked Questions
Can foreigners own land in Thailand?
No, foreigners generally cannot own freehold land in Thailand. The Land Code restricts land ownership to Thai nationals and qualifying Thai entities. Foreigners can, however, own condominium units (up to 49% of a building’s total area), obtain long-term leases of up to 30 years, or invest through BOI-promoted companies that are permitted to hold land for approved activities. Using a Thai nominee to hold land on a foreigner’s behalf is illegal and subject to increasing enforcement.
What happens if Thailand catches a nominee land arrangement?
Under current law, land held unlawfully must be disposed of, and the owner may receive proceeds from the sale. However, the Thai government has proposed an amendment to Land Code Section 94 that would allow the state to confiscate the land without any compensation. In addition, penalties under the Foreign Business Act are being increased, and authorities are considering classifying nominee arrangements as predicate offences under the Anti-Money Laundering Act, which could lead to criminal prosecution and asset seizure.
What is the IBAS system used to detect nominee structures?
The Intelligence Business Analytic System (IBAS) is an AI-powered screening platform operated by Thailand’s Department of Business Development since October 2025. It analyses corporate registry data alongside government databases to identify companies that exhibit patterns consistent with nominee ownership, such as unusual shareholder structures, atypical capital flows, or directorship anomalies.
Property Investment and Legal Compliance
How can I legally invest in Thai property as a foreigner?
Foreigners have several legal options for investing in Thai property. These include purchasing a condominium in freehold, obtaining a long-term lease of up to 30 years, or investing through a BOI-promoted company. Other options are acquiring a superficies right or holding land through a legitimately structured Thai company with genuine Thai shareholders. Each option has different requirements and limitations, so professional legal advice is recommended.
Is buying land through a Thai company still legal?
A Thai limited company can legally own land with genuine Thai majority shareholders. These shareholders must have made real financial contributions and actively participate in the company. What is illegal is setting up a company with Thai nominee shareholders who have no real investment or involvement — this is considered a nominee structure. The Department of Business Development now uses AI screening to distinguish between legitimate companies and nominee arrangements. If you are considering this route, it is essential to ensure your company structure is fully compliant with both the Land Code and the Foreign Business Act.
What are the penalties for using a nominee to own land in Thailand?
Current penalties include forced disposal of the land and fines under the Foreign Business Act. Proposed amendments would escalate consequences significantly: the land could be forfeited to the state without compensation, financial penalties would increase, and if nominee violations are classified as predicate offences under the Anti-Money Laundering Act, offenders could face criminal prosecution, asset freezing, and seizure of related assets.
Protect Your Investment — Get Expert Legal Advice
If you hold property through a nominee structure in Thailand, or if you are planning to invest in Thai real estate, now is the time to review your legal position. The enforcement environment is tightening, and the proposed penalties are severe.
Lex Bangkok advises foreign investors on compliant property ownership structures, corporate restructuring, and regulatory compliance. Our team can assess your current arrangements and recommend solutions that protect your assets within the law.