Newsflash June 2026 Department of Lands Tightens Enforcement Against Nominee Land Ownership in Thailand

Thailand’s Department of Lands has recently announced stricter measures to prevent foreigners from using Thai nominee structures to circumvent restrictions on foreign land ownership. The new measures follow the Department of Business Development’s (the “DBD”) broader crackdown on nominee businesses and reflect increasing coordination among Thai authorities in enforcing the Foreign Business Act B.E. 2542 (1999) (the “FBA”) and the Land Code Act B.E. 2497 (1954), as amended (the “Land Code”), particularly in relation to land ownership and restricted business activities.

Under the Land Code, foreigners are generally prohibited from directly owning land in Thailand. Limited exceptions apply, including ownership acquired through inheritance, certain promoted activities under the Board of Investment (BOI), treaty-based rights, and the acquisition of land for residential purposes through an investment of at least THB 40 million, which may permit ownership of up to one rai of land for residential use. The Land Code also extends these restrictions to Thai companies that are considered foreign based on their shareholding structure or foreign control. This framework is particularly relevant in light of the current enforcement trend, as authorities are increasingly examining whether Thai corporate entities are being used to conceal beneficial foreign ownership or nominee landholding arrangements.

According to recent announcements by the Department of Lands, enhanced screening measures have been introduced for both pre-registration and post-registration reviews of land transactions involving foreign individuals and foreign-related entities.

1. Pre-registration Review

Enhanced scrutiny may apply where cash payments of THB 2 million or more are involved or where the appraised value of the property is THB 5 million or more.

1.1 For Individuals

The authorities may verify the source of funds, income, occupation and financial status of purchasers. A Thai spouse of a foreign national may be required to confirm that the funds used for the acquisition constitute personal property rather than marital property. Mortgages, lease agreements and other rights granted to foreign spouses may also be scrutinised where such arrangements could support nominee ownership structures. In addition, land transfers involving minor children of foreign nationals may be examined where the transaction could facilitate indirect foreign ownership. Where a nominee arrangement or an attempt to circumvent foreign ownership restrictions is suspected, the matter may be escalated to the Minister of Interior for further consideration and orders.

1.2 For Companies

For companies with foreign shareholders or foreign directors, the authorities may require evidence supporting the source of funds, income and occupation of Thai shareholders. They may also investigate a company’s funding sources where the acquisition value of the land exceeds the company’s registered capital and no mortgage financing is involved. Furthermore, land leases and other long-term land rights may be reviewed, including the purpose of the arrangement and the activities conducted on the land, in order to assess potential non-compliance with the FBA.

2. Post-registration Review

The Department of Lands will continue monitoring land use and related activities after registration, particularly where there are indications that a foreign national may be the actual beneficial owner of the land. The authorities may review land use, business operations, advertising activities and whether a foreign national exercises ownership or control over the land. Where complaints or suspicious information arise, a fact-finding committee may be established immediately to investigate the matter. Companies may likewise face increased scrutiny in connection with unusual shareholding changes, capital increases or ownership restructurings that could indicate attempts to circumvent foreign ownership restrictions. Provincial land offices are also required to conduct regular reviews of companies with foreign shareholders or directors and report their findings to the Department of Lands on a quarterly basis.

Where a nominee arrangement is identified, the authorities may order the disposal of the land within a period of 180 days to one year. Under the Land Code, foreign nationals who unlawfully acquire land may be subject to imprisonment for up to two years, a fine of up to THB 20,000, or both. Thai individuals acting as nominees for foreign nationals in acquiring land may face the same penalties. Juristic persons that unlawfully acquire or hold land in violation of the Land Code may be subject to a fine of up to THB 50,000.

The recent measures demonstrate Thailand’s increased focus on identifying and addressing nominee structures used to circumvent foreign ownership restrictions. Foreign investors and Thai counterparties should therefore review their landholding, shareholder and corporate structures to ensure compliance with the Land Code and the FBA. Given the enhanced scrutiny and increased coordination among regulatory authorities, non-compliant arrangements may face regulatory investigations and potential legal consequences.

Our team regularly advises foreign investors, multinational companies and Thai businesses on foreign ownership restrictions, nominee-related risks and compliance with the Land Code and the FBA. We assist clients with legal due diligence, corporate structuring and restructuring, shareholder and landholding reviews, Foreign Business Licence (FBL) applications and other regulatory compliance matters relating to foreign investment in Thailand. Should you have any questions regarding the issues discussed in this article or require assistance with your business or investment structure in Thailand, please do not hesitate to contact us by email at thailand@luther-services.com or by telephone at +66 2 210 0036.