Is It safe For Foreigners To Buy Landed Property by Setting Up Thai Company?
- Kanokpich Ukritdutsadee
- Jan 23
- 5 min read
Updated: 7 days ago
As a foreigner looking to invest in Thailand's vibrant real estate market, you might have heard about setting up a Thai company as a way to own landed property. But is this approach truly safe and legal? At Lawyers for Expats Thailand, we've been guiding expatriates through the complexities of Thai property laws for years, and we're here to break it down for you. In this post, we'll explore how foreigners can legally buy property in Thailand, the available foreign ownership options, why you should avoid setting up a Thai company for this purpose, the dangers of using nominees, and recent government crackdowns. We'll also discuss safe alternatives and how our team can help you navigate these waters legally.
Understanding Foreign Property Ownership in Thailand
Thai law strictly regulates foreign ownership of land and landed property to protect national interests. Under the Land Code Act B.E. 2497 (1954), foreigners are generally prohibited from owning land outright. This includes houses, villas, or any property where the land is inseparable from the building—commonly referred to as "landed property." Instead, foreigners have limited but legal pathways to invest in real estate.
From our research and experience, common questions like "how do foreigners buy property in Thailand" often lead to the following insights: Foreigners can own condominiums freely, as long as the building's foreign ownership quota doesn't exceed 49% under the Condominium Act B.E. 2522 (1979). For landed properties, options are more restricted. Leasehold agreements allow foreigners to lease land for up to 30 years, with potential extensions, but these come with caveats we'll discuss later. Another option is through marriage to a Thai national, where the property can be owned by the Thai spouse, but this requires careful prenuptial agreements to protect foreign investments.
When searching for "foreign ownership options for property in Thailand," we see foreigners can own buildings or structures on land, the land itself must remain under Thai ownership. This distinction is crucial for properties where the land hasn't been legally separated from the building. Many properties for sale in Thailand fall into prohibited categories for foreigners, especially if the land title (Chanote) includes the structure without subdivision. In such cases, attempting to bypass restrictions can lead to severe legal consequences.
Just because it is being offered to you to buy it does not mean you can legally own it.
Why You Should Not Set Up a Thai Company to Own Property
Foreigners are frequently being offered to set up a company to own land or landed property, “Do not set up a Thai company to own property in Thailand"—and for good reason. Setting up a limited company with Thai shareholders (requiring at least 51% Thai ownership under the Foreign Business Act B.E. 2542 (1999)) might seem like a loophole to hold land. However, this practice often involves using "nominees"—Thai individuals who hold shares on behalf of the foreigner without real control or investment. This is illegal under Thai law.
The dangers of using nominees are significant. Nominees can claim actual ownership, leading to disputes where the foreigner loses everything. Thai courts do not recognize nominee arrangements, viewing them as attempts to circumvent the law. Under Section 286 of the Civil and Commercial Code, such sham structures can be invalidated, resulting in forced sales, fines, or even imprisonment. The Board of Investment (BOI) and Department of Lands scrutinize company setups for property ownership, and if foreign control is deemed excessive, the entire transaction can be nullified.
Moreover, recent updates highlight the risks. The Thai government is actively investigating and prosecuting foreigners across the country—including hotspots like Pattaya, Phuket, Krabi, Hua Hin, Samui, Koh Phangan, and beyond—who violate these laws. In 2023 and 2024, raids and audits by the Department of Special Investigation (DSI) and Land Department have led to numerous cases. Penalties include fines up to 500,000 THB, imprisonment for up to 3 years, confiscation of property, and deportation. For instance, in Phuket, several high-profile cases involved foreigners losing millions in investments after nominee schemes were exposed.
In 2026 news of heightened scrutiny and investigations into companies with nominees and companies holding land for foreigners has been reported.
At Lawyers for Expats Thailand, we've been advocating and warning against this practice for the past 5 years. Many developers and real estate agents and our competitors dismissed our concerns, claiming "this would never happen." But true to our warnings, it is happening now. Enforcement has ramped up amid economic pressures and a push for transparent foreign investments, making risky setups even more precarious.
Legal Alternatives for Foreigners: Leasehold and Beyond
For landed properties where the land hasn't been separated from the structure, the only legal option for foreigners is a leasehold agreement, capped at 30 years under the Civil and Commercial Code. There's no automatic promise of renewal, and extensions cannot be enforced in a Thai court of law—even if stipulated in the contract. This makes leaseholds suitable for short- to medium-term investments but not ideal for long-term security.
This is causing issues for many people who are looking to buy legally and safely and have a lease on the land and ownership of the house above.
That said, there are safe ways to structure investments. For example, foreigners can own the building while leasing the land.
Lawyers for Expats Thailand
Lawyers for Expats Thailand is a dedicated law firm for foreigners and their families, living, working, retiring and investing and conducting business providing ethical, transparent legal services for expatriates navigating life in Thailand. Led by Lawyer Pook, our team specializes in immigration, property law, business setup, family law, and dispute resolution. We stand for integrity—following Thai law to the letter rather than circumventing it. We prioritize sustainable solutions that protect your interests long-term.
What do we do? We offer comprehensive consultations on property due diligence, drafting airtight lease agreements, assisting with condominium purchases, houses and villas and representing clients in legal disputes. Our approach is client-centered: We educate on risks, advocate for fair practices, and deliver results without compromising ethics. Over the years, we've helped hundreds of expats avoid pitfalls, secure visas, and build successful lives in Thailand.
Ready to Invest Safely? Contact Us Today
If you're a foreigner considering property investment in Thailand, don't risk it with outdated advice. Lawyer Pook and her team at Lawyers for Expats Thailand are here to provide legal and safe solutions tailored to your needs. Reach out for a consultation via email at info@lawyersforexpatsthailand.com, or Call us now / WhatsApp +66 95 658 3038 Line ID: 0956583038.
About the Author:
Kanokpich Ukritdutsadee, widely known as Lawyer Pook, is a highly experienced Thai lawyer and barrister serving as the head and managing director of Lawyers for Expats Thailand (www.lawyersforexpatsthailand.com).
With over 21 years of qualification and practice (celebrating her 21st anniversary in the profession as noted in recent updates), she has dedicated her career to addressing the unique legal needs of foreigners living, working, and investing in Thailand. Her expertise spans key areas such as property law, immigration and visas, business setup, matrimonial law (including prenuptial and postnuptial agreements), company formation, wills, and civil/criminal matters, always emphasizing legal compliance and safe solutions for expats and their families.
Lawyer Pook leads a dedicated team focused exclusively on expat clients, combining deep legal knowledge with a compassionate and kind approach. She and her firm are committed to working from the heart, providing empathetic, practical guidance to help foreigners navigate Thailand's legal landscape securely and effectively. Her practice reflects both professional excellence and a genuine care for her clients' well-being.
Ready for more? Our full blog collection delivers practical legal strategies for expats thriving in Thailand, covering nominees, wills, and beyond. CLICK HERE TO READ MORE
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