Update For Buying Land or Property In A Company Name

It is Illegal and very dangerous for foreigners to set up a Thai company for the sole purpose of owning property in Thailand. The key word here is Sole Purpose.

If the company is not trading no staff, no tax being paid, and no real business being carried out and is to be used to facilitate the purchase of land or property house villa or condo for a foreigner then it is illegal.

Foreigners

Thai Companies as a vehicle to own land on behalf of a foreigner is not allowed under Thai law it is illegal.

Nominees

(section 97 of the Thai land code ) Outlines limitations of land ownership for legal entities with foreign involvement. It is not allowed for foreigners to use nominee Thai shareholders to create a majority Thai owned company for the purpose of land ownership. The use of nominee shareholders to circumvent the Thailand Land Code Act or Foreign Business Act is illegal and any foreigner setting up a company with nominee shareholders is violating foreign ownership restrictions and creates an unlawful foreign ownership, irrespective the number of shares he owns in the company.

Measures To Stop Nominees

When trying to register any property or land at the land office, in a company name the Thai shareholders will be asked to show their latest 6 months bank statements.

They will need to prove where their money has come from.

Consequences

If it is found that the Thais are nominees they and the Foreigner will be in big trouble and can even be imprisoned and or lose the property.

In The Past

Up to the May 2006 Land Office guidelines aimed at preventing the misuse of Thai limited companies and Thai nominee shareholders by foreigners it was common practice for foreigners to purchase land or condominium beyond the foreign ownership quota in a nominee structured majority Thai owned but foreign controlled Thai limited company. As long as the company had a majority Thai shareholdings there were no practical restrictions when purchasing a property and the partly foreign owned company was treated as any other Thai company. Currently the government has issued new regulation preventing circumvention of the law by foreigners through Thai companies and currently this structure is only possible by circumventing the law and regulations.

Summary

Things are very different and it is imperative that you follow the law and take sound legal advice. There are still some law firms and accountants and real estate people advocating the use of nominees to circumnavigate the law.

Contact Lawyers For Expats Thailand

We follow the law and protect you and your investment.

To arrange a Free Consultation simply call 0956583038 Lawyers for Expats Thailand are here to assist you.

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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