Can foreigners buy land through a Thai company?
“Foreigners cannot own land, so open a Thai company, keep 49%, give Thai shareholders 51% and let the company buy it.” That advice is dangerously incomplete. A Thai company may lawfully own land if it qualifies, but Thai shareholders must not be used as nominees to hold land, shares or control for a foreigner. A company is not safe just because the register says 51% Thai, 49% foreign.
51/49 is not a magic formula
When there are signs that Thai shareholders may be holding for a foreigner, officials can look past the share register. Department of Lands guidance covers the source of the Thai shareholders' share money, whether their income supports the investment, where the company's land-purchase funds came from, loans used for the purchase and other signs of holding on behalf of a foreigner.
The better question is not “is it 51/49?” but “are the Thai shareholders genuine investors, and does the structure reflect the real ownership, funding and control?”
For the broader rules on houses and land, start with can foreigners buy a house in Thailand.
What is a nominee shareholder?
A nominee is not simply a Thai shareholder in a company that also has a foreign investor. The concern is a Thai person who appears as shareholder or owner for the benefit of a foreigner, so the foreigner can avoid restrictions. The Department of Business Development describes nominee conduct as a Thai person or company helping, supporting, jointly operating or holding shares for a foreigner so the foreigner can avoid restrictions under the Foreign Business Act.
That is different from a genuine Thai investor who puts in their own capital, bears real risk and holds shares for their own benefit.
Why the Thai shareholders' money matters
The percentages are the same. The facts are not. That is why officials ask where the Thai shareholders' money came from.
Loans from the foreign shareholder
A shareholder loan is not automatically illegal, but it does not make the funding invisible. Where a land purchase is large compared with the registered capital, Department of Lands guidance asks for the source of funds: loan agreements, foreign-currency transfers, bank withdrawals, board resolutions and balance sheets. A large foreign loan becomes part of the facts officials examine.
2026: enforcement is stricter
In May 2026 the Department of Lands announced proactive checks before and after registration, including shareholder structures, real income, the source of investment money and how the land is actually used, with data sharing with the Department of Business Development, the Anti-Money Laundering Office and the Department of Special Investigation.
From 1 August 2026, DBD Order No. 2/2026 requires an investment explanation letter and three months of bank statements when a foreign national is a co-investor or has signing authority in a new company or a change of registration, so officials can test whether Thai investment is genuine. DBD has also announced stepped-up inspections in areas including Phuket, Surat Thani, Chon Buri, Chiang Mai and Krabi.
What officials may ask to see
- Income or employment evidence for the Thai shareholders
- Bank statements and proof of where the share money came from
- Loan agreements and company resolutions
- Proof of where the land-purchase money came from
- Balance sheets and financial statements, and how a purchase larger than the registered capital was funded
These checks do not mean every mixed Thai-foreign company is illegal. They mean the economic substance matters.
Business substance, foreign directors and registration
There is no single rule that a company must reach a certain revenue before it may own land. But a company with no credible business, underfunded Thai shareholders and land used only as the foreign shareholder's home shows a much clearer nominee pattern than a real operating company with real Thai investment.
A foreign director, shareholder, manager or shareholder loan is not proof of a nominee arrangement on its own. What matters is the whole picture: who funded the Thai shareholders, who benefits, who controls the accounts and decisions, what side agreements exist and how the land is used.
And a completed registration is not legal clearance. If shareholders later turn out to be nominees, or information given to officials was false, the earlier registration does not remove the risk.
Penalties are real
The Land Code provides criminal penalties for unlawful land acquisition by foreigners and for a Thai person acquiring land as an agent for a foreigner, and the land can be ordered to be disposed of. Nominee offences under the Foreign Business Act carry up to three years' imprisonment, a fine of ฿100,000 to ฿1,000,000, or both. “Everyone does it” is not due diligence.
Lawful alternatives to compare
A Thai company should not be used merely to get around foreign land-ownership restrictions. If the real goal is a private home, compare these first:
- Freehold condominium, within the 49% foreign quota: foreign condo ownership guide
- Registered lease, priced on the registered term: leasehold for foreigners
- Sap-ing-sit, a registered right that can be sold, inherited and mortgaged: sap-ing-sit guide
- Statutory exceptions (Section 96 bis, inheritance, BOI and IEAT rights): foreign land ownership exceptions
Ten questions before a company buys land
- Why does the company genuinely need this land?
- Who genuinely owns the Thai shares?
- Who actually paid for them?
- Do the Thai shareholders bear real investment risk?
- Where does the land-purchase money come from?
- Are there foreign shareholder loans, and on what terms?
- Who controls the bank account and key decisions?
- Who will use and benefit from the land?
- Does the structure make commercial sense apart from the foreigner's wish to own the property?
- Has an independent Thai lawyer reviewed both land-law and Foreign Business Act exposure?
If the honest answer to question 9 is no, stop and take advice. Back to our complete guide to foreign property ownership in Thailand.
Sources
- Department of Lands: measures against landholding on behalf of foreigners
- Department of Lands, People's Guide: source-of-funds evidence
- Department of Business Development: nominee guidance
- The Nation: DBD registration checks against nominees from 1 August 2026
- Prachachat: Department of Lands proactive anti-nominee checks (May 2026)
Frequently asked questions
Is a 51/49 Thai company illegal?
Can a foreigner be a director of a Thai company that owns land?
What happens if a nominee structure is found?
What is the safest way for a foreigner to own a home?
Discuss foreign ownership requirements
Tell us what you want to buy. We will explain the lawful structures that fit, and introduce an independent Thai lawyer for the legal work.
General educational information, not legal or tax advice. Company and land structures depend on the facts. Use an independent Thai lawyer before signing, funding or registering any transaction. Sources checked on the date above.