Can a foreigner own 100% of a Thai company that owns land?

No. For a Thai company to legally own land, at least 51% of the shares must be held by Thai nationals. A foreigner can own up to 49% of the shares. If a foreign majority is detected, the company may be reclassified as a 'foreign company' subject to the Foreign Business Act, which prohibits land ownership.

What is a 'nominee shareholder' and why is it risky?

A nominee shareholder is a Thai person who appears on the company's capital without actually investing, simply to allow a foreigner to effectively hold the majority of the property. This practice has been illegal in Thailand since the tightening of regulations post-2006. It exposes the foreign investor to criminal prosecution, forced dissolution of the company, and confiscation of the relevant property.

Are the costs of setting up a Thai company high?

Establishing a Thai Company Limited involves registration fees with the DBD (Department of Business Development), local lawyer fees (often between 30,000 and 80,000 THB depending on complexity), as well as ongoing costs: accounting, annual audit, and filing of accounts. These costs are in addition to property taxes. A minimum capital requirement must also be met in line with the declared business activity.

Is it easy to sell a property owned by a Thai company?

Yes, but the transfer is more complex than a direct property sale. There are two options: selling the company's shares (transfer of shares) or having the company sell the property. In both cases, taxes apply (transfer duties, corporate capital gains tax). Due diligence is also more burdensome for the buyer, which may reduce the pool of potential buyers.

Is the 30-year leasehold really renewable up to 90 years?

Thai law legally limits a lease to 30 years with options for renewal. In practice, contracts often provide for two successive renewal options of 30 years each (totaling 90 years), but these renewals are not automatically guaranteed: they depend on the willingness of the Thai owner at the time of renewal. It is crucial to have the contract drafted by a competent local lawyer and to register the lease with the Land Department for enforceability against third parties.

Setting Up a Thai Company to Buy a House?

Yes, establishing a Thai company (Thai Company Limited) to acquire real estate is technically legal, but heavily regulated. If the company is formed solely to bypass the prohibition against foreigners purchasing land, it is considered a fraudulent scheme subject to criminal penalties.

Why Do Foreigners Create a Thai Company to Purchase Property?

In Thailand, the law prohibits foreigners from owning land (freehold land) in their own name. To circumvent this restriction, some foreign buyers — whether a Belgian business traveler, a Swiss retiree, or a Moroccan investor — establish a Thai limited liability company (Thai Company Limited) in which they hold shares, and have the property purchased by this company.

Technically, the company — as a Thai legal entity — can own land. However, Thai authorities, particularly the Department of Land and the Department of Business Development (DBD), actively monitor this type of arrangement.

When Is This Arrangement Legal — and When Does It Become Illegal?

The line between legality and fraud is defined by the actual purpose of the company:

Legal: the company engages in a genuine business activity in Thailand (hotel, rental, trade), employs Thai staff, generates reported income, and holds the property as part of this activity.
Illegal (sham arrangement): the company is created solely for a foreigner to hold a house personally, without any real activity. The Thai shareholders are “nominees” who are not true partners. This practice violates the Land Code Act and can lead to confiscation of the property and criminal prosecution.

⚠️ Warning

Since 2006, Thai authorities have intensified checks on nominee companies. A foreigner holding more than 49% of a Thai Company that owns land risks an investigation by the DBD. In the case of proven fraud, the property may be seized and the foreign director prosecuted.

Conditions for the Structure to Be Valid

The company must consist of at least 3 shareholders, with a Thai majority (minimum 51% of shares held by Thais).
The company must have a real business activity, declared and operational.
Thai shareholders must be true partners, not mere nominees paid to lend their name.
Annual accounts must be filed, and an audit conducted each year.
The company must pay the applicable corporate tax and property taxes.

✅ Practical Advice

Before forming a Thai company for real estate purposes, consult a local lawyer specializing in Thai real estate law. The legal structure should be designed from the outset with a credible business activity — not added later to regularize a scheme.

What Are the Alternatives to a Thai Company?

If your goal is to use a property for personal purposes (residence, vacation), other options are safer:

Condominium: foreigners can directly buy up to 49% of the units in a condominium project. This is the simplest and safest route.
Leasehold: a long-term lease of 30 years, contractually renewable (up to 90 years in practice), registered with the Land Department.
Usufruct: the right to use and enjoy the property for a specified period, registrable on the land title (Chanote).

For a comprehensive analysis of your rights as a foreigner in Thailand, consult our guide: Buying Property in Thailand: Rights 2026.

⚠️ Disclaimer

This article is provided for informational purposes only and does not constitute legal advice. Laws and regulations vary by country and change regularly. Consult a qualified professional for your specific situation.

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