Holding Land Through a Thai Company and the Nominee Line

Legally yes: the Thai spouse owns the land and grants the foreign spouse a registered lease or usufruct. It must not be a nominee holding, which breaches sections 96 and 113 of the Land Code. At registration the Land Office will require the foreign spouse to sign a declaration that the purchase money is the Thai spouse's personal property.

Yes, on proof of the source of funds: the inward remittance evidence from the purchase, the Land Office sale agreement and proof that taxes were paid. The commercial bank reviews the documents under Bank of Thailand exchange-control rules before remitting out, so keep every document from the day you buy.

A company registered in Thailand with a Thai majority may own land, but if the Thai shareholders merely hold shares on behalf of a foreigner it is an unlawful nominee arrangement. We do not set up nominee shareholding structures and instead recommend a registered long lease, superficies, or a condominium unit inside the foreign quota.

Section 36 of the Foreign Business Act B.E. 2542 imposes imprisonment and fines on Thai nationals who assist a foreigner to evade the law, and section 113 of the Land Code penalises holding land on behalf of a foreigner. On the civil side the land may be ordered to be disposed of and the shareholding structure unwound.

Under Land Department circulars the officer investigates the source of funds of the Thai shareholders, their occupations and income, and the intended use of the land, and may demand historical financial evidence. If the evidence is inconsistent the officer can refuse registration and refer the file for further investigation.

Personal foreign ownership uses the foreign quota and requires inward remittance evidence. Ownership through a Thai company counts against the Thai side of the quota but brings bookkeeping, annual financial statements and corporate tax obligations. Weigh the long-run cost of maintaining the company against the benefit.

Common lawful routes are a registered long lease of up to thirty years with contractual renewal terms, purchase in the Thai quota through a genuinely trading Thai company, or waiting for a foreign-quota unit to be released. What you should not do is have a Thai person hold on your behalf: nominee arrangements are unlawful and can cost you the asset entirely.

It is, if the company exists only to hold the asset. The DBD and Land Department examine the Thai shareholders' source of funds, the company's revenue and its financial statement filings. If the Thai shareholders lack genuine financial capacity or the company does not trade, the structure can fall foul of the Foreign Business Act. Use it only where there is real business activity and proper legal supervision.

The Condominium Act caps aggregate foreign ownership at 49% of the total saleable floor area of a building. Once that ratio is reached, the Land Office will not register a transfer into a foreign name. Lawful alternatives are to wait until another foreign owner sells and quota is released, to buy within the Thai quota through a genuinely operating Thai company, or to register a long-term lease instead. Before paying a deposit, always request the juristic person's current foreign-quota certificate, because the ratio changes daily. We obtain that certificate and run the Land Office title search before you become contractually bound.