The Department of Business Development disclosed that 36,277 foreign legal entities hold land in Thailand, mainly clustered in 16 tourist and metropolitan provinces. The department is intensifying investigations into high-risk groups suspected of nominee use and plans to expand probes into nominee takeovers of condominiums, punishable by up to three years imprisonment.
Mr. Poonphong Nainapakorn, Director-General of the Department of Business Development, revealed details regarding foreign ownership of real estate, explaining that the department received data from the Department of Lands concerning property holdings by legal entities. There are a total of 144,706 entities reported. The department cross-checked these to verify registration with the department and found that 125,662 entities were registered with the department. Among these,
the data can be categorized into 87,265 entities wholly Thai-owned and 36,277 entities with foreign investment, the latter being the focus for in-depth investigation to determine if nominee arrangements are used illegally to hold land.
A detailed analysis of the 36,277 foreign legal entities shows that over 35,154 hold land in 16 key strategic provinces, divided as follows:
Six provinces in the Bangkok metropolitan area: Bangkok, Nonthaburi, Samut Prakan, Pathum Thani, Samut Sakhon, and Nakhon Pathom.
Ten major tourist provinces: Chonburi, Surat Thani, Phuket, Rayong, Chiang Mai, Chiang Rai, Prachuap Khiri Khan, Krabi, Phang Nga, and Mae Hong Son. The remaining 1,123 entities are spread across other provinces nationwide.
The Director-General further explained that foreign shareholding legal entities can be divided mainly into two groups:
Mr. Poonphong continued that among the 31,516 entities with foreign ownership up to 49%, 20,537 hold a single land title deed, 8,068 hold 2-5 deeds, 1,511 hold 6-10 deeds, and 1,400 hold 11 or more. Regarding land area, 21,106 entities hold up to one rai, 2,250 hold more than 1 but up to 2 rai, 2,490 hold more than 2 but up to 5 rai, 1,505 hold more than 5 but up to 10 rai, and 3,865 hold more than 10 rai. For the 4,761 entities with over 49% foreign ownership, 2,244 hold one deed, 1,906 hold 2-5 deeds, 378 hold 6-10 deeds, and 233 hold 11 or more. Their land areas include 467 entities holding up to one rai, 154 holding more than 1 but up to 2 rai, 499 holding more than 2 but up to 5 rai, 783 holding more than 5 but up to 10 rai, and 2,858 holding over 10 rai. The total land area held by foreigners in both groups has yet to be fully calculated.
Beyond land holdings, the department is awaiting data from the Department of Lands to examine foreign legal entities' condominium ownership. Legally, foreigners may hold no more than 49% of condominium space, with the remaining 51% reserved for Thai nationals.
However, legal loopholes have been exploited where foreigners establish legal entities and use Thai nominees to acquire the remaining 51%, then lease or resell for profit. The department plans rigorous inspections to address this issue.
Mr. Poonphong emphasized that if illegal foreign land ownership is confirmed, the Department of Lands has legal authority to enforce compulsory land sales within 180 days to recover funds for foreigners.
Regarding business operations, if nominee violations are found, the Department of Business Development will prosecute under the Foreign Business Act, imposing penalties of up to three years imprisonment or fines between 100,000 and 1,000,000 baht, or both, matching penalties for unauthorized foreign business activities.
Read more news " Government policy " updates