The Land Department is advancing stricter measures to thoroughly scrutinize land held on behalf of foreigners, known as “nominees,” across both individuals and legal entities. The focus is on transparency, preventing legal evasion, and safeguarding national interests, especially in economically strategic and high-investment areas.
The Land Department has implemented detailed screening protocols for individuals, particularly in high-risk transactions, as follows:
For transactions involving land purchases or transfers valued at 5 million baht or more, or cash payments of 2 million baht or higher, officials must thoroughly investigate the source of funds, income, occupation, and financial standing.
If the buyer (Thai national) has a foreign spouse, they must certify that the funds used are "personal assets" and not "marital property." Any signs of mortgages, leases, or rights granted that could benefit the foreign spouse will be closely examined.
When a minor child of a foreign national receives land transfer, a comprehensive investigation will be conducted to prevent use of this as a loophole for proxy ownership.
If there is reasonable suspicion of land held on behalf of foreigners or actions evading the law, the Land Department will immediately propose the matter for ministerial consideration and action.
For legal entities with foreign shareholders or directors, the Land Department will intensify scrutiny on key points:
Thai shareholders must be verified to ensure they are not holding shares on behalf of foreigners, through checking income and sources of capital.
The legitimacy of capital will be examined; if a company purchases land at a price exceeding its registered capital without mortgage, officials will thoroughly investigate the company's funding sources.
The purpose of leases or long-term rights will be checked for compliance with the Foreign Business Act of 1999. If credible evidence is lacking, it will be presumed to be proxy ownership for foreigners.
The Land Department’s review extends beyond transfer procedures to include a "retrospective inspection" mechanism. Each province is tasked with establishing joint committees composed of:
Local administrative authorities
Land officials
Local government organizations
Provincial commerce offices
Relevant agencies
These committees are responsible for filtering facts and continuously monitoring suspicious activities in their areas to prevent long-term nominee land holdings.
Although foreigners generally cannot own land in Thailand, there are only three exceptions under defined criteria.
Inheritance as a natural heir (according to Section 93 of the Land Code).
For residential purposes (according to Section 96 bis), requiring investment of no less than 40 million baht in specified businesses, with ministerial approval (ownership limited to 1 rai).
Under other laws such as the Petroleum Act, the Investment Promotion Act (BOI), or the Eastern Economic Corridor (EEC) Development Act.
Penalties: Foreigners illegally holding land or Thais holding land on behalf of foreigners (nominees) violate Sections 111 and 113 of the Land Code, punishable by imprisonment up to 2 years, fines up to 20,000 baht, or both.