Foreigners in Thailand are prohibited from directly owning land (Land Code). For many years, a common workaround was to register a Thai company where formally 51% was held by Thai “shareholders,” while in reality the foreign buyer controlled and financed everything. For years, this was sold as “standard practice.”
What Has Changed in 2026
Effective 1 January 2026, the Department of Business Development (DBD) mandated that Thai shareholders of newly established companies must provide bank statements proving they actually have the funds for their declared capital contributions.
Effective 1 April 2026, this same requirement was extended to any changes in existing companies — such as changes of directors, shareholding proportions, or capital increases. This means that old companies can no longer “sit quietly” — any change immediately triggers a verification process.
The Scale of the Crackdown
According to DBD estimates, approximately 94,000 companies show signs of nominee structures. The investigation involves 17+ government agencies and an AI-screening system that flagged around 50,000 companies; approximately 21,000 are already under suspicion.
By mid-2026, 852 cases had been initiated, with identified damages amounting to 15.1 billion baht. As recently as May 2026, on Koh Phangan, assets of a network of villas and hotels worth over 200 million baht were frozen and seized. In another case, 22 foreigners were arrested and more than 40 rai of land were confiscated.
What They Check
The key test is the Ultimate Beneficial Owner (UBO) — who actually controls and finances the company. If the Thai “shareholders” are merely nominal, while the money and decisions come entirely from a foreigner, the structure is deemed an illegal nominee scheme — regardless of what is recorded in the official register.
What This Campaign Does NOT Affect
If you are purchasing a condominium unit within the 49% foreign ownership quota and registering it directly in your own name (not through a Thai company) — this is a completely legal method of property ownership in Thailand and is not affected by this campaign.
Important nuance: If the condominium unit is formally registered under a Thai company to “hide” the true foreign owner, this falls under the same scrutiny, even if the property is a condo rather than land.
Our Position
At SiamDom, we do not facilitate property purchases through nominee schemes and recommend only legal options to our clients — either registering a condominium in your own name under the foreign quota, or using a long-term lease (leasehold) for a villa.
If you already own property structured through a Thai company, we strongly recommend consulting with a Thai lawyer as soon as possible to assess your risks.
This is general information and does not constitute legal advice.
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