The idea of holding a leasehold condo in a Thai company has been used in Phuket as a way for foreigners to gain more control over property. In this setup, the Thai company owns the condo’s freehold title, and the foreigner controls the company through shares and management rights. While it may appear straightforward, this structure carries legal risks and requires careful understanding.

How Holding a Leasehold Condo in a Thai Company Works

  • A Thai limited company can own property in its own name.

  • Foreigners can hold up to 49% of shares in the company.

  • At least 51% of shares must be held by Thai nationals.

  • If those Thai shareholders are only nominees, the arrangement is illegal.

In effect, this structure lets a foreigner control a condo that should otherwise fall under leasehold, by placing it into a company’s name.

Why Do Foreigners Use a Thai Company to Own a Leasehold Condo?

The main reason foreigners consider this Thai company option is the belief that it gives them greater control. Since a Thai company is treated as a local entity, the condo can be registered in the company’s name as freehold. The foreigner then controls the company as director or shareholder.

This structure can appear attractive because:

  • It avoids lease renewal concerns, as the company holds the title indefinitely.

  • It allows the foreigner to influence ownership and occupation rights through their role in the company.

  • It has been used when a condominium’s foreign freehold quota is already full, and agents or developers persuade buyers to set up a company to acquire remaining units.

Some have also used a Thai company to hold a multiple leasehold condo units or as an investment vehicle. However, while these motivations explain why the structure has been popular, they do not remove the legal risks associated with nominee shareholders and non-compliant companies.

Is Holding a Leasehold Condo in a Thai Company a Common Strategy?

Using a Thai company to create freehold ownership of a leasehold condo was once a more widespread practice, especially before Thai authorities increased enforcement in the early 2000s. At that time, many foreigners used company structures as a workaround to gain control of condos beyond the foreign freehold quota.

Today, the climate is very different. Buyers are strongly advised to exercise caution and seek independent legal advice. Authorities are more active in investigating nominee arrangements, and the risks of penalties or ownership loss are significantly higher than in the past.

Legal Risks of a Leasehold Condo in a Thai Company

There are several reasons why using a Thai company to own a leasehold condo is risky:

  • Nominee shareholder issues – Thai shareholders who only hold shares on paper can make the company illegal.

  • Corporate compliance failures – Companies must file annual accounts, pay taxes, and hold shareholder meetings. Non-compliance can lead to dissolution.

  • Regulatory investigations – The Land Office and Department of Business Development regularly investigate property-holding companies, especially in Phuket, Samui, and Pattaya.

  • Future legal changes – Proposals to amend the Anti-Money Laundering Act (AMLA) may make nominee structures explicitly illegal, increasing the risks of this ownership route.

What Are the Risks For Using an Illegitimate Thai Company?

Holding a leasehold condo within a Thai company is not automatically illegal. However, if the structure involves nominee shareholders or lacks genuine business activity, the risks are serious:

  • Loss of control over the condo if authorities intervene.

  • Legal challenges under Thai corporate or land laws.

  • Difficulty or complications when reselling the property.

  • In some cases, foreign owners have lost their rights entirely because the company structure was deemed invalid.

These risks highlight why professional legal due diligence is essential before considering this route.

When Is Holding a Leasehold Condo in a Thai Company Legitimate?

Not every case is unlawful. Using a Thai company to own a leasehold condo may be legitimate if:

  • The company runs a genuine business with revenue and expenses.

  • Thai shareholders are active participants, not nominees.

  • Corporate governance is followed with proper filings, taxes, and meetings.

Without these elements, the company is likely to be seen as a shell entity.

A Better Alternative Than Using a Thai Company

The clearest and safest alternative to owning a leasehold condo within a Thai company is buying a foreign freehold condominium.

Under the Condominium Act, foreigners are allowed to own up to 49% of the total saleable floor area in any registered condominium project. This means:

  • Ownership is registered directly in the foreign buyer’s name at the Land Office.

  • The title deed (Chanote) clearly shows the foreigner as the registered freehold owner.

  • The ownership is secure, transparent, and recognised under Thai law.

  • There are no risks of nominee shareholders or company compliance issues.

If the 49% foreign quota in a particular project is already filled, the remaining units must be sold as leasehold. While leasehold contracts are legal and widely used, they offer less security than foreign freehold ownership and require careful legal structuring.

You may read the full English translation of the Condominium Act 2008 amendments provided by the Thai Government’s Department of Lands here: https://www.dol.go.th/estate/Pages/act%202008.pdf

Why Legal Due Diligence Matters

If you are considering owning  a condo, which should technically be leasehold,  within a Thai company structure, independent legal due diligence is essential. A lawyer should:

  • Check shareholder structures for nominee arrangements.

  • Verify the company’s compliance history (taxes, audits, filings).

  • Review the condo’s title and confirm proper registration.

For official information on Thai company law and compliance, visit the Department of Business Development (DBD).

Summary: Using a Thai Company to Own a Leasehold Condo

Using a Thai company for freehold ownership may look like a shortcut to control, but it carries serious legal and compliance risks. Nominee structures are strictly prohibited, and enforcement is becoming stricter in Phuket.

The safest alternative is a foreign freehold condo within the 49% quota, which provides direct ownership, legal transparency, and long-term security. Leasehold contracts remain an option when the quota is full, but they offer less protection than freehold.

FAQ: Holding a Leasehold Condo in a Thai Company

Is a leasehold condo in a Thai company legal?
Only if the company is genuine, with active Thai shareholders, real revenue, and full compliance. Shell companies or nominee setups are illegal.

What are the main risks of a leasehold condo in a Thai company?
Nominee shareholders, corporate non-compliance, and potential future legal changes can all invalidate the structure.

Can I use a company to bypass the foreign quota?
No. Using a Thai company as a workaround for the 49% foreign quota is considered a nominee arrangement and is against the law.

What are the alternatives to a leasehold condo in a Thai company?
The safest and most secure alternative is purchasing a foreign freehold condominium within the 49% quota allowed under the Condominium Act. This gives foreigners direct ownership registered at the Land Office, with the title deed clearly in their name. Leasehold contracts are another option if the freehold quota is full, but they offer less security than foreign freehold ownership.

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Conclusion

Holding a leasehold condo in a Thai company is a structure that has been widely used in Phuket, but it is no longer considered safe. Unless the company is a genuine, operating business, the risks of penalties or revoked ownership are high.

The most secure path remains a foreign freehold condo within the 49% quota, where ownership is directly registered in your name and fully protected under Thai law. Leasehold contracts may be viable when quotas are full, but they carry less certainty and require careful legal structuring.

Understanding the risks of using a Thai company to hold a leasehold condo can help you avoid costly mistakes in Phuket’s property market.

Disclaimer: The information contained in this article is provided for general informational purposes only and does not constitute legal, financial, or investment advice. While every effort has been made to ensure accuracy at the time of publication, property laws and regulations in Thailand are subject to change. Readers should always seek independent legal advice from a qualified Thai lawyer before making any property-related decision or transaction.