As a foreigner buying property in Phuket, you may come across the idea of using a Thai company to lease a condominium unit. While this method is not uncommon, it involves complex legal considerations that every buyer should understand.

In this article, we break down how the process works, why some buyers choose this route, and what the legal implications are under Thai law.

Why Use a Thai Company to Lease a Condo?

The primary motivation for foreigners to use a Thai limited company is to secure greater control over their property. In many cases, this structure allows:

  • A 30-year lease registered to the company (which the foreigner controls)

  • Optional lease renewal clauses

  • Rights of use and occupation through director/shareholder control

Some buyers also use a Thai company to lease multiple units or as a vehicle for investment purposes.

Thai Law and Nominee Shareholding

Thai law clearly prohibits the use of nominee shareholders—i.e., Thai nationals who hold shares on behalf of a foreigner without genuine ownership interest. If discovered, the authorities can take legal action and potentially nullify the company’s property rights.

To comply with the law, a legitimate Thai company must:

  • Be a genuine business, ideally with operations, employees, and accounting records

  • Have real Thai shareholders with voting rights

  • Not exist solely for the purpose of acquiring property for a foreigner

If the company is a “shell” created solely for property acquisition, it may be subject to investigation by the Ministry of Commerce or the Land Office.

What Are the Risks?

Using a Thai company to lease a condo is not illegal per se, but if the structure violates nominee laws or lacks business legitimacy, the risks include:

  • Lease agreements being voided

  • Loss of control over the property

  • Legal challenges from Thai authorities

  • Future resale complications

In worst-case scenarios, foreign buyers have lost access to or ownership of their properties due to flawed company structures.

Is This a Common Strategy?

This strategy was once more widespread, particularly before the Thai authorities began cracking down on misuse of company structures in the early 2000s. Today, buyers are advised to be cautious and work with experienced legal professionals to ensure full compliance.

Safer Alternatives for Foreign Buyers

For those looking to invest in Phuket condominiums, the safest routes include:

  • Foreign Freehold ownership within the 49% quota

  • 30-year leasehold agreements under your own name

  • Purchasing through an offshore structure only where legal (e.g., in rare mixed-use or BOI-approved projects)

Each of these has pros and cons, and you should always conduct full due diligence with a reputable property lawyer.

You may also want to read all about the benefits and advantages of owning a freehold condominium in Thailand: 

The Benefits and Advantages of Owning a Freehold Condominium in Thailand

Other Internal Links You May Find Helpful:

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

FAQ – Thai Companies and Leasehold Condos in Phuket

Can I own a leasehold condo in Phuket through a Thai company?
Yes, but the company must be legally structured, with real shareholders and business operations.

Is it legal to use nominee shareholders?
No. Nominee structures are illegal and can result in legal action and loss of property rights.

What is the risk of using a shell company?
If Thai authorities determine the company was created solely for property ownership, your lease could be invalidated.

Are there safer options than using a company?
Yes. Leasehold in your personal name or foreign freehold within the 49% quota are more secure and legally compliant.

Thinking of buying a leasehold condo in Phuket?
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