Thailand’s laws prohibit foreign nationals from owning land directly. This legal restriction has led many investors in the past to use a Thai limited company as a vehicle to acquire villas and other landed property in Phuket. But is this approach legal? And just as importantly, is it still safe?

Here’s everything you need to know before considering property ownership via a Thai company.

Why Foreigners Consider Thai Companies for Land Ownership

The main attraction of this method is simple: foreigners cannot directly own land in Thailand, but Thai companies can. By forming a limited company, often with Thai nominees, some foreign buyers have historically gained indirect control over land and villas.

While this strategy was widely used in the past, it’s become increasingly risky under modern enforcement.

What the Law Says

Thai law permits a Thai company to own land, provided that:

  • More than 50% of the company’s shares are held by Thai nationals.

  • The company is formed for a legitimate business purpose, not just to hold property.

  • The company is genuinely operated, with proper accounts, annual audits, tax filings, and documented board meetings.

If the company is merely a shell entity — created solely for the purpose of enabling foreign land ownership — this is considered nominee ownership, which is strictly illegal.

The Risk of Nominee Shareholders

If the Land Office or Ministry of Interior suspects that Thai shareholders are acting as nominees (i.e. holding shares on behalf of a foreigner without financial involvement or control), they may:

  • Deny registration of the land or villa.

  • Revoke ownership rights, even years after the purchase.

  • Impose fines or criminal penalties for violating the Land Code.

Investigations into company structures have increased in recent years, especially in resort areas like Phuket, Samui, and Pattaya.

A Grey Area That’s Turning Black and White

For years, this ownership model existed in a legal grey area, often tolerated but rarely enforced. However, as Thailand tightens regulation of its real estate market — particularly in tourism hotspots — this workaround is no longer advisable for the average investor.

The Thai government has clearly stated its intent to curb abuse of nominee arrangements and restore transparency in land ownership.

What If the Company Is Genuine?

If you have a legitimate Thai business that genuinely operates (e.g., a restaurant, tour company, or consulting firm), and it happens to own land, that is legal.

However, even in these situations:

  • You must run the company properly under Thai law.

  • Foreigners can only own up to 49% of shares (with very few exceptions).

  • Annual accounting, tax filings, and shareholder meetings are required.

You cannot simply register a company and “forget about it.” Otherwise, you’re at risk of violating Thai corporate and land laws.

Villas Held in Companies: Risks for Buyers

If you’re purchasing a Phuket villa that is already held by a Thai company, you might be offered a “share transfer” — where you buy the company that owns the land.

This strategy is not recommended unless:

  • You perform thorough due diligence on the company (liabilities, taxes, hidden debts).

  • You work with a trusted lawyer to verify all documents and legal standing.

  • The company has been properly maintained, with no nominee structures.

Otherwise, you could inherit legal risk, tax issues, or even lose the asset entirely.

Safer Alternatives for Foreign Buyers

While you can’t own land directly, there are still safe, legal alternatives to invest in property in Phuket:

  1. A Phuket Foreign Freehold Condominium – The safest and simplest option for foreign ownership.

  2. A 30-Year Leasehold Contracts – Registerable at the Land Office, renewable, and fully legal when properly structured.

  3. A Usufruct or Superficies Agreements – Allow use or ownership of structures while another party owns the land.

These options, when structured by a knowledgeable property lawyer, offer security without legal grey areas.

Final Thoughts: Don’t Risk Your Investment for Control

While it may be tempting to seek “ownership” of land via a Thai company, the legal risks far outweigh the perceived benefits. Thailand’s property market offers safer, fully legal paths to invest — without cutting corners or relying on outdated tactics.

If it sounds too good to be true, it probably is.

FAQ: Thai Company Property Ownership in Phuket

Can I own a villa in Phuket in my name?
No. Foreigners cannot directly own land in Thailand, which includes villa land plots. However, they can lease land or purchase a freehold condominium unit.

Is it legal to use a Thai company to own land?
Only if the company is legitimate, operated correctly, and not formed solely to bypass land ownership laws. Nominee structures are illegal.

What are nominee shareholders?
Nominee shareholders are Thai individuals who hold shares on behalf of foreigners without having true control or financial interest. This is a violation of Thai law.

Can I buy a company that owns a villa?
Yes, but only with extreme caution. You must perform due diligence to ensure the company has no liabilities and is legally sound.

Are there safer ways for foreigners to invest in Phuket property?
Yes. Leaseholds, foreign freehold condominiums, and structured agreements like usufruct or superficies offer legal, transparent alternatives.

Get in Touch with Phuket’s Trusted Property Experts

Our experienced legal and real estate team at Thai Residential can help you make sound investment decisions — with legal clarity and complete peace of mind.

Contact Us Today | 📞 Call Now On: +66 9484 11918