Department of Lands tightens checks on nominee land deals in Thailand
High-value land transfers and cash payments will face closer scrutiny as officials move to prevent Thai nationals from being used as nominees.
- The Department of Lands is implementing stricter checks on high-value land transactions (THB 5 million or more), scrutinizing the buyer's source of funds and financial status to prevent illegal nominee ownership by foreigners.
- Increased scrutiny will be applied to specific groups, including Thai nationals with foreign spouses, minor children of foreigners, and companies with foreign shareholders, to verify the legitimacy of land ownership.
- Provincial inspection committees will be established nationwide to conduct ongoing monitoring and follow-up inspections on land acquisitions to detect suspicious conduct.
- Companies purchasing land for more than their registered capital or foreign entities leasing land long-term will also face closer examination to ensure compliance with foreign ownership laws.
The Department of Lands is raising scrutiny of landholding on behalf of foreign nationals, by both individuals and juristic persons, particularly in high-value land transactions.
The move is aimed at preventing the use of “nominees” to avoid the law, with inspection committees to be established in every province to tighten oversight of property transactions nationwide.
Summary of key measures
- Stricter checks on high-value land purchases
- For purchases or transfers of land worth THB5 million or more, or cash payments of at least THB2 million, officials will conduct detailed checks on the source of funds, income, occupation and financial status of the buyer.
If suspicious circumstances suggest the land is being held on behalf of a foreign national, the matter will be submitted to the minister for consideration of further action.
Thai nationals with foreign spouses must explain the source of funds
Where a Thai national has a foreign spouse, the buyer must confirm that the money used to purchase the land is “personal property”, not “marital property”, to prevent landholding on behalf of a foreign national.
In addition, if a mortgage, lease or other benefit is granted to a foreign spouse and is deemed to facilitate landholding on another’s behalf, it will be subject to further scrutiny.
Checks on the use of a minor child’s name to hold land
If the minor child of a foreign national receives a transfer of land, officials will investigate the facts in detail to prevent the use of legal channels to hold land on behalf of a foreign national.
Tighter scrutiny of landholding by juristic persons
The Department of Lands will increase scrutiny of companies with foreign shareholders or foreign directors, particularly in cases involving purchases of land worth THB5 million or more, or cash payments of at least THB2 million.
Checks will determine whether:
- Thai shareholders are not holding shares on behalf of foreign nationals
- The sources of capital are transparent
- Income and financial status are consistent with the transaction
- Watching companies that buy land for more than their registered capital
If a company is found to have bought land at a price higher than its registered capital, but without a related mortgage, officials will closely examine the source of its capital to determine whether it is credible.
Checks on foreigners leasing land long-term
For foreign juristic persons that lease land or hold long-term rights, the Department of Lands will check the purpose of land use to determine whether it may breach the 1999 Foreign Business Act.
If clear evidence cannot be produced, the arrangement may be presumed to constitute landholding on behalf of a foreign national.
Inspection committees to be established in every province
The Department of Lands will also introduce follow-up measures after land is acquired, requiring every province to establish a committee to inspect cases of landholding on behalf of foreign nationals.
The committees will comprise:
- Administrative officials
- Land officials
- Local administrative organisations
- Provincial commerce offices
- Relevant agencies
The bodies will jointly monitor, inspect and keep watch for suspicious conduct on an ongoing basis.
The measures are intended to prevent the use of Thai nationals as “nominees”, reduce avoidance of landholding laws, increase transparency in property transactions and build long-term confidence in Thailand’s landholding system.
