Land Department steps up crackdown on nominee landholding

Thailand’s Department of Lands has stepped up measures to prevent foreign nationals from illegally owning land through Thai nominees, warning that both foreign offenders and Thai nominees will face legal action.

The tougher approach includes stricter checks both before and after the registration of land rights, as well as closer coordination with relevant agencies to monitor suspicious transactions.

The measures are aimed at protecting national interests, ensuring fairness in land ownership and preventing attempts to evade Thai law.

Foreign land ownership allowed only in limited cases

Under Thai law, foreign nationals may own land only in specific circumstances. These include inheritance as a statutory heir, purchases for residential use under investment conditions set by law, or ownership permitted under specific legislation, such as investment promotion rules under the Board of Investment.

However, authorities have found attempts to avoid the law by using Thai nationals to hold land on behalf of foreigners, or by setting up companies to disguise foreign land ownership.

The Department of Lands has therefore introduced more proactive screening before registration. In cases where a Thai national is suspected of holding land on behalf of a foreigner, officials will examine whether the transaction may be intended to circumvent the law.

Checks will include the source of funds and the relationship between the parties. In cases involving a Thai-foreign marriage, the Thai spouse must confirm that the money used to buy the land is genuinely their personal property.

Where a company is suspected of being used to hold land on behalf of a foreigner, officials will examine its shareholding structure, actual income, source of investment funds and intended use of the land. The aim is to prevent companies from being used as fronts for illegal land ownership.

Post-registration checks to target suspicious activity

In addition to pre-registration checks, the Department of Lands is tightening inspections after land has been acquired.

Officials will monitor information and patterns of land use in target areas, as well as advertising, public relations activity and behaviour suggesting that a foreign national is presenting themselves as the real owner of the land.

If a complaint is received or suspicious information is found, a fact-finding committee will be set up immediately.

The department will also monitor legal entities with foreign shareholders every three months to track changes in investment and landholding patterns.

This work will be supported by data-sharing with the Department of Business Development, the Anti-Money Laundering Office, the Department of Special Investigation and other relevant agencies to improve the detection and prevention of illegal activity.

If an investigation finds no wrongdoing, the case will continue to be monitored. If nominee ownership or other illegal conduct is found, legal proceedings will begin immediately, with the matter also reported to the Ministry of Interior for further consideration.

Offenders face jail, fines and compulsory land sale

The Department of Lands said the law clearly sets out penalties for offenders.

Foreign nationals who illegally hold land may face imprisonment, fines, or both. Thai nationals or legal entities that assist in the arrangement or hold land on behalf of foreigners are also liable under the law.

In addition, offenders may be ordered to dispose of the land within a specified period. If they fail to do so, the director-general of the Department of Lands may order the sale of the land on their behalf.

The department stressed that the measures are not intended to block foreign investment. Rather, it said they are designed to ensure fair and transparent law enforcement while safeguarding the national interest.

It also urged members of the public to report any suspicious behaviour involving nominee landholding by foreign nationals to the relevant authorities, so that illegal activity can be prevented and suppressed more effectively.