Thailand’s nominee land crackdown, announced on 19 October 2026, has important implications for foreign buyers considering villas, company-owned property and land-backed investments in Phuket.
The authorities are focusing not only on registered landowners and shareholders, but also on the people who actually finance, control and benefit from property transactions.
This does not mean that all Thai companies owning land are illegal or that foreign investment in Phuket property has been prohibited. It does, however, make independent verification of ownership structures increasingly important.
Thailand’s October 2026 Nominee Land Crackdown: The Key Figures
Selon les Thai Government Public Relations Department, Prime Minister and Interior Minister Anutin Charnvirakul announced a nationwide operation against suspected illegal nominee landholding on 19 October 2026.
The Department of Lands identified 1,397 suspected nominee landholding entities or arrangements associated with 2,360 land plots covering approximately 5,467 rai, with an estimated combined value of THB 14.01 billion.
Authorities are also prioritising investigations involving 13,088 individuals and entities potentially connected with unlawful nominee arrangements.
Provincial governors have been instructed to accelerate investigations, with a target of reaching conclusions on priority cases by December 2026.
The operation focuses on identifying beneficial owners, examining the financial arrangements behind land acquisitions, enforcing land disposal requirements where violations are established, and preventing transfers to replacement nominees.
The THB 14.01 billion figure represents the estimated value of land under scrutiny. It does not mean that this amount has already been confiscated or recovered through compulsory sales.
Phuket Has Already Been Targeted by Nominee Investigations
The crackdown is directly relevant to Phuket.
On 20 June 2026, police conducted a major operation across Phuket, Krabi and Phang Nga, targeting suspected nominee ownership networks.
Selon les The Nation, the regional operation targeted 76 companies and involved 89 land plots with an estimated combined value exceeding THB 1 billion.
Within Phuket specifically, investigations covered 49 companies and 56 plots valued at approximately THB 231 million.
The businesses under investigation included hotel and resort operations, property-related services, restaurants and other commercial activities.
These figures do not establish that every company or property involved has been finally determined to be unlawful.
Nevertheless, they demonstrate that ownership structures involving foreign investors are already being examined in Phuket, not merely in other parts of Thailand.
For villa purchasers, the practical implication is clear: the history, funding and genuine ownership of a landholding company deserve careful attention before any transaction is completed.
What Is an Illegal Nominee Arrangement?
Foreign nationals are generally restricted from directly owning land in Thailand, subject to limited statutory exceptions.
A nominee arrangement can arise when a Thai individual or company holds land on behalf of a foreigner in circumstances intended to circumvent those restrictions.
Authorities may investigate who provided the capital, who controls important decisions, whether Thai shareholders are genuine investors and who receives the economic benefits.
A company showing 51% Thai shareholding is not automatically compliant simply because its registered ownership appears to satisfy a percentage threshold.
For example, where Thai shareholders have contributed no genuine capital and exercise no independent ownership rights, the arrangement may raise serious legal concerns.
Conversely, a legitimate Thai company with foreign minority shareholders is not automatically unlawful.
The key distinction is the substance of the company’s ownership, financing, governance and activities.
Buying a Company-Owned Villa in Phuket: Why Due Diligence Matters
Some Phuket villas are offered through the transfer of shares in an existing Thai company that owns the land and buildings.
This is fundamentally different from purchasing land directly in an individual’s name.
A buyer acquiring shares may assume exposure to the company’s historical transactions, debts, tax obligations, contracts and potential legal liabilities.
Independent legal and financial due diligence should examine the land title, company incorporation records, genuine shareholder contributions, directors, financial statements, outstanding obligations and previous changes in ownership or control.
An established company does not become legally safe simply because it has owned land for many years.
Equally, buying a company does not automatically eliminate the underlying legal restrictions applicable to foreign land ownership.
A properly qualified Thai company can legally own land. The risk arises when the company is used as an artificial structure to conceal prohibited foreign ownership.
For a detailed explanation, see JFTB’s guide to buying property through a Thai company in Phuket.
What Penalties Apply to Illegal Nominee Land Ownership?
The risks associated with unlawful nominee arrangements extend beyond compulsory land disposal.
Section 113 of Thailand’s Land Code provides for penalties of up to two years’ imprisonment, a fine of up to THB 20,000, or both, for acquiring land as an agent for a foreigner or a relevant juristic person in the circumstances covered by the law.
Section 111 separately provides penalties for certain violations of restrictions on foreign land acquisition.
Depending on the circumstances, other legislation governing companies and foreign business activities may also apply.
Actual liability depends on the specific conduct, evidence and applicable statutory provisions.
A property arrangement should never be treated as legally acceptable merely because it is widely used or offered by a developer, seller or intermediary.
The THB 5 Million and THB 2 Million Screening Thresholds
The October announcement builds on enforcement measures introduced earlier in 2026.
Department of Lands Urgent Circular มท 0515.2/ว 10722, dated 15 May 2026, provides for additional investigations in certain land transactions, including where:
- The property’s official appraised value used for registration-fee assessment is at least THB 5 million.
- Cash consideration reaches at least THB 2 million.
- Other circumstances create reasonable suspicion of nominee ownership, regardless of transaction value.
These requirements are described in the published English translation of the Department of Lands circular.
The THB 5 million threshold refers to the official value used for registration-fee assessment, not necessarily the negotiated purchase price.
The THB 2 million threshold concerns cash payment, not the total purchase price of every property transaction.
Officials may examine the source of funds, income, occupation, financial capacity and genuine participation of Thai shareholders.
These thresholds are triggers for enhanced scrutiny, not general prohibitions on purchases above those amounts or safe harbours for transactions below them.
Are Foreign Freehold Condominiums Affected?
Foreign Freehold condominium ownership remains a recognised legal route for qualifying foreign buyers.
Under Thailand’s Condominium Act, foreign ownership is generally limited to 49% of the total unit floor area of a registered condominium.
A qualifying foreign buyer may acquire and register an eligible condominium unit directly in their own name, subject to the applicable foreign quota, funding documentation and registration requirements.
However, direct foreign ownership of a condominium must be distinguished from ownership through a company.
In 2026, Thailand’s Department of Business Development also announced investigations into suspected nominee structures involving corporate condominium acquisitions.
These investigations do not remove the legal framework for direct Foreign Freehold purchases. They reinforce the need to verify the legal position where companies are used to acquire residential property.
Even a directly registered Foreign Freehold unit requires due diligence concerning title, outstanding liabilities, condominium management, rental restrictions and resale prospects.
Foreign Freehold provides a distinct statutory ownership structure, not an unconditional guarantee of investment safety.
What About Leasehold Villas?
Leasehold remains a recognised contractual mechanism for acquiring rights to use land in Thailand.
For ordinary immovable-property leases, the standard maximum registered term is generally 30 years.
Future renewal promises must be distinguished from the initial registered lease. Marketing expressions such as “30+30+30 years” should not be understood as automatically guaranteeing 90 years of enforceable registered rights.
A land lease does not provide freehold ownership of the underlying land.
Buyers should verify the landowner’s title, existing mortgages, registration of the lease, building ownership, transfer provisions and the legal enforceability of relevant contractual arrangements.
The nominee crackdown does not make properly structured leases automatically unlawful. Complex arrangements designed to conceal prohibited foreign land ownership or control may, however, attract additional scrutiny.
Can Thai Spouses of Foreign Nationals Still Purchase Land?
Thai citizens do not lose their legal right to own land simply because they marry foreign nationals.
Nevertheless, land transactions involving Thai-foreign couples may require declarations and supporting evidence concerning the source and ownership of purchase funds.
The authorities are placing greater emphasis on whether the Thai purchaser genuinely owns the relevant funds and property rights.
This does not mean every financial transfer between spouses constitutes an unlawful nominee arrangement.
Each transaction must be considered in light of its actual funding, applicable marital-property rules and individual legal circumstances.
Independent Thai legal advice is particularly important where substantial property purchases involve mixed-nationality households.
Will the Crackdown Lead to Discounted Villa Sales in Phuket?
The government has confirmed that compulsory disposal is an available enforcement mechanism where land is found to have been held unlawfully.
However, as of 23 October 2026, the published information does not establish how many Phuket villas may ultimately be affected or when any compulsory sales might occur.
It would therefore be premature to predict a wave of discounted Phuket villas.
Properties connected with legal disputes may present significant risks even where an attractive purchase price is offered.
The buyer’s legal eligibility, the seller’s authority to transfer and any outstanding claims must be verified before treating a distressed asset as an investment opportunity.
How Can Foreign Buyers Protect Their Phuket Property Investment?
Before purchasing a villa, foreign buyers should establish precisely what legal rights are being acquired.
These may include shares in a landholding company, a registered land lease, separate building ownership or a combination of contractual and registered rights.
A proper investigation should cover the land title, legal access, boundaries, mortgages, building permits, existing rights and the seller’s authority to complete the transaction.
Where a Thai company is involved, the review should also address shareholder legitimacy, capital contributions, financial statements, liabilities and the history of the company’s acquisition of the land.
Reservation and purchase agreements should provide appropriate protection where legal due diligence is still outstanding, particularly regarding deposits, withdrawal rights and material defects.
For a broader explanation of the process, see JFTB’s Property Due Diligence in Thailand guide.
The appropriate ownership structure depends on the actual transaction. A structure commonly used in Phuket should never be accepted solely because it appears convenient.
JFTB’s Perspective: Verify the Ownership Before Committing
Since 2013, JFTB Real Estate Phuket has advised international property buyers on property selection, negotiation and the coordination of independent due diligence.
Our approach focuses on understanding the rights actually being offered, evaluating commercial value and identifying matters requiring specialist legal examination.
JFTB does not replace independent Thai legal counsel. Ownership structures, company acquisitions and contractual protections require case-specific advice from appropriately qualified professionals.
Thailand remains open to legitimate foreign property investment. The October 2026 crackdown highlights why transparent financing, genuine ownership and properly documented rights matter to long-term investment security.
A well-located villa can still be a poor investment if its ownership structure creates unresolved legal exposure or makes resale difficult.
Considering a villa in Phuket, particularly one held through a Thai company?
Contact JFTB Real Estate Phuket to request an initial 20-minute discussion about the property and proposed ownership structure. Share the property’s location, type and ownership arrangement so we can help identify the key questions to investigate before you make a substantial financial commitment.
