Nominee Land Ownership: Tighter Enforcement Proposed, Not Yet Law
TPN - The Property Network
Reported: Cabinet has been reviewing tougher nominee-ownership enforcement, including AI screening and proposed penalties up to 3 years' jail and roughly THB 3M fines. None of this is in force yet.
Thai authorities have spent much of 2026 tightening scrutiny of nominee land-ownership structures, and reported proposals now under review with the Cabinet would raise the penalties and enforcement tools significantly — though none of it is law yet.
Background: what's already illegal
Under existing Thai law, foreigners cannot own land outright. The main route to direct land ownership for a foreign investor is through the Board of Investment, which permits land purchases of up to 1 rai for a qualifying investment of at least THB 40 million, subject to ministerial approval. Using a nominee structure — where a Thai individual or entity holds land on paper for the real benefit of a foreign owner who actually controls it — has long been illegal under Thailand's existing land and foreign business laws. What has reportedly changed in 2026 is not the underlying illegality, but the intensity and tools of enforcement, and proposed increases to the penalties involved.
What's been reported this year
The Cabinet reviewed nominee-ownership enforcement measures in February 2026, reportedly including plans for AI-assisted screening tools at the Land Department to flag suspicious ownership patterns [1]. Public consultation on an amendment to the Foreign Business Act closed in April 2026 [2]. Most significantly, Thailand's Ombudsman said on 23 July 2026 that amendments carrying penalties of up to 3 years' imprisonment and fines of roughly THB 3 million for both Thai and foreign shareholders involved in nominee structures had been submitted to the Cabinet [3]. Separately, a proposal under study would allow land found to have been held through a nominee structure to be forfeited to the State under the Land Code [4].
None of these measures — the AI screening system, the amended penalties, or the forfeiture proposal — has been confirmed as enacted law as of this writing. They remain proposals submitted to or under review by the Cabinet, reported through official statements and consultation processes rather than published as new legislation.
What this means for foreign buyers
This article summarizes a news report and is not legal, tax or immigration advice. Always confirm details with a licensed professional or the relevant government office before acting.