Introduction

Thailand’s property market continues to attract global attention, but with rising demand comes rising risk. Recently, misleading adverts have re-emerged claiming that foreigners can buy land in Thailand using offshore companies or nominee structures. These offers often promise shortcuts but are illegal and unsafe, putting your money and future at risk.

At OneStop Hua Hin, we believe in 100% legal and transparent solutions for expats and investors. This article explains the truth about foreign land ownership in Thailand, the risks of offshore setups, and the safe, legal alternatives available.

 

Why Offshore Companies (BVI) Cannot Own Land in Thailand

Some schemes promote the idea of purchasing land through a British Virgin Islands (BVI) or other offshore company. Under Thai law, this is prohibited:

•Offshore companies are treated as foreign entities and cannot own land.

•Using them is considered foreign ownership by proxy, illegal under the Thai Land Code Act.

•If investigated, the property may be seized without compensation.

The Illegality of Nominee Shareholders

Another unsafe method involves registering a Thai company with Thai nationals as “nominee shareholders” who secretly hold land on behalf of foreigners.

•This structure is explicitly illegal and can lead to criminal prosecution.

•The Land Department now requires Thai shareholders to prove the legitimate source of their investment funds.

•If nominees are exposed, the entire transaction can collapse, leaving foreigners without legal protection.

 

Amity Companies: Misunderstood Rights

The US-Thai Treaty of Amity allows American investors certain business privileges, but it does not grant land ownership rights.

Even Amity companies are treated as foreign entities for land purposes.

 

When a Thai Company Can Legally Own Land

A properly structured Thai trading company may legally own land, but strict rules apply:

•51% Thai Shareholding: The majority must be owned by real Thai investors, not nominees.

•Investment Requirements: 51% of property funds must come from Thai shareholders, and share capital must match the land’s value.

•Trading Activity: The company must be a genuine business, not just a holding entity.

•Foreign Director Rules: If a foreigner is a director, a Foreign Business License (FBL) is required.

•Work Permits: To sponsor a foreign work permit, the company must employ at least 4 Thai staff with social security contributions paid for 6 months.

•Land Office Oversight: Thai authorities actively investigate shareholder funding to prevent nominee arrangements.

Legal and Safe Alternatives for Foreign Investors

1.Long-Term Leases

•Land can be leased for up to 30 years, with possible renewal clauses.

•Leases registered at the Land Office provide strong legal protection.

2.Condominium Ownership

•Foreigners may own condo units directly, provided foreign ownership in the building does not exceed 49%.

•This is the most straightforward ownership path for expats.

3.Building Ownership

•Foreigners may own houses or villas built on leased land, with the land itself legally leased rather than owned.

 

Why Compliance Matters

Foreigners who ignore Thai law risk:

•Land confiscation without compensation

•Criminal penalties for both foreign and Thai parties

•Loss of investment with no legal recourse

Investing legally may seem more complex, but it ensures peace of mind and long-term security.

Conclusion: Invest With Confidence

Owning land through offshore companies, nominee structures, or proxy shareholders is illegal and dangerous. The safest paths are long-term leases, condominium ownership, or properly structured Thai trading companies with real Thai investors.

At OneStop Hua Hin, we specialize in helping expats and investors navigate Thailand’s complex property laws. Our experts ensure every step of your investment is transparent, compliant, and secure.

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Thinking about investing in Hua Hin property? Don’t risk your future with unsafe schemes.

👉 Explore our legal property services at realestate.onestophuahin.com

and book a consultation with our team today.