Legal guide
Thai Company Ownership of Property: Why We Do Not Recommend It
Quick answer
Lord's Property Consultants does not recommend that a foreign buyer set up a Thai company to hold land or a villa. A foreigner can own a condominium freehold in their own name under the 49 percent quota. For a villa, we recommend a registered 30 year leasehold, or a usufruct where it fits. A company used only to hold land for a foreigner is a structure we will not advise.
Key facts
| Item | Value |
|---|---|
| Maximum foreign shareholding | 49 percent |
| Minimum Thai shareholders | 2 natural persons |
| Annual accounting cost | 30,000 to 60,000 THB |
| Corporate income tax rate | 15 to 20 percent, tiered |
| Capital injection requirement | Real and banked |
Why people still suggest it
Section 86 of the Land Code blocks a foreign individual from owning land, and the Condominium Act opens freehold only inside the 49 percent quota. Some advisers still present a Thai company as the way around that limit, because a company can be the registered owner of land. You would not be the owner. The company would. We do not recommend that route for a villa or a plot.
Nominee shareholders
The Foreign Business Act 2542 (1999) treats nominee Thai shareholders, people who hold shares for a foreign buyer without a real role, as a way around the land ownership restriction. The Commerce Ministry has investigated this, and enforcement has been more active since 2016. A company set up so a foreigner can control land is the structure we will not advise, whether the shareholders are described as nominees or as a fix for nominees.
What we recommend instead
For a villa or land, use a leasehold registered on the Chanote for up to 30 years. Where the buyer is married to a Thai spouse, a usufruct can be the better fit, and a Thai-qualified lawyer should draft it. For ownership in your own name, buy a condominium under the foreign quota of the building. Those are the structures we will work with.
If a listing is already in a company
Some resale villas are already held by a company. Buying that company is not the same as us recommending that you set one up. Your lawyer should read the shareholder list, the accounts, and any nominee risk before you offer. If the company exists only to hold the land for a foreign seller, we would rather restructure the sale as a leasehold than pass that company on.
Cost is not the reason
A company that holds property has annual accounts, tax filings, and director duties. That cost is real, and it is not why we stepped back. We stepped back because the land is not yours, and because this is no longer a structure we are willing to put in front of a client.
Our position
Do not set up a Thai company to buy a villa or land with us. Do not use nominee shareholders. If someone offers a company as the way to freehold land in your control, treat that as a reason to pause and speak to independent Thai counsel, not as a clever path. We will help you buy on a leasehold, or buy a condominium in your own name.
This guide is published as of the updated date shown above and reflects Thai land and tax rules current at that time. It is general information and not specific legal or tax advice. For a transaction, instruct a Thai-qualified lawyer or accountant.
Frequently asked questions
Do you recommend a Thai company for a foreign villa buyer?
No. We do not recommend setting one up to hold land or a villa. We recommend a registered leasehold, or a usufruct where it fits, and a condominium freehold in your own name when that is the asset you want.
Is the Thai company structure legal for a foreign villa owner?
We do not recommend it, including the version described as properly structured. Nominee shareholders are unlawful. If a villa is already in a company, have independent Thai counsel review it. Do not create a new company for the purchase.
What is the annual running cost of the company structure?
An existing company typically spends 30,000 to 60,000 THB a year on accounts and tax filing in 2026. That cost is one more reason not to set one up. It is not a path we advise.
Are nominee Thai shareholders safe?
No. Nominee shareholders acting for a foreign buyer are contrary to the Foreign Business Act 2542 (1999). We do not recommend replacing them with a new company either. Use a leasehold or a condominium in your own name.
Can I sell the villa by selling the company shares?
Some existing company-held villas are sold that way. We do not recommend setting up a company so that a future sale can be a share transfer. If you are buying a villa that is already in a company, your lawyer should say whether a leasehold is the cleaner purchase.
Does the company structure pay no income tax?
No. A Thai company pays corporate income tax on net profit. This is not a tax-free way to hold a house, and we do not recommend it.
Should I set up a company and rent the villa out?
No. We do not recommend setting up a Thai company to hold a villa, including as a rental business. A leasehold can be let. A condominium in your own name can be let. Start there.
What happens to company shares on death?
If you already hold shares, they pass under your home country law and Thai conflict of law rules, and the other shareholders may have rights under the shareholder agreement. That complexity is a reason we do not recommend the structure for a new purchase. Have a lawyer review any company you already own.
Should I set up a new company for this property?
No. We do not recommend a new company, and we do not recommend taking over a company that exists only to hold land for a foreign seller.