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2025–2026 Enforcement Wave
852 companies prosecuted. 29,000 legal cases initiated. AI-powered detection. This is not a warning about something that might happen. It is happening now.
For decades, some foreign buyers and business owners in Thailand used Thai company structures with Thai nominee shareholders to hold land and operate businesses in sectors restricted under the Foreign Business Act. On paper, Thai nationals owned the required majority of shares. In practice, the foreigner funded the purchase, controlled the business and benefited from the assets. The arrangement was common. It was quietly tolerated. Many people were told the risk was theoretical.
In 2025 and 2026, that assumption has been proven catastrophically wrong. Thailand's enforcement wave against nominee structures is unprecedented in scale, sophistication and consequence.
This Is Not a Legal Grey Area
A nominee structure is not a clever workaround. It is a crime under Thai law. Both the Thai national acting as nominee and the foreigner benefiting from the arrangement face criminal prosecution, imprisonment up to 3 years, fines up to 1,000,000 THB plus daily penalties, forced disposal or confiscation of assets, and for foreigners — deportation and blacklisting from Thailand.
Since 1 October 2025, Thailand's Department of Business Development (DBD) has deployed the Intelligence Business Analytic System (IBAS) — an AI-powered platform that cross-references the corporate registry with the Revenue Department, the Land Department and financial records to automatically detect nominee arrangements.
If a Thai national with a modest declared income is listed as a majority shareholder in a company holding multi-million baht property, the system triggers an automatic investigation flag.
Companies that file no tax returns, have no business activity, hold no bank accounts but own land or buildings are automatically flagged as potential nominee holding vehicles.
The DBD, Land Department and Central Investigation Bureau now share data in real time under a formal memorandum of understanding. A flag in one system triggers investigation across all three.
Authorities are conducting unannounced site visits and interviewing Thai shareholders to verify their genuine understanding of and financial involvement in the business. Passivity or ignorance is treated as a red flag, not a defence.
Koh Phangan — May 2026
Police conducted raids on dozens of companies and several law and accounting offices across the island. 22 foreigners arrested. More than 40 rai of land worth over 200 million baht seized in a single enforcement operation.
Koh Samui — Ongoing
The Department of Special Investigation (DSI) opened probes into 34 companies suspected of using Thai nominees. Around 20 of those companies hold assets exceeding 100 million baht each.
Phuket, Bangkok, Rayong, Chonburi — Ongoing
Coordinated investigations across multiple regions. The DBD identified over 46,918 entities in high-risk sectors for inspection in 2025 alone. Real estate, tourism, construction, agriculture and logistics are the primary targets.
National — Scale of prosecution
Between 2025 and 2026, Thai authorities prosecuted 852 companies for nominee-related offences. Estimated economic damages from confirmed cases exceed 15.1 billion THB. Over 29,000 legal cases initiated.
The Cabinet reviewed enforcement progress on 24 February 2026. The following legislative amendments are under active consideration and may be enacted during 2026.
Proposed amendment to Land Code Section 94 would allow the state to confiscate land held through nominee arrangements without paying any compensation to the foreign beneficial owner. This is a fundamental escalation from the current remedy of forced resale.
Proposed legislation would allow prosecution of nominee violations going back 15 years — meaning structures established more than a decade ago could still result in criminal charges today.
Proposed amendments would classify serious Foreign Business Act violations as predicate offences under the Anti-Money Laundering Act, empowering AMLO to freeze or seize assets including land, buildings and bank accounts acquired through illegal nominees.
Board of Investment promotion offers eligible businesses 100% foreign ownership, tax incentives, work permit facilitation and land ownership rights. Requires demonstrating substantial investment, technology transfer and job creation. The most significant legitimate alternative for business operators.
For property, a properly registered 30-year leasehold is a real and enforceable property right. It is not equivalent to land ownership but it is legal, transparent and does not expose you or any Thai national to criminal liability.
Within the 49% foreign quota, freehold condominium ownership is the cleanest and most legally secure form of property investment available to foreigners in Thailand.
A usufruct gives the right to use property for a lifetime or fixed term. Superficies gives the right to own a building on leased land. Both are registered, legally recognised and do not require nominee shareholders.
A business genuinely co-owned and co-operated by a Thai national with real investment, real involvement and real risk is not a nominee structure. Authentic Thai partnership is a legitimate path, with appropriate legal documentation.
If you currently hold property or operate a business through a structure that may involve nominee arrangements, take legal advice now — not when you receive a notice from authorities. Our vetted legal partner has experience advising on nominee restructuring and legitimate compliance alternatives.
English and Thai speaking lawyers with experience in nominee structure review, restructuring and compliant alternative arrangements.
Request IntroductionTHAIBK Legal Guide 2026. This guide does not constitute legal advice. Always obtain independent qualified legal advice. Sources: Thai Supreme Court records, DBD enforcement reports, Cabinet minutes 24 February 2026.