Thai Company and Property: 5 Facts for 2026

In Bangkok, roughly one in three transactions involving a foreign buyer is structured through a Thai Limited Company. For international investors, this is often the only practical path to holding land in Thailand - and simultaneously one of the most legally complex decisions they will make. Every year, dozens of foreign buyers lose significant capital by getting this structure wrong.

Thailand's Land Code prohibits foreigners from directly owning land. Purchasing a house, villa in Phuket, or development plot requires an indirect ownership structure. The most widely used vehicle remains the Thai Limited Company, in which a foreigner formally holds a minority stake but retains control over management and operational decisions. Alternatives include a 30-year leasehold (with a renewal clause) or purchasing a freehold condominium unit within the legally permitted 49% foreign quota of a building's total floor area. Each path carries distinct legal and tax implications.

Unlike purchasing an apartment in London or Singapore - where title registration is straightforward - Thai property law involves a specific title document called a chanote (Nor Sor 4 Jor). Even when a company holds a valid chanote, the investment is not secure if the corporate structure itself is flawed.

Quick answer

A Thai Limited Company is incorporated under the Civil and Commercial Code and requires a minimum of 3 shareholders (reduced from 7 since 2023).
A foreigner may hold a maximum of 49% of shares, but can retain full operational control as the sole authorized director.
Company formation costs typically range from 25,000 to 50,000 THB (approximately 650 to 1,300 USD), with annual accounting and audit fees of 15,000 to 30,000 THB.
Thailand's Revenue Department and the Department of Business Development (DBD) actively audit nominee shareholder arrangements. Penalties include fines up to 1,000,000 THB and potential forced sale of the property.
Non-company alternatives include a 30-year registered leasehold or a freehold condominium within the 49% foreign quota.
Total timeline from decision to chanote registration: typically 6 to 12 weeks.

Options and scenarios

Option 1: Thai company with genuine business activity

This is the only structure that consistently withstands legal scrutiny. The company conducts real commercial activity - property rental, hospitality services, or consulting. Thai shareholders are genuine co-investors, not stand-ins. The foreign investor holds 49% in preferred shares with enhanced voting rights (for example, a 10:1 ratio), which provides operational control despite a minority equity position. This structure requires annual financial statements, tax filings, and ongoing compliance costs.

Best suited for: investors planning active operations in Thailand who are willing to maintain a properly functioning corporate entity.

Option 2: Thai company with nominee shareholders

The foreign buyer establishes a company in which the Thai majority shareholders are nominees - typically staff at a law firm or personal acquaintances. This arrangement is illegal under Section 36 of the Foreign Business Act. The DBD has significantly intensified audits in recent years. If detected, penalties include fines up to 1,000,000 THB and, in serious cases, a court order to divest the property.

Best suited for: nobody. This scheme was common before 2020 but is now considered unacceptably high risk.

Option 3: 30-year leasehold instead of a company

A foreigner registers a lease agreement at the Land Office for a maximum term of 30 years. The agreement may include a renewal clause for an additional 30 years, but Thai law does not guarantee enforceability of that clause - renewal depends on the landowner's cooperation. No company is required, and there are no annual accounting obligations.

Best suited for: investors who prioritize simplicity and accept the absence of full ownership and the risk that renewal is not legally guaranteed.

Option 4: Freehold condominium (foreign quota)

A foreigner purchases a unit in a condominium building where less than 49% of total floor area is already held by foreign buyers. The chanote is issued directly in the foreigner's name - full freehold ownership, no company required. A critical condition: purchase funds must be transferred from abroad in foreign currency and evidenced by a Foreign Exchange Transaction (FET) form or a Thor Tor 3 certificate from a Thai bank. This is the cleanest and most legally straightforward structure available to foreign buyers.

Best suited for: investors purchasing an apartment rather than a house or land plot.

Option 5: Cambodia as an alternative market

Cambodia's Law on Foreign Ownership of Properties in Co-Owned Buildings (2010) permits foreigners to hold freehold title from the first floor upward, up to 70% of a building's total area. A hard title (the Cambodian equivalent of a chanote) is required. No company structure is needed. The market is younger and less regulated than Thailand's, but structurally simpler for foreign buyers.

Best suited for: investors comparing Southeast Asian markets who accept higher political risk in exchange for a more straightforward ownership structure.

Comparison table

Parameter	Thai Company (genuine business)	30-Year Leasehold	Freehold Condo - Thailand	Freehold Condo - Cambodia
Property type	House, villa, land, commercial	House, villa, land	Apartment in condo building	Apartment from 1st floor up
Land ownership	Indirect (via company)	None (leasehold only)	None (share of common areas)	None (share of common areas)
Max. foreign stake	49% of shares	N/A	49% of building floor area	70% of building floor area
One-time structure cost	25,000 - 50,000 THB	5,000 - 15,000 THB (registration)	None	None
Annual maintenance cost	15,000 - 30,000 THB (accounting + audit)	None	None	None
Legal risk level	Medium to high (DBD audits)	Low to medium (renewal not guaranteed)	Low	Low to medium (younger registry system)
Transaction timeline	6 - 12 weeks	4 - 8 weeks	4 - 8 weeks	4 - 10 weeks

Risks and mistakes

1. Nominee shareholders are a deferred liability. Thai authorities have been tightening enforcement for several years. The Revenue Department cross-references shareholders' tax declarations against their actual financial capacity. If a Thai co-shareholder earns 15,000 THB per month yet holds 51% of a company owning a 10,000,000 THB property, an audit is a matter of when, not if.

2. Skipping due diligence on the chanote. Before any company acquires a property, the title must be verified in person at the local Land Office. The chanote should be free of encumbrances, mortgages, and third-party claims. In many Western countries, a notary handles this automatically. In Thailand, your lawyer must conduct this check directly at the Land Office.

3. Ordinary shares without preferred voting rights. Holding 49% of ordinary shares means Thai co-shareholders can outvote you on any resolution. Preferred shares with enhanced voting rights (for example, 10 votes per share) protect operational control despite minority equity. This must be written into the company's articles of association at the time of incorporation - it cannot be added retroactively without shareholder consent.

4. Overlooking corporate income tax obligations. A Thai company pays Corporate Income Tax (CIT) at 20% of net profit. Depending on your country of residence, you may also be required to declare foreign-source income domestically. Many jurisdictions have double taxation agreements with Thailand that allow credit for CIT already paid, but this requires careful documentation.

5. Underestimating transfer costs. Property transfer fees in Thailand typically include a 2% transfer fee on the official appraised value, plus either a 0.5% stamp duty or a 3.3% specific business tax, depending on how long the seller has held the property. Costs are conventionally split between buyer and seller, but this is subject to negotiation and should be agreed in writing before signing.

6. Attempting remote purchase without a notarized Power of Attorney. Buyers completing a transaction from abroad require a Power of Attorney authenticated by a local notary public and legalized with an Apostille under the Hague Convention. Without this, the Land Office will not process the transfer documents.

7. Ignoring foreign exchange documentation. For freehold condo purchases, the buyer must provide proof that funds were transferred from abroad in foreign currency. For company-based purchases, the company must be capitalized via an international wire transfer. Exchange rate movements between THB and major currencies can be material - spreads of 8 to 10% have been observed over recent 12-month periods.

FAQ

Can a foreigner buy a house with land in Thailand directly in their own name?

No. Thailand's Land Code explicitly prohibits foreigners from directly owning land. A house with a plot can only be acquired through a Thai company or on a leasehold basis (30-year registered lease).

How much does it cost to set up a Thai company for property purchase?

Registration of a Thai Limited Company typically costs 25,000 to 50,000 THB (approximately 650 to 1,300 USD). Annual accounting and audit fees add a further 15,000 to 30,000 THB per year.

Are nominee shareholders in a Thai company legal?

No. Using nominee Thai shareholders to circumvent the foreign ownership limit violates the Foreign Business Act. Penalties include fines of up to 1,000,000 THB and potential court-ordered disposal of the property. Thai authorities actively conduct audits targeting this structure.

What is a chanote and why does it matter?

A chanote (Nor Sor 4 Jor) is Thailand's strongest form of land title - the equivalent of full registered freehold, conferring the right to sell, mortgage, or transfer the land. Weaker titles (such as Nor Sor 3 or Nor Sor 3 Gor) carry limited rights and can significantly complicate resale or financing.

How do I safely buy property in Thailand from abroad?

You need: (1) a Thai-licensed lawyer independent of the developer and agent to conduct due diligence, (2) a notarized and Apostille-certified Power of Attorney, and (3) documented foreign currency wire transfers from your bank. The full process typically takes 6 to 12 weeks.

Is buying property in Cambodia simpler than in Thailand?

Structurally, yes. Cambodia allows foreigners to hold freehold title to apartments from the first floor upward without establishing a company, and the foreign ownership quota is 70% rather than 49%. However, hard title verification in Cambodia can be more complex, and the land registry system is less mature than Thailand's.

What tax does a Thai company pay on rental income?

A Thai company pays Corporate Income Tax at 20% of net profit. Investors should also check their domestic tax obligations, as rental income received via a foreign company may be reportable in their country of residence. Double taxation agreements may allow a credit for CIT paid in Thailand.

Can a 30-year leasehold be extended?

A lease agreement may include a contractual clause providing for renewal for an additional 30 years. However, Thai courts have historically not guaranteed enforcement of such clauses - renewal ultimately depends on the willingness of the landowner at the time the original term expires.

How long does the full property purchase process via a Thai company take?

From the initial decision to chanote registration, the process typically takes 6 to 12 weeks. This includes company formation (2 to 4 weeks), property due diligence (1 to 2 weeks), negotiation and payment transfer (2 to 4 weeks), and Land Office registration (1 to 3 days).

Do I need a visa to buy property in Thailand?

No visa or work permit is required to purchase property. However, property ownership does not automatically confer the right to long-term residence - that is a separate visa or permit process entirely.

Ready to invest in Thailand or Cambodia property? Send us a request - our experts will find the best options for you.

Thai Company and Property: 5 Facts Every Investor Must Know in 2026