Thailand tightens enforcement on foreign real estate ownership

Thai authorities are increasing enforcement against irregular real estate ownership structures used by foreigners. For decades, many expatriates utilized nominee arrangements where Thai companies or local shareholders held formal ownership to bypass laws prohibiting foreigners from owning land. Recent police actions indicate that these practices, often promoted by local agents and lawyers, are being targeted, putting buyers at risk of losing property, facing fines, or facing deportation.

Additionally, legal mechanisms such as usufruct rights—which allow individuals to use property and collect income without owning it—carry significant tax implications. While registration fees may be low, the Thai Revenue Department scrutinizes the actual recipient of rental income. Legal rulings have shown that attempting to shift tax liabilities to usufruct holders after rental contracts are already in place may not be recognized by authorities, leaving the original owners liable for taxes.