Thailand is pursuing two major policy directions that appear to conflict with one another: opening its economy to foreign business while intensifying enforcement against foreign-linked property ownership structures.
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The contrast has become increasingly visible following reforms to the Foreign Business Act. In April 2025, the Cabinet approved the most significant overhaul of the law in 25 years. In January 2026, it confirmed plans to remove ten business categories, including software development, from restricted lists, allowing foreign companies to operate without local partners or special licences. The reforms form part of the Thailand 4.0 strategy aimed at improving competitiveness and attracting investment.
Now authorities have launched an extensive crackdown on nominee company structures used by some foreigners to control land. New rules require Thai shareholders in foreign-linked companies to prove that invested funds genuinely belong to them. Authorities have also introduced data-sharing systems between agencies and analytical tools designed to identify suspicious ownership arrangements.
Enforcement activity has increased significantly. In May 2026, a major operation on Koh Phangan resulted in 22 arrests and the seizure of more than 40 rai of land. Police are also using criminal procedures in investigations involving alleged nominee arrangements.
The crackdown targets structures where Thai shareholders act only as legal fronts while foreigners effectively control assets. Authorities argue such arrangements violate Thai law and amount to fraud. However, concerns have emerged that some long-term foreign residents who purchased property through company structures recommended by legal advisers years ago may also be affected.
The debate is rooted in previous attempts to reform foreign property ownership rules. In late 2022, Thailand’s Cabinet approved a proposal that would have allowed qualifying foreigners to legally own small residential land plots. Supporters argued that foreigners already gained access to property through leases, condominium ownership quotas and nominee companies, and that the proposal would provide a transparent legal alternative.
The proposal was withdrawn less than two weeks later following political opposition. In March 2025, the Supreme Court also ruled against a long-lease renewal structure that many foreign buyers had relied upon for additional security.
Supporters of reform argue that restrictive laws encourage the very workarounds now being targeted. They point to broader business reforms as evidence that Thailand has already accepted the principle of creating legal pathways while enforcing existing laws against abuse.
Some observers believe the current crackdown may be part of a broader strategy to clear out unlawful structures before introducing new legal ownership frameworks. Others warn that enforcement without further reform could discourage investment and prompt foreign capital to move elsewhere.
Regional competition is increasing. Malaysia permits foreign freehold ownership subject to minimum-price requirements, while Indonesia offers foreigners registered property rights lasting up to 80 years. Other neighbouring countries have also introduced clearer frameworks for foreign property investment.
The Thaiger reported that the attention will now focus on whether Thailand introduces new legal routes for foreign property ownership or long-term leases. Proposals frequently discussed include reviving elements of the 2022 ownership framework, strengthening lease protections and updating condominium regulations.
The outcome could determine whether Thailand’s property policies ultimately align with its broader efforts to attract foreign investment and support economic modernisation.
Pictures courtesy of The Thaiger
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Adapted by ASEAN Now TheThaiger 22 June 2026
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