Buying Chiang Mai Property Through a Thai Company — Can Foreigners Do It?

Buying Chiang Mai Property Through a Thai Company — Can Foreigners Do It?

Setting up a Thai company to hold land is one method that foreigners have used to purchase houses or land in Chiang Mai. This article explains the approach honestly and directly.

How Does This Method Work?

A foreigner registers a Thai limited company, with the company holding land ownership. The typical structure is:

Foreigner: holds 49% of company shares
Thai shareholders (nominees): hold 51%
Company: owns the land

Advantages

- Foreigner can control land through the company
- Can hold land and houses (not only condos)
- Provides flexibility in asset management

Key Risks and Disadvantages

Legal risk (very important)
The Land Department and government agencies scrutinize this structure closely. Thai law prohibits using Thai nominee shareholders to allow foreigners to indirectly hold land — this can constitute a legal violation with serious consequences.

Operational risks
- Annual company financial statements required
- Annual company administration cost approximately THB 20,000-50,000
- Annual shareholder meetings required
- If a nominee shareholder dies or withdraws, major problems can arise

Better Alternatives for Foreigners

Option 1: Freehold condo purchase (most recommended)
- 100% legal
- No risk
- Easy to resell

Option 2: Leasehold 30-50 years
- Legal if registered at the Land Department
- Suitable for houses and villas

Recommendation from More Property CM

We do not recommend the nominee structure due to the high legal risks involved. The best option for foreigners is to purchase a freehold condo — fully legal, safe, and the easiest to manage.

Important note: This article provides general information only. Laws may change. Always consult a qualified lawyer before making any decision.

MORE Value. MORE Trust. Always.
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