The Thailand Land Code (B.E. 2497) is clear: foreigners generally cannot own land in Thailand. But what many expats do not realize is that violating this prohibition carries criminal penalties. These are not mere fines or administrative slaps on the wrist. We are talking about actual imprisonment, forced land disposal, and permanent records that affect future visa and business opportunities.
This page examines the specific criminal penalties under Land Code Sections 111-113, how enforcement actually works in 2024-2025, and why both foreigners and their Thai nominees are at risk.
The Three Criminal Penalty Sections
The Land Code contains three interconnected penalty provisions that work together to criminalize illegal foreign land ownership.
Section 111: Acquiring Land as Agent for an Alien
This section targets Thai nationals who acquire land on behalf of foreigners. If a Thai person purchases land knowing that a foreigner is the true beneficial owner, both parties commit a criminal offense.
The law specifically states that any Thai national or juristic person acting as an "agent" (commonly called a "nominee") for a foreigner in acquiring land is criminally liable.
Up to 2 Years Imprisonment + Fine up to THB 20,000Section 112: Misuse of Permitted Land
This section applies when land acquired under a permitted exception is later misused. For example, if a foreigner obtains land through the Section 96 bis investment exception (40 million THB pathway) but then uses it for purposes other than residence, or transfers beneficial interest to another foreigner, Section 112 penalties apply.
Up to 2 Years Imprisonment + Fine up to THB 20,000Section 113: General Penalty Provisions
This is the catch-all provision. Any violation of the Land Code not specifically covered by Sections 111 or 112 falls under Section 113. This includes foreigners who directly attempt to acquire land, those who provide false statements during registration, and those who help conceal illegal ownership arrangements.
Up to 2 Years Imprisonment + Fine up to THB 20,000Who Gets Prosecuted
A common misconception is that only the foreigner faces consequences. In reality, Thai authorities actively prosecute all parties involved in nominee arrangements.
The Foreigner
As the person attempting to circumvent Thai law, the foreigner faces criminal prosecution under Section 113. Beyond imprisonment and fines, convicted foreigners face:
- Deportation and permanent blacklisting from Thailand
- Forced disposal of the land within 180 days to 1 year (no compensation if disposition deadline missed)
- Forfeiture of any money paid for the land
- Potential additional charges under the Criminal Code Section 267 (false statements) adding up to 3 more years
The Thai Nominee
Thai nationals who act as nominees face equally serious consequences under Section 111:
- Up to 2 years imprisonment
- Fine up to THB 20,000
- Criminal record affecting future employment and business opportunities
- Potential money laundering charges under pending AMLO amendments
Lawyers and Facilitators
The September 2024 Phuket case demonstrated that lawyers, accountants, and corporate service providers who facilitate nominee structures face prosecution. Twenty-three defendants (including Thai nationals, foreigners, and corporate entities) were convicted in this landmark case.
Real Enforcement Cases: 2024-2025
Landmark Conviction: Law and Accounting Firm Network
The DSI filed criminal charges against 23 defendants who orchestrated nominee arrangements for approximately 60 companies. Sentences included:
- Initial sentence: 10 years imprisonment
- Reduced to 5 years (cooperation, confession, no prior record)
- Suspended for 2 years with 1 year probation
- Fine: THB 200,000 per defendant
- Companies ordered dissolved
Operation Nominee Sweep
The largest single enforcement operation in Thai history resulted in:
- 231 total arrests
- 98 foreign suspects (primarily Russians)
- 37 Thai nationals acting as nominee agents
- 96 legal entities charged
- THB 1.5 billion in seized assets
- 245 land documents covering approximately 10,500 square meters confiscated
Agricultural Land Seizure
The Ministry of Natural Resources seized 1,500 rai (approximately 593 acres) of forest land that had been unlawfully sold to a Thai company acting as nominee for Chinese investors. Roughly 450 rai had already been converted to durian plantations. This case demonstrated that enforcement extends beyond tourist areas to agricultural regions.
Catherine Delacote Case
Following the death of a French businesswoman in April 2024, a 7-month investigation revealed her companies had used Thai nominees to own a luxury villa and adjacent land worth THB 50 million. This case established that enforcement continues posthumously, with assets subject to forced disposal.
Penalty Summary Table
| Section | Offense | Maximum Imprisonment | Maximum Fine |
|---|---|---|---|
| Section 111 | Thai acquiring land for foreigner | 2 years | THB 20,000 |
| Section 112 | Misuse of permitted land | 2 years | THB 20,000 |
| Section 113 | General violations | 2 years | THB 20,000 |
| Sections 94 & 96 | Forced disposal | 180 days to 1 year to sell; no compensation if deadline missed | |
| Criminal Code 267 | False statements in registration | 3 years | THB 6,000 |
How Investigations Are Triggered
Understanding what triggers an investigation helps explain why nominee structures are increasingly untenable in modern Thailand.
Financial Red Flags
- Inadequate capital sources: Thai shareholders lacking proof of funds for share subscriptions
- Dividend anomalies: Profits not matching equity positions
- Suspicious payments: Management fees, consulting fees, or royalties flowing to foreigners
Structural Red Flags
- Passive Thai shareholders: Same individuals appearing in multiple unrelated companies
- Implausible shareholders: Taxi drivers, housekeepers, or individuals with no business involvement listed as majority shareholders
- Foreign decision-making: Email trails, board minutes, or contracts showing foreigners control the company
AI-Powered Detection
Thai authorities now use algorithms to identify high-risk patterns across databases. The Department of Business Development cross-references records with the Revenue Department in real-time. Multiple agencies share data, making it increasingly difficult to maintain nominee structures undetected.
The 2025 Enforcement Plan
Thai authorities have announced plans to inspect 46,918 companies across seven provinces in 2025:
- Chiang Mai
- Chon Buri (Pattaya)
- Phuket
- Krabi
- Surat Thani (Koh Samui, Koh Phangan)
- Prachuap Khiri Khan
- Bangkok
Priority targets include approximately 1,000 companies with foreign shareholdings between 0.001% and 49.99% in high-risk sectors including real estate, tourism, hotels, and e-commerce.
Proposed Legal Reforms
Pending legislation would make penalties even more severe:
- Anti-Money Laundering Act Amendments: Would classify nominee arrangements as money laundering predicate offenses, allowing AMLO to seize assets
- 15-Year Prescription Period: Would allow prosecution of violations going back 15 years
- Nominee Transactions Act: Would allow land confiscation without compensation