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 2025-2026, 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: Foreigner Acquiring Land in Violation of Section 86
This section targets the foreigner. Section 86 is the core prohibition on aliens acquiring land, and Section 111 is its penalty clause: "Any person who violates or fails to comply with Section 86 shall be liable to a fine not exceeding twenty thousands Baht or imprisonment for a term not exceeding two years or both."
If you are a foreign national who acquired land outside a permitted exception, this is the provision that applies to you, not the nominee provision below.
Up to 2 Years Imprisonment + Fine up to THB 20,000Section 112: Juristic Persons
This section binds juristic persons rather than individuals. It reaches a juristic person that acquired land in contravention of the Land Code, used the land for purposes other than those permitted, used land in violation of conditions prescribed under Section 99 in conjunction with Section 87, or failed to give notice of non-user of land under Section 99 in conjunction with Section 89.
Note the penalty differs from Sections 111 and 113: it is a fine only, and the maximum is higher.
Fine up to THB 50,000 (no imprisonment)Section 113: Acquiring Land as Agent (Nominee) for an Alien
This is the nominee provision, and it is the one that reaches the Thai shareholder or proxy: "Any person who acquires land as an agent of an alien or juristic person under the provisions of Section 97 or 98 shall be punished with a fine not exceeding twenty thousand Baht or an imprisonment not exceeding two years, or both."
If a Thai national holds land so that a foreigner enjoys the real benefit of it, this is the section that applies to that Thai national.
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 111, the penalty clause for a violation of Section 86. Beyond imprisonment and fines, convicted foreigners face:
- Immigration consequences, which can include deportation and blacklisting, decided by the immigration authorities rather than imposed automatically by the Land Code
- An order to dispose of the land, ordinarily within 180 days to 1 year, with the Director-General empowered to sell it if the deadline is missed
- Risk to money paid for the land, since a court may treat an unlawful acquisition as unenforceable; this is fact-specific and not an automatic statutory forfeiture
- Potential additional charges under Criminal Code Section 267 (false statements in a public document), carrying up to 3 years imprisonment or a fine up to THB 60,000, or both
The Thai Nominee
Thai nationals who act as nominees face equally serious consequences under Section 113:
- 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: 2025-2026
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 case subjects, comprising 135 people and 96 juristic persons; not 231 arrested individuals
- 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 | Foreigner acquiring land in violation of Section 86 | 2 years | THB 20,000 |
| Section 112 | Juristic person acquiring or misusing land | None (fine only) | THB 50,000 |
| Section 113 | Acting as agent (nominee) for an alien | 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 60,000 |
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 2025-2026 Enforcement Plan
Following the Thai Cabinet's June 24, 2025 review of the Ombudsman's report on nominee landholding, authorities launched the most significant enforcement wave since the Foreign Business Act's enactment in 1999. On April 22, 2025, the Cabinet also approved in principle the urgent amendment of the FBA. The government has announced plans to inspect 46,918 companies across seven provinces:
- 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 and regulatory reforms would make penalties even more severe. As of February 2026, these are under active development:
- Anti-Money Laundering Act Amendments: Would classify nominee arrangements as money laundering predicate offenses, allowing AMLO to seize assets linked to illegal transactions
- 15-Year Prescription Period: Would allow prosecution of violations going back 15 years
- Standalone Nominee Transactions Act: A comprehensive new law to address nominee landholding issues, including land confiscation without compensation
- Redefinition of "Foreigner": Proposed to include individuals who control companies through Thai representatives, with clear definitions for "nominee" and "nominee transaction"
- FBA Reforms (Cabinet Approved April 2025): New definition of "Thai company" based on effective control, not merely share percentages, meaning nominee arrangements are legally invalid regardless of paper shareholding
- Professional Liability: The Lawyers Council of Thailand has been instructed to prohibit legal professionals from assisting in nominee arrangements. Accountants and corporate service providers are firmly within the scope of investigations