In June 2026, Thailand's Immigration Bureau issued Circular No. 0029.161/W3242, explicitly directing officers to scrutinise the shareholding structures of companies linked to foreign nationals for illegal nominee arrangements. A subsequent analysis published by Forvis Mazars in October 2026 confirmed that the review framework now covers ownership structures, actual operational control, financial statements, and the authenticity of business activity. For any foreign buyer purchasing a villa in Phuket or Koh Samui through a Thai-registered company, these developments carry concrete consequences: from visa extension refusals to outright blocks on repatriating capital abroad.
Our team has been monitoring this situation on the ground since early signals emerged in mid-2026. The regulatory pressure is not an isolated event - it reflects a long-running trend toward greater financial transparency in Thailand. Central Registrar Order No. 2/2569, in force from 1 August 2026, requires Thai co-shareholders to document the source of their capital with three months of bank statements. In practice, any structure in which Thai shareholders cannot demonstrate real funds covering their share subscriptions may be challenged at the point of company registration.
Quick answer
- Immigration Circular No. 0029.161/W3242 (18 June 2026) mandates nominee structure checks during foreign nationals' visa extension reviews
- From 1 August 2026, Thai co-shareholders must produce three months of bank statements evidencing the source of their share capital (Central Registrar Order No. 2/2569)
- As of November 2026, Thai banks are increasingly refusing to issue account certification letters required in visa extension applications, per on-the-ground reports we have collected
- Immigration offices now cross-reference annual corporate tax filings (PND 50), payroll tax remittances (PND 1), social security contributions, and genuine employment records of visa-sponsoring companies
- Repatriation of sale proceeds from Thailand requires a Foreign Exchange Transaction (FET) form issued at the point of inward remittance, plus original proof that funds entered Thailand in foreign currency
- Per Bangkok Post data, mortgage lending on Thai property rose 12% year-on-year in H1 2026 and ownership transfers increased by 17%: the market is growing, but under tightening oversight
Options and scenarios
Scenario 1: Freehold condominium purchase (direct foreign ownership)
A foreign buyer acquires a condominium unit directly in their own name, without any Thai company intermediary. This is the only route to full property ownership available to non-Thai nationals under current law. The key constraint: foreign ownership in any given building cannot exceed 49% of total sellable floor area.
Funds must enter Thailand from abroad in a foreign currency. The receiving Thai bank issues an FET form when the inward transfer equals or exceeds the equivalent of 50,000 USD. The SWIFT payment reference should precisely identify the purpose - for example, 'purchase of condominium unit at'. Under this structure, the June 2026 nominee circular does not apply, and capital repatriation after a future sale requires only the original FET and transaction documentation.
In Phuket districts such as Bang Tao, Layan, and Surin, and in Bophut and Chaweng on Koh Samui, foreign ownership quotas in several new condominium projects are approaching the 49% ceiling. We verify quota availability on the ground before any recommendation.
Scenario 2: Villa ownership through a Thai company (nominee risk)
Foreign nationals cannot hold land title in Thailand. A widely used workaround has been to register a Thai Co., Ltd. in which Thai shareholders formally hold at least 51% of shares while the foreign investor retains operational control. This is precisely the structure now under regulatory focus.
Since Registrar Order No. 2/2569 took effect, Thai co-shareholders must demonstrate that they genuinely held the funds used for their share subscriptions. Per the October 2026 Forvis Mazars analysis, registrars and immigration officers now check whether the company files PND 50 annual returns, remits payroll tax (PND 1), pays social security, and conducts real commercial activity. A company whose sole asset is a villa and that generates no operating revenue is a textbook red-flag case.
For foreign buyers, the consequences can compound in three directions: (1) refusal to register the company or approve share transfers; (2) refusal to extend a business visa sponsored by the company; (3) inability to repatriate sale proceeds.
Scenario 3: Long-term leasehold
A third route is registering a 30-year land lease at the Land Office directly in the foreign buyer's name, without a company structure. Extensions of up to a further 30 years are contractually possible, though successive renewal periods are not guaranteed under Thai law. The building constructed on leased land can be owned separately by the lessee under a building ownership agreement.
This structure sidesteps the nominee issue entirely, but ownership rights are more limited - a leasehold is not freehold title, and transferability depends on the terms negotiated with the landowner. In Phuket districts such as Kamala, Rawai, and Nai Harn, our analysts are observing increased buyer interest in leasehold structures specifically as a response to the tightened nominee controls of 2026.
Comparison table
| Parameter | Freehold condo | Thai company (villa) | 30-year leasehold |
|---|---|---|---|
| Land title | Not applicable (unit in building) | Formally held by company | Registered leasehold |
| Nominee risk | None | Very high as of 2026 | None |
| FET form | Required (transfers at or above 50,000 USD equiv.) | Required on capital contribution | Recommended for repatriation |
| Capital repatriation | Straightforward with FET | Blocked without full company documentation | Limited to lease value |
| Visa impact | Neutral | Negative - immigration scrutiny | Neutral |
| Foreign ownership cap | 49% of building floor area | 49% of shares for foreign national | No cap |
| Estimated registration costs | 2-3% of value (transfer fees) | 5-10% (company setup, legal, audit) | 1-2% of lease value |
| Transferability | Full | Significantly restricted in 2026 | Subject to contract terms |
Risks and mistakes
Risk 1: Vague SWIFT payment reference. This is the most common issue we see among foreign buyers. A transfer labelled generically as 'investment' or 'property' instead of precisely identifying the unit and project complicates FET issuance and can prevent capital repatriation. Thai banks are entitled to refuse an FET if the payment reference does not correspond to the declared transaction purpose.
Risk 2: Sending funds in a non-convertible currency. Funds should arrive in Thailand in USD, EUR, or GBP. A transfer denominated in a less common currency may not be recognised by the Thai bank as qualifying foreign currency for FET purposes. Based on our observations, converting to USD before initiating the SWIFT transfer eliminates this risk at source.
Risk 3: Forming a company without genuine business activity. In 2026, this is the most serious structural risk. A company created solely to hold a villa - with no operating revenue, no employees, and no tax filings - is treated as a nominee vehicle. Registrar Order No. 2/2569 requires Thai shareholders to prove the source of their capital contributions; nominee shareholders are increasingly being identified and flagged.
Risk 4: Failing to file the annual audit. Every Thai company is legally required to submit audited financial statements each year. Absence of an audit signals to authorities that no genuine business is being conducted. Based on current market rates, annual audit costs run approximately 15,000 - 40,000 THB (as of 2026).
Risk 5: Underestimating currency risk on instalment schedules. Off-plan purchase payments are typically spread over 18-24 months. A movement of 5-10% in the buyer's home currency against the Thai baht over that period can materially increase the total cost. Based on our estimates, on a property priced at 10,000,000 THB, an 8% depreciation of the buyer's home currency during the payment schedule generates an additional cost in the range of 80,000 - 100,000 USD-equivalent. These figures are indicative - we recommend consulting a currency specialist before committing to an instalment schedule.
Risk 6: Relying on a nominee company to sponsor a long-stay visa. As of November 2026, banks are refusing to issue account certification letters for companies under scrutiny, and immigration offices are cross-referencing PND 50, PND 1, and social security records. Any buyer planning to reside in Thailand on a business visa sponsored by a property-holding shell company should factor in a material risk of extension refusal.
FAQ
What is the FET form and when is it required for a Thai property purchase?
The Foreign Exchange Transaction (FET) form is a document issued by a Thai bank when foreign currency arrives from abroad in an amount equal to or exceeding the equivalent of 50,000 USD. It confirms that the funds originated outside Thailand and entered legally. The FET is required to register a freehold condominium in a foreign buyer's name at the Land Office, and it is the primary document needed to repatriate the proceeds of a future sale.
Can a foreign buyer obtain a mortgage in Thailand in 2026?
Mortgage products for non-residents in Thailand are very limited. Based on our analysis, a small number of regional banks - including UOB Thailand and ICBC Thai - offer lending to non-residents, but typically require a down payment of 30-50% and charge interest rates of approximately 5-7% per annum. Developer instalment plans are another option, though they are usually priced into a higher unit cost. Leveraging existing assets in the buyer's home country may be the most cost-effective path, subject to that country's lending conditions.
What are the visa consequences of a nominee structure in 2026?
Immigration Circular No. 0029.161/W3242 (June 2026) directs officers to verify nominee structures when processing visa extensions. If the sponsoring company does not conduct genuine business, file tax returns, or employ staff, the extension application can be refused. Thai banks are additionally declining to issue account certification letters for companies showing signs of nominee characteristics, removing a key document from the extension file.
How should funds be transferred from abroad to Thailand for a condo purchase?
Our recommended approach is a SWIFT transfer in USD or EUR from the buyer's home bank, with a payment reference that precisely names the project, unit number, and buyer. Bank spreads on SWIFT transfers run approximately 1-3% of the transaction value. Specialist currency brokers typically offer spreads of 0.3-0.7% but require source-of-funds verification. SWIFT clearing time is generally 2-5 business days. A key operational detail: confirm that neither the sending nor any intermediary bank will truncate or alter the payment reference in transit.
Is leasehold a safer option than a Thai company structure in 2026?
From a regulatory standpoint, yes. A 30-year lease registered at the Land Office in a foreign buyer's name requires no Thai shareholding structure and is not subject to the nominee controls introduced in 2026. The trade-off is that leasehold does not confer land title, and the legal certainty of renewal after the initial 30-year term is limited.
What does it cost annually to maintain a Thai company that holds a property?
Based on current market rates, annual running costs include: statutory audit (15,000 - 40,000 THB), accounting and bookkeeping (20,000 - 60,000 THB), registered director fee where required (50,000 - 150,000 THB), and corporate income tax at 20% of net profit. The combined minimum is approximately 50,000 - 250,000 THB per year, excluding legal costs for any structural changes. All figures are indicative as of 2026.
What documents does the immigration office check during a company-sponsored visa extension?
Based on 2026 on-the-ground reports, officers review: the company's annual corporate tax return (PND 50), payroll tax filings (PND 1), social security contribution records, the shareholder register with evidence of Thai shareholders' capital sources, and bank account certification letters confirming account balances.
Can proceeds be repatriated after selling a property in Thailand?
Yes, provided the original FET form documenting the inward foreign currency transfer is available. For a freehold condominium sale, the Thai bank processes the outward transfer on the basis of the FET, the sale and purchase agreement, and confirmation that applicable transaction taxes have been paid. Without an FET, the bank may decline the outward transfer, making repatriation significantly more difficult.
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