Thai Nominees

Thai nominees are individuals who have no real interest in land, but register the same under their names on behalf of foreigners in order to circumvent the legal prohibition of the foreign ownership of land. The practice of utilizing Thai nominees is expressly prohibited by the Land Code. The said law provides for the reversion and eventual disposal by the Director-General of lands registered in violation of its provisions. Moreover, such a practice carries with it a penalty of either a fine or imprisonment or even both. However, this prohibition should not be construed as an absolute ban against foreigners from having a role in the purchase or acquisition of land by Thai nationals. What is prohibited is the feigning of ownership by a Thai national in favor of a foreigner. The Act still allows the participation of foreigners in the acquisition of real property in the form of either a loan or a gratuitous disposition. Foreigners may make donations in favor of Thai nationals enabling the latter to purchase and thereafter register land in their names. Of recent development is the potential inclusion of a legally married Thai spouse within the definition of the term “nominee.” The Director General has made several statements reiterating the policy against using Thai nominees in order to acquire real property. Despite this, the practice of registering property under the name of a Thai spouse is permissible, provided that the spouses execute a joint declaration stating that the money used for the purchase of the property was entirely owned by the Thai spouse. However, loans extended to Thai spouses by the foreign spouses are considered to be within the ambit of the prohibition laid down under the Land Code.

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