Thai Commerce Ministry Cracks Down on Foreigners Using Thai Nominees in Real Estate

The Ministry of Commerce in Thailand is preparing to take decisive action against the illicit practice of foreign capital utilizing Thai nationals as "nominees" in the real estate sector. This issue has long been identified as a common method to circumvent Thailand's regulations on foreign land ownership. The Ministry of Commerce has announced its policy to strengthen cooperation with relevant government agencies and the private sector to eradicate this fraudulent practice. Key measures are expected to include enhanced information sharing, the establishment of joint monitoring systems, and strict legal enforcement following any crackdowns. Thailand imposes strict restrictions on direct land ownership by foreigners. Consequently, some foreign capital has acquired and managed real estate by having Thai nationals act as nominees. However, such "nominee" arrangements have been viewed as problematic from the perspective of protecting domestic industries and maintaining economic sovereignty, and have historically been exploited as legal gray areas or loopholes. The Ministry of Commerce's current move signifies a strong intention to address these situations more proactively and systematically. The aim is to foster sustainable development of the Thai economy by enhancing transparency in the real estate market and establishing a fair competitive environment. Source: MGR Online (Business)