For 20 years, the Thai company—with a majority of local shareholders—allowed foreigners to own villas and land on Koh Samui. In 2026, this arrangement became a legal risk—and leasehold has now emerged as the only reliable alternative.
Why has buying in Thai company become risky?
Thai law restricts land ownership to Thai nationals and entities with a Thai majority. To circumvent this, a common arrangement involved placing 51% of a company’s shares in the name of Thai nationals (nominees), while the foreigner owned 49%, was appointed director, and thus retained control of the company. This practice has always been legally precarious, but enforcement of the law remained sporadic: many foreigners were able to own villas in this manner without being challenged for many years. Today, however, the government has decided to enforce the law.
What controls have been in place in 2026?
Two decrees issued by the Department of Business Development (DBD) have changed the landscape: as of January 1, 2026, every Thai shareholder of a new company must prove their actual financial capacity by providing bank statements; as of April 1, 2026, this requirement has been extended to cover any changes to the company (such as the transfer of shares or changes in management).
What does this mean in practice? For any formation or transfer of a Thai company, each shareholder must prove their actual ownership interest in the company and can therefore no longer be a mere “nominee.”
Is it still possible to buy a property in Thai company?
The problem lies in partnering with straw men. However, the Thai company structure remains legal if the Thai shareholders are genuine investors with verifiable funds and a real stake in management. If a foreign investor purchases a villa with a trusted Thai national who acts as the majority shareholder and is able to prove their involvement, this remains a viable option.
The few people in this situation can therefore continue to invest with Thai companies. However, for the majority of investors, it makes sense to opt for a leasehold.
Leasehold: The Solution for Buying a Villa
Apart from purchasing a freehold condominium (learn more in this article), investors have only one other option for owning a villa in Thailand: leasehold.
A leasehold is a long-term lease of 30 years that gives investors the right to occupy and operate their villa (provided they use a professional management company if renting it out by the night). The legal framework is well-defined and grants you genuine rights to your property.
It is important to note that lease renewal depends on the landlord’s consent and is never guaranteed by law. In accordance with applicable regulations, lease renewal can only occur at the end of the first 30-year period and must then be agreed upon by the landowner and the leaseholder.
In conclusion
For anyone looking to buy a villa or land in Koh Samui in 2026, a leasehold is no longer just a prudent alternative—it has become the only viable option for a buyer who does not have genuine, trustworthy Thai partners.
Before beginning the home-buying process, it is essential to take the time to learn about the legal and administrative requirements.
Our advisors are here to listen to you and help you move forward with your decision-making process. Contact us
