Thailand to force sale of land held illegally through foreign proxies

Thailand's government has taken aim at a longstanding practice whereby foreign investors circumvent constitutional prohibitions on land ownership by purchasing property through Thai proxies and nominees. Investigators have catalogued 2,360 plots spanning roughly 875 hectares held across 1,397 proxy arrangements, representing substantial sums in real estate holdings throughout the country.

The constitutional framework restricts land ownership to Thai nationals and Thai-registered entities with specific conditions. The identified violations represent a significant administrative challenge and potential revenue source if properties are liquidated through forced sales. Officials have not yet disclosed the timeline for enforcement actions or specific mechanisms for determining fair market valuations.

The move reflects broader efforts by Thai authorities to strengthen property law enforcement and ensure compliance with foreign investment restrictions. Similar campaigns have periodically targeted illegal land holdings, though implementation has often proceeded unevenly across provinces. Property disputes involving foreign nationals remain a recurring issue in Thai real estate markets, complicating both investment clarity and regulatory oversight.

Real estate agents and legal experts have long flagged the prevalence of proxy ownership arrangements, which operate in a grey zone between common practice and legal violation. The government's latest action signals renewed determination to address the issue, though success will depend on practical implementation capacity and cooperation from provincial land offices.