Buying property through a company in Thailand can seem like a smart strategy, but it often involves hidden legal risks and complex tax implications for foreign buyers.
In this guide, we break down the real rules, common mistakes and safer alternatives to help you invest in Phuket with confidence and long-term security.
Using a company to buy property in Phuket is common — but often misunderstood.
While it may seem like a shortcut to control land or villas, company ownership can expose buyers to legal risks, hidden costs and resale complications.
Buying property through a company using nominee shareholders.
This can lead to legal issues, tax exposure and difficulty reselling the property.
This guide explains when company ownership is legal, when it becomes risky, and which safer alternatives are typically recommended for foreign buyers in Phuket.
A Thai Limited Company can legally own land if it is a genuine operating business with real Thai shareholders holding more than 50% of shares.
However, nominee structures — where Thai shareholders act only on paper — are illegal and may lead to:
- Forced sale of the property
- Company dissolution
- Fines or legal consequences
Thai authorities increasingly scrutinize these structures.
Company vs Safer Alternatives
| Structure | Legal Safety | Costs | Resale | Recommendation |
|---|---|---|---|---|
| Company (nominees) | High risk | High | Difficult | Avoid |
| Freehold Condo | Very safe | Low | Easy | Best option |
| Villa + Leasehold | Safe (if structured) | Medium | Variable | Recommended |
| Usufruct / Superficies | Safe | Low | Case-by-case | Good option |
Hidden Costs & Tax Considerations
- Annual audits and accounting
- Corporate tax filings
- Registered office requirements
- Rental income tax
- Benefit-in-kind taxation (if you live in the property)
- Higher resale tax (~3.3% vs ~0.5% for individuals)
For most lifestyle buyers, these costs outweigh any perceived advantage.
Offshore Companies – Are They Better?
Offshore structures (BVI, HK, Seychelles) can simplify inheritance or share transfers.
However:
- They cannot directly own Thai land
- They still require compliance and annual costs
- They do not eliminate legal risks
When Company Ownership Is Legitimate
Company ownership may be valid if:
- The business is real and operational
- There is genuine revenue activity
- Thai shareholders are legitimate
- Taxes and accounting are compliant
Safer Alternatives for Foreign Buyers
- Freehold condominiums (within 49% foreign quota)
- Villa + long-term lease
- Usufruct / superficies rights
These structures provide better legal clarity and resale liquidity.
Our Recommendation
At JFTB Real Estate Phuket, we generally advise against company ownership purely for holding property.
The safest strategies are:
- Freehold condos
- Leasehold villas
- Proper legal rights structures
Focus on long-term security, not shortcuts.
Real Case – What Can Go Wrong
We have seen buyers who purchased villas through companies with nominee shareholders.
Years later:
- Legal uncertainty appeared
- Resale became difficult
- Control of the company became unclear
Proper structuring from the start avoids these issues.
Avoid Costly Legal Mistakes
Before buying property in Phuket, make sure your ownership structure is secure and compliant.
✔ Legal review ✔ Investment strategy ✔ Property selection
Related Searches
- Buy property Thailand foreigner
- Phuket property legal structure
- Can foreigners own land Thailand
- Phuket real estate investment rules
