Compliance with Thai Law: The BtF Method and Legal Ramifications of Non-Compliance
Understanding the critical importance of legal compliance in Thai property investment and the severe consequences of non-compliance.
The BtF Method: A Fully Compliant Solution
The Better-than-Freehold™ (BtF) method is a revolutionary, legally compliant structure for foreign property ownership in Thailand. It ensures that all rights, —such as leases, options, pledges, and mortgages, —are registered and enforceable under Thai law. The BtF model avoids the risks associated with nominee structures by separating economic benefits from legal title through an offshore trust. This structure is fully compliant with the Anti-Money Laundering Act (AMLA) 2025 and other Thai regulations, ensuring transparency and legal security for foreign investors.
BtF Legal Framework & Compliance
Aligned with Thai law and built on registered, enforceable instruments.
Frameworks
- • Thai Civil and Commercial Code (CCC)
- • Land Code
- • Foreign Business Act (FBA)
- • Anti-Money Laundering Act (AMLA 2025)
Key Legal Instruments
- • 30-year lease (registered)
- • Option to sell/re-lease (separate, secured)
- • Registered mortgage and share pledges
- • CBSA step-in rights for streamlined enforcement
Legal Ramifications of Non-Compliance
Non-compliance with Thai property laws, particularly through the use of nominee structures, carries severe legal and financial consequences. The Thai government has implemented aggressive enforcement mechanisms under the AMLA 2025 to eliminate nominee arrangements and ensure compliance with global transparency standards.
1. Criminal Penalties
•Imprisonment: Offenders face up to 10 years of imprisonment for engaging in nominee arrangements or other illegal ownership structures.
•Fines: Violators can be fined up to 10 million baht, a significant financial penalty that underscores the seriousness of these offenses.
2. Asset Seizure
•Immediate Freezing of Assets: Assets held through nominee structures can be frozen or confiscated without a court order. This administrative-level action ensures swift enforcement.
•Forfeiture of Property: Foreign investors risk losing their investments entirely if found in violation of Thai property laws.
3. Company Dissolution
Companies found to be using nominee shareholders or engaging in illegal practises can be dissolved, resulting in the loss of business operations and assets.
4. Blacklisting and Visa Restrictions
Foreign investors involved in illegal arrangements may face blacklisting, which can restrict their ability to conduct business or reside in Thailand in the future.
5. Gatekeeper Liability
Lawyers, Accountants, and Agents: Professionals who assist or fail to report nominee arrangements face personal liability, including criminal prosecution, licence revocation, and fines. This creates a strong deterrent for facilitating illegal structures.
6. Reversal of Burden of Proof
Foreign investors must prove that their ownership structures are not nominee arrangements. This reversal of the burden of proof places significant pressure on investors to ensure full compliance with Thai law.
7. Whistleblower Incentives
Informants who report nominee arrangements are entitled to 10% of the seized assets, further increasing the risk of detection and prosecution for non-compliant investors.
Additional Enforcement
- • Reversal of burden of proof
- • Whistleblower incentives (10% of seized assets)
- • AI-led inter-agency surveillance
- • Professional gatekeeper liability (lawyers, agents, CPAs)
Triggers for Nominee Classification
- • Foreign-controlled voting rights
- • Unequal Thai shareholder benefit
- • Thai capital funded by foreigners
- • Supermajority or minority foreign control
Why Compliance Matters
⚠️ Government Zero Tolerance Policy
The Thai government's zero tolerance policy towards nominee structures reflects its commitment to transparency and adherence to international standards. Non-compliance not only jeopardises your investment but also exposes you to severe legal and financial risks.
✅ BtF Solution
By adopting the BtF method, you can ensure full compliance with Thai law while enjoying the benefits of secure and lawful property ownership. For foreign investors, property developers, and legal professionals, the BtF model offers a robust, innovative, and legally sound alternative to outdated and risky nominee arrangements.
The Only Path Forward
BtF is the only pathway forward in a regulatory environment that prioritises transparency, accountability, and enforcement. The BtF structure offers a secure, compliant, and future-proofed solution for foreign investors.
Frequently Asked Questions
Get answers to the most common questions about compliance with Thai law
1. What makes the BtF method fully compliant with Thai law?
The BtF method is designed to align with key Thai legal frameworks, including the Civil and Commercial Code (CCC), Land Code, Foreign Business Act (FBA), and the Anti-Money Laundering Act (AMLA 2025). It ensures that all rights—such as leases, options, pledges, and mortgages—are registered and enforceable under Thai law. By separating economic benefits from legal title through an offshore trust, the BtF model avoids the risks associated with nominee structures and ensures full transparency and legal security.
2. What are the legal consequences of non-compliance with Thai property laws?
Non-compliance, particularly through nominee structures, carries severe penalties under Thai law, including:
- • Criminal Penalties: Up to 10 years of imprisonment and fines of up to 10 million baht
- • Asset Seizure: Immediate freezing or confiscation of assets without a court order
- • Company Dissolution: Companies using nominee arrangements may be dissolved, resulting in loss of assets and operations
- • Blacklisting and Visa Restrictions: Foreign investors may face restrictions on business and residency in Thailand
- • Gatekeeper Liability: Lawyers, accountants, and agents involved in illegal arrangements face personal liability, including criminal prosecution and license revocation
3. How does the BtF method protect foreign investors from nominee risks?
The BtF method eliminates nominee risks by:
- • Using a fully compliant structure that separates legal title from economic benefits
- • Registering all rights (lease, option, mortgage, and pledge) with Thai authorities
- • Employing third-party enforcement mechanisms, such as CBSA step-in rights, to ensure compliance and asset protection
- • Avoiding informal or illegal arrangements that could trigger penalties under AMLA 2025
4. Why is compliance with Thai property laws critical for foreign investors?
Compliance is essential because the Thai government enforces a zero-tolerance policy towards nominee structures, reflecting its commitment to transparency and international standards. Non-compliance exposes investors to:
- • Severe legal and financial risks, including imprisonment, fines, and asset forfeiture
- • Increased scrutiny due to AI-led surveillance, whistleblower incentives (10% of seized assets), and the reversal of the burden of proof
By adopting the BtF method, investors can ensure full compliance while enjoying secure and lawful property ownership.
Ready to invest in Thai property with confidence?
The Better-than-Freehold™ (BtF) structure offers a secure, compliant, and future-proofed solution for foreign investors.