The Thai Board of Investment (BOI) has announced amendments to its investment promotion policy on land ownership privileges. Starting 1 September 2025, BOI promoted companies operating in specific manufacturing sectors such as metals, chemicals, and plastics will no longer be entitled to land ownership rights. Certain industries will also face a new requirement for Thai-majority shareholding.
The BOI grants a range of incentives to encourage foreign and local investment in Thailand, including tax benefits, import duty exemptions, and land ownership privileges. Traditionally, land ownership rights for promoted companies were seen as a major draw for foreign investors looking to establish a long-term manufacturing base.
The newly announced restrictions mark a significant shift in how the BOI Thailand manages land use and ownership for foreign-promoted businesses.
1. Limitations on Land Ownership Privileges
From 1 September 2025, BOI promoted companies applying for investment promotion in the following activities will no longer be eligible for land ownership privileges:
This change directly affects foreign investors planning to establish operations in Thailand within these industries.
Exceptions: The restriction does not apply to existing promoted companies that already meet both of the following conditions:
Companies meeting this benchmark can still retain land ownership privileges despite the new rules.
2. Thai-Majority Shareholding Requirement
In addition to the land ownership limitation, the BOI will require Thai-majority ownership for certain industries. Starting 1 September 2025, companies applying for promotion in the following areas must have Thai shareholders holding more than 50 percent:
This measure appears designed to protect and strengthen domestic industries where Thai enterprises already have significant capabilities.
Land ownership restrictions: Foreign businesses in the metals, chemicals, and plastics sectors will need to reconsider their long-term property strategy in Thailand. Leasing land may become the default option unless they already qualify under the BOI’s exemption criteria.
Investment history advantage: Large investors with a strong track record of BOI promotions and significant capital commitments still benefit from land ownership privileges. This rewards companies that have consistently reinvested in the Thai economy.
Shareholding structure changes: Companies in leather goods, furniture, and printing sectors will need to review their ownership structures. Joint ventures or restructuring may be required to comply with the Thai-majority shareholding condition.
Industry-specific impact: The restrictions primarily affect manufacturing sectors with global supply chains. Investors will need to carefully balance BOI incentives with the operational constraints of land ownership and shareholding rules.
The Thai Board of Investment’s policy shift on land ownership privileges and shareholding structures marks an important development for foreign investors. While BOI promoted companies continue to enjoy strong tax and operational incentives, the changes mean land ownership rights will now be more selective. Businesses planning to apply for BOI promotion in Thailand should act quickly to adjust their strategies.
Key Insight
Stay compliant with Thailand’s evolving BOI regulations.
Need guidance on land ownership, BOI promotion, or structuring your investment in Thailand? ATA Outsourcing can help you navigate these changes and build a strategy that aligns with the new requirements.
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