Doing Business in Thailand in 2026: Incentives, Programs, and What Has Changed for Foreign Investors
Doing Business in Thailand in 2026: Incentives, Programs, and What Has Changed for Foreign Investors
Quick answer: Thailand is actively courting foreign investment through BOI promotion (up to 100% foreign ownership, corporate income tax holidays of up to 13 years, land ownership rights), enhanced Eastern Economic Corridor (EEC) incentives, and long-stay visa programs such as the LTR and SMART visas. Investment applications reached record levels in 2024–2025. At the same time, compliance has tightened: since 1 April 2026, DBD Order No. 1/2569 imposes stricter documentation on company registrations with foreign participation, and enforcement against nominee shareholding structures has intensified. The practical conclusion for investors: the legitimate routes into Thailand have never offered more — and the informal ones have never carried more risk.
Two things are true about Thailand in 2026, and they are best understood together. The first is that the government is competing harder than ever for foreign investment, with incentive packages that match or exceed regional alternatives. The second is that the authorities are enforcing the rules on who may own and control a Thai business more strictly than at any point in recent memory.
These are not contradictory policies. They are one policy: channel foreign investment through the legitimate frameworks built for it. This article surveys what those frameworks offer, what has changed this year, and the practical considerations for anyone entering or restructuring in the Thai market.
Why investors are choosing Thailand
The momentum is measurable. BOI investment applications reached THB 1.14 trillion in 2024 — a ten-year high — and THB 1.37 trillion in the first nine months of 2025, the highest figure in the agency’s history. Against a global backdrop in which foreign direct investment contracted for two consecutive years, ASEAN grew, and Thailand has been among the region’s strongest performers, particularly in high-technology industries. Data centres, electric vehicle and battery manufacturing, and electronics have led the inflows, with Singapore, Hong Kong, China, Japan and the United Kingdom the largest sources.
The main government programs for foreign investors
BOI investment promotion
The Board of Investment, established under the Investment Promotion Act B.E. 2520 (1977), remains the flagship route. For promoted activities — currently prioritising AI and digital industries, advanced manufacturing, biotechnology and other Thailand 4.0 sectors — approved projects may receive:
- Up to 100% foreign ownership, overriding the usual Foreign Business Act restrictions
- Corporate income tax exemptions of up to 13 years, depending on the activity category and merit-based enhancements for R&D, training and innovation
- Import duty exemptions on machinery and raw materials
- Land ownership rights for business operations
- Visa and work permit facilitation, including exemption from the standard four-Thai-employees-per-foreigner ratio
Projects located in the Eastern Economic Corridor (EEC) — the special development zone covering Chonburi, Rayong and Chachoengsao — can access additional corporate income tax reductions on top of the base package, supported by the zone’s dedicated infrastructure and its own visa framework for specialists and executives.
Long-stay visa programs: LTR and SMART
For the individuals behind the investment, Thailand has built a tiered set of long-stay options. The Long-Term Resident (LTR) visa offers a renewable 10-year stay, a digital work permit, annual (rather than 90-day) immigration reporting, a flat 17% personal income tax rate for highly-skilled professionals, and an exemption from personal income tax on foreign-sourced income for the wealthy investor, pensioner and remote-professional categories. The SMART visa was narrowed in 2025 and now covers startup founders (SMART-S) who have established a certified business in a targeted industry, together with their dependants (SMART-O); executives and investors are directed to the LTR visa instead.
The Treaty of Amity (US investors)
United States nationals and majority-US-owned companies retain a distinct advantage: under the Thai–US Treaty of Amity, they may hold majority or full ownership of businesses in most sectors without BOI promotion, subject to certain excluded activities and a certification process.
New in 2026: the government’s “year of investment”
The government has designated 2026 as its “year of investment”, and the BOI has paired the label with concrete measures:
- Thailand FastPass: launched in June 2026, a coordinated expedited-approval program for selected BOI-approved projects. Participating projects receive accelerated permits and licences from the relevant agencies at once — including the Department of Industrial Works, the Industrial Estate Authority of Thailand, the environmental planning office (ONEP), the Customs Department and the electricity utilities — with a reported target of cutting approval times by 20–50%. The first batch covers 25 large projects worth over THB 220 billion, drawn from an approved backlog of roughly THB 300 billion. Announcements are published on the BOI press releases page.
- SME competitiveness fund: THB 10 billion for machinery upgrades and modernisation, with grants covering 30–50% of investment costs, capped at THB 100 million per company, channelled through the Competitiveness Enhancement Fund.
- Workforce programs: a target of training 100,000 Thai workers for New S-Curve industries (AI, data engineering, cybersecurity), alongside the Skill Bridge technology-transfer program — giving incoming investors a locally available skilled workforce for advanced operations, rather than having to import entire technical teams.
- Retention & Expansion and Relocation packages (2026–2027): extended by the BOI Board. Retention & Expansion rewards established investors that commit a new or expansion project, with an additional CIT exemption of up to 3 years or a 50% CIT reduction for up to 5 years; the Relocation package grants an additional 5-year CIT exemption to companies moving their full operation — regional headquarters, R&D centre and manufacturing — to Thailand.
- Global Minimum Tax transition: for multinational groups within the 15% global minimum tax, Thailand is moving from pure tax exemptions toward a Qualified Refundable Tax Credit (QRTC), preserving the economic value of incentives in a form compatible with the new international rules.
- Sustainability criteria: from March 2026, promoted projects face stricter requirements aligned with Thailand’s BCG economy strategy and its 2050 carbon-neutrality target.
Two practical implications follow. First, several of these measures are time-limited, with application windows closing during 2026 and 2027 — which affects sequencing for anyone planning entry or expansion. Second, the Global Minimum Tax transition means large multinational groups should model incentives under the new credit mechanism rather than assuming the historical tax-holiday value.
What has tightened in 2026
On 1 April 2026, the Department of Business Development brought Order No. 1/2569 into force, imposing heightened documentary requirements on company registrations involving foreign participation — including evidence of the source of funds for Thai shareholders in majority-Thai companies operating in certain sectors. The Order sits within a broader enforcement campaign under the Foreign Business Act against nominee arrangements — structures in which Thai shareholders hold shares on behalf of foreign parties to disguise foreign control. Enforcement now applies an “actual control” analysis that looks beyond the shareholder register to voting rights, financing, and who genuinely directs the business.
We have covered this enforcement wave in detail in earlier articles, including the escalation from administrative review to investigation summonses. The practical position is straightforward: for investors using the legitimate routes, the new requirements add documentation, not risk. For nominee structures, the period of quiet tolerance has ended, and violations carry criminal penalties for both the foreign party and the Thai nominee, including fines and potential imprisonment under the FBA.
Weighing the decision: strengths and considerations
An honest assessment of Thailand as a destination for foreign business includes both columns.
Strengths
- Incentive depth: the combination of long tax holidays, ownership rights and land rights under BOI promotion compares favourably with regional alternatives
- Infrastructure and supply chains: established industrial estates, deep supplier networks in automotive and electronics, and the EEC’s dedicated logistics capacity
- Momentum: record application volumes signal both investor confidence and government commitment to processing them
- Quality of life: consistently a factor for founders and executives relocating with families, supported by the LTR framework
Considerations to plan for
- The Foreign Business Act restricts foreign majority ownership in many service and trading activities unless BOI promotion, a Foreign Business Licence, or treaty protection applies
- Processing timelines: BOI applications are currently taking around four to six months as the board manages record volumes — market entry plans should build this in
- Registration documentation: since April 2026, foreign-participation registrations face additional evidential requirements, lengthening preparation
- Outside promoted structures, standard rules apply: minimum capital requirements for foreign businesses, and work permit quotas tied to registered capital and Thai employment
Choosing the right route
The right structure depends on the activity and the investor’s profile, but the decision usually resolves along these lines:
- Activity fits a BOI category: apply for promotion — the ownership, tax and visa benefits are unmatched, and the certificate itself resolves the FBA question.
- US national or US-majority company: the Treaty of Amity route offers ownership without promotion, and can be combined with BOI incentives where eligible.
- Restricted activity outside promotion: a Foreign Business Licence is the lawful path — slower and discretionary, but durable.
- Existing structure with nominee characteristics: restructure before the question is asked by a registrar or investigator, not after. Compliant alternatives — genuine Thai partnership, BOI promotion, licensing — exist for most business models.
Plan your Thai market entry on solid ground
MBMG Group and Hua Hin Accounting & Law advise foreign investors across the full entry path: BOI application preparation, Foreign Business Licence applications, Treaty of Amity certification, corporate structuring that stands up to the new registration requirements, and remediation of legacy structures. Contact our corporate team to review your structure or entry plan.
Frequently Asked Questions
Can foreigners own 100% of a company in Thailand?
Yes, through defined routes: BOI investment promotion for promoted activities, a Foreign Business Licence for otherwise restricted activities, the Thai–US Treaty of Amity for American investors, or activities not restricted by the Foreign Business Act. Outside these routes, foreign ownership in restricted activities is capped at 49.99%.
What incentives does BOI promotion offer in 2026?
Depending on the activity: up to 100% foreign ownership, corporate income tax exemptions of up to 13 years, import duty exemptions on machinery and raw materials, land ownership rights for the promoted business, and streamlined visas and work permits.
What new investment measures has Thailand announced for 2026?
The government has designated 2026 its “year of investment”. Key measures include the Thailand FastPass expedited-approvals program launched in June 2026 (first batch: 25 projects worth over THB 220 billion), a THB 10 billion SME competitiveness fund with grants of 30–50% of investment costs, a 100,000-worker reskilling target for New S-Curve industries, extended Retention & Expansion and Relocation packages running to 2027, and a transition to Qualified Refundable Tax Credits for multinationals subject to the 15% global minimum tax.
How does the global minimum tax affect BOI incentives?
For groups with consolidated revenue above EUR 750 million, a tax holiday that pushes the effective rate below 15% simply allows another jurisdiction to collect the difference. Thailand’s response is the Qualified Refundable Tax Credit, which delivers benefit as refundable credits on qualifying expenditure without depressing the effective tax rate. Standard BOI exemptions remain available and fully valuable for groups below the threshold.
What changed for foreign investors in Thailand in 2026?
From 1 April 2026, DBD Order No. 1/2569 requires additional documentation for company registrations with foreign participation, including source-of-funds evidence for Thai shareholders in certain sectors. This accompanies intensified enforcement against nominee shareholding structures under the Foreign Business Act.
Are nominee shareholders legal in Thailand?
No. Arrangements in which Thai nationals hold shares on behalf of foreigners to circumvent the Foreign Business Act are unlawful and carry criminal penalties for both parties, including fines and potential imprisonment. Enforcement has intensified significantly since 2025.
How long does a BOI application take?
Around four to six months at current volumes, from application to promotion certificate, depending on the activity category and the completeness of the submission. Investment plans should account for this timeline.
What is the LTR visa and who is it for?
The Long-Term Resident visa is a renewable 10-year visa administered by the BOI for wealthy investors, pensioners, remote professionals working for overseas employers, and highly-skilled professionals in targeted industries. Benefits include a digital work permit, annual immigration reporting, and category-dependent tax privileges.
Is Thailand still attractive despite the stricter rules?
The record application volumes of 2024–2025 suggest investors think so. The stricter rules target circumvention structures, not legitimate investment — for compliant investors, the practical effect is more documentation at registration, while the incentive packages available through the formal routes have expanded.
