Thailand Targets 7,000+ Nominee Companies in Koh Samui and Koh Phangan Crackdown

Multi-Agency Task Force Launches Comprehensive Investigation Across Popular Tourist Islands

What is Thailand's Nominee Company Crackdown?

Thai authorities launched an unprecedented enforcement operation targeting nominee company structures concealing foreign ownership on Koh Samui and Koh Phangan islands. Poonpong Naiyanapakorn, director-general of the Department of Business Development, revealed preliminary investigations identified more than 7,000 businesses at risk of operating as illegal nominee companies, predominantly in real estate, condominiums, tourism, hotels, and restaurants¹.

Table of Contents

• Investigation Scope and Scale
• Enforcement Actions and Arrests
• Two-Stage Prosecution Strategy
• Better-than-Freehold Solution
• FAQ Section
• Expert Recommendations

Investigation Scope and Scale

Nationwide Monitoring Intensifies

The Department of Business Development revised its inspection framework focusing on businesses where foreigners hold between 0.001% and 49.99% of shares across six high-risk sectors, involving 46,918 entities nationwide¹. This enhanced scrutiny applies deeper criteria beyond simple shareholder ratios, identifying genuine risk indicators through advanced analysis.

After initial screening, approximately 1,000 businesses receive priority for immediate investigation, with probes subsequently extending to entities presenting lower risk levels¹. The monitoring covers nationwide operations, not solely Surat Thani province, following increasing reports of foreigners acquiring land and operating businesses in popular tourist destinations.

Foreign Investment Patterns

European and international investors dominate the suspected nominee arrangements, operating enterprises ranging from large-scale developments to small businesses using Thai nationals as proxy shareholders¹. Travel and Tour World reported the situation reveals significant concerns within real estate, tourism, and hospitality sectors where foreign direct investments concentrate³.

Enforcement Actions and Arrests

Recent Raid Results

Police conducted coordinated raids across four locations on Koh Phangan, seizing evidence linked to 89 companies suspected of using nominee structures to conceal land sales and evade over 152 million baht in taxes². Authorities summoned foreign tourists for questioning after discovering illegal luxury villas operating without proper authorization.

Between October 2024 and September 2025, Surat Thani Provincial Police recorded 2,001 foreign-related offenses, including 18 nominee cases distributed across Koh Phangan Police (eight cases), Bo Phut Police (eight cases), and Koh Samui Police (two cases)⁴. The 18 investigations involve real estate and hotel operations (10 cases), construction firms (2), computer services (2), plus single cases for car rental, café, visa services, and cleaning companies⁴.

Criminal Prosecutions

Multiple foreign nationals faced arrest during enforcement operations. Police detained three Israeli nationals and five Thai and Myanmar workers targeting two hotels operating without licenses and employing illegal migrant workers⁵. Authorities charged company directors with operating hotels without authorization whilst pursuing additional suspects for prosecution.

Investigations extend beyond foreign operators, targeting Thai nationals who facilitated ownership concealment and government officials involved in violations⁴. This comprehensive approach ensures accountability throughout nominee structure chains.

Two-Stage Prosecution Strategy

Immediate Action Phase

Police investigation and intelligence divisions combined data analysis guiding enforcement actions through two distinct stages. The immediate action phase targets foreigners working without permits, engaging in occupations reserved for Thais, or overstaying visas, with on-the-spot arrests and prosecution⁴.

Evidence-Based Investigations

The second phase involves comprehensive investigations of corporate structures, land ownership records, tax payment histories, hotel operations, and construction activities, with cases referred to relevant authorities for formal complaints⁴. Pol. Maj. Gen. Saranyu Chamnanrach, deputy commissioner of Provincial Police Region 8, confirmed this integrated approach marks the beginning of broader crackdowns across Region 8, including Phuket, Krabi, Phang Nga, and Surat Thani⁴.

Institutional Framework Enhancement

Following recent government changes, the Commerce Ministry proposed appointing a new committee chaired by a deputy prime minister, expanding membership to four key agencies: the Department of Special Investigation (DSI), Anti-Money Laundering Office (AMLO), Board of Investment (BOI), and Industrial Estate Authority of Thailand (IEAT)¹. This coordination strengthens enforcement capacity whilst ensuring consistent application of AMLA 2025 compliance standards.

Better-than-Freehold Solution

Better-than-Freehold eliminates nominee structure risks through compliant legal frameworks enabling foreign property ownership whilst ensuring complete protection under Thai law and AMLA 2025 regulations.

Compliant Structure Components

Thailand Investor Network operates as the transparent foreign holding entity, bypassing nominee requirements through registered corporate structures complying with Foreign Business Act parameters. Siam Property Holdings functions as the Thai trustee company maintaining legal ownership whilst securing beneficial ownership through enforceable trust deeds and registered security interests.

Clear Blue Security Agents provide independent enforcement mechanisms protecting foreign investor rights through mortgage registrations at district land offices, creating legally enforceable claims against property assets.

Security Mechanisms

Registered security interests ensure foreign investors maintain enforceable rights through official land office registrations, creating legal protection independent of trustee cooperation. These security registrations survive company changes, ownership transfers, and legal challenges, providing comprehensive asset protection.

Professional trust management eliminates the personal relationship dependencies characterizing nominee arrangements, substituting professional obligations with legally enforceable contractual mechanisms and independent security agent oversight.

Investment Advantages

Offshore financing up to 50% loan-to-value enables international banks to provide secured lending against Better-than-Freehold structures, accessing capital markets unavailable to nominee arrangements. Tax efficiency through proper corporate structuring ensures legitimate tax optimization whilst maintaining complete AMLA 2025 compliance.

Inheritance planning operates through standard corporate mechanisms and trust deed provisions, enabling straightforward wealth transfer without Thai probate complications or nominee structure exposure.

FAQ Section

Expert Recommendations

Foreign property ownership in Thailand requires specialized legal structures ensuring compliance with AMLA 2025 enforcement whilst protecting investment security.

Professional Guidance Essential

The Koh Samui and Koh Phangan crackdown demonstrates Thai authorities' commitment to eliminating nominee arrangements through coordinated enforcement operations targeting thousands of suspected businesses. Foreign investors operating through nominee structures face property seizure, criminal prosecution, substantial tax penalties, and potential imprisonment.

Immediate Action Required

Existing nominee structure holders require urgent legal review assessing exposure under current enforcement frameworks. The two-stage prosecution strategy means immediate arrest risks for foreigners working without proper permits whilst comprehensive investigations target corporate structures, land ownership, and tax compliance. Transitioning to compliant frameworks before authorities initiate formal investigations prevents criminal exposure whilst preserving property investments.

Long-term Security Strategy

Better-than-Freehold provides the comprehensive solution enabling foreign property ownership through legally compliant structures eliminating nominee risks. Registered security interests create enforceable protection mechanisms, professional trust management ensures reliable administration, and transparent corporate frameworks maintain complete AMLA 2025 compliance. This approach delivers security, financing access, and inheritance planning unavailable through nominee arrangements.

For comprehensive assessment and implementation of compliant structures, contact our expert team today.

Conclusion

Thailand's investigation of over 7,000 suspected nominee companies on Koh Samui and Koh Phangan represents unprecedented enforcement action targeting illegal foreign property ownership structures. The multi-agency coordination involving DSI, AMLO, BOI, and IEAT demonstrates government commitment to eliminating nominee arrangements through systematic prosecution and comprehensive legal reform.

Foreign investors operating through nominee structures face substantial criminal exposure, including property seizure, tax penalties exceeding 152 million baht, and imprisonment. The two-stage prosecution strategy ensures immediate arrests whilst evidence-based investigations target corporate structures, creating comprehensive legal risks throughout nominee arrangement chains.

Better-than-Freehold eliminates these risks through compliant legal frameworks enabling foreign property ownership whilst ensuring complete protection under Thai law. Registered security interests, professional trust management, and transparent corporate structures provide security, financing access, and inheritance planning unavailable through illegal nominee arrangements.

Contact specialized legal professionals immediately to assess existing structures and implement compliant frameworks before enforcement operations extend beyond current investigation targets.

Legal Disclaimer

This content is for educational purposes only and does not constitute legal advice. Thai property law is complex and subject to change. For specific guidance, consult qualified legal professionals familiar with Thai property law and Better-than-Freehold structures.

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