For foreign buyers considering Phuket property, the important question is not only about location and price, but whether the ownership structure is legal. A structure that appears acceptable can carry serious criminal risk if it crosses Thailand’s strict foreign ownership rules.
Thailand’s Department of Special Investigation has now submitted case files against 31 suspects in the expanded Villa Andaman nominee investigation to public prosecutors. The investigation targets law firms in Phuket and Koh Samui accused of helping foreign investors use Thai nationals as nominees to illegally hold land and operate real estate businesses.
The DSI submitted the initial case files involving Villa Andaman Co Ltd and 28 suspects to the Attorney General’s Special Cases Division on April 22, 2025. The latest submission on May 25 included three additional suspects and two foreign nationals identified as Mr Symond and Ms Wendy, in both personal and representative capacities.
What the investigation alleges
The DSI’s Security Cases Division alleges that a network of law firms in Phuket and Surat Thani helped foreign investors establish Thai companies using Thai nationals as nominee shareholders. These structures were allegedly designed to circumvent foreign ownership restrictions on land and real estate development businesses.
The investigation expanded to include suspects connected to Firefly (Thailand) Co Ltd. According to the DSI, the case centres on allegations that a British national referred to as Mr Marcus and an American national referred to as Mr Paul jointly used Thai nominees to conceal foreign ownership interests in real estate businesses in violation of Thai law.
All suspects face charges under the Foreign Business Act B.E. 2542 (1999), including operating businesses without permission as foreigners, using Thai nominees to circumvent restrictions on foreign ownership, and directors being complicit in offences committed by legal entities.
Why this matters for Phuket property buyers
The case highlights the difference between legal foreign property ownership and illegal nominee structures. Foreign buyers can legally own condominium units, but cannot own land unless through limited exceptions such as Board of Investment privileges or the now-rare permanent residence land quota.
Some buyers have historically been advised to establish a Thai company to hold land, with Thai nominee shareholders provided by law firms or agents. In a genuine company structure, Thai shareholders hold real equity and control. In an illegal nominee structure, Thai shareholders are paid to sign documents but hold no actual interest, while the foreign buyer retains full control and benefit.
Thai law treats nominee arrangements as criminal offences. The Foreign Business Act prohibits foreigners from using Thai nationals as nominee shareholders to operate restricted businesses or hold land. Both the foreign buyer and the Thai nominees can face charges, along with lawyers, agents or directors who facilitated the arrangement.
The DSI explicitly stated the investigation forms part of ongoing efforts to prevent foreigners from exploiting legal loopholes to acquire land or operate restricted businesses in ways that negatively affect the Thai economy and employment opportunities for Thai nationals.
What remains unclear
The DSI announcement does not specify the scale of properties involved, the total value of the alleged illegal holdings, or whether additional suspects or related companies remain under investigation. The case files have been submitted to the Office of the Attorney General’s Special Cases Division, but charges have not yet been formally filed in court.
The DSI indicated further updates will be provided as the case progresses through the public prosecutor’s office. Whether the investigation will expand to other developers, law firms or property transactions in Phuket or elsewhere in Thailand is not yet known.
The detail buyers should watch
Foreign buyers who already own Phuket property through a Thai company structure should verify whether the structure is legally sound. A legitimate company has genuine Thai shareholders who hold real equity, participate in decision-making, and receive dividends. A nominee structure uses Thai shareholders as a legal facade while the foreign buyer retains full control.
Buyers considering property acquisition should seek independent legal advice from reputable Thai law firms with experience in foreign property ownership. Structures that rely on nominee shareholders carry criminal risk for all parties involved.
The case also serves as a reminder that enforcement priorities can change. While nominee structures have historically been common in some segments of the Phuket market, the DSI investigation signals that authorities are actively pursuing cases involving alleged illegal foreign ownership.
Frequently Asked Questions
What is a nominee structure in Thai property?
A nominee structure uses Thai nationals as shareholders in a company that holds land on behalf of a foreign buyer. The Thai shareholders have no real interest or control. Thai law treats this as a criminal offence under the Foreign Business Act.
Can foreign buyers legally own property in Phuket?
Yes. Foreign buyers can legally own condominium units in their own name, provided foreign ownership in the building does not exceed 49 percent. Foreign buyers cannot own land unless through limited exceptions such as Board of Investment privileges or the permanent residence land quota.
What are the penalties for using nominee shareholders?
The Foreign Business Act imposes penalties including fines and imprisonment for foreigners operating restricted businesses without permission and for using Thai nominees to circumvent ownership restrictions. Thai nominees and facilitators including lawyers and agents can also face charges.
Is this the only DSI investigation into foreign property ownership?
The DSI announcement does not specify whether additional investigations are underway. The agency stated the Villa Andaman case forms part of ongoing efforts to prevent foreigners from exploiting legal loopholes, which suggests enforcement may continue.
Should foreign buyers who own property through a Thai company be concerned?
Buyers who own property through a legitimate Thai company structure with genuine Thai shareholders should not be affected. Buyers who used nominee structures should seek independent legal advice to understand their position and options.
Sources
- The Phuket News — DSI sends Villa Andaman cases to prosecutors — link
