Foreign investors operating businesses in Phuket through Thai nominee structures are now facing the most direct enforcement action in years. Between January 2025 and April 2026, Phuket Provincial Police prosecuted 15 cases under Thailand’s Foreign Business Act, involving 33 foreign suspects across multiple sectors including real estate.
The enforcement, disclosed during Prime Minister Anutin Charnvirakul’s visit to the island, reflects a wider policy shift toward stricter monitoring of businesses suspected of using Thai proxies to circumvent foreign ownership restrictions.
What the Foreign Business Act cases involved
According to Phuket Provincial Police Chief Sinlert Sukhum, the 15 prosecuted cases covered a range of business types: car rental companies, restaurants, real estate operations, design firms and childcare centres.
Russians accounted for the highest number of suspects charged, with 13 people. Chinese nationals followed with 12, then two Israelis and six suspects from other countries.
The offences included foreigners operating restricted businesses without proper authorisation, continuing operations despite suspended licences, and Thai nationals allegedly assisting foreigners by acting as nominee shareholders.
In plain English, a nominee structure is when a foreign investor uses Thai citizens as majority shareholders on paper, while retaining actual control of the business. This arrangement violates the Foreign Business Act when applied to restricted sectors.
Why real estate operations are included
Real estate brokerage, property management and certain development activities fall under restricted business categories in Thailand. Foreign nationals cannot hold majority ownership without special licences or Board of Investment privileges.
The inclusion of real estate operations in the prosecuted cases signals that authorities are not limiting enforcement to retail or hospitality businesses. Property-related services using nominee structures are now under direct scrutiny.
For foreign buyers, this enforcement does not affect the legal ownership of condominium units, which remain permissible under the Condominium Act. However, buyers involved in property rental management, sales agencies or development through Thai-majority companies should understand the legal structure carefully.
The wider enforcement context in Phuket
The Foreign Business Act prosecutions are part of a broader enforcement effort across Phuket. Between January 2025 and April 2026, police handled 3,218 criminal cases involving 3,484 foreign suspects.
Myanmar nationals accounted for the highest number of suspects overall, with 946 people, representing 27.2% of the total. Russians ranked second with 269 suspects, followed by British nationals with 143 and French nationals with 141.
Police also reported 20,901 arrests of foreigners driving without valid licences during the same period, with 8,625 arrests recorded in the first four months of 2026 alone.
Separately, authorities are investigating three criminal cases involving illegal occupation of public beachfront land at Bang Tao, with estimated damages of about 18 million baht covering more than three rai of occupied land. The cases involve businesses operating rental rooms, restaurants and massage shops.
What remains uncertain for property investors
The statistics provided do not specify how many of the 15 Foreign Business Act cases involved real estate operations, nor do they indicate the scale or nature of those businesses.
What is clear is that nominee arrangements are now a priority enforcement area, and real estate services are included in that scope.
For foreign investors already operating property-related businesses in Phuket, the prosecutions suggest increased risk if structures rely on Thai nominee shareholders without legitimate commercial substance.
For buyers considering investment in rental property or property management, the enforcement environment makes proper legal structure and professional advice more important than assumptions about common practice.
Frequently Asked Questions
Does this affect foreign ownership of condominiums in Phuket?
No. The enforcement targets businesses operating under the Foreign Business Act, not condominium ownership. Foreigners can still legally own condominium units under the Condominium Act, subject to the 49% foreign quota per building.
What is a nominee structure?
A nominee structure involves using Thai citizens as majority shareholders on paper while a foreign national retains actual control. This arrangement violates the Foreign Business Act when used to operate restricted businesses.
Which real estate activities are restricted under the Foreign Business Act?
Real estate brokerage, property management and certain development services are restricted. Foreign nationals cannot hold majority ownership in these businesses without special licences or Board of Investment approval.
How many real estate cases were prosecuted?
The report states that real estate operations were included among the 15 prosecuted cases, but does not specify how many cases involved real estate specifically.
Should foreign buyers be concerned about rental income?
Renting out a personally owned condominium unit is generally permissible. However, operating a property management business or rental agency through a Thai-majority company with nominee arrangements could face enforcement risk.
Sources
- The Phuket News — Phuket reports 3,484 foreign suspects in criminal cases since 2025 — link
