For foreign buyers who own property in Thailand or are considering it, the question is not whether nominee structures are illegal—that has always been clear. The question is whether enforcement is becoming real. The answer, based on the latest crackdown in Koh Samui, is yes.
On August 14th, Thai police arrested 27 suspects and seized 42 land plots and properties worth an estimated 1.5 billion baht on Koh Samui. The operation, led by Deputy National Police Chief Pol. Gen. Samran Nualma, uncovered 61 suspect companies linked to nominee structures. These companies were used to allow foreign investors to control land and assets in violation of Thai law, which restricts foreign ownership of land.
Police have now pursued 60 cases involving 88 suspects: 26 Thai nationals and 62 foreigners. Courts issued 37 search warrants and 62 arrest warrants for foreign suspects. Nearly half of those arrests were secured in the August 14th operation. Authorities confiscated documents, computers, mobile phones and electronic data to trace financial flows and expand the investigation both domestically and internationally.
What nominee structures are and why they are illegal
Thai law prohibits foreigners from owning land except in limited, specific circumstances. To circumvent this restriction, some foreign buyers have used nominee structures. In plain English, a nominee structure involves setting up a Thai company where Thai nationals hold shares on paper, but the foreigner controls the company and the property it owns. The Thai shareholders are proxies—they have no real stake or decision-making power.
This arrangement has always been illegal under Thai law. The Land Code and Foreign Business Act make it clear that Thai shareholders must be genuine, with real investment and control. Using nominees exposes both the foreign buyer and the Thai proxies to criminal liability, asset seizure and deportation.
Despite the legal risk, nominee structures have been widely used in Thailand’s resort property markets for decades, often set up by developers, lawyers or agents who described them as standard practice.
Why this crackdown matters for Phuket
Koh Samui and Phuket are Thailand’s two largest resort property markets with significant foreign buyer activity. Both islands have seen nominee structures used extensively, particularly in villa and land transactions. What happens in Samui is closely watched in Phuket.
The scale of the Samui operation—1.5 billion baht in assets, 61 companies, 42 properties and 62 foreign suspects—signals that enforcement is no longer theoretical. Thai authorities are pursuing these cases with search warrants, arrest warrants, asset seizures and international cooperation.
For Phuket property buyers, the message is clear: nominee structures carry real enforcement risk. Properties can be seized. Foreign owners can be arrested, prosecuted and deported. Thai proxies face criminal charges. The legal structure that was once described as low-risk is now being actively dismantled.
What remains legal for foreign buyers in Thailand
Foreign buyers can legally own property in Thailand through several clear routes:
Condominiums. Foreigners may own up to 49% of the total saleable area in a condominium building in freehold. This is straightforward and widely used.
Long-term leases. A registered lease of up to 30 years is legal and enforceable. Lease extensions or renewal options may be negotiated but are not guaranteed by law. Leasehold is commonly used for villas and land-based properties.
Thai spouse ownership. A Thai national may own land. If married to a foreigner, the Thai spouse must declare that funds used to purchase the land are their separate property, not marital property. This is legal provided it is genuine.
Qualifying foreign business. Certain foreign businesses with Board of Investment privileges or other specific approvals may own land for approved purposes. This applies to commercial operations, not residential buyers.
These legal structures are widely used in Phuket and across Thailand. They are enforceable, transparent and carry no nominee risk.
What buyers should do now
If you already own property in Thailand through a nominee structure, the exposure is real. The Samui crackdown shows that Thai authorities are pursuing these cases systematically, with warrants, asset seizures and criminal charges. Ignoring the issue does not reduce the risk.
Buyers in this situation should consult a qualified Thai lawyer who specialises in property law and can assess the structure, the level of exposure and the available options. In some cases, it may be possible to restructure ownership through a legal route such as a long-term lease. In other cases, the exposure may be too high to mitigate.
For buyers considering new purchases in Phuket or elsewhere in Thailand, the rule is simple: do not use nominee structures. Developers, agents or lawyers who describe nominee companies as normal, safe or standard practice are either uninformed or reckless. The legal risk is clear, and enforcement is now active.
Buyers should work with lawyers and agents who use only legal ownership structures: freehold condominiums, registered leases or Thai spouse ownership where genuinely applicable. If a transaction requires a Thai company structure, the buyer should ask why and verify that the structure complies with Thai law, including genuine Thai shareholder participation and control.
What is still uncertain
The Samui crackdown does not clarify how widely enforcement will expand or how aggressively authorities will pursue older nominee cases. The operation targeted Koh Samui, but Phuket, Koh Phangan, Hua Hin and other resort property markets with significant foreign buyer activity may see similar enforcement.
It is also unclear whether Thai authorities will prioritise large-scale commercial nominee operations, newly established structures or all nominee arrangements regardless of size or age. The 61 companies uncovered in Samui suggest that investigators are looking at networks and patterns, not isolated cases.
What is certain is that the legal risk is real, enforcement is active and the consequences—asset seizure, criminal charges, deportation—are severe.
Frequently Asked Questions
What is a nominee structure?
A nominee structure is an arrangement where a foreigner controls a Thai company that owns land, but Thai nationals hold shares on paper as proxies without genuine investment or control. This is illegal under Thai law and exposes both parties to criminal liability and asset seizure.
Can foreigners legally own land in Thailand?
No, with very limited exceptions. Foreigners cannot own land in Thailand except through specific approvals such as Board of Investment privileges. Legal alternatives for residential buyers include freehold condominium ownership, registered long-term leases and Thai spouse ownership where genuinely applicable.
Could the Samui crackdown expand to Phuket?
It is possible. Phuket and Koh Samui are Thailand’s two largest resort property markets with significant foreign buyer activity. The scale and coordination of the Samui operation suggest that similar enforcement could occur in other resort property markets, though no Phuket-specific action has been announced.
What should I do if I own property through a nominee structure?
Consult a qualified Thai lawyer who specialises in property law immediately. The lawyer can assess your structure, the level of legal exposure and whether it is possible to restructure ownership through a legal route such as a long-term lease. Ignoring the issue does not reduce the risk.
Are all Thai company property structures illegal?
No. A Thai company can legally own land if the Thai shareholders are genuine, with real investment, control and decision-making power. The issue is nominee structures, where Thai shareholders are proxies with no real stake. Buyers considering a company structure should verify that it complies with Thai law.
Sources
- The Phuket Express — Koh Samui Crackdown on Nominees Intensifies, Dozens of Thais and Foreigners Targeted with Nominee Ownership of 1.5 Billion Baht in Property — link
