Phuket BOI Crackdown 2026: Only 8 of 360 Companies Passed the Check

Of roughly 360 companies in Phuket that claimed Board of Investment (BOI) status, only eight survived scrutiny. That is just over two percent. The rest had no working business plan and no verified investment privileges: the structure existed for one purpose, to hold land. Authorities intend to seize that land.

The short answer for anyone being pitched this scheme right now: a BOI promotion in 2-3 weeks 'through connections' does not exist. BOI is an investment project with an approved activity category, verified capital, permits and annual reporting. There is no fast-track service, only forged paperwork and its consequences.

Those consequences are concrete: criminal cases, orders to sell property on a tight deadline, prison time, and immediate deportation after release. Family members living in Thailand on Non-O visas are deported through the Immigration Detention Centre (IDC) straight away.

Quick Answer

• 8 out of ~360 Phuket companies claiming BOI status actually match their business plan and hold verified privileges. The land of the others is subject to seizure.
• The screening covered more than 30,000 legal entities registered in Phuket, of which over 11,000 have foreign shareholders.
• Criminal cases have already been opened against some companies, and many have been ordered to sell their property within a short period.
• Prison is followed by immediate deportation; family members on Non-O visas are removed through the IDC.
• A legal route to 100% foreign ownership exists: a genuine BOI promotion in a suitable category, plus a few separate statutory exceptions. Timelines are measured in months, not weeks.
• For housing without a business, the working tools are different: a condominium within the foreign quota (up to 49% of the building's area) and a registered 30-year lease.

Key Facts

• The Phuket campaign targets two groups at once: companies claiming BOI status and ordinary legal entities with Thai nominee shareholders. The figures here refer to the Phuket campaign, not the whole country.
• Section 27 of the Investment Promotion Act lets a promoted company own land for the promoted activity. Once the activity disappears or no longer matches the declared category, the basis for ownership disappears with it.
• The Foreign Business Act B.E. 2542 (1999) sets a fine of 100,000 to 1,000,000 THB and up to three years in prison for using nominee shareholders, plus a daily fine for continuing the violation. Confirm current amounts with a lawyer.
• The Land Code allows the Department of Lands to order an offender to dispose of a plot within a set deadline. If you do not sell, a forced sale follows.
• In the fourth phase of the nominee crackdown (August 2026), 16 people were arrested, including Russian, Canadian and Kazakh nationals, after inspections at eight addresses. 361 companies are on the watch list, with legal proceedings started against 114 of them and fines issued to 39.
• A foreigner can own a condo freehold if foreign ownership in the building does not exceed 49% of total residential floor area and the funds are remitted from abroad with proof (FET form for amounts of 50,000 USD and above).
• A Non-O visa issued as a dependant or through marriage is tied to its underlying basis. That basis collapses together with the head of the family's case.

The 'transfer the shares to three Thais' scheme breaks at the first question about the shareholders' financial capacity. Inspectors check where the nominee got the money for the shares, whether real payments were made, and whether dividends were ever received. Letters in which a Thai shareholder agrees not to interfere in management work against the owner in such a check: they are direct evidence of nominee status.

How to Start: Step by Step

1. Pull the company's documents for every year. Shareholder list from the DBD, minutes, audited accounts, tax returns, social security contributions for staff. If there is no operating activity and expenses amount to an accountant and the electricity bill, the structure is vulnerable.
2. Answer honestly why you need a legal entity. Housing for yourself and renting out one villa is not a business project. A hotel, service company, manufacturing or development might be.
3. If it is housing, move the asset into clean instruments: a freehold condo within the foreign quota, or a land and house lease of 30 years registered at the land office and noted on the title deed. Verbal promises of 30+30-year renewals have no legal force.
4. If the business is real, assess BOI for your specific category: investment size, business plan, headcount, premises, timelines. Preparation and review take months, not weeks, and end not with a certificate on the wall but with an ongoing reporting duty.
5. Do not wait for an order. A voluntary sale deadline is always more comfortable than a forced one. The price offered for an asset under an order is known in advance: below market.
6. Check your family's visa position. If your spouse's and children's status hangs on your company, build an independent basis: LTR, Thailand Privilege, Non-B with a real employer, or a student visa for a teenager.
7. Come in person. DBD extracts, a visit to the land office and a conversation with a lawyer across a table work better than a messenger chat. For a week-long trip it is simplest to book a hotel near Phuket Town, where the land office and the provincial administration are located.
8. Set up a compliance calendar. Annual meeting, audit, DBD filing, BOI reporting, work permit renewals. A structure stays alive only while it is fed with documents.

Our view: if you are buying housing in Phuket rather than building an operating business, you do not need a company in any form, even a 'properly built' one. A condo in the foreign quota or a registered leasehold gives you less freedom in choosing a property, but creates no criminal risk and does not depend on the mood of the next inspection. There is one significant exception: you genuinely have revenue, staff and a project that fits a BOI category. Then the company is a tool for the business, and land rights come as an add-on, not the other way around.

And one more thing. If someone promises a result in three weeks and asks for a cash prepayment, you are not paying for BOI, you are paying for your own deportation in instalments.

FAQ

Can I get BOI in 2-3 weeks?

No. A promotion requires filing a project in an approved category, proving the investment, a review and a series of follow-up permits. Realistic timing is measured in months once document preparation is included. A promise to finish in weeks means you are being sold either a fiction or a forgery.

What happens to land bought through a company with nominee shareholders?

The Department of Lands can order you to dispose of the plot within a set deadline. If you do not sell it yourself, it will be sold for you. Such orders have already been issued in Phuket, and some cases have moved into criminal proceedings.

Are family members deported?

According to the Phuket campaign, yes: relatives in the country on Non-O dependant visas are removed through the IDC immediately, because the basis for their status has been cancelled.

Can a foreigner legally own land in Thailand at all?

Yes, but only on narrow grounds. The main one is Section 27 of the Investment Promotion Act for companies with a genuine BOI promotion, with land rights limited to the needs of the promoted activity. Other exceptions exist, and their applicability is assessed project by project.

What is the risk for the Thai nominee?

The same law. The Foreign Business Act punishes both the foreigner and the Thai who lent his or her name. In practice, the nominee is usually the first to testify about who actually ran the company and paid for it.

How safe is buying a condo in the foreign quota?

It is the cleanest structure on the market: ownership in the foreigner's own name, proof of foreign currency inflow, and registration at the land office. Check two things: the remaining foreign quota in that specific building, and the construction permit for new-build projects.

I have a Thai wife. Is putting the land in her name a solution?

Partly, and it is risky. At registration the Thai spouse signs a declaration that the funds are personal and that the foreign spouse has no rights to the plot. Trying to get around this with loan and pledge agreements survives scrutiny poorly, and divorce even worse.

I already have a company holding land. What should I do right now?

Do not backdate minutes. Establish the factual picture, assess whether real activity can be built up to fit a BOI category, and in parallel work out an exit: sale of the asset or conversion to a leasehold for the buyer. Make the decision before the letter arrives, not after.

Source: Thai Times

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