Phuket Reviews 6,000+ Companies: What Villa Buyers Risk in 2026

On 7 August 2026, a House of Representatives committee on political development, media and public participation held a field session in Phuket. One figure from that meeting matters most: more than 6,000 companies on the island have been flagged as high-risk potential nominee structures, and around 300 are already in legal proceedings.

The direct answer for a buyer: if your villa or land is held through a Thai company where you are the real beneficiary, and the Thai shareholders contributed no money of their own and play no role in management, you sit in exactly the group now being examined.

If instead you own a freehold condominium within the foreign quota, or hold a lease registered at the Land Department, this does not affect you directly. The scrutiny targets sham Thai ownership structures, not foreigners as such.

The ratio of 300 to 6,000 does not signal a lenient approach. It signals capacity: proving nominee ownership requires tracing the source of funds for every Thai shareholder, and such cases take months. A pool of six thousand companies means the queue is booked for years, not that the rest have been forgotten.

The island's context explains why Phuket. According to the same session, the undocumented and transient population exceeds 1.5 million people, against a tourist flow of over 14 million visitors a year. Alongside this, the Center for suppressing influential figures is monitoring 26 people: 14 as influential figures, 2 as public land encroachers and 10 in narcotics cases. Authorities have opened 24 cases on illegal seizure of state land, detained 17 people and recovered more than 57 rai (about 9.1 hectares).

The scale is consistent with earlier reporting. Earlier checks on Phuket's registered companies covered more than 30,000 firms, of which 11,000+ have foreign shareholders and over 600 showed nominee-ownership risk, according to The Nation Thailand. Market analysts at Juwai IQI, cited by The Phuket News, expect limited impact on foreign demand for luxury villas so far, with deposits not being withdrawn.

Quick Answer

• 6,000+ companies in Phuket are being reviewed as potential nominee structures; the figures were presented at a parliamentary committee field session on 7 August 2026.
• Around 300 companies are already in legal proceedings, meaning they have passed the preliminary screening stage.
• The legal basis is the Foreign Business Act 1999 (using Thai nominees to give a foreigner actual control) and the Land Code provisions on acquiring land through proxies.
• Penalties under Section 36 of the FBA: imprisonment of up to 3 years, a fine of 100,000 to 1,000,000 baht, plus a daily fine for continuing the violation. Both the foreign beneficiary and the Thai nominee are liable.
• On land, the consequence is heavier than the fine: the Land Department can order the holder to dispose of the plot within a set period (in practice 180 days to one year), failing which it is sold by force, regardless of market conditions.
• The lawful routes are unchanged: freehold in a condominium within 49% of the total saleable area of the building, with funds transferred from abroad and a FET certificate issued, or a lease of up to 30 years registered on the chanote.

Source: The Nation Thailand

Main Risks and Mistakes

A company created for a single villa. This is the main red flag. A Thai company with 51% held by three local shareholders, zero turnover, a house as its only asset and a foreign director is readable at a glance. Mitigation: if there is no real business, do not set up a company to buy property; use a lease or a condominium instead.

Assuming a 30+30 lease guarantees 60 years. This does not work the way it is sold. Only the first 30-year term can be registered at the Land Department. The renewal option is an obligation of the specific lessor, and Thai courts have repeatedly declined to treat it as binding on a new owner of the plot. Mitigation: build the deal economics on 30 years and treat the extension as a bonus; add a right of first refusal and a registered mortgage in your favour as security.

Preferred shares with multiple voting rights. A structure giving the foreigner 49% of capital but a voting majority was long seen as a tidy solution. It now draws regulator attention by itself as a sign of actual control. Mitigation: do not try to offset the structure through voting rights if the Thai shareholders have no documented investment of their own.

No proof of source of funds for Thai partners. Reviews start exactly here: bank statements, tax filings, account history. Mitigation: collect the documents when the company is established, not when they are requested.

Buying from a seller who holds the property through a company. You inherit its history: open cases, unpaid company taxes, disputed shareholder minutes. Mitigation: run due diligence on the company at the DBD, not just a chanote check.

Land in protected zones and on slopes. Part of the 57 rai recovered consists of plots occupied without legal basis, including slopes above the permitted elevation and national park territory. Mitigation: check the land document type (Nor Sor 3, Sor Por Kor and Chanote carry different legal weight) and the building permit before paying any deposit.

Our view: a Thai company holding a residential villa no longer pays for its risks for any investor buying for personal use or rental income. The yield difference between a leased villa and a company-held one does not cover the probability of forced sale and a criminal charge. There is one exception: if you run a real operating business in Thailand with turnover, staff and Thai partners who genuinely invested their own money, the company owns property as a normal commercial entity, and this article is not about you.

FAQ

What is a nominee structure in plain terms?

It is a Thai company or individual who is formally the owner but acts in the interest of a foreigner and with the foreigner's money. The law does not forbid foreign participation, it forbids substituting the real owner.

Can a villa be taken away if the company is investigated?

Yes, if a court finds the land was acquired through proxies. The more common remedy is an order to dispose of the plot within a set period; if that is not met, a forced sale follows.

How can a foreigner legally own a house in Phuket?

The working combination is a 30-year land lease registered on the back of the chanote, plus holding the structure in your own name through a building permit issued to you. In Thailand, the building and the land are legally separable.

How much of a condominium building can foreigners own?

Up to 49% of the total saleable area. The rest can only be sold to Thai persons. For freehold registration, the money must arrive from abroad in foreign currency with a FET certificate issued by the bank.

What are the risks for the Thai nominee partner?

The same Section 36 of the Foreign Business Act: up to 3 years in prison and a fine from 100,000 baht. For many Thai shareholders this comes as a surprise, and under investigative pressure they often give statements first.

Is it still worth buying in Phuket?

Yes, in the right form. The tightening hits grey structures, not the market. A tourist flow of 14 million people a year supports rental demand, and legally structured properties benefit because there are fewer competitors with doubtful title.

Do I need to visit the island before a deal?

The chanote check and lease registration can be done by power of attorney, but inspecting the plot, the neighbours and the actual boundaries cannot be replaced remotely. For a three or four day inspection trip, it is easiest to book flights and a hotel in advance, then schedule the lawyer and the Land Office visit around those dates.

How do I check a seller's company?

Request an extract from the Department of Business Development (DBD): shareholder composition, dates of changes and financial filings. A company with zero filings for all years and a single asset is a signal to rethink the deal structure, not a reason to ask for a discount.

One practical step for the coming week: if your property is already held through a Thai company, commission a legal audit of the structure before the authorities do. Moving the asset into a registered long-term lease on your own initiative costs far less than exiting a case that is already open.

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