Phuket Nominee Crackdown 2026: 361 Businesses Under Investigation

Phuket has entered its most sweeping foreign business review in years. Following a high-profile incident near Chabad House, provincial authorities launched an audit of more than 361 companies suspected of using nominee ownership schemes or operating without proper licenses. For international investors holding property or business interests on the island, this is a clear signal to review asset structures now, not later.

The core issue is straightforward. Thailand's Foreign Business Act (1999) restricts foreign ownership of land and control of certain business categories. For decades, investors got around this using 'nominees': Thai nationals who formally hold shares but exercise no real control. Authorities were long aware of these arrangements but enforced selectively. That has now changed. Enforcement has become coordinated, systematic, and public.

The scale is significant by regional standards too. Related enforcement across Phuket, Krabi, and Phang Nga has already produced 59 arrest warrants and 48 detained suspects, including 27 Thai nationals and 21 foreign nationals from countries such as Israel, France, Poland, Switzerland, South Africa, the UK, and the Netherlands, according to The Phuket News. Investigators have flagged 89 land plots worth over 1.05 billion baht across the three provinces, with roughly 231 million baht of that concentrated in Phuket alone.

Quick Answer

• 361+ businesses in Phuket are under review for suspected foreign nominee ownership

• The investigation was triggered by an incident near Chabad House, drawing police and immigration attention

• Checks cover both ownership structures and whether businesses hold valid operating licenses

• Violators face criminal penalties under the Foreign Business Act: fines up to 1 million baht and imprisonment up to 3 years

• Thai nominee shareholders face equal liability, including fines up to 1 million baht and/or jail time

• Foreign owners are advised to audit corporate structures and move to legal ownership formats (leasehold, or freehold condominium within the foreign quota)

Key Facts

• The Foreign Business Act B.E. 2542 (1999) is the core law restricting foreign participation in business, listing dozens of restricted activities including trade and certain services

• The Department of Business Development (DBD) recorded over 12,000 companies with foreign capital participation in Phuket in 2025, with market estimates suggesting 15-25% may involve problematic structures

• Thailand's Land Code Act bars foreigners from owning land outright, with an exception for BOI-approved investments of 40 million baht or more, granting rights to purchase up to 1 rai (1,600 sq m) of residential land

• The maximum leasehold term for foreigners is 30 years, renewable and registered with the Land Department

• Foreigners may own up to 49% of the total floor area in any condominium project under freehold title

• Enforcement in 2026 is coordinated jointly by police, immigration, and the Department of Business Development, the first time this interagency format has been used in Phuket

• Wider regional operations across Phuket, Krabi, and Phang Nga have inspected 76 companies and 89 land plots worth over 1.05 billion baht, resulting in 59 arrest warrants, according to The Nation Thailand

FAQ

What is nominee ownership in Thailand?

It is a structure where a Thai national formally holds a controlling stake in a company (typically 51% or more) while a foreigner provides the actual financing and control. This directly violates the Foreign Business Act when the company operates in restricted sectors without a Foreign Business License.

What penalties apply to nominee arrangements?

Foreigners face fines from 100,000 to 1,000,000 baht and/or imprisonment up to 3 years. Thai nominees face equivalent penalties. Companies can be forcibly liquidated, and foreign individuals risk deportation and blacklisting from re-entry.

Does the crackdown affect condo owners?

No, not if the unit is registered directly to a foreign individual within the 49% freehold quota. The investigation targets companies used to circumvent land ownership and business restrictions, not individual condominium buyers.

Can foreigners legally own a villa in Phuket?

Foreigners cannot own the land beneath a villa but can own the building itself. The most common legal structure is a 30-year leasehold, renewable and registered with the Land Office, combined with freehold ownership of the structure.

How can I check if my company structure counts as a nominee scheme?

Investigators look for red flags: Thai shareholders who cannot explain the source of funds used to buy shares, no involvement in management, no dividend payments, and documents signed exclusively by the foreign party. An independent legal audit by a licensed Thai lawyer is strongly recommended.

What should I do if my business is already structured through a nominee?

Contact a licensed lawyer immediately. Options include applying for a Foreign Business License where the activity permits it, restructuring with a genuine Thai partner, selling the stake, or liquidating the company. Delay increases legal exposure.

Will these checks spread beyond Phuket?

Market observers see Phuket as a pilot region. Similar operations have already extended to Krabi and Phang Nga, and further campaigns are expected in Koh Samui, Pattaya, and Chiang Mai, where foreign business concentration is also high.

Will the crackdown affect Phuket property prices?

In the short term, more listings may appear from sellers exiting risky structures, potentially creating opportunities for buyers using legitimate ownership formats. Over the medium term, stricter enforcement improves market transparency and typically supports pricing in the fully compliant segment.

How can I invest safely in Phuket in 2026?

Three proven routes: buying a freehold condominium unit within the 49% quota, securing a 30-year leasehold on land and villa, or investing through the BOI program with a minimum 40 million baht commitment. Each requires legal due diligence before signing any contract.

The bottom line for investors is clear: the era of grey-area ownership structures in Phuket is closing. The 2026 enforcement wave is not an isolated action but the start of systematic tightening. Investors who restructure ownership now protect their assets. Those who wait risk losing both business and investment.

Source: The Phuket News

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