Phuket authorities target condominiums for illegal daily rentals as nominee crackdown hot-lists 1,000 Krabi firms

Phuket authorities have intensified their enforcement of the Hotel Act, specifically targeting condominiums and apartment complexes that rent rooms on a daily basis without proper licenses, according to The Phuket Express.

The move comes as a broader government crackdown on foreign property ownership and business structures accelerates across southern Thailand. The probe into foreign nominee companies has now expanded into Krabi, where officials have placed 1,000 firms on a watch list, according to the Thai Examiner.

The stakes for foreign investors are rising. Authorities are reportedly planning to treat illegal nominee schemes as money laundering offenses, turning a long-standing administrative gray area into a severe criminal liability.

Document checks tighten

To block the use of Thai citizens as proxy shareholders, the Department of Business Development (DBD) has begun strictly controlling and verifying copies of shareholder lists, according to Khaosod Thai.

While the crackdown is highly visible, some local reports suggest enforcement remains uneven. The Phuket News notes that officials have so far failed to target the legal and accounting "facilitators" who set up these nominee networks, focusing instead on the foreign owners and their Thai proxies.

What this means for you

If you live, invest, or run a business in Thailand, the era of relaxed enforcement regarding property and company structures is ending.

• Condo owners: If you rent out your unit on a daily or weekly basis without a hotel license, you are a direct target of the current Phuket raids. Switch to minimum 30-day rental contracts to comply with the law.
• Company directors: If you hold property or operate a business through a Thai limited company, expect increased scrutiny. The DBD is actively checking shareholder documents to ensure Thai partners are genuine investors, not paid proxies.
• Legal liability: With authorities floating the use of money laundering laws against nominee structures, the financial and legal risks of using a shell company to buy a villa or land have never been higher. Review your corporate structure with a qualified lawyer to ensure full compliance.