Police arrest 13 foreigners in Hua Hin luxury estate raid as property nominee crackdown expands to Phuket and Bangkok

Thai authorities have sharply escalated their enforcement against illegal foreign property ownership, arresting 13 foreign nationals during a major raid on a luxury housing estate in Hua Hin. According to the Thai Examiner and the Bangkok Post, the operation involved 200 police officers targeting wealthy expatriates suspected of using Thai nominee companies to circumvent the country's land ownership laws.

The Hua Hin arrests mark a significant escalation in a nationwide sweep that is rapidly expanding to other popular expatriate hubs. In Phuket, local authorities have launched financial investigations into suspected nominee networks following a recent incident at a local Chabad House religious center, according to the Chiang Rai Times. Meanwhile, the Ministry of Commerce and the Department of Business Development have identified nine businesses—including hotels, daily rental condos, and restaurants—in Bangkok's Huai Khwang district as high-risk for illegal nominee structures, according to Khaosod.

What this means for expats in Thailand

If you are an expatriate living in Thailand or planning to relocate, the era of authorities turning a blind eye to legally ambiguous property structures appears to be ending. The Foreign Business Act strictly prohibits foreigners from using Thai citizens as proxy shareholders to hold more than 49 percent of a company for the purpose of owning land or operating restricted businesses.

Foreign property buyers and business owners should take immediate steps to review their legal structures:

• Audit your company structure: Ensure your Thai limited company has genuine Thai shareholders who actively invested their own capital and participate in the business, rather than acting as silent proxies.
• Prepare for financial scrutiny: The Bank of Thailand is increasing its scrutiny of cash property purchases to combat money laundering, according to The Phuket News. Ensure all funds transferred into Thailand for property purchases are properly documented with Foreign Exchange Transaction (FET) forms.
• Seek qualified legal counsel: If a law firm previously advised you to use a nominee scheme—a practice some foreigners claim led to their current legal troubles, according to The Thaiger—consult an independent, reputable corporate lawyer to restructure your assets legally.

The government expects to complete its initial crackdown on nominee businesses in Phuket by September, according to Khaosod. With enforcement actions moving swiftly from financial audits to physical raids and arrests, foreign investors relying on nominee structures face immediate legal and financial risks.