Thai authorities have escalated their nationwide crackdown on illegal foreign ownership structures, conducting coordinated raids on three locations in Pattaya and launching investigations into 100 companies in Phuket.
According to the Bangkok Post, officials seized computers and documents in Pattaya linked to a suspected nominee scheme concealing foreign ownership of land and businesses. The Pattaya operations, led by two ministers on Friday, specifically targeted Israeli-linked business networks and their legal advisors, as reported by the Thai Examiner.
Meanwhile, in Phuket, police are investigating 100 firms with combined revenues of 5 billion baht for allegedly using naturalized citizens as nominees to bypass foreign ownership laws.
Nationwide scope and lease scrutiny
The crackdown is not limited to Chonburi and Phuket. The Thai Examiner reports that the investigation has expanded to scrutinize condominiums held through company structures across 16 provinces.
Furthermore, authorities on the islands of Koh Samui and Koh Phangan have broadened their focus beyond company ownership to include the legality of long-term property leases held by foreigners.
What this means for you
If you are an expat living, working, or investing in Thailand, the era of authorities ignoring legally grey ownership structures appears to be ending. The Department of Business Development is currently auditing over 36,000 companies with foreign links nationwide.
- Review your company structures: If you operate a Thai limited company where Thai shareholders do not have genuine financial involvement or voting power, you are at risk of investigation.
- Check your property holdings: Foreigners holding land or villas through a Thai company structure should consult independent legal counsel to ensure compliance with the Foreign Business Act (FBA).
- Prepare for lease scrutiny: With long-term leases now under the microscope, ensure your lease agreements are properly registered with the Land Office and do not contain illegal clauses granting de facto freehold rights.
While these initial raids are targeting large-scale networks and specific foreign business groups, the sheer volume of companies under audit suggests that smaller expat businesses and property holders could soon face official scrutiny.
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