Thai authorities seize one billion baht in land across Phuket, Krabi, and Phang Nga in foreign nominee crackdown

Thai authorities have seized land worth more than one billion baht across Phuket, Krabi, and Phang Nga in a coordinated operation targeting suspected illegal foreign nominee networks. According to Thai Times, the October 14 raids focused on illicit corporate structures used by foreign nationals to bypass property ownership restrictions.

This massive seizure marks a sharp escalation in enforcement. It coincides with the launch of the "Samui Model," a new initiative in Koh Samui specifically designed to curb the use of local proxies by foreign business operators in the tourism sector.

The crackdown is expanding beyond local real estate into corporate governance. Thailand’s competition regulator will now attribute shares held by an acquirer’s spouse, minor children, and nominees when assessing business control, according to Noah Intelligence. Additionally, the Securities and Exchange Commission (SEC) has introduced stricter rules on share ownership to prevent illicit funds and nominee structures in listed companies.

Impact on Expat Property Owners

If you are an expat living in Thailand, the era of using a "paper company" to buy a villa is rapidly closing. The billion-baht seizure demonstrates that authorities are actively auditing corporate structures in popular expat hubs.

Foreigners operating businesses or holding property through Thai companies should be aware of the following immediate impacts:

• Asset risk: Properties held through illegitimate proxy structures are subject to seizure, as seen in the recent southern provinces operation.
• Family scrutiny: Shares held by your Thai spouse or minor children are now explicitly counted when regulators assess business control and merger rules.
• Increased audits: Initiatives like the "Samui Model" mean businesses in tourism-heavy areas will face targeted inspections to verify that Thai partners are genuine investors, not just names on a document.

Key Steps for Business and Real Estate Holders

If your Thai limited company relies on local shareholders who did not contribute actual capital, you are operating in a high-risk legal gray area. You should urgently review your corporate structure with a qualified Thai lawyer.

Ensure that all Thai shareholders have a legitimate, documented financial stake and active voting rights in the company. With enforcement moving from theoretical warnings to billion-baht asset seizures, relying on outdated nominee workarounds is no longer a viable strategy for expats in Thailand.