BANGKOK – Thailand’s crackdown on foreign nominee company structures spearheaded by Prime Minister Anutin Charnvirakul, concentrated in major tourist destinations is now starting to affect the economy.
In these structures, Thai nationals hold shares or land on behalf of foreign investors, often allowing them to bypass restrictions on foreign ownership. Officials say the goal is to protect Thai businesses and prevent foreigners from illegally controlling land and companies. However, the enforcement drive is already affecting the tourism and property sectors.
Key points include:
- Authorities have seized land and buildings worth more than 1 billion baht in individual operations across southern tourist provinces.
- Foreign buyers are delaying villa purchases in Phuket and Koh Samui as officials investigate company ownership structures.
- Hotels, resorts, and tour companies that used nominees may face closure, license cancellations, or forced sales.
- Condo markets appear more stable because foreign freehold ownership is legal and governed by clearer rules.
The government is enforcing existing laws that restrict foreign ownership of land and certain businesses. Under the Foreign Business Act, foreigners generally can’t hold majority stakes in restricted sectors, including hotels, tour operations, and real estate trading, without the required approval. Nominee arrangements have long provided a way around those limits.
Since early 2026, agencies such as the Department of Business Development, the police, and the Department of Special Investigation have reviewed tens of thousands of companies. Operations on Koh Phangan and nearby islands in May and June alone identified thousands of companies with foreign shareholders.
According to reporting by the Bangkok Post, one enforcement phase led to 22 foreign arrests and the seizure of more than 40 rai of land valued at over 200 million baht. Later operations in Phuket, Krabi, and Phang Nga examined 89 land plots worth about 1.05 billion baht and resulted in dozens of arrests.
Prime Minister Anutin has ordered officials to extend the campaign nationwide. Government agencies say they are targeting illegal ownership structures and related criminal activity, not legitimate foreign investment.
Tourism Businesses Face Growing Pressure
Tourist islands rely heavily on hotels, resorts, short-term villa rentals, restaurants, and tour companies. Many businesses in these sectors used nominee structures. When authorities investigate them, the companies may lose their licenses, have assets frozen, or be forced to close.
In one case, investigators found villas being advertised as hotels without the necessary permits. Tour operators connected to “zero-dollar” packages have also faced scrutiny. These packages often sell heavily discounted trips and have been accused of taking business away from Thai companies.
The National Anti-Corruption Commission previously urged the cabinet to address foreign use of Thai nominees throughout the tourism industry. The concerns covered hotels, tour businesses, and souvenir shops, according to The Nation.
In the short term, some destinations could have fewer available rooms and activities. Local employees may also lose their jobs if businesses shut down. Over time, however, the government expects Thai-owned companies to compete on more equal terms.
Tourists aren’t the main target of the campaign. Most visitors should still find plenty of hotels, tours, and other services, although the number of foreign-operated boutique properties may decline temporarily.
Villa and Land Markets Feel the Biggest Impact
Coastal villa and land markets are experiencing the greatest disruption. Estimates indicate that many foreign villa purchases in Phuket and Koh Samui involved Thai companies acting as nominees. Buyers are now putting deals on hold, while company-owned properties are taking longer to resell.
Some sellers have reduced prices by 10% to 20%, according to agents quoted by the the Nation. When authorities confirm an illegal holding, they can require the property to be sold within months. The company involved may also be dissolved.
Foreign investors and their Thai nominees could face fines, tax liabilities, or criminal charges. As a result, buyers are dealing with greater uncertainty, and more distressed properties may enter the market.
Condominiums offer a clearer legal option. Foreigners can own freehold units as long as foreign ownership doesn’t exceed 49% of a building’s total area. Some buyers are shifting toward condos because the ownership rules are easier to understand.
If speculative foreign demand for land declines, local housing affordability could improve over time. However, large Thai buyers may purchase some of the land released through enforcement actions.
The Department of Business Development has reported a sharp drop in high-risk company registrations, with declines of 60% to 75% during recent periods. Tighter financial checks have contributed to the fall.
What Happens Next
The crackdown is still expanding. Enforcement has been strongest on the popular southern islands, but authorities are extending it to other parts of Thailand.
Legal options for foreign buyers still include properly structured 30-year leases, approved Board of Investment projects, and freehold condo ownership. Restructuring an existing nominee arrangement can be costly, and some structures may not be possible to fix.
Tourism businesses may face disruption in the short term. If Thai operators take over closed or sold businesses, competition could become fairer over time. In the property market, foreign demand for villas has weakened, while interest in condos has remained steadier.
Officials say the campaign will protect fair competition and prevent lost tax revenue. Some investors and industry critics worry that aggressive enforcement could also discourage useful foreign capital.
Property owners and business operators in affected areas should review their ownership structures and obtain advice from a qualified Thai lawyer. The laws haven’t changed overnight, but the government’s willingness to enforce them has.
