On May 21, 2026, Siam Legal Phuket issued a critical advisory for foreign nationals involved in property and business ventures in Phuket. This comes in light of recent government enforcement actions that have now directly impacted the island, notably at Freedom Beach, where Prime Minister Anutin Charnvirakul took personal charge of operations on May 13, 2026.
This operation at Freedom Beach represents a notable escalation from prior enforcement efforts seen on Koh Phangan and Koh Samui. Over 200 officers conducted searches at 14 different locations, resulting in the seizure of 37 land title deeds that collectively encompass around 51 rai of land, valued at over 150 million baht. Authorities are currently investigating six law firms suspected of facilitating the establishment of 27 nominee structures. Additionally, 23 legal cases have been initiated, covering 63 rai of land. The crackdown has revealed 15 businesses in Phuket that involve foreign nationals in violation of the Foreign Business Act and nominee regulations, with a significant number of suspects being Russian nationals, followed by Chinese individuals. The charges against them include operating businesses in sectors that are restricted to Thai nationals and utilizing nominees to bypass ownership laws.
As a result of this crackdown, discussions within Thailand’s foreign business community are shifting, with law firms reporting an increased demand for corporate restructuring, compliance assessments, and Board of Investment (BOI) applications as investors look for legal alternatives to nominee arrangements. Concerns have arisen among foreign nationals regarding the potential retroactive application of evolving enforcement standards to structures that were established under previously less stringent regulations. New screening rules by the Department of Business Development (DBD), which took effect on January 1, 2026, have already shown significant impact, evidenced by a 60% drop in high-risk company registrations in the first quarter of 2026, from 3,511 to 1,373.
Omar O Manee, an attorney at Siam Legal Phuket, commented, “The enforcement action at Freedom Beach sends a clear message that no part of Phuket is outside the scope of this investigation. Foreign investors who have held property or operated businesses through nominee structures, even those established many years ago, should not assume those arrangements remain below the radar. Proactive legal review is now a matter of urgency.” In addition, investigators are employing the Rule of Five, which flags any situation where five or more companies are registered at a single address, requiring additional documentation such as formal consent letters and proof of legitimate occupancy rights.
Prime Minister Anutin has mandated an immediate investigation into local officials in Phuket and Surat Thani provinces for their alleged involvement in nominee businesses, illegal land encroachments, and other unlawful activities in prominent tourist destinations. At Freedom Beach, concerns have been raised about a group identified as the Freedom Beach Mafia, which allegedly claims ownership of encroached land and has reportedly sold portions to foreign nationals, with threats of violence reported against officials conducting inspections.
For foreign nationals who hold property or business interests in Phuket, Siam Legal Phuket has outlined compliant alternatives. The most secure option remains freehold condominium ownership within the 49% foreign quota, provided that purchase funds are transferred from abroad and documented with a Foreign Exchange Transaction Form issued by a Thai bank. Registered 30-year leaseholds are also a viable option for landed property, although the renewal clauses are contractual and not legally guaranteed. Additional compliant structures include superficies and usufruct rights, and the Board of Investment promotion can facilitate extended land use rights for qualifying investors and businesses.
Siam Legal Phuket is part of Siam Legal International, a law firm based in Thailand with a presence in Bangkok, Chiang Mai, Phuket, and Pattaya. With over 22 years of experience, the firm specializes in legal and regulatory advisory services for both foreign and Thai clients, focusing on areas such as property law, corporate structuring, family law, litigation, and long-term residency planning.
Source: FinancialContent
