KOH PHANGAN, Surat Thani — Thai police launched a major coordinated operation on Koh Phangan on May 13, raiding 32 companies suspected of using Thai nominees to illegally hold land on behalf of foreign investors, in one of the most significant enforcement actions targeting foreign property ownership violations in the island’s history.

Koh Phangan Praises Nominee Crackdown

More than 300 officers participated in the synchronized crackdown, which targeted businesses linked to land ownership valued at more than 150 million baht. The operation was led by Police General Samran Nualma, Deputy National Police Chief, alongside Police Lieutenant General Noppasilp Poolsawat, Commissioner attached to the Office of the National Police Chief. Personnel from specialist police units, immigration authorities, Provincial Police Region 8, Surat Thani police, Krabi police, and Koh Phangan Police Station were deployed across 32 locations on the popular tourist island.

Authorities stated that the companies under investigation collectively hold 37 land title deeds. During the raids, officers seized corporate documents, shareholder records, company registration papers, land deeds, lease agreements, financial records, bank account details, and evidence of international money transfers. Digital evidence and computer equipment were also confiscated as investigators seek to map the full scope of alleged nominee arrangements.

“Thailand welcomes legitimate foreign investment, but we will not tolerate schemes designed to circumvent our land ownership laws,” said a spokesperson for the Royal Thai Police. “These operations demonstrate our commitment to enforcing the rule of law and protecting national resources.”

Police are actively pursuing four suspects linked to alleged illegal foreign business operations and nominee shareholding arrangements. The group includes one foreign national and three Thai nationals accused of facilitating arrangements that enable foreign investors to bypass restrictions under Thailand’s Foreign Business Act and land ownership regulations.

The raids targeted luxury villas, commercial premises, and a law office suspected of coordinating nominee structures for foreign property ownership. One of the primary sites searched was a luxury villa complex in Moo 7 of Koh Phangan subdistrict, consisting of approximately six villas owned by a company now under investigation. Authorities are examining whether these properties were acquired through legal channels or via arrangements that effectively transfer control to foreign nationals despite nominal Thai ownership.

The crackdown coincided with Prime Minister Anutin Charnvirakul’s inspection visit to Surat Thani province and follows wider investigations by the Department of Special Investigation and the Department of Business Development. Officials are currently reviewing more than 11,400 companies registered in Surat Thani province to identify potential violations of foreign investment and land ownership laws.

During his visit, Prime Minister Anutin personally joined a raid on an alleged illegal pool villa and ordered an investigation into financial transactions after discovering that an Israeli national was reportedly using a Thai citizen as a nominee to hold ownership. The Prime Minister arrived at a residence in Moo 7, Ban Cholok Lam, Koh Phangan Subdistrict, where he met with accompanying ministers and government officials responsible for the Koh Phangan area to discuss enforcement strategies in front of a pool villa that had been reportedly constructed without proper authorization.

Investigators are examining multiple potential violations, including whether foreign investors used Thai nominees to control land, tourism businesses, and hotels in contravention of the Foreign Business Act. Officials are also verifying whether some hotels operated without required licenses and whether foreign nationals were engaged in employment prohibited to non-citizens or in occupations legally reserved for Thai workers.

According to figures from the Department of Business Development, 3,213 of Koh Phangan’s 4,761 registered companies involve foreign investment, representing approximately 67% of all registered firms on the island. Israeli investors account for 22% of those companies, followed by French investors at 13% and British investors at 11%. These statistics underscore the significant role of foreign capital in the island’s tourism-driven economy while also highlighting the regulatory challenges associated with monitoring compliance.

“The presence of foreign investment has contributed significantly to Koh Phangan’s development,” said a representative from the Surat Thani provincial administration. “However, it is essential that all business activities adhere to Thai law. Legal investment is welcome; circumvention of regulations is not.”

The government has declared war on the encroachment of public land and the use of Thai nominees to front foreign-owned businesses, starting with Koh Phangan in Surat Thani and at Freedom Beach in Phuket.

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Under Thai law, foreign nationals are generally prohibited from directly owning land, though they may lease property or own condominium units under specific conditions. The use of Thai nominees—citizens who hold legal title on behalf of foreign beneficiaries—has long been a contentious practice, with authorities periodically cracking down on arrangements deemed to violate the spirit or letter of ownership restrictions.

Legal experts note that while nominee structures are not inherently illegal, they become problematic when used to conceal foreign control of land or businesses in ways that contravene statutory limitations. “The key question is whether the Thai nominee retains genuine control and beneficial interest, or whether they are merely a figurehead for a foreign principal,” said a Bangkok-based legal analyst who requested anonymity. “These investigations aim to distinguish legitimate arrangements from those designed to evade the law.”

For the tourism industry on Koh Phangan, known for its full-moon parties, pristine beaches, and vibrant backpacker culture, the raids have prompted mixed reactions. Some business operators welcome efforts to level the playing field and ensure fair competition, while others express concern about potential uncertainty for foreign investors who have operated in good faith.

“We support enforcement of the law, but we also need clarity and consistency,” said a representative from a Koh Phangan business association. “Investors deserve to understand the rules, and authorities should provide clear guidance on compliant structures for foreign participation in Thailand’s economy.”

The Department of Business Development has indicated that investigations will continue into financial transactions, company ownership structures, and the legitimacy of shareholder investments. Authorities have emphasized that legal foreign investment remains welcome but warned that nominee structures, illegal land ownership, and unlicensed business operations will face stricter enforcement going forward.

As the operation concludes, detained suspects will be processed through Thailand’s legal system, where prosecutors will evaluate evidence to determine whether formal charges related to fraud, illegal business operations, or document forgery are warranted. All individuals are presumed innocent until proven guilty through judicial proceedings.

For Koh Phangan’s residents and business community, the raids represent a significant moment in the ongoing dialogue about development, foreign investment, and regulatory compliance. Local officials have pledged to maintain open communication with stakeholders as enforcement actions proceed and as policies governing foreign participation in the local economy are clarified.

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Further updates regarding charges, judicial proceedings, and potential policy adjustments are expected as authorities complete their review and as the government considers broader implications for investment regulation in Thailand’s tourist destinations.

-Thailand News (TN)