In Q3 2026, Thailand's Department of Business Development (DBD) shared data on more than 100,000 foreign-linked companies with 43 embassies, according to Thai Examiner (September 2026). The stated objective is to identify nominee structures used to circumvent the Foreign Business Act. Per Travel And Tour World (October 2026), the operation has already covered seven provinces - including Phuket and the Surat Thani province that encompasses Koh Samui - and arrests have exceeded 110. For any foreign investor planning a residential purchase in Thailand, this signals a material shift in the risk calculation attached to different ownership structures.
We have tracked this process since its early stages on Koh Phangan, and the pattern in our data is consistent: this is not a one-off enforcement campaign but a systemic change in how Thai authorities apply existing law. Since 1 August 2026, the DBD has been scrutinising not only the shareholding structure at the point of company registration, but also subsequent changes in shareholders and directors. Cases are being referred to the police, the Revenue Department, and the Anti-Money Laundering Office (AMLO), creating an end-to-end audit trail from the source of capital to the ultimate ownership structure.
Quick answer
- More than 110 arrests linked to nominee structures across seven Thai provinces, as of October 2026
- 43 embassies have received DBD data on foreign-linked companies for independent verification
- In Koh Samui and Koh Phangan, foreigners appear as co-owners in approximately 70% of registered companies, against a national average of roughly 12% (The Vibes, October 2026)
- The two legally sound purchase routes for foreigners remain: freehold condominium (within the 49% foreign quota per building) and personal leasehold on a villa (up to 30 years, registered in the individual's name at the Land Office)
- Inbound transfers must generate a valid FET (Foreign Exchange Transaction) form issued by the receiving Thai bank - without it, freehold registration and future capital repatriation are both at risk
- A Thai company with nominal Thai shareholders is now a structure carrying elevated legal and financial risk, regardless of the original intent behind its formation
Options and scenarios
Option 1: Freehold condominium - the most straightforward path
A foreign national can acquire a condominium unit under full freehold title, provided the aggregate foreign-held floor area in that building does not exceed 49%. This is the only form of outright ownership available to a non-Thai without involving a company. Funds must arrive in Thailand from abroad in a foreign currency, and the receiving Thai bank will issue an FET form confirming the amount and stated purpose. Without the FET, the Land Office will not register the title deed in a foreigner's name.
In Phuket, districts such as Bang Tao, Layan, Kamala, and Surin have a broad range of condominium projects, though availability within the 49% foreign quota can be limited in established developments. On Koh Samui, Bophut and Chaweng are the primary condominium markets. We verify quota availability before making project-level recommendations.
Option 2: Personal leasehold on a villa - land held by the individual
Villas sit on land, and land in Thailand cannot be owned by a foreign national. The legally recognised alternative is a leasehold of up to 30 years, registered at the Land Office, with a contractual renewal option. The leaseholder is the foreign individual directly - no company is required. Ownership of the building structure on the leased land can be held separately by the leaseholder under a construction or building ownership agreement.
This route does not require forming a Thai company. Capital transfer mechanics are broadly the same as for a condominium purchase: a foreign-currency wire from abroad with a precise transaction description. An FET is not formally required for leasehold registration, but based on our practice we recommend obtaining one to facilitate any future capital repatriation.
On Koh Samui, leasehold is the dominant ownership structure for foreign villa buyers, particularly in Maenam, Lamai, and Bophut. On Phuket, the same model prevails in Rawai, Nai Harn, and Kamala.
Option 3: Nominee company holding land - a structure now carrying serious legal risk
For years, a common approach involved forming a Thai limited company (Thai Co., Ltd.) in which 51% of shares were held nominally by Thai individuals - the nominees - while the foreign buyer retained practical control. The company then acquired the land and villa.
As of 2026, this model carries real enforcement risk. Per The Vibes (October 2026), the DBD operation includes verification of capital sources, board composition, and ultimate beneficial ownership. Penalties under the Foreign Business Act extend to up to 3 years' imprisonment and fines of up to 1 million THB (approximately 28,000 USD at 2026 exchange rates, per market estimates). AMLO can additionally freeze assets.
Our analysts do not recommend this structure for new buyers. Investors who already hold companies with Thai nominee shareholders should seek independent legal advice in Thailand to assess their exposure.
Comparison table
| Parameter | Freehold condo | Personal leasehold (villa) | Nominee company (villa) |
|---|---|---|---|
| Ownership form | Full unit ownership | Land lease up to 30 years | Company holds land |
| FET requirement | Mandatory for Land Office registration | Recommended, not formally required | Not directly applicable |
| Legal risk in 2026 | Low | Low | High - active DBD enforcement |
| Structure cost | No additional overhead | Lease registration fee approx. 1% of declared value | Company formation and annual maintenance 30,000-80,000 THB |
| Resale mechanics | Full title transfer | Lease assignment or new agreement | Share transfer - subject to DBD scrutiny |
| Capital repatriation | Straightforward with FET on record | Limited without FET | Problematic - AMLO monitoring |
| Penalty for breach | Not applicable | Not applicable | Up to 3 years imprisonment and 1 million THB fine |
Risks and mistakes
Mistake 1: Imprecise SWIFT payment reference. A wire transfer originating overseas must carry a specific, accurate description, for example 'purchase of condominium unit at'. Generic references such as 'property investment' or 'transfer to Thailand' may prevent the Thai bank from issuing a correctly scoped FET. We have documented cases where a vague reference required the entire transfer to be unwound and reissued.
Mistake 2: Sending funds pre-converted to Thai baht. Funds must arrive at the Thai bank in a foreign currency - EUR, USD, or GBP. If the sending bank converts the amount to THB before the wire is dispatched, no FET will be issued. The currency conversion should happen on the Thai bank's side, not before the transfer leaves the originating account.
Mistake 3: Splitting the total into multiple small transfers. Some buyers divide a purchase payment into smaller wires to minimise individual transfer fees. The risk is that transfers below the equivalent of 50,000 USD may not automatically trigger FET issuance at certain Thai banks. A cleaner approach is to structure wires to match the developer's payment schedule, with each tranche large enough to generate a separate FET.
Mistake 4: Assuming a nominee company is safe because it has been in place for years. The DBD operation covers more than 100,000 foreign-linked companies (DBD data, September 2026). The scale of the review means companies formed years ago are not exempt. In our assessment, historic prevalence of a structure is not a legal defence against enforcement.
Mistake 5: No pre-transfer tax consultation in the country of residence. Large cross-border transfers may trigger reporting obligations with the sending bank and may require documentation of the source of funds. Based on what we observe across investor inquiries, foreign banks increasingly request supporting documentation for property-related transfers above the equivalent of approximately 15,000 EUR. Buyers should confirm their obligations with a qualified adviser in their home jurisdiction before initiating a large wire.
Currency risk on the PLN/THB or EUR/THB pair. The PLN/THB rate is relatively illiquid and historically volatile, with observed annual swings of 10-15% in our data sets. For buyers transferring from a euro-denominated account, the EUR/THB pair is more liquid but still carries meaningful volatility across a multi-tranche payment schedule. On a purchase priced at 5 million THB, a 10% exchange rate movement across the payment timeline can represent a significant variance in the total cost in the buyer's home currency. We recommend checking live rates with a regulated currency broker and considering a forward contract for a portion of the total amount. Specific pricing should be confirmed directly with a licensed provider.
FAQ
What is the FET form and why is it essential for foreign buyers in Thailand?
The FET (Foreign Exchange Transaction form) is a document issued by the receiving Thai bank confirming that funds arrived from abroad in a foreign currency. It is required by the Land Office to register freehold condominium title in a foreigner's name. Without it, registration is refused. The FET also serves as the documentary basis for legally repatriating sale proceeds when the property is eventually sold.
Can funds be sent in a currency other than US dollars?
Yes. EUR, USD, and GBP are all accepted foreign currencies for FET purposes. The key requirement is that the amount arrives at the Thai bank in a foreign currency - it must not be pre-converted to Thai baht by the sending institution. Many buyers transfer in EUR, which is then converted to THB on the Thai side.
How much does an international wire transfer to Thailand typically cost?
The sending bank typically charges a fixed transfer fee, often in the range of 20-50 USD equivalent, plus a currency conversion spread if the funds are being exchanged. Standard bank spreads often run 1.5-3% above the mid-market rate. Regulated currency brokers can offer spreads in the range of 0.3-0.8%, which on a transaction of 100,000 EUR can represent a meaningful saving. Exact fees vary by institution and should be confirmed before initiating the transfer.
Can a foreign national obtain a mortgage from a Thai bank?
Options are very limited. Based on our estimates for 2026, only a small number of banks - including some international institutions operating in Thailand - offer loan products to foreign nationals, typically with a maximum loan-to-value ratio of 50-60%, annual interest rates in the 5-7% range, and strict income documentation requirements. Developer instalment plans are a more accessible alternative, commonly structured as 30-50% of the purchase price spread over 12-36 months, though this flexibility is generally reflected in a higher unit price.
Is a nominee company structure now entirely illegal in Thailand?
A nominee structure violates the Foreign Business Act when Thai shareholders are not genuine investors who contributed capital and share in profits. In practice, the majority of such structures have relied on fictitious shareholders. As of 2026, the DBD is actively auditing these companies in coordination with AMLO, the police, and 43 foreign embassies. Penalties include up to 3 years' imprisonment and fines up to 1 million THB.
Which districts in Phuket and Koh Samui are covered by the enforcement operation?
Per Travel And Tour World (October 2026), the operation covers entire provinces, including Phuket province and Surat Thani province (which includes Koh Samui and Koh Phangan). Within Phuket, areas with high concentrations of foreign investment - Bang Tao, Kamala, Surin, and Rawai - are under particular scrutiny. On Koh Samui, Bophut, Chaweng, and Maenam are the primary focus areas in our monitoring.
How can buyers manage currency exchange risk during a multi-tranche payment?
Three practical approaches appear in our recommendations: (1) a forward contract with a regulated currency broker, locking in a rate for part or all of the total amount; (2) timing individual tranches to coincide with favourable rate levels while staying within the developer's payment schedule; and (3) using a specialist FX broker rather than a retail bank to reduce the conversion spread on each transfer. Specific terms should be confirmed with a licensed provider before committing.
Is a registered leasehold on a villa secure over the long term?
A leasehold registered at the Land Office provides statutory protection for the leaseholder for the registered term, up to 30 years. A contractual renewal option included in the lease agreement is not automatically enforceable under Thai law, but it does create a documented contractual basis for negotiation at renewal. In our 2026 dataset, registered personal leasehold remains the most legally straightforward structure for foreign villa buyers in both Phuket and Koh Samui.
What should existing nominee company shareholders do?
We recommend seeking prompt, independent advice from a Thai lawyer with corporate and Foreign Business Act experience. Options that may be available include shareholding restructuring, conversion to a personal leasehold arrangement, or voluntary disclosure to the DBD. The appropriate course of action depends on the specific structure, the source of capital, and the company's operating history - each situation requires individual legal analysis.
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