In August 2026, Thai authorities disclosed 60 cases linked to 59 companies and assets valued at approximately 1.2 billion THB on Koh Samui. Operation Phase 7 covered 37 land plots totalling more than five hectares, and arrest warrants were issued for 62 foreign nationals. Our team has monitored this market for years, and we can state clearly: for investors considering a purchase or sale of a villa held through a Thai company structure on Samui or Phuket, the risk calculation has reached a structural turning point.
Among the suspects and detainees identified in Phase 7 reporting by Nation Thailand (August 2026) were nationals from Germany, Israel, the United Kingdom, France, and China. The charges extend beyond illegal nominee arrangements to include missing construction permits, evasion of land transfer tax, and undeclared rental income. For the secondary villa market, the practical effect is that buyers are now pricing legal-structure risk as a concrete, measurable cost rather than an abstract disclosure item.
Quick answer
- Operation Phase 7 on Koh Samui covered 60 cases, 59 companies, 88 suspects, and assets worth approximately 1.2 billion THB (per Nation Thailand, August 2026)
- Based on our estimates, villas held through Thai companies showing nominee characteristics (foreign beneficial owner, Thai shareholder with no real capital contribution) are trading at a 15-30% discount to comparable clean leasehold 30+30 offers
- Average listing exposure time for nominee-structure villas on Samui has extended in 2026 to 8-14 months, versus 4-7 months for leasehold villas in the same price band
- Thai authorities have signalled further operation phases, which in our view will sustain downward pricing pressure on the secondary market for at least 2-3 years
- Title invalidation in a nominee case does not reduce asset value - it can eliminate it entirely, leaving the investor with no recoverable capital
Options and scenarios
Secondary market villas priced below 200,000 USD
In this price band on Koh Samui - covering districts such as Maenam, Lamai, and parts of Bophut - the stock is dominated by villas built between 2015 and 2020, many held through Thai company structures established by local law firms. Based on our estimates as of 2026, roughly 40-50% of listings in this segment on Samui involve structures that may meet the regulatory definition of a nominee arrangement. Buyers are increasingly demanding a full legal audit of the company before submitting an offer, which adds four to eight weeks to the transaction timeline.
The Phuket picture is somewhat different. In Rawai and Nai Harn, where the budget segment concentrates, we observe a higher share of leasehold titles in new listings. Sellers of company-held villas in those districts must nonetheless accept discounts in the range of 15-25% relative to the prices achievable as recently as 2024.
Premium segment above 500,000 USD
In locations such as Chaweng Noi on Samui, or Layan, Surin, and Kamala on Phuket, premium villas reach the secondary market less frequently, but transactions are more complex. Our monitoring shows listing exposure times of 10-18 months for company-held structures and 5-9 months for clean leasehold at this tier. The discount from asking price to transaction price ranges from 10-20% for leasehold and 20-35% for company structures carrying nominee risk.
MGR Online reporting on Phase 7 identified a group referred to as 'Hol-C' - four companies linked to German nationals and engaged in luxury villa construction on the Samui hillsides. That profile maps directly onto the premium segment, confirming that legal risk is not confined to lower price points.
Three exit routes compared
Share sale (selling the company) is the operationally simplest exit, but in the current regulatory climate it carries the highest risk profile. The buyer inherits the full legal history of the company, including any potential nominee exposure. We observe a growing number of buyers refusing to acquire company shares without independent legal confirmation that the structure is compliant.
Direct property transfer - moving the title to the buyer's new company or converting to a leasehold - is safer for the buyer but generates additional transfer costs: a 2% transfer fee, withholding tax, and either stamp duty or specific business tax at 3.3%. Combined exit costs typically reach 6-8% of the property value.
Off-plan contract assignment before completion is a separate route, available primarily on Phuket in active development projects. Constraints apply: many developers charge an assignment fee of 1-3% of the contract value, and a number of contracts prohibit assignment within the first 12 months. On Samui the off-plan villa market is materially smaller, so this option has limited practical reach.
Comparison table
| Parameter | Condo freehold (below 200k USD) | Villa leasehold 30+30 | Villa in Thai company (nominee risk) |
|---|---|---|---|
| Average listing exposure | 3-6 months | 4-9 months | 8-18 months |
| Discount from asking price | 5-10% | 10-15% | 20-35% |
| Exit transaction costs | 6-8% | 4-6% (leasehold assignment) | 2-4% (share sale) or 6-8% (title transfer) |
| Legal risk in 2026 | Low | Moderate | High |
| Secondary market liquidity | Good | Moderate | Low and declining |
| Typical secondary buyer | Foreign (foreign quota) | Foreign or Thai national | Foreign buyer with high risk tolerance |
Hold-period arithmetic: a Bophut villa example
Consider a villa in Bophut purchased for 8 million THB in a Thai company structure. Based on our estimates, gross rental income at 60% occupancy - using approximately 4,500 THB per night in peak season and 2,500 THB per night off-season - produces roughly 480,000-600,000 THB per year after management fees of 25-30% of gross revenue.
3-year horizon: Cumulative net rental income of approximately 1.5 million THB. At a 25% exit discount (transaction price 6 million THB) and exit costs of around 400,000 THB, the net result is a loss of approximately 1.0 million THB, equivalent to roughly -4.2% per year annualised.
5-year horizon: Cumulative net rental income of approximately 2.5 million THB. At a 20% discount (transaction price 6.4 million THB) and the same exit costs, the net result is a gain of approximately +500,000 THB, or around +1.2% per year annualised.
10-year horizon: Cumulative net rental income of approximately 5.0 million THB. Assuming a partial market normalisation brings the discount to 15% (transaction price 6.8 million THB), the net result rises to approximately +3.4 million THB, or around +3.5% per year annualised - but only if the company structure is not challenged during that period.
None of these calculations incorporate the risk of title invalidation, which in a confirmed nominee case can mean the total loss of invested capital. Investors who are tax residents outside Thailand also need to factor in domestic tax obligations on rental income and capital gains under their home country's double-taxation agreement with Thailand, where applicable.
Timing the sale: when market conditions favour sellers
We monitor secondary-market cyclicality on both Samui and Phuket and identify three variables that materially affect sale timing:
- Seasonality: Buyer activity peaks between November and March. Listings launched in June through August show statistically longer exposure times, averaging 30-40% above the annual mean
- THB exchange rate: A 5-8% baht weakening tends to increase interest from European buyers. As of 2026, the baht is holding in the 35-37 per USD range, which we regard as broadly neutral
- New supply cycles: In Bang Tao and Layan on Phuket, the pipeline of new leasehold villas is expanding, increasing competition for secondary stock. On Samui, new supply is more limited, but Phase 7 has frozen a portion of transaction activity regardless
Off-plan contract resale on Phuket before completion is viable but requires careful review of contract clauses. Based on our data, approximately 60-70% of Phuket developer contracts include an assignment clause, but with fees attached and time restrictions. On Samui this secondary market effectively does not exist for villas.
Risks and mistakes
- Acquiring company shares without a full legal audit is the most frequent error we observe among foreign buyers. A proper due diligence review costs 30,000-80,000 THB - a fraction of the capital at risk in a multi-million-THB villa transaction
- Assuming that a long-running structure is safe - Operation Phase 7 targeted companies that had been operating for years, and in some cases more than a decade
- Underestimating restructuring costs - converting a nominee company structure to a clean leasehold typically costs 3-5% of the property value and takes 6-12 months. That cost is, however, substantially lower than the potential loss of the asset
- Neglecting tax planning in the buyer's home jurisdiction - the sale of shares in a Thai company may trigger a taxable event in the investor's country of residence. We recommend consulting a qualified tax adviser in the relevant home country before completing any transaction
- Pricing a nominee-held villa against leasehold comparables - in 2026 these are two distinct asset classes with different risk profiles and materially different liquidity. Treating them as equivalent in a valuation model is a methodological error
FAQ
Does Operation Phase 7 apply only to Koh Samui?
No. According to Nation Thailand reporting from August 2026, more than 300 officers participated in the operation and enforcement activity extended to other tourist provinces, including Phuket. We are monitoring signals that further operation phases may expand the geographic scope.
How long does it take to sell a nominee-structure villa on the secondary market in 2026?
Based on our monitoring, listing exposure for villas held through Thai company structures showing nominee characteristics ranges from 8 to 18 months on both Samui and Phuket. A comparable villa offered under a clean 30+30 leasehold in the same price bracket typically sells in 4-9 months.
What discount from asking price should a seller expect on a nominee villa?
We estimate discounts of 20-35% from the asking price for villas in company structures carrying nominee risk, as of 2026. The discount widens with greater uncertainty about the legality of the structure and the company's tax history.
Is it better to sell the company shares or transfer the property directly?
A share sale is cheaper in transaction costs (2-4%), but the buyer assumes the company's full legal history. A direct property transfer costs 6-8%, but gives the buyer a clean title start. In the current regulatory climate, we observe a growing buyer preference for the direct transfer route.
Can a nominee company structure be converted to a leasehold?
Yes, but the process requires 6-12 months and costs approximately 3-5% of the property value. It involves transferring the land title to a Thai freeholder and executing a formal leasehold agreement. In our view, this is the only path that credibly preserves long-term asset value for foreign holders currently in a nominee structure.
How does the nominee enforcement environment affect the Phuket condo market?
The direct impact is limited. Condominium units held under foreign freehold quota do not rely on company structures, so nominee risk does not apply. We are in fact observing a moderate increase in buyer interest in condos at the expense of villas, which may provide some price support in that segment.
What are the general tax obligations for a foreign investor selling Thai property?
This varies by country of residence. Many double-taxation agreements with Thailand provide for taxation of property-related gains in both jurisdictions, with a credit mechanism to offset double taxation. We recommend obtaining advice from a qualified tax adviser in the investor's home country before finalising any transaction.
When is the best time to list a villa for sale on Koh Samui?
Buyer activity on the Samui secondary market peaks between November and March. A listing launched in September or October allows it to reach buyers who are planning a site visit during the high season. Our data shows that listings launched during the peak rainy season (June through August) carry average exposure times that are 30-40% longer than the annual median.
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