Thailand's tighter grip on foreign property ownership has potential buyers rethinking luxury villa investments,especially in hotspots like Phuket and Koh Samui. Crackdown targets companies using illegal nominee structures,letting foreigners skirt land ownership rules.
The Department of Business Development (DBD) found 11,426 companies on Koh Phangan and Koh Samui with foreign stakes . That's nearly 68% of all registered firms there. Many use Thai nationals as dummy shareholders to dodge the 49% foreign ownership cap. Often lacking real tax paperwork to back up ownership claims.
By early this year,authorities prosecuted over 850 companies for financial misconduct. Estimated losses: more than 15 billion baht (about US$458 million). This crackdown aims to enforce compliance,protect local interests.
Exact numbers on luxury properties under nominee structures are hard to pin down. But property tech group Juwai IQI says foreign buyers dominate villa market. In Phuket, around 60% of transactions involve them . In Koh Samui and Koh Phangan,it's 90%. An estimated 2,400 to 3,000 villas could be caught up in new rules.
Real estate agents say confusion over ownership laws makes many buyers hesitate. With crackdown showing no sign of slowing,future of foreign investment in Thailand's luxury property market is up in air…
