Nominee-ownership enforcement spreads to Krabi: what island buyers need to know in 2026

On 2 June 2026, Thai police and the Department of Business Development (DBD) raided a luxury pool villa on over one rai of land in Nong Thale subdistrict, Mueang Krabi. The villa was linked to two Spanish nationals through a Thai company. The immediate charges spanned suspected nominee ownership, unlicensed short-term tourist rentals under the Hotel Act, and immigration reporting failures. The raid is now feeding into an investigation of 401 business entities across Krabi Province identified by the DBD as suspected nominee arrangements.

Krabi is the latest expansion of a crackdown that began on the islands. The structure and scale are the same — and for anyone who holds property through a Thai company with nominee Thai shareholders, the geography no longer offers safety.

How the enforcement campaign developed

• Koh Phangan and Koh Samui (October 2025) — 32 companies targeted across the islands with 300+ officers; 34 companies subsequently investigated, ~20 holding assets over 100 million baht.
• Koh Phangan (May 2026) — 22 foreigners arrested, more than 40 rai seized (estimated value over 200 million baht).
• Phuket (ongoing) — 200+ suspects, billions of baht in seizures; one Thai national found listed as nominee in 87 separate companies.
• Krabi (June 2026) — 401 businesses flagged, raids begun, 6 land plots under review.
• Next in scope — Pattaya, Phang Nga, Hua Hin and Chiang Mai are explicitly named in DBD/DSI statements as coming enforcement zones.

What law they are enforcing

The Foreign Business Act B.E. 2542 (1999) makes it a criminal offence for a Thai national to hold shares on behalf of a foreigner (Section 36) and equally criminal for the foreigner who benefits from the arrangement (Section 37). Penalties are up to 3 years imprisonment and fines of 100,000–1,000,000 baht, or both. The Land Code adds a further consequence: a foreign-controlled company that holds land unlawfully can be ordered to sell the land within 180 days to 1 year — at whatever price the forced sale yields.

What changed in 2026

Two procedural changes made the enforcement much harder to hide from. Since January 2026, Thai shareholders in companies with foreign involvement must submit bank statements proving they funded their shares from their own money. Since April 2026, any company alteration involving a foreign director triggers a mandatory review. Both changes removed the paper layer that nominee structures relied on. The DBD is now working with the Department of Special Investigation (DSI) and the Anti-Money Laundering Office (AMLO) — which means the investigation tools extend beyond company registers to financial flows.

What this means for buyers

For anyone considering a purchase structured through a Thai company, the enforcement context is not ambiguous: both the nominee and the foreigner face prosecution; the land, not just the company, can be subject to forced sale. The clean route is a registered leasehold — a right that doesn't require a Thai company or nominees to exist. See How foreigners legally own a villa and Leasehold vs freehold.

For anyone who already holds through a company structure, the advice from Thai property lawyers is to get confidential, fact-specific legal advice before the enforcement reaches your area — not after. The wrong move made in panic can make matters worse than the structure itself.