Thai nominee crackdown uncovers tourism, property chaos

Foreigners are using local nominees to buy up ‘entire housing projects and whole floors of condominiums’, sparking economy and security fears

 

Authorities have announced progress in a crackdown on foreigners using Thai nominees to illegally run businesses, focusing on tourism and real estate.

 

Between September 2024 and January 2025, a multi-agency taskforce led by the Commerce Ministry prosecuted 820 illegal nominee businesses, with estimated damages totalling 12.5 billion baht, officials revealed on Monday.

 

Authorities will investigate another 27,000 suspected nominees in 2025, targeting tourism, real estate, hospitality and logistics, Auramon Supthaweethum, the Department of Business Development’s director-general, told Krungthepturakij, The Nation’s sister publication.

 


"We're targeting every province based on private sector complaints and intelligence from relevant agencies to prevent foreigners from using Thai citizens as nominees to operate businesses reserved for Thai nationals," Auramon said.


 


 
Russians dominate Southern property market

The investigation has revealed large-scale illicit foreign investment in the southern tourism hotspots of Phuket and Koh Samui, where Russians have become the key buyers of luxury properties.

 

Salil Totubthieng, acting chair of the Thai Chamber of Commerce's Southern Andaman Province, noted that numerous foreigners have purchased condominiums as second homes here, attracted by Thailand's safety and hospitable population.

 


"While most investors are Thai, we see foreigners involved in tourism-related businesses such as restaurants and diving equipment shops, often after marrying Thai nationals," Salil said.
 


  

The government policy allowing 99-year property leaseholds has incentivised foreign investment, though local communities remain vigilant about large-scale developments and resource management.

 

 

Security concerns mount as illegal rentals proliferate

Hotel industry representatives have raised the alarm over foreigners converting residential properties into illegal accommodation, warning of economy and security risks.

 

Thienprasit Chaiyapatranun, president of the Thai Hotels Association, said foreign-owned condos and pool villas, particularly in Phuket and Bangkok, are increasingly being run as illegal daily rentals, often hosting fellow nationals as guests.

 


"Foreigners are buying up entire housing projects and whole floors of condominiums. The government should establish clear limits on how many units a foreigner can purchase," he said.


 

In Bangkok, both Thai and foreign investors have been purchasing entire condominium floors for illegal short-term rentals, while high purchasing power groups, notably from China, have expanded into luxury housing developments, providing dedicated shuttle services for tourists.
 

 

 

Calls for reform and stricter enforcement

Industry leaders are advocating for both stronger enforcement of existing regulations and comprehensive reform of property laws to create a more sustainable framework for foreign investment.

  

Sunthorn Sathaporn, president of the Housing Business Association, spoke about the problem of illegal daily condominium rentals, especially how some owners use methods like Chinese tour rentals to circumvent legal restrictions, bringing large tour groups into condominiums without concern for the impact on Thai hotel businesses.

 

This violates the law and the Condominium Act, he said.

 

Sunthorn urged stricter law enforcement to hand officials the authority to inspect property and take legal action.

 

Prasert Taedullayasatit, president of the Thai Condominium Association, proposed increasing the foreign ownership ratio in condominiums from 49% to 75% with appropriate restrictions, alongside implementing holding and long-term rental taxes to balance investment promotion with protecting Thai interests.

 

"Thailand is considered a global property market, but we lack an appropriate structure to support long-term foreign investment," Prasert said. "We need a system that both welcomes legitimate foreign capital and ensures Thais aren't disadvantaged."
 

 

 

Tourism sector seeks cut in visa term

Tourism industry representatives have called for the maximum stay under visa exemption to be cut from 60 to 30 days, noting that genuine tourists rarely stay beyond two weeks.

 

Sisdivachr Cheewarattanaporn, president of the Association of Thai Travel Agents, expressed concern that security management cannot keep pace with tourist numbers under the current visa-free policy covering 93 countries.

 


"We must verify that foreigners are genuine tourists, as many security issues have emerged. Some foreigners view Thailand as permissive, thinking they can do anything with money, which prevents Thailand from advancing to the next level," Sisdivachr said.


 

Chinese tourism, a key market for Thailand, has not recovered to pre-pandemic levels, with daily arrivals currently under half the 20,000-30,000 visitors recorded in 2019.

 

Officials expect around 7 million Chinese tourists in 2025, slightly above last year's 6.7 million but well short of the 8.5-9 million target.

 

The crackdown on nominees highlights Thailand's challenge in balancing its tourism and property ambitions with national security and economic sovereignty. The government faces mounting pressure to strengthen law enforcement while creating a more structured and transparent environment for legitimate foreign investment.

(2025/02/25-00:00)