Bang Makham Beach, Koh Samui, Surat Thani. The island is an attractive destination among foreign buyers seeking property in Thailand. (Photo: Bangkok Post)
Thailand's crackdown on a loophole that effectively bypasses its restrictions on land ownership by foreigners is causing prospective buyers to delay purchase decisions on luxury villas in resort destinations such as Phuket and Koh Samui, according to agents.Bangkok has stepped up its scrutiny of business and property ownership in the country, with the Department of Business Development (DBD) flagging 11,426 companies on Koh Phangan and Koh Samui where foreigners hold stakes, accounting for nearly 68% of all registered firms on the two islands, which are districts in the southern Thai province of Surat Thani, according to local media reports.
The DBD has also identified more than 7,000 businesses suspected of using illegal nominee structures, mainly in the real estate, tourism and hospitality sectors.
The crackdown aims to zero in on entities that used a Thai national as a dummy shareholder to comply with the law restricting foreign shareholding to a maximum of 49%. Under such unscrupulous arrangements, the Thai shareholders would claim property ownership on paper but had no tax history to back up the claim.
