# Thai Police Target Chinese Nominee Network Linked to $60.3M Luxury Condo Scheme - Link: https://www.thailand-business-news.com/china/215911-thai-police-target-chinese-nominee-network-linked-to-60-3m-luxury-condo-scheme - Published: 2025-05-05T08:44:54+07:00 - Author: Li Zhong Authorities in Thailand have dismantled a large-scale Chinese nominee network that illegally acquired land in Rayong province for a housing development worth over 2 billion baht. The operation, dubbed “CIB Nominee Sweep Episode 3,” targeted four companies controlled by Chinese nationals using Thai nominees to acquire 72 rai of land to build ten 8-storey buildings with 1,821 residential units. Key points: ADVERTISEMENT * **All-Chinese Management:** The project was entirely operated by Chinese nationals, with roles in engineering, design, plumbing, electrical work, and labor. * **Financial Investigations:** Over 500 million baht in suspicious financial transactions were traced to Chinese investors in Hong Kong. * **Raids & Seizures:** Police confiscated key documents, land title deeds, bank records, computers, phones, and company seals. * **Legal Violations:** Charges have been filed under the Foreign Business Act ( 1999) and the Alien Working Act (2017). * **Complex Ownership Structures:** Authorities discovered shell companies layering ownership to obscure foreign control. * **Potential Land Seizure:** If companies fail to restructure their ownership to comply with Thai laws, their land may be seized and auctioned. This operation is the third in a series of crackdowns on illegal foreign ownership schemes, following similar cases in Phuket and Bangkok. Authorities are closely monitoring land acquisitions to prevent nominee arrangements violating Thai law. Authorities have intensified their efforts to ensure compliance with regulations, focusing on identifying and dismantling fraudulent practices. These measures aim to protect Thailand’s real estate sector from exploitation and maintain fair opportunities for legitimate investors. Further investigations are underway, with officials pledging to hold violators accountable and enforce stricter penalties to deter future infractions. ### Related**Posts** ### 󠀁[Bank of Thailand Unveils Framework to Shield Financial Sector from Illicit Activities](https://www.thailand-business-news.com/banking/328409-bank-of-thailand-unveils-framework-to-shield-financial-sector-from-illicit-activities)󠁿 ### 󠀁[How China’s Innovation Drives the Transformation of Thailand’s Economy](https://www.thailand-business-news.com/china/325721-how-chinas-innovation-drives-the-transformation-of-thailands-economy)󠁿 ### 󠀁[Thailand is rolling out a new EV tax structure linked to local manufacturing](https://www.thailand-business-news.com/asean/329565-thailand-is-rolling-out-a-new-ev-tax-structure-linked-to-local-manufacturing)󠁿 ### 󠀁[China and ASEAN trade deal speeds up business exchanges](https://www.thailand-business-news.com/asean/329080-china-and-asean-trade-deal-speeds-up-business-exchanges)󠁿 Thailand has strict regulations on foreign ownership of land and businesses. Here are the key laws governing foreign ownership: * **Land Code Act (1954)**: Foreigners are generally prohibited from owning land in Thailand. Exceptions exist for those investing at least **40 million baht** in approved assets, allowing ownership of up to **one rai (1,600 sqm)** for residential purposes with ministerial approval. * **Foreign Business Act (1999)**: Restricts foreign ownership in certain business sectors. Foreigners must obtain a license to operate businesses in restricted categories. * **Condominium Act (1979)**: Foreigners can own up to **49%** of the total area of a condominium building. * **Investment Promotion Act (1977)**: Allows foreign companies to own land if they receive investment privileges from the Board of Investment (BOI). * **Industrial Estate Authority of Thailand Act (1979)**: Foreign businesses operating in industrial estates may be granted land ownership rights. * **Usufruct and Leasehold Laws**: Foreigners can lease land for up to **30 years**, with possible extensions, or obtain usufruct rights to use land without ownership. **Thailand has some of the strictest foreign ownership laws in Southeast Asia**, particularly regarding land and business ownership. Here’s how they compare to other countries: ### Thailand * Foreigners **cannot** own land outright, except under special investment schemes. * Foreign ownership in businesses is **restricted** under the **Foreign Business Act (1999)**. * Foreigners can own up to **49%** of a condominium building. * Long-term leases (up to **30 years**) are common alternatives for land ownership. ### Singapore * Foreigners **can** own condominiums and apartments but face restrictions on landed property. * Business ownership is **open**, with **100% foreign ownership** allowed in most sectors. * Foreign investors benefit from **strong legal protections** and tax incentives. ### Vietnam * Foreigners **cannot** own land but can lease it for up to **50 years**. * Foreign ownership in businesses is **allowed**, but certain industries require local partnerships. * Foreigners can own up to **30%** of a condominium project. ### Malaysia * Foreigners **can** own land and property but must meet minimum investment thresholds. * Business ownership is **flexible**, with **100% foreign ownership** allowed in many sectors. * The **Malaysia My Second Home (MM2H)** program encourages foreign investment. ### Indonesia * Foreigners **cannot** own land but can lease it for up to **80 years**. * Business ownership is **regulated**, with foreign investment restrictions in key industries. * Foreigners can own apartments in designated zones. Thailand’s laws are among the most restrictive, particularly regarding land ownership. However, foreign investors can still participate through leasehold agreements, BOI incentives, and joint ventures. Additionally, certain exceptions allow foreign nationals to own land in specific cases, such as through investment in approved projects or by setting up businesses under the Board of Investment (BOI) framework. Despite the restrictions, the real estate market remains attractive due to its steady growth, vibrant tourism industry, and the country’s strategic location in Southeast Asia.