Koh Phangan crackdown hits foreigners hard as police raid luxury villas, offices, and a consultancy linked to 89 companies, summoning tourists and caretakers, exposing complex shareholdings, an unlicensed hotel and potential tax avoidance in a major operation.
Another major police operation hit Koh Phangan on Tuesday, targeting four addresses, including a consultancy linked to a Thai woman and 89 companies. One site was a villa complex with eight luxury villas rented to tourists at ฿13,000 per night. The caretaker and guests were summoned, and legal proceedings launched immediately. Meanwhile, the 49-year-old owner was away with her foreign husband. Police exposed a complex shareholding structure tied to the villas, now under close scrutiny for potential charges.
The crackdown on foreign business abuses and property ownership on Koh Phangan is intensifying. Following recent high-level reviews, authorities launched a major operation on Tuesday targeting illegal activities linked to at least 89 companies. The focus included both luxury villas and professional offices suspected of operating outside Thai law.
During the raids, police found several luxury villas rented to foreign tourists. Consequently, legal proceedings were issued immediately, as the properties were functioning as part of an unlicensed hotel. Officers are also examining company documentation closely. They suspect that some recent transactions were designed to conceal the sale of property and thereby avoid taxes.
At the heart of the network are Israeli shareholders and Thai women running a legal and financial consultancy. This consultancy manages and administers the companies under scrutiny.
Officials warn of indefinite crackdown on Koh Phangan business and property to ensure full compliance
Officials warned that the crackdown would continue indefinitely until Koh Phangan’s business and property sectors are fully compliant. Moreover, authorities stated that the campaign will later expand to Koh Samui. Eventually, the program is expected to serve as a model for nationwide enforcement, particularly in provinces with large foreign populations and major tourist destinations.
At 10:00 a.m. on October 21, a meeting was held at the Operations Centre for the Prevention and Suppression of Offences, Koh Phangan Police Station.
Pol. Maj. Gen. Krit Warit, Deputy Commissioner of the Tourist Police Bureau, coordinated the effort. This followed directives from Surat Thani Governor Thiratham Suphawibunphon. Several officials attended, including Pol. Col. Sirichai Suksat, Deputy Commander of Surat Thani Provincial Police and head of the task force targeting illegal foreign business activity.
In addition, ML Phuthong Thongyai, Deputy Director-General of the Department of Business Development, Pol. Maj. Gen. Chutharet Yingyongdamrongsakul, Deputy Commander of Immigration Bureau 6, and representatives from the Revenue Department, land authorities, and other agencies were present.
Authorities carry out raids across Koh Phangan targeting offices, homes and tourist villas linked to foreigners
After the briefing, authorities executed raids at four locations. Target 1 was a commercial building on Talad Mai Road, Village No. 1, Koh Phangan Subdistrict. It housed the offices of First Consultants Universal Service (First Consultants 47 Co., Ltd.). Target 2, a nearby building owned by the same individual, offered legal consulting, accounting, and company registration services. Investigators discovered 89 registered companies linked to these offices.
Police presented a search warrant to the office manager and seized documents and computers. They are investigating whether Thai nationals were used as nominees for foreign business operations. However, the second building was empty, showing no evidence of active business.
Meanwhile, the third target was the residence of 49-year-old Ms. Khemthong, owner of First Consultants 47 Co., Ltd. She was absent. The housekeeper explained she had travelled to Bangkok with her foreign husband for medical treatment. Nevertheless, officials seized documents for detailed examination.
The fourth target was the Sithaya Beach Front Villas project on Khao Hin Nok Beach, Village No. 4. The development comprises eight villas, seven of which were occupied by foreign tourists paying ฿13,000 per night.
Officials confirm luxury villas operate without license as a hotel and investigate property’s Israeli ownership
Administrative officials confirmed the villas were not licensed to operate as a hotel complex. Therefore, the caretaker and six foreign tourists were summoned for questioning and legal proceedings.
According to reports, the villa project is linked to Israeli investors. The 2.5-rai land is valued at ฿152 million and held by two Thai legal entities with 49% Israeli shareholders. Subsequently, the land was divided into 14 plots, and another Israeli legal entity was added. Officials suspect the changes were intended to conceal property sales and avoid taxation.
The raids bring home Surat Thani Province’s commitment to eliminating illegal business operations that threaten the economy and national security. Pol. Maj. Gen. Krit Warit stated that Ministry of Commerce records show approximately 2,500 foreign companies registered in Koh Phangan District.
Initially, five companies were found actively accepting registrations, each with hundreds of clients. All of them will be inspected to ensure proper registration and compliance with shareholder regulations.
Authorities emphasize crackdown targets illegal activity while protecting lawful tourism on the island
Authorities emphasized that the crackdown targets illegal activity, not lawful tourism. Consequently, tourists entering the island legally have nothing to fear. Pol. Maj. Gen. Krit said, “Local Thais remain hospitable and welcoming. Tourists who follow the rules will be safe and face no prosecution.” Furthermore, officials highlighted that the raids address nominee arrangements, unlicensed accommodations, and tax evasion schemes.
Seized documents and electronic records are now under detailed review. Authorities plan to pursue legal proceedings against individuals and companies found in violation of Thai law.
In addition, investigators are monitoring complex transactions involving property sales to uncover hidden foreign ownership. Officials warned that enforcement will remain strict until the business environment is fully compliant.
The Koh Phangan raids mark the latest phase of a nationwide strategy to regulate foreign investment. According to authorities, this approach will be applied in other provinces with significant foreign populations and thriving tourism sectors. Moreover, officials noted that strict enforcement ensures fair competition, proper tax collection and protection of local economic interests.
Officials stress operations prevent exploitation and support legal investors while targeting illegal activity
Officials stressed that ongoing operations are intended to prevent exploitation of local resources.
They confirmed that foreigners who comply with regulations can continue business and tourism without interference. Finally, authorities reaffirmed that Koh Phangan is open to legal investors and tourists, but anyone attempting illegal operations will face prosecution.
The operation also sends a strong message to other islands, in particular Koh Samui. Enforcement measures are increasing, and authorities plan to expand oversight to high-value properties nationwide.
Crackdown to wipe out foreign business abuses and ownership on Koh Phangan & Koh Samui intensifies
Raids on foreign owned hotels on Koh Phangan carry on with three Israelis arrested and a fourth sought
Fears grow among foreign business owners after Koh Phangan blitz sees German, French and Israelis held
Observers noted that the use of nominee arrangements and unlicensed hotels is widespread in tourist hotspots. Therefore, officials consider the campaign essential to safeguarding Thailand’s economy and national security.
The raids on Koh Phangan illustrate this new government’s zero-tolerance policy toward illegal foreign business activities. Investigators continue to examine complex corporate structures, offshore investments, and unlicensed properties.
As the crackdown intensifies, officers involved reaffirm their commitment to law enforcement, compliance, and the protection of local communities from unscrupulous foreign operators, in addition to those who aid and abet them.
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Further reading:
Crackdown to wipe out foreign business abuses and ownership on Koh Phangan & Koh Samui intensifies
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