Police raided a Chinese-operated real estate office in Pattaya, arresting three Chinese nationals for illegal employment on Monday afternoon. The operation, led by officers from Regional Police Investigation Division 2, targeted a prominent brokerage in the Nong Prue Sub-district, Bang Lamung District, Chonburi. The agency, officially registered as a property business, primarily served Chinese clients. Inside, authorities discovered 16 Chinese staff and about 30 Chinese customers awaiting service.
Three of the Chinese employees—two men and one woman—lacked valid work permits and were detained immediately. Investigators are checking whether other staff members also lacked documentation. The suspects face criminal charges for working without authorisation. Police also summoned a Thai man, aged 40 and identified only as Mr. Kham from Wiang Kaen District, Chiang Rai, who appears as a shareholder. Investigators suspect he is a nominee acting for the real Chinese owners.
Crackdown on Nominee Ownership and Foreign Business Law Violations
Police believe the brokerage functioned as an unlicensed property agent, helping foreigners buy homes, condominiums, and land—despite Thailand’s strict foreign ownership restrictions. Authorities are now scrutinising the company’s financial and shareholder records for breaches of the Foreign Business Act. The use of Thai proxies, or nominees, to disguise foreign ownership is illegal but remains widespread. The government has intensified efforts to stamp out this practice, with the Pattaya case likely to be the first of several such investigations in the region.
Officials report that Chinese-linked businesses are increasingly accused of exploiting legal loopholes to conceal ownership and launder funds. The crackdown aims to distinguish genuine investors from those abusing the system. More real estate firms in areas with high concentrations of Chinese-owned businesses are under surveillance, with further raids expected in the coming weeks.
Earthquake Triggers Shift in Property Investment to Pattaya
Interest in Pattaya real estate has surged since the 7.7-magnitude earthquake near Bangkok on 28 March. The quake undermined confidence in the capital’s safety, especially after a building under construction collapsed due to suspected structural weaknesses in its elevator shaft. Many buildings in Bangkok have since been declared unsafe pending inspection, and engineers have warned about future seismic risks due to the city’s soft soil and ageing infrastructure. Emergency maintenance teams are stretched thin as thousands of buildings undergo checks, particularly elevator shafts. Property values in some parts of Bangkok have stagnated or declined, prompting investors to look eastward.
Pattaya, located outside Thailand’s seismic fault zones, has become a preferred destination for buyers seeking safer ground. Chinese nationals dominate this new wave of investment, purchasing condominiums—where foreigners can legally own up to 49% of units per project—mainly in the ฿2–4 million range. Some are also acquiring land for factories near industrial zones in Chonburi and Rayong, often using complex legal workarounds.
New Tax Rules Aim to Attract Overseas Funds
On the same day as the raid, a senior property industry leader welcomed a new Revenue Department regulation. The new rule allows Thai tax residents to repatriate overseas income tax-free for up to two years. The policy is intended to unlock an estimated ฿2 trillion held offshore by Thai nationals, boosting liquidity and supporting the local property market. The measure follows OECD principles of fairness and non-discrimination, though full implementation guidelines are still pending.
Currently, only income brought into Thailand within the same year is taxed, so many investors keep funds abroad. The two-year exemption is expected to encourage more capital inflow, indirectly benefiting the real estate sector. However, clarity is needed on whether foreign residents in Thailand will also qualify for the exemption.
Ongoing Enforcement and Regulatory Measures
Authorities are intensifying inspections of businesses suspected of nominee ownership, with the Pattaya raid serving as a test case for future enforcement. Police have confirmed that more real estate companies are being monitored, especially those with significant Chinese involvement. The government remains committed to attracting legitimate foreign investment while enforcing legal compliance and preventing the misuse of nominee structures.
