Pictures courtesy of Daily News

 

Authorities in Surat Thani have raided three luxury villa projects on Koh Phangan owned by two French nationals accused of illegally operating unlicensed hotels and evading taxes worth nearly 100 million baht. The operation was led on 7 November by Pol Col Sombat Chamsaeng, Deputy Commander of Surat Thani Provincial Police, as part of a special task force investigating foreigners conducting business unlawfully in Thailand.

 

Armed with a court warrant from Koh Samui Provincial Court, police and related agencies searched three sites linked to the company Phangan Development (Thailand) Co., Ltd., operated by Mr. Anthony Gerard Guy Vernot and Mr. Khalil Rousem, both French citizens. The first site, the company’s office in Moo 1, Koh Phangan, was found managing the Boho Villas and Boho Village developments, where officers seized business documents and computers for examination.

 

Subsequent inspections revealed that both projects, Boho Villas and Boho Village, had a combined total of 36 completed villas, most of which were occupied by foreign tourists paying between 5,000 and 15,000 baht per night. Officers also discovered a third nearby project under construction with 29 additional villas. The French owners reportedly admitted to operating accommodation services without hotel licences. They were charged under Thai law for running an unlicensed hotel business and taken for further questioning.

 

Investigations found that the suspects had leased land from Thai nationals for 30 years, subdivided it and built villas later rented on long leases, to foreigners for between 3 and 7 million baht per unit. Some villas were owner-occupied, while others were sublet to tourists. Their management company reportedly collected a 20% service fee, generating an estimated annual income exceeding 200 million baht.

 

Company records show that Boho Villa Co., Ltd., founded in 2020 with 2 million baht in registered capital, and Boho Village Co., Ltd., established in 2022 with 4 million baht, were both majority foreign-owned with nominal Thai shareholders. A third firm, Boho Terracotta Co., Ltd., created in December 2023, was also involved in construction and reported financial losses for 2024. Authorities suspect the Thai shareholders are “nominees” acting on behalf of the foreign owners.

 

The Revenue Department has estimated the state lost around 95.6 million baht in unpaid taxes, including 33.6 million from daily rentals, 50 million from long-term leases and 12 million in hotel service tax. Investigators are continuing to gather evidence to file additional charges related to nominee ownership and tax evasion.

 

 

Key Takeaways

 

• Two French nationals were arrested for running unlicensed villa hotels on Koh Phangan.

• Authorities estimate Thailand lost nearly 100 million baht in unpaid taxes.

• Police suspect the use of Thai nominee shareholders to conceal foreign ownership.

 

Related Stories

 

Foreign-nationals-arrested-in-Koh-Phangan-illegal-hostel-raids/

 

Immigration-police-raid-illegal-foreign-run-hotels-on-Phangan

 

  Adapted  by  Asean  Now from Dailynews 2025-11-08

 

 

 

 

Sounds like they were doing well and had a decent business.......until caught....

One wonders if they ever tried for a "hotel" licence which I understand is very difficult to get and whether they bothered with more than the minimum for the company taxes.

7 hours ago, Georgealbert said:

subdivided it and built villas later rented on long leases, to foreigners for between 3 and 7 million baht per unit. Some villas were owner-occupied,

Are the owner occupiers safe or not?

 

On 11/8/2025 at 11:29 AM, topt said:

Are the owner occupiers safe or not?

 

They should be, but who knows

 

Technically even the subletters should be, as long as they were not dealing in multiple properties or daily rentals and paying their taxes... but I don't think this is the case.

 

They ought to be Frog-marched back to France from  Thailand never to return.

More and more

On 11/8/2025 at 4:14 AM, Georgealbert said:

Subsequent inspections revealed that both projects, Boho Villas and Boho Village, had a combined total of 36 completed villas, most of which were occupied by foreign tourists paying between 5,000 and 15,000 baht per night. Officers also discovered a third nearby project under construction with 29 additional villas. The French owners reportedly admitted to operating accommodation services without hotel licences. They were charged under Thai law for running an unlicensed hotel business and taken for further questioning

That's gonna hit the Frenchies pockets.

On 11/7/2025 at 11:29 PM, topt said:

Sounds like they were doing well and had a decent business.......until caught....

One wonders if they ever tried for a "hotel" licence which I understand is very difficult to get and whether they bothered with more than the minimum for the company taxes.

Are the owner occupiers safe or not?

 

 

I do not believe that the owners of the villas are safe. There are a lot of ifs to be  answered first;

- Did the initial owners have clear ownership to the  land and property that was sold to the villa resident(s)?

- Do any of the tax liabilities attach to the villas? They may, if the villa owners were renting their properties out using the services of the French nationals.

- 

 

 

This crackdown started a few months back after the Israelis there started getting a too big for their boots.

i predicted others would start to fall like dominos and this is now happening.

 

Phuket is in a similar situation now but that fire was set off by Russians “overdoing” it.

 

The good old days are over, they have ruined it.

2 minutes ago, MalcolmB said:

This crackdown started a few months back after the Israelis there started getting a too big for their boots.

i predicted others would start to fall like dominos and this is now happening.

 

Phuket is in a similar situation now but that fire was set off by Russians “overdoing” it.

 

The good old days are over, they have ruined it.

 

    which "No Israeli" sign will you be posting in this thread ?

Will it be the Koh Tao hairdresser sign or the Pai sign , or the Italian sign  ?

3 minutes ago, Nick Carter icp said:

 

    which "No Israeli" sign will you be posting in this thread ?

Will it be the Koh Tao hairdresser sign or the Pai sign , or the Italian sign  ?

The signs are not really relevant to this style of case.

The police don’t need signs, they have search warrants.

There will be a lot of discounted villas soon as many try to flee the same consequences these guys are now facing.

 

It won’t affect you but it will cost many a lot and some their entire life savings.

3 minutes ago, MalcolmB said:

The signs are not really relevant to this style of case.

The police don’t need signs, they have search warrants.

There will be a lot of discounted villas soon as many try to flee the same consequences these guys are now facing.

 

It won’t affect you but it will cost many a lot and some their entire life savings.

 

   IMO, its  good thing that the authorities are clamping down on illegal activity .

   Its rather stupid to invest money in an illegal activity abroad

Thai “Farang casino” at its best:

 

First, create strict, de facto race-based restrictions.

Then, establish corrupt schemes and promote them to wealthy foreigners under the guise of “100% secure investments.”

Once the foreign business becomes profitable — send in the police for a “raid,” aiming for massive payoffs or outright confiscation of assets.

 

 

The same pattern repeats across almost every sphere — from visa processing to large-scale investments in the Thai economy. There should be no doubt that the mentioned French villa owners conducted their business in full confidence that their investments were safe and protected.

Government now owns some nice new villas.

I’m very surprised that anyone would invest as much as these two Frenchmen without having a legal basis for doing so. The projects are visible enough to almost certainly be on the radar of the authorities. It was bound to end in lost money

On 11/8/2025 at 4:14 AM, Georgealbert said:

Investigations found that the suspects had leased land from Thai nationals for 30 years, subdivided it and built villas later rented on long leases, to foreigners for between 3 and 7 million baht per unit.

This part is probably legal if they register a company with 51 percent Thai ownership, have all the documents in order and pay their taxes. It is not a hotel business, and they wouldn't even need a working permit if they only invest capital in the business.

Illegal land ownership, operating a business without a license, tax invasion. What possibly could go wrong? I repeat what possibly could go wrong?  Considering the money they were making from the rentals, these people knew what they were doing and knew they were breking the laws. Little  sympathy for the predicament they find themselves in. 

17 minutes ago, Nick Carter icp said:

 

   IMO, its  good thing that the authorities are clamping down on illegal activity .

   Its rather stupid to invest money in an illegal activity abroad

I’ve come to the conclusion it’s stupid to invest money in Thailand what’s more annoying it appears those you rely on ie Lawyers to be honest and upfront are more than happy to take your money but when the S#!T hits the fan they go into hiding these people are the instigators along with anyone involved in real estate 

Perhaps the thai who leased the land to them thought oh Perhaps I should get my land back now some shacks are on it?

1 minute ago, riverhigh said:

Illegal land ownership, operating a business without a license, tax invasion. What possibly could go wrong? I repeat what possibly could go wrong?  Considering the money they were making from the rentals, these people knew what they were doing and knew they were breking the laws. Little  sympathy for the predicament they find themselves in. 

I’m sure they would have accountants submitting their end of year accounts taking care of workers salaries and work permits as well as lawyers taking care of leases as far as I’m aware any lease over three years has to be registered with the land office and tax paid .when are the authorities going to chase the big boys in places like Phuket,Pattaya and even Bangkok this has opened a real can of worms people will now go and spend their money in more welcoming countries 

2 minutes ago, wensiensheng said:

I’m very surprised that anyone would invest as much as these two Frenchmen without having a legal basis for doing so. The projects are visible enough to almost certainly be on the radar of the authorities. It was bound to end in lost money

I rarely go on FB but there's always a Villa investment ad for Samui or KPG

On 11/8/2025 at 11:29 AM, topt said:

Sounds like they were doing well and had a decent business.......until caught....

One wonders if they ever tried for a "hotel" licence which I understand is very difficult to get and whether they bothered with more than the minimum for the company taxes.

Are the owner occupiers safe or not?

 

 

 

My personal opinion is that wifehold is the most risky way to own a property in Thailand.

 

2 hours ago, MalcolmB said:

This crackdown started a few months back after the Israelis there started getting a too big for their boots.

i predicted others would start to fall like dominos and this is now happening.

 

Phuket is in a similar situation now but that fire was set off by Russians “overdoing” it.

 

The good old days are over, they have ruined it.

 

   No, its people like YOU who ruined it .

Shouting and complaining about a few people living on KPG .

You hoped and expected that the Thai Authorities would just focus on the Israelis .

  You and your gang wanted the Thai authorities to target Israelis and deport them all  , and you highlighted illegal activity .

    The authorities are now investigating everyone . 

Its people like you who caused the clampdown by highlighting the illegal activity . 

Just now, Nick Carter icp said:

 

   No, its people like YOU who ruined it .

Shouting and complaining about a few people living on KPG .

You hoped and expected that the Thai Authorities would just focus on the Israelis .

  You and your gang wanted the Thai authorities to target Israelis and deport them all  , and you highlighted illegal activity .

    The authorities are now investigating everyone . 

Its people like you who caused the clampdown by highlighting the illegal activity . 

Which member of this forum is a Thai investigator?

Don’t shoot the messenger Nick, it was underway when I highlighted what was going on.

I highlighted it so members of this forum got a heads up and tool preventative measures.

Many have thanked me personally for saving their life savings.

3 minutes ago, MalcolmB said:

 

I highlighted it so members of this forum got a heads up and tool preventative measures.

Many have thanked me personally for saving their life savings.

 

   Did your "many Jewish friends in the UK" also thank you 🙂

 

(I know this will go right over your head , I don't mean it literally . I was highlighting that you seem to have "many" of everything 🙂

On 11/8/2025 at 4:14 AM, Georgealbert said:

Authorities estimate Thailand lost nearly 100 million baht in unpaid taxes.

oooh la la!!

On 11/8/2025 at 4:14 AM, Georgealbert said:

Investigations found that the suspects had leased land from Thai nationals for 30 years, subdivided it and built villas later rented on long leases, to foreigners for between 3 and 7 million baht per unit. Some villas were owner-occupied, while others were sublet to tourists. Their management company reportedly collected a 20% service fee, generating an estimated annual income exceeding 200 million baht.

 

 

Well know we know why land prices are going insane in those locations. If you let foreigners rent land for 30 years, subdivide and build, then sell or rent to other foreigners that's effectively ownership and totally undermines the spirit of the law to protect land for Thai nationals.

3 hours ago, JJ-Thailand said:

This part is probably legal if they register a company with 51 percent Thai ownership, have all the documents in order and pay their taxes. It is not a hotel business, and they wouldn't even need a working permit if they only invest capital in the business.

 

It's a nominee structure, they leased the land from the owner. As far as I know this is totally legal providing the land office issues the lease.

 

My only question regarding leases is, will any land office always be obliged to issue the lease or do they have some internal protocol which blocks certain property. Otherwise this seem like an obvious vector for the land market being totally captured by foreigners thus pushing out Thais.

Why does it always take the authorities so long before they realise what’s going on? Did the brown envelopes stop or are they just completely inept in doing their job?

This isn’t a small hostel trying to be anonymous, we’re talking about a large scale business operation here and I can’t believe it wasn’t being monitored.

I think there’s more to this than what’s been released.

 

5 hours ago, Nick Carter icp said:

 

   IMO, its  good thing that the authorities are clamping down on illegal activity .

   Its rather stupid to invest money in an illegal activity abroad

It is rather stupid to invest money in Thailand end of story. 🤷🏼

Hopefully they shut down that retire 4 you place in Koh Samui also