About 20 Crime Suppression Division police from Bangkok joined local Phuket police in arresting Belgian Marc de Schutter at a house in southern Phuket about 1pm.
The arrest came at a luxurious home in a lane off Saiyuen Road, Rawai, where the alleged European lawbreaker had been living in style for 17 months with a 24-year-old Thai wife.
Documents, computers, notebooks and mobile telephones were taken by police who were headed to Bangkok tonight with their prize catch.
It is believed that Mr de Schutter will be presented to the media - local and international - in Thailand's capital tonight or tomorrow.
The Belgian Ambassador in Thailand has been in direct contact with the Commander of the Royal Thai Police.
Marc de Schutter, said to be Belgium's most wanted man, is accused of murder, laundering money in Thailand, and economic sabotage.
He is the latest in a series of international wanted men who have seen Thailand as a place where they can avoid detection.