David, who allegedly killed former business partner Peter Reisz, 47, then tried to hide the body on Phuket, was nabbed by immigration police at an ATM machine at a big shopping centre.
A warrant has been issued for the arrest of a second man, named by police as Louis Rayork. All three men are Hungarians, with David, 38, said to also have Israeli citizenship.
David will be taken for questioning at Region 8 police headquarters in the province of Surat Thani.
Region 8 police oversee Samui, the holiday island where the men were in a property business together, and Phuket, another Thai holiday island off the Andaman coast, where Reisz was murdered.
Phuket police showed the media around the two-storey rented home in the central Phuket City Phanason Residence development today where the murder took place.
It's thought that Rayork led Reisz to the house where he was probably surprised and attacked by David. Police found a knife at the house that is the right size to have inflicted the wounds to Reisz.
Although the house had been thoroughly cleaned, forensics officers located three blood spots on a tiled floor and detected footprints using blue LED flashlight technology.
Inquiries in Samui so far have established that Reisz may have been attempting to used forged documents to claim ownership of a property valued at 15 million baht.
Reisz appears to have fled from Samui to Phuket after informing police that David owned an illegal gun but David followed him and traced his whereabouts.
The role of Rayork is less clear.
Reisz's body is at Patong Hospital. Further DNA tests are likely to delay the return of his body to his family for one month.