Foreign‑buyer rules are shifting rapidly, with some countries tightening restrictions while others are easing them. Understanding the specific mechanism that limits foreign ownership—and whether that rule is moving toward more openness or tighter control—is essential before committing funds to an overseas property.
Markets Where Foreigners Buy on the Same Terms as Locals
- United States – No federal restriction. Buyers can take title in their own name. A 15 % withholding tax (FIRPTA) applies on resale, and a few states add transfer taxes for non‑residents.
- United Kingdom – Open to foreign purchasers; a 2 % stamp‑duty surcharge applies in England and Northern Ireland.
- Western Europe – Portugal, Italy, France, Ireland and Greece allow residential purchases without nationality tests. Greece raised its investor‑residency threshold to €800,000 (Athens, Thessaloniki, islands).
- Japan – No restriction on foreign ownership of homes or land.
- Georgia, Panama, Brazil – Freehold ownership of urban property is permitted. Brazil limits foreign ownership of rural and border land.
Where You Can Own an Apartment but Not the Land
- Thailand – Foreigners may own condominium units outright, but foreign ownership is capped at 49 % of a building’s floor area. Once the quota is filled, only 30‑year leases or ownership through a Thai company are possible. Proposed increases to a 75 % cap and 99‑year leases have not become law as of August 2026.
- Philippines – The Condominium Act requires at least 60 % Filipino ownership of a corporation that holds the unit; foreigners cannot own land.
- Vietnam – Under the 2023 Housing Law and 2024 Land Law, foreigners can own apartments on a renewable 50‑year term. Limits include up to 30 % of units in a building and a maximum of 250 houses per ward; land‑use rights never transfer.
Specific Zones Where Foreigners Cannot Buy Directly
- Mexico – Direct ownership is barred within 50 km of the coast and 100 km of the border. Purchases must be made via a fideicomiso (bank trust) or a Mexican company.
- Turkey – Foreign purchases are prohibited near military and security zones. Overall caps are 30 ha per buyer and 10 % of any district. Citizenship can be obtained with a $400,000 property investment. A 2012 shift replaced reciprocity tests with a country‑list system; some nationalities remain barred.
Markets That Require Permission or Impose a Premium
- Switzerland – The federal Lex Koller law bars most non‑resident foreigners from residential purchases and limits the number of holiday homes sold to foreigners each year. Most buyers must first obtain Swiss residence; a public consultation on tighter rules began in April 2026.
- Singapore – Foreigners pay an additional 60 % buyer’s stamp duty on residential purchases. Landed homes need government approval, which is rarely granted outside the Sentosa Cove enclave. U.S. citizens and a few treaty partners are treated as locals for duty purposes.
- Malaysia – A minimum price floor (commonly RM 1 million, varying by state) applies, and most purchases require state‑level consent.
- South Korea – Since 26 August 2025, foreigners must obtain a permit to buy in Seoul, 23 cities/counties in Gyeonggi Province, and seven districts of Incheon. Approved buyers must move in within four months and retain the property for at least two years. The measure is set to expire on 25 August 2026, but may be extended.
- India – Non‑resident Indians (NRIs) and Overseas Citizens of India (OCI) can buy freely. Other foreign nationals need central‑bank approval, and citizens of several neighboring countries are outright barred.
Markets That Have Effectively Closed the Door
- Canada – A ban on foreign nationals and foreign‑controlled companies buying residential property in census metropolitan/ agglomeration areas began in 2023 and is extended to 1 January 2027. Exemptions include students, temporary workers, refugee claimants, and buildings with four or more units; rural areas remain open.
- Australia – Since April 2025, foreigners are barred from purchasing existing homes. The ban was extended in the May 2026 budget to June 2029. New‑builds remain available with approval, reflecting a policy of directing foreign capital to new supply.
- China – Generally, foreigners may purchase only one residential unit for personal use, and only after residing, working, or studying in the country for at least one year.
- Indonesia – The strongest title, Hak Milik, is reserved for citizens. Foreigners can only obtain right‑to‑use titles, leases, or ownership through an Indonesian company—none convey outright land ownership.
- New Zealand – A ban on most foreign residential purchases has been in place since 2018. However, amendments in 2025 allow holders of the Active Investor Plus visa to buy properties ≥ NZ$5 million, effective March 2026.
Markets Moving Toward Openness
- New Zealand – The 2025 amendment creates a high‑value lane for foreign investors, signaling a shift from a blanket ban to a targeted approach.
- Saudi Arabia – A law effective January 2026 permits foreigners to buy in designated zones, allowing foreign residents to own one home (with additional conditions in Makkah and Madinah). This replaces a system that previously limited purchases to holders of the premium residency scheme.
- Spain – Although foreign buyers remain allowed, the golden‑visa program ended on 3 April 2025. A proposed tax of up to 100 % on non‑EU, non‑resident buyers has stalled as of March 2026, indicating a move to make the market less attractive to certain foreign investors.
Practical Checklist for Cross‑Border Buyers
- Ownership type – Confirm whether you can acquire freehold title or only a lease/right‑to‑use.
- Location eligibility – Verify that the specific city, district, or development is open to foreign buyers (e.g., restricted zones in Mexico or Turkey).
- Regulatory trajectory – Research whether the current rule is trending toward liberalization or tightening, and obtain any upcoming change dates in writing.
Given the rapid policy churn, securing written confirmation on these points before wiring funds is essential to avoid unexpected legal or financial hurdles.
Source article: www.imidaily.com
