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What countries do not allow foreigners to buy land or property?

Many foreign investors want to purchase properties abroad as part of their real estate portfolio. However, it is essential to understand which countries permit foreign real estate ownership to avoid potential legal issues that could impact your investment. In this article, we will outline the countries where foreigners cannot buy land and discuss the legal implications of these restrictions.

where can foreigners not buy land or houses

Switzerland

Switzerland is one of the countries where foreigners are prohibited from buying land due to legal restrictions imposed by the Lex Koller Law. Enacted in 1983, Lex Koller is a Swiss federal law that limits real estate purchases by foreign nationals. Its main goal is to prevent excessive foreign ownership and maintain a balanced property market for Swiss residents. In Switzerland, authorization is required for property purchases; however, not all foreign nationals need approval. EU/EFTA nationals who reside in Switzerland enjoy the same property rights as Swiss citizens and do not require a permit.

New Zealand

New Zealand is among the countries where foreigners cannot buy land or houses. You cannot purchase or build a home if you are a foreign national holding a temporary, limited, interim, or transit visa (such as a student, work, or visitor visa) or do not have a visa. However, you can buy or build a home without consent if you, your spouse, or your partner meet specific criteria defined by the Property Relationships Act 1976. These rules apply to land classified as “residential land” under the Overseas Investment Act, meaning property listed as “residential” or “lifestyle” on the District Valuation Roll.

Denmark

Despite the country’s liberal policies, Denmark is one of the countries where foreigners cannot buy land due to strict eligibility requirements. While the purchasing process is straightforward, only those who meet specific criteria can purchase property without special permits. Foreign nationals qualify if they have lived in Denmark for at least five years or have strong ties, such as employment, studies, or children in school. If not, they will need a special permit from the Department of Civil Affairs, usually granted if you have legal residency and plan to use the property as your primary residence.

Indonesia

Indonesia is among the countries where foreigners cannot buy land outright but can obtain long-term leases through the “Hak Pakai” (Right to Use) title. This title provides the right to use or develop land for extended periods. The legal framework was established to ensure that land ownership remains primarily with Indonesian citizens, thereby protecting national interests. The “Hak Pakai” title is essential to Indonesia’s property laws, enabling international investors and expatriates to secure long-term property rights, especially in popular areas like Bali.

Canada

The Prohibition on the Purchase of Residential Property by Non-Canadians Act, enacted in 2023, prevents foreign nationals from buying residential properties in Canada until January 1, 2027. This makes Canada a country where foreigners cannot buy land or property for residential purposes but can buy commercial properties. This law aims to strengthen the local housing market and improve Canadian homeownership. However, exceptions exist: foreigners can purchase property with a Canadian citizen spouse or common-law partner if they hold a work or study visa and the property is under $500,000 CAD or if the property is located outside of Census Metropolitan Areas (CMA) and Census Agglomerations (CA).

The Philippines

The Philippines is among the countries where foreigners can’t buy land outright due to restrictions on foreign property ownership established by the 1987 Constitution. However, there are three ways for foreigners to acquire property in the Philippines: buying through a corporation, purchasing a condominium unit, or buying a freestanding house while leasing the land on which it sits.

Thailand

Foreigners cannot directly buy land in Thailand due to the Land Code Act but have alternative options. They can purchase condominiums, owning up to 75% of units in a building, or buy property through a Thai-registered company, where they can hold 49% ownership. Another option is long-term leasing, allowing 30 to 90-year agreements with development rights. Marrying a Thai national also enables land purchases under the spouse’s name, though the foreigner has no direct ownership. These alternatives provide legal methods to acquire properties despite Thailand being a country where foreigners cannot buy land. 

Vietnam

In Vietnam, foreigners are unable to purchase land. It is also one of the few countries where you can’t own land because the state owns all the land. Instead, they can only obtain “land use rights” through long-term lease agreements. This means foreigners can buy buildings or structures on the land but not own it. This makes Vietnam one of the countries where foreigners cannot buy land. Nevertheless, foreigners in Vietnam can buy apartments with 50-70 years of leasehold rights but cannot own land, though they may lease landed properties for up to 70 years, with possible extensions. Through leasehold agreements, they can also invest in industrial real estate, like warehouses and factories.

Saudi Arabia

Saudi Arabia is a country in the Middle East where foreigners cannot buy land. Additionally, foreigners cannot own property in Makkah and Madinah, although they can secure 99-year usufruct rights. Property ownership for foreigners in Saudi Arabia is restricted to residents who hold an Iqama (residence permit) or Muqeem status. Approval from the relevant authorities is essential, and ownership is not permitted in protected areas, such as border zones and military sites. Each property must not exceed 3,000 square meters, and foreign individuals are restricted to owning only one property, which must be for residential purposes only.

Cambodia

Cambodia is strict with foreign property ownership and is one of the countries where foreigners cannot buy land. Under Article 44 of the Cambodian Constitution and the 2001 Land Law, foreigners, including individuals and foreign-owned companies, are strictly prohibited from owning land. Additionally, foreigners are prohibited from owning property on a building’s ground floor, as this is considered to have direct contact with the land, which they are not allowed to own.

Poland

Foreigners are generally prohibited from buying land in Poland, except for citizens of the European Economic Area (EEA) and Switzerland. To purchase land, a foreign national must obtain a permit from the Polish Ministry of Interior. Strict regulations may apply, especially for agricultural land. The most effective way for foreigners to acquire property in Poland is by purchasing an apartment, as they generally do not need a permit.

Latvia

In Latvia, foreigners are generally prohibited from buying land in rural areas, ensuring local farmers have priority access to agricultural land. Specifically, non-EU citizens cannot purchase property, making it one of the European countries where foreigners cannot buy land. Only EU citizens are eligible to acquire agricultural land in Latvia. Nonetheless, foreigners have the same rights as Latvian citizens when purchasing real estate, such as commercial and residential properties, excluding farm or forest land.

Oman

Foreigners are generally prohibited from purchasing land in most areas of Oman, making it one of the countries where foreigners cannot buy land easily. However, they can own property in designated locations known as Integrated Tourism Complexes (ITCs), intended to stimulate investment and tourism. ITCs are designated zones where foreign nationals can purchase property with full freehold ownership rights. Some of Oman’s existing and upcoming ITC developments include Al Mouj Muscat, Shangri-La’s Barr Al Jissah Resort and Spa, Muscat Hills, Saraya Bandar Jissah, and Salalah Beach Resort.

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Frequently Asked Questions (FAQs)

Why can foreigners not buy property in every country?

Foreigners cannot buy property in every country due to legal restrictions, national security concerns, economic policies, or efforts to protect local real estate markets.

Which countries banned foreign property ownership?

Countries that have completely banned foreign land ownership include Thailand, Indonesia, the Philippines, Vietnam, Saudi Arabia, and Cambodia, though some allow long-term leases or alternative property ownership options.

Which countries are the most difficult for foreigners to buy real estate?

The most difficult countries for foreigners to buy real estate include Thailand, Indonesia, the Philippines, Vietnam, and Saudi Arabia due to strict land ownership bans, complex legal requirements, and limited property rights.

What countries do not allow foreigners to buy property?

The countries that do not allow foreigners to buy property include Thailand, Indonesia, the Philippines, Vietnam, Switzerland, Denmark, Saudi Arabia, Cambodia, and New Zealand, with certain exceptions and restrictions.

In what countries can foreigners not buy property?

Countries where foreigners cannot buy any property include Saudi Arabia (except in designated areas with special permissions) and North Korea, where all property is state-owned and private ownership is prohibited.

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Your complete guide to buying property abroad.

Valuable insights and practical advice, distilled from years of expertise and real-world experience.

buying real estate ebooks