Difficulties of buying real estate for foreigners: a list of countries and their specifics

Conditions for buying real estate for foreigners

In different parts of the world there are different conditions for foreign citizens wishing to purchase real estate, and each country offers its own unique rules and restrictions. In some countries the process may be closed to certain categories of people, in others - a number of conditions are required, and in some places the purchase of housing by foreigners may be completely prohibited. We have prepared an overview of the countries where foreigners may encounter difficulties when buying apartments and houses, as well as clarified the key aspects in each specific situation.

Austria

Let's start with Austria. In order for foreign buyers to purchase real estate, they need to meet certain requirements. First of all, this applies to citizens of the European Union, Switzerland, Iceland, Norway and Liechtenstein, who can conclude transactions without any additional permits.

If the foreigner has a residence permit in Austria, he or she must obtain approval from the local land office. An option is also to purchase in the name of a legal entity registered in the European Union. However, it is worth considering that in some Austrian federal states there is a ban on the purchase of agricultural land by foreigners.

Hungary

Next we will pay attention to Hungary. Here foreigners need to obtain permission from local administrations to carry out a real estate purchase transaction. This authorization is issued by the land office, and to obtain it it is best to contact a lawyer who is well versed in this matter.

• If the transaction is carried out through a company registered in Hungary or other EU countries, there is no need for permits.
• However, additional documents may be required, which depend on the type of business.
• The Hungarian authorities also impose restrictions on the purchase of certain properties such as military establishments, historical monuments and areas in nature reserves.

You need to be especially careful when buying property in tourist areas - in places like Balafon and Hévíz, local authorities may refuse to approve transactions.

Vietnam

Now let us consider the situation in Vietnam. At the moment, foreigners can own real estate, but the period of such ownership is limited to 50 years, with the possibility of extension. However, before the extension, it is necessary to provide all the necessary documents and prove your financial capacity.

Greece

Greece also has certain requirements for foreign buyers. They are allowed to purchase real estate, but may need to gather a package of documents to prove the legitimacy of their income.

Denmark

In Denmark, laws require foreign nationals to obtain permission to purchase real estate, and this requires a connection to Denmark, such as permanent residence in the country.

Canada

Canada offers freer options, but some provinces have their own restrictions. Potential buyers should therefore familiarize themselves with the conditions in a particular region.

Cyprus

In Cyprus, the process of acquisition of real estate by foreigners is also subject to certain requirements. It is necessary to obtain prior authorization from the Council of Ministers and to comply with the regulations on the maximum area of real estate that can be purchased.

Malta

Malta offers foreigners a relatively simple process of buying real estate, although the tax aspect can be an important topic that requires careful consideration on the part of the buyer.

Mexico

In Mexico, the process of buying real estate by foreigners is also possible, but with certain restrictions within the border zones and along the sea coast.

Poland

Poland also sets its own conditions, and without special authorization, the process of acquiring a home can be difficult.

Conclusion

Thus, today many countries regulate the purchase of real estate by foreigners in different ways, so potential buyers are strongly advised to study in detail the conditions and nuances before deciding to buy real estate. If you have any questions, it is worth consulting with experienced professionals in this field.

Purchase of real estate in Vietnam by foreign citizens

In Vietnam, there are several categories of foreign nationals who can purchase apartments. First of all, these are those who have made a significant contribution to the development of the country's economy or hold high positions in organizations operating in Vietnam.

Also among such citizens are those whose achievements are appreciated at the state level, including ministers and even the President of Vietnam. This group of investors includes:

• Specialists with higher education;
• Individuals with unique knowledge important to Vietnam;
• Skilled human resources in key sectors of the economy.

Not to forget about people legally married to Vietnamese citizens - they are allowed to purchase real estate. Additional opportunities to purchase housing are open for companies with foreign capital, which are actively registered in the Vietnamese market, but are not exclusively engaged in real estate trade and need housing for their foreign employees.

Restrictions on real estate ownership

There are certain restrictions regarding the ownership of real estate by foreigners:

• Term of ownershipfor individuals may not exceed 50 years;
• For foreign companies, it is determined in accordance with the terms of their investment certificate;
• Resident aliens cannot sublet real estate they have purchased.

Peculiarities of buying real estate in Greece

In Greece, foreigners who are not citizens of the European Union or the European Economic Area are prohibited from purchasing real estate in close proximity to military facilities and borders. This restriction applies to certain regions such as:

• Certain areas in northern Greece;
• Crete and Rhodes;
• Eastern Aegean Islands;
• Dodecanese Archipelago.

Rules in Denmark

In Denmark, the rules regarding the purchase of real estate by foreigners are quite strict:

• Foreigners may purchase housing for residence or business purposes only;
• At least one of the following criteria must be met:
• Have been a resident of Denmark for at least five years;
• Be a European Union citizen working in Denmark;
• Possess a permit to reside or do business in a non-EU country.

Citizens of EU countries can purchase real estate with minimal restrictions, which significantly simplifies the process.

The situation in Canada

As of January 1, 2023, a new regulation was introduced in Canada.banFor the purchase of residential real estate by foreigners until January 1, 2027. This has extended the initial term by an additional four years.

Nevertheless, there are exceptions:

• Foreigners with a work permit in Canada can purchase no more than one residential unit.
• The purchase of vacant land with the intention of future development is permitted.
• Public companies registered in Canada and controlled by foreign shareholders are included.

Purchase of real estate by foreign citizens

Foreigners, including students and other categories of citizens from abroad, have the opportunity to purchase housing, but they must comply with certain requirements, one of which is a long-term stay in the country. One example is the story of a person who moved to Canada at the age of 21, sharing their experience of studying and living in a new place, including the challenges related to renting housing and high living costs.

Real estate in Cyprus

In Cyprus, there are rules for the acquisition of real estate by citizens of the European Union (EU) and the European Economic Area (EEA). They need to obtain official approval from the Council of Ministers of the country. Usually, permits are granted for the purchase of residential houses or plots of land with an area not exceeding4014 m².

• In some situations, it is possible to acquire large assets, but this depends on the specifics of the particular deal.
• Foreigners who are not citizens of the EU and EEA can own only one property.
• Commercial properties can only be acquired by legal entities registered in Cyprus.

Real estate in the United Arab Emirates

In the United Arab Emirates (UAE), purchasing real estate is available to both citizens of the country and citizens of certain Middle Eastern states, such as Saudi Arabia, Oman, Bahrain, Kuwait, and Qatar. Companies from these countries can also make purchases.

• Foreigners who are not citizens of Arab countries can only purchase residential and commercial property in certain free zones.
• Objects located within the framework of free trade are transferred into full ownership and can be freely sold, rented, gifted, or inherited.

Free zones in the Emirates

C2006by2008In recent years, new laws have been introduced that established a list of free zones in emirates such as Dubai, Umm Al-Quwain, Ras Al Khaimah, and Ajman.2019In the year, the opportunity to own such property was extended to foreign nationals in Abu Dhabi. To date, more60 districtsDubai offers conditions for free ownership.

Long-term rental in the UAE

In addition, there are areas in the UAE with long-term lease rights where housing is rented for a period of up to99 yearsAfter this period, the tenant returns the property to the owner; however, it is possible to extend the lease agreement for the same duration for themselves or their relatives.

• The property can be sold before the lease term ends, with the remaining rights transferred to the new owner.
• This type of ownership is available only to citizens of Arab countries.

Buying real estate in Malta

In Malta, a foreigner wishing to purchase real estate requires a special permit from the government authorities, which is calledAIP permitThe Acquisition of Immovable Property Act ensures the task of monitoring buyer activity and maintaining stability in the real estate market by establishing certain conditions for foreign investors.

Acquisition of real estate abroad

The question of obtaining permission to purchase real estate outside one's country is an important aspect to keep in mind. In Malta, for example, such a license is required, except in certain areas specifically designated for these purposes.

Citizens of the European Union who have lived on the island for the past five years, as well as their spouses who do not hold European citizenship, can bypass this requirement. Those who intend to invest in real estate with the aim of conducting business or providing various services are also exempt from it.

To purchase real estate, it is important to consider that the current minimum price is approximately€150,000for apartments and€250,000For houses and villas, these amounts may vary depending on market conditions. It is worth noting that foreigners are allowed to purchase only one property per family; however, this rule does not apply to special zones.

Real estate in Mexico

Regarding the situation in Mexico, foreign citizens face certain restrictions when purchasing real estate. In particular, they are prohibited from owning properties located within62 milesfrom international borders, and31 milesfrom the seaside.

Nevertheless, there is a possibility to bypass these restrictions by establishing a Mexican land trust or using a Mexican company. Additionally, it should be noted that lands known as ejidos, which are designated for the indigenous peoples of Mexico, cannot be owned by foreigners.

Acquisition of real estate in Poland

In Poland, the process of purchasing real estate for individuals who are not part of the European Union or the European Economic Area is governed by special rules. To buy a house with an adjacent plot, a foreigner needs permission from the local Ministry of Internal Affairs. To obtain this permission, one must prove their connection to Poland, which can be done through the presence of:

• temporary or permanent residence permit,
• of Polish origin,
• marriage to a citizen of the country.

However, special permits are not required for purchasing apartments, but such restrictions may also apply in border areas.

Property ownership in Saudi Arabia

The situation in Saudi Arabia is also interesting in terms of real estate ownership. Foreigners are allowed to own only one property here, without the right to resell it. The country is implementing a program“premium residences”that provides foreign investors with special preferences.

Participation in this program is possible in two formats:

• the purchase of real estate – ready-made housing, the cost of which cannot be less than4 millionSaudi riyals (that's about$1 million).
• obtaining privileged resident status, which requires proof of financial stability and payment of a fee:100,000 rialsabout$26,500) for a period of up to five years or800,000 rials(approx.$212,000) for an unlimited period of residence.

There are many nuances, and these measures help make the investment process more convenient and accessible, although they do impose certain restrictions.

If you are interested in affordable housing in Poland, it is important to analyze the current state of the market by checking prices and mortgage lending conditions to understand the situation.

Real estate in Saudi Arabia

In several sacred cities of Saudi Arabia, such as Mecca and Medina, there are strict restrictions for foreign citizens regarding the purchase of real estate, which is explained by the deep religious and cultural traditions of this country. However, there is a possibility of inheriting residential properties. Additionally, there are restrictions on the management of housing.

For example, purchased property can only be sold five years after its acquisition. It is important to note that a new law is being developed in the kingdom aimed at attracting foreign investments, which is set to come into effect in 2025. In this regard, it is essential to understand what real estate is available for purchase in Saudi Arabia and what aspects pertain to investor support and the profitability of such investments.

Real estate in Slovenia

In Slovenia, the real estate situation for local citizens and foreigners from European Union and OECD countries is significantly easier: they can freely purchase properties without any restrictions. For citizens from other countries, the process is somewhat more complicated, as they need to register a legal entity in Slovenia.

• To successfully register, you need to meet one of the following conditions:
• Invest at least 50,000 euros immediately after opening the company.
• Ensure a monthly income of at least 10,000 euros during the first six months of work.

Foreign investors can acquire various types of real estate, including apartments, houses, and land plots in most regions; however, there are some restrictions on agricultural land.

Real estate in Singapore

As for Singapore, foreign citizens can easily purchase apartments in multi-story buildings and condominiums. However, to become the owner of a standalone house with an accompanying plot of land, a foreigner will need to obtain special permission from the government, which can be quite a challenging task.

In addition, foreigners are prohibited from purchasing apartments provided by the Housing and Development Board (HDB), as they are affordable public housing and make up a significant portion of the country's residential stock.

Since 2011, foreign buyers have been subject to an additional stamp duty when purchasing property, the rate of which changes unpredictably. However, citizens of certain countries, such as Norway, Switzerland, and Liechtenstein, can expect similar conditions when acquiring real estate as Singaporeans.

Real estate in Thailand

In Thailand, foreigners have the opportunity to fully own apartments only in condominiums, where each apartment belongs to its owner, while the common areas remain for shared use. The country's laws allow foreigners to purchase apartments only under these conditions, which significantly simplifies the process for them.

It is important to emphasize that adhering to local norms and regulations is critically important when investing in foreignreal estate for foreigners.Specific requirements and conditions can vary, so it is important to carefully examine all aspects related to property rights in each individual case before considering the acceptability of investments.

The main conditions for foreigners to purchase real estate in Thailand

If apartment buildings are not registered as condominiums, foreigners can only acquire apartments under long-term lease agreements, known as leasehold. As for villas located on land plots, foreign citizens can become full owners of the houses themselves, while the land plots can be leased for a long term, usually up to 90 years.

There is also the possibility of creating a Thai company, in which a foreigner can own a share of no more than 49%, which allows for the purchase of land.

Buying real estate in Turkey

In Turkey, foreign citizens can purchase real estate, but the total area is limited to 25,000 m². Each foreigner can own a plot of land up to 30 hectares. As of July 1, 2022, a new policy came into effect, stating that foreigners buying property in one of the 1169 closed regions lose the right to register and reside in their properties. This means they cannot obtain an initial residence permit and legally stay in the country.

These rules also apply to rentals. However, these restrictions do not affect foreign citizens who are already registered in closed zones.

Restrictions on real estate purchases

The Turkish government is imposing strict restrictions on the purchase of real estate by foreigners in border areas and in territories under military control. The key points are as follows:

• No foreigner can own more than 10% of all real estate in a specific area or city.
• The purchase of real estate is not available for foreign funds and associations.
• Citizens of Armenia, Yemen, Cuba, Nigeria, Syria, and North Korea cannot register property in Turkey.

Rules for acquiring real estate in Lithuania

Lithuania grants citizens of European Union and European Economic Area countries the same rights to purchase real estate as Lithuanians, without any additional restrictions. As for citizens of countries outside these unions, they can freely acquire property, but there are restrictions regarding agricultural land.

In March 2023, the Lithuanian parliament approved a bill in its first reading that introduces a ban on property purchases by citizens of Russia and Belarus. Later, the law was softened; it now only applies to Russians who do not have a residence permit or permanent residency in Lithuania. Additionally, non-residents are not allowed to inherit property.

Lifting restrictions for citizens of Belarus

For Belarusian citizens, restrictions on purchasing real estate have been lifted, which opens up the opportunity for them to acquire housing without significant difficulties. However, it should be noted that additional checks and bureaucratic procedures may be unavoidable, and they cannot be ignored when planning a purchase.

Features of buying real estate in New Zealand

Regarding New Zealand, there are strict restrictions for foreign citizens with temporary or transit visas—such as student, work, or visitor visas. They are prohibited from both purchasing and building housing. Furthermore, even for those without a visa, access to real estate is also closed off. At the same time, for New Zealand citizens and permanent residents, considered as "ordinary residents," purchasing property is carried out without any obstacles.

If you have a resident visa but have not yet reached the status of "ordinary resident," you are allowed to purchase or build one residential building; however, you must first obtain approval from the Foreign Investment Office. To achieve resident status in New Zealand that will allow you to purchase property, you need to focus on several conditions:

• presence of a resident visa;
• residence in the country for the last 12 months;
• staying on her territory for at least 183 days in the past year;
• tax resident status.

If you are a citizen of Australia or Singapore, you can apply for a resident visa immediately upon arrival in New Zealand.

Rules for foreign buyers in Finland

In Finland, the rules for foreignreal estate buyers are stricter: those who are not citizens of European Union or European Economic Area countries are required to obtain special permission from the Ministry of Defense to purchase property. However, such permission is not needed if the property belongs to housing companies.

There are also restrictions for foreign investors in the Aland Islands — only those who have the right to reside on the islands can make such purchases. The right to housing is granted only to the children of indigenous residents and Finnish citizens.

Peculiarities of buying real estate in Switzerland

In Switzerland, the purchase of real estate is only permitted for certain categories of citizens. This applies to both Swiss citizens and citizens of European Union countries who hold residence permits of categories B or C.

For citizens of third countries with similar visas, the situation will depend on the decisions of local banks. In order to purchase resort property, a foreigner must obtain special permits and may only be allowed to acquire one property for personal use, with a maximum area of 200 square meters.

It should also be noted that there are restrictions for non-residents when it comes to purchasing real estate, which is only possible in certain cantons where a special quota may also be required. Additionally, the duration of stay in such properties is subject to limitations set by local authorities, which must be taken into account when planning a purchase.

Conclusion

In conclusion to our discussion about the challenges foreigners face when purchasing real estate in different countries, it is important to note that each real estate market has its own unique rules and restrictions. That is why I strongly recommend that prospective buyers thoroughly research the legal regulations of the country where they intend to invest before making a decision to purchase property.

As shown above, in some countries such asAustriaandHungaryForeigners need to obtain special permits in some places, while in others, for example, in...VietnamandGreeceThere are strict restrictions on purchasing real estate in certain areas. Additionally, in some states, such asCanadaThere are temporary freezes on the purchase of real estate by foreigners, which may also affect the decision regarding the transaction.

Important points

• In Austria and Hungary, special permits are required.
• In Vietnam and Greece, there are restrictions on purchasing real estate in certain areas.
• A temporary ban on foreign home purchases has been introduced in Canada.

I also want to emphasize the importance of carefully selecting legal support when making real estate transactions. A professional lawyer familiar with local laws will be invaluable in the process of preparing all the necessary documents and obtaining permits. Their knowledge and experience will help avoid many mistakes and misunderstandings that can arise on the path to your dream of foreign property.

Conclusion

The future away from home may seem like an exciting prospect, but, as with anything, it's important to pay close attention to the details. With the right information and the help of professionals, you can overcome all obstacles on your path to a new life and discover all the delights of buying real estate abroad. With that in mind, I hope that the overview of countries and their features presented in this article will help you make the right choice and confidently move towards your goal.