Investing in international real estate can be exciting and profitable, but it’s also legally complex. Every country has its own set of rules governing what foreigners can and cannot do when it comes to property ownership. These laws can impact your rights, your ability to generate rental income, and even your visa status.

This guide outlines the key ownership laws in popular markets and highlights what international buyers must watch out for in 2025.

Why Foreign Ownership Laws Exist

Countries impose restrictions on:

• Protect national interests and cultural heritage

• Prevent speculative property bubbles.

• Maintain housing affordability for citizens.

• Ensure foreign investment aligns with national economic goals.

1. Thailand

• Land Ownership: Foreigners cannot directly own land.

• Condominiums: Foreigners can own up to 49% of units in a condo building (by area).

• Leasehold Option: 30-year renewable leases are common.

• Workaround: Some use Thai companies to hold land, but this can be risky and often illegal if the foreigner controls the company.

• Recent Trend: The government is considering loosening ownership restrictions in designated investment zones.

2. Portugal

• Freehold Ownership: Fully allowed.

• Golden Visa: Still available through certain property purchases (mostly in interior regions).

• Restrictions: Property in coastal cities like Lisbon and Porto no longer qualifies for residency visas.

• Taxes: Non-habitual residents can benefit from tax exemptions for up to 10 years.

3. United Arab Emirates (UAE)

• Ownership Zones: Foreigners can buy freehold property in designated areas.

• Popular Locations: Dubai Marina, Downtown Dubai, Palm Jumeirah, and Yas Island (Abu Dhabi).

• Long-Term Residency: Real estate investment can qualify you for a 10-year Golden Visa (minimum AED 2 million investment).

• Corporate Structures: Buying through offshore or mainland companies is permitted with proper licensing.

4. Türkiye

• Freehold Ownership: Available to most nationalities.

• Citizenship by Investment: A $400,000 property purchase qualifies for fast-track Turkish citizenship.

• Military Clearance: Properties near restricted zones require Ministry of Defence approval.

• Foreign Ownership Cap: Foreigners cannot own more than 10% of the land in a given district.

5. Indonesia (Bali)

• Land Ownership: Direct ownership is not allowed.

• Leasehold Model: Foreigners use 25–30-year leaseholds with options to extend.

• Hak Pakai (Right to Use): A long-term property right granted to foreigners, with certain restrictions.

• Company Ownership: Some foreigners set up PT PMA (foreign investment company), but this comes with high compliance requirements.

6. Spain

• Freehold Ownership: Fully legal for foreigners.

• Golden Visa Access: Available for purchases over €500,000.

• Rental Rules: Vary by region—some cities (like Barcelona) have short-term rental bans.

• Capital Gains Taxes: Apply when reselling; exemptions exist for long-term EU residents.

7. Greece

• Freehold Ownership: Allowed for foreigners, with minor military zone restrictions.

• Golden Visa: €250,000 (rising to €500,000 in major cities).

• Property Registration: Must be recorded with the national cadaster (land registry).

8. United States

• Freehold Ownership: No restrictions by nationality.

• Property Taxes: Apply at the local level.

• Estate Tax Risk: Non-residents face high inheritance tax exposure—up to 40%.

• LLC Strategy: Foreigners often use U.S. LLCs to protect assets and reduce estate taxes.

Legal Red Flags to Avoid

1. Nominee Structures: Using locals or fake companies to bypass laws can lead to confiscation and legal action.

2. Unregistered Developers: Always verify if a developer is licensed and compliant.

3. Misleading Promises: Be sceptical of agents promising guaranteed returns or fast citizenship.

4. Incomplete Paperwork: Ensure contracts are notarised, registered, and translated if necessary.

5. Title Disputes: Use title insurance where available.

How to Protect Yourself Legally

• Hire a Local Real Estate Attorney: One who speaks your language and has international experience.

• Conduct Due Diligence: Verify land titles, zoning laws, and developer track records.

• Understand Exit Rules: Some countries restrict foreign resale or impose special taxes.

• Get Everything in Writing: Oral agreements are rarely enforceable across borders.

Tax & Reporting Implications

Owning foreign property may require:

• Declaring assets in your home country

• Filing annual property or rental income reports

• Understanding double taxation treaties

Final Thoughts

Investing in foreign property can offer financial and lifestyle benefits—but only when you operate within the legal framework. Ignoring ownership laws can lead to fines, loss of investment, and visa revocation. With proper legal guidance, real estate can be a powerful tool for global diversification and personal freedom.

Make sure the keys to your dream property come with the right legal access.