Top Asian Countries Where Foreigners Can Buy Land

Owning land in Asia as a Foreigner – How and Where can it be done

Many countries in Asia permit foreigners to own condominiums on a freehold basis. However, if you’re interested in purchasing land, is that an option?

The good news is that several Asian countries do allow foreigners to own land in their own name, also on a freehold basis.

Why are foreigners interested in buying land in Asia?

There are several reasons why an internationally minded investor may consider purchasing freehold land in Asia. Many expatriates buy land in this region to diversify their investment portfolios and holdings outside of traditional Western markets.

The West is no longer as dominant in global markets as it once was. Asia now plays a significant role, with substantial capital flowing from the West to the East. Purchasing land in Asia can be a strategic move to capitalize on the long-term growth trends occurring in the region.

For some, buying land in Asia is primarily a lifestyle choice. If you are already living in Asia or spend a considerable amount of time there, you may wish to establish a more permanent residence. This could include a house with space for a garden, a shed, and other features that reflect what you might expect in your home country.

Another important reason why foreigners invest in land in Asia is to create a “Plan B.” Many individuals seek a backup plan – a place to retreat to if conditions in their home country deteriorate due to high taxes, inflation, or political instability. Knowing that they have a place to go to provides a sense of security.

Which Asian countries allow foreigners to own land?

In Asia, foreign ownership of land is generally tightly regulated, but there are some exceptions.

Southeast Asia is often the first region that expat investors consider; however, in most cases, it’s not possible to own land outright in your own name. Malaysia stands out as a notable exception.

If you look further east to the more developed countries such as Japan, South Korea, and Taiwan, there are several options available for purchasing land, although prices in these countries tend to be significantly higher than in Southeast Asia.

While some Asian countries do permit foreign nationals to buy land, this often comes with specific conditions. Each country has its own set of rules governing ownership.

Let’s take a closer look at foreign ownership on a country-by-country basis.

Buying land in Japan

Foreigners are allowed to own land in Japan, often under the same rules that apply to local citizens. You do not need a residence permit to purchase land; in fact, you can enter Japan on a tourist visa or a digital nomad visa and leave as a landowner.

However, there are certain types of land that require government permission for foreigners to purchase. This includes agricultural land, forested land, and land located near sensitive areas such as military bases.

In recent years, Japan has gained popularity among Westerners looking to buy old or dilapidated houses in the countryside at a fraction of the cost compared to other developed countries.

These properties are known as Akiya houses, and there are many available. It is estimated that there are around 8.5 million abandoned houses in Japan, presenting an opportunity for adventurous buyers willing to take on a renovation project.

You can browse Japanese property listings here.

Buying Land in South Korea

The rules for buying land in South Korea as a foreigner are similar to those for locals.

However, there are some restrictions – foreigners cannot own certain types of land, such as agricultural farmland and land near border areas.

An important factor affecting a foreigner’s eligibility to buy land in South Korea is whether their home country allows South Koreans to own land there. This is known as the reciprocity principle. For instance, if a South Korean citizen is permitted to own land in the US, then a US citizen can also own land in South Korea. Conversely, if the US does not allow Koreans to purchase land, South Korea will likewise prohibit Americans from acquiring land there.

Foreigners can buy land in South Korea without needing a residence permit.

You can browse Korean property listings here.

Buying Land in Taiwan

Taiwan operates under a reciprocity principle regarding land ownership, similar to that of South Korea. Therefore, before planning to purchase land in Taiwan as a foreigner, it is essential to check the foreign ownership rules in your home country.

Subject to reciprocity, foreigners are generally allowed to own land in Taiwan, but there are restrictions. Ownership is prohibited on forested land, fisheries, hunting land, and areas in close proximity to military bases.

Additionally, Taiwan offers several residence permits that make it quite easy to reside in the country.

You can browse Taiwanese property listings here.

Buying Land in Malaysia

Malaysia is the only country in Southeast Asia that permits foreign ownership of land, making it an attractive option for expats in the region. However, there are specific conditions attached to this foreign ownership.

Foreigners looking to purchase property in Malaysia must meet minimum purchase requirements that vary by state. For instance, to buy land in the Federal Territory of Kuala Lumpur, a foreigner must spend at least RM 1 million.

In Johor Bahru, if the land is located in an international zone, such as the Johor Bahru-Singapore Special Economic Zone, the minimum investment rises to RM 2 million. Meanwhile, on Penang Island, a foreigner needs to invest at least RM 3 million to acquire land.

Additionally, purchasing property in Malaysia can be a pathway to obtaining a residence permit, such as the MM2H (Malaysia My Second Home) or the Sabah MM2H program.

You can browse Malaysian property listings here.

Are there alternative methods for owning land in Southeast Asia?

It is true that many foreigners have acquired land in countries like Thailand and the Philippines. However, this is typically done using alternative methods that allow them to purchase property without directly owning it in their own name.

One common approach is to buy land and have the title registered in the name of your spouse if you are married to a local citizen. This method does come with its own set of considerations.

Another option, which we do not recommend, is to establish a company in Thailand or the Philippines to purchase the land. The drawback is that setting up a foreign company often requires a local to hold majority ownership of the company’s shares. This arrangement is sometimes referred to as a nominee company or a nominee shareholder.

While nominee companies are frequently used for purchasing land in Thailand, the legality of this arrangement can be questionable and carries significant risk.

We strongly advise seeking legal counsel before entering into any purchase agreement that uses a local company to bypass foreign ownership restrictions. The foreign ownership laws are there for a reason, and you may find yourself one day having your shares in the company that owns the property stripped from you.

Next steps

Buying and owning land can be a wonderful and fulfilling experience. However, purchasing property of any kind is inherently more risky when doing it in a country that you are not familiar with, and that you are not a resident or citizen of.

We encourage you to always seek quality legal advice before embarking on an international property purchase. If you would like to speak with a qualified legal professional regarding property ownership as a foreigner in Asia, please feel free to reach out to us.

Additionally, it is important to consider the tax implications, including whether non-resident property owners face different tax treatment. Here at Offshore In Asia, we specialize in international taxation and would be happy to assist.

Thanks for reading.