If you are already heavily invested in real estate in your home country, you may want to consider diversifying your holdings by investing in real estate elsewhere. International property investments stand out as they are a hard asset that acts as a store of wealth while also providing income and currency diversification.
One of the key things you must consider when deciding to buy property outside of your home country is the strength of property rights and rule of law in the country. The last thing you want to do is get embroiled in a lengthy lawsuit relating to a property dispute in a foreign country.
To help make your search easy, we have narrowed down 5 Countries with strong property rights where you can invest in real estate as a foreigner. You should consider these countries when looking to buy property overseas in 2022.
1. UK
The UK has been the most preferred destination for international real estate investors for the past few decades with everyone from Middle Eastern royalty to wealthy Asian Business owners making it their second home. At the present time, there are no restrictions on foreign ownership of UK real estate though the Government has plans to introduce a new registration system for foreign buyers. The UK has some of the strongest property rights in the world backed by a strong code of law making it a preferred destination for investors.
2. USA
The US is fast emerging as a preferred destination for international investors due to its strong property rights and high rental yields. There are no restrictions on foreign buyers purchasing residential property in the US however you will need to be careful in structuring your purchase so as to not be burdened with large inheritance taxes if you are not a US Citizen and reside outside the US. The Holiday Home Times Advisory Service or a good Tax attorney can help you structure your US real estate purchase to avoid these large taxes.
3. Singapore
As a foreigner, you can purchase property in Singapore with a few restrictions. Foreigners can purchase as many private apartments or condominium units as they wish however, only Singapore nationals and permanent residents are eligible to purchase the Housing & Development Board’s subsidized housing units (HBD). Singapore is known for having the strongest property rights in the world in addition to a well run system of government and strong rule of law.
4. Australia
Foreigners can purchase investment property in Australia, but there are restrictions on the type of housing you can buy. You will also first need to apply for permission to purchase your desired investment property before making your investment. The Australian government’s aim is to channel foreign investment into new homes, creating construction jobs and supporting the economy overall thus applications are generally judged based on this criteria.
5. Portugal
Portugal places no restrictions on foreign ownership of real estate and actually encourages it via its Golden Visa program. Though the government has added restrictions to what types of properties qualify for the Golden Visa program, you can buy property anywhere in Portugal if you are not using the purchase to qualify for the Golden Visa. Residential real estate purchases in Porto, Lisbon and the Algarve no longer qualify for the Golden Visa in 2022 but you can still purchase commercial real estate in these areas to qualify.
If you would like more information about purchasing real estate in any of these locations, please get in touch with us using the form below.
