This article is contributed by Taco Heidinga, IQI Global Strategic Advisor
Investing in real estate abroad offers not only financial returns but also unique benefits, such as potential rental income and the possibility of a second home. Foreign ownership policies vary significantly across countries, often including restrictions on land ownership. Here’s an overview of five Asian countries where foreign property ownership is possible, along with key details for each:
1. Thailand
- Condos: Foreigners can purchase freehold condominium units, up to 49% of the total floor space in any single building. This rule is strictly enforced, though most buildings remain well below the 49% threshold.
- Currency Requirement: Purchase funds must be transferred as foreign currency into a Thai bank and converted to Thai baht. Accurate documentation is crucial, as errors in the transfer process can lead to costly delays.
- Land: Foreign land ownership is theoretically possible for investments exceeding THB 40 million (~USD 1.2 million), but approvals are rare. Condos remain the most practical option for foreign buyers.
2. Cambodia
Condos: Foreigners may own freehold condos via a strata title, which provides ownership rights to the space within the building.
- Land Ownership Options:
Local Company: Setting up a Cambodian land-holding company enables foreigners to purchase land directly but involves incorporation costs and ongoing maintenance.
Nominee Structure: Suitable for investments under USD 1 million, this affordable option is commonly recommended by local lawyers. - Growth Potential: Cambodia’s rapidly growing economy and business-friendly environment make it a popular choice for frontier market investors.
3. Singapore
- Condos: Foreigners can buy freehold condominiums, though high property prices and government cooling measures make this an expensive option. As of 2024, foreign buyers face a 60% Additional Buyer’s Stamp Duty (ABSD), while citizens pay 20% on second properties.
- Landed Property: Rarely accessible to foreigners, ownership requires approval from Singapore’s Land Authority and an investment of at least SGD 50 million. Permanent residents may apply, though approvals are uncommon.
- High Demand: Despite strict regulations, Singapore’s real estate market remains attractive due to its economic strength and long-term growth potential.
4. Philippines
- Condos: Foreigners can own up to 40% of the floor space in a condominium building, following rules similar to those in Thailand. Foreign ownership is less common here, often keeping buildings below the 40% limit.
- Land Restrictions: Foreigners cannot own land directly due to the Anti-Dummy Law, and nominee structures are prohibited by the constitution.
- Growth and Demographics: With a growing population and a skilled, English-speaking workforce, the Philippines’ robust economic growth makes real estate a promising long-term investment.
5. Malaysia
- Landed Property: Malaysia uniquely allows foreigners to purchase landed houses without the need for a company structure, making it one of the most straightforward markets for property investment.
- State Regulations: Each state sets a minimum purchase price for foreign buyers, ranging from MYR 400,000 (~USD 100,000) in Sarawak to MYR 2 million (~USD 500,000) in Penang. Some locations restrict foreign ownership to gated communities, while heritage properties are reserved for locals.
- Ease of Ownership: Malaysia ranks among the easiest markets for foreigners to buy real estate, particularly for those seeking direct land ownership.