Countries that apply restrictions on first home purchase contracts
Buying a first home is a milestone that can be both exciting and challenging. In many countries, the process of purchasing a property is not the same for everyone. Some nations have specific restrictions that affect both local citizens and foreign buyers. These rules often aim to protect local housing markets, control speculation and promote sustainable development. Understanding where and how these restrictions apply is crucial for anyone considering purchasing a first home abroad or even in their home country.
Australia is one of the countries with notable restrictions for first-home purchases. From April 1, 2025, to March 31, 2027, foreign investors and temporary residents, including international students and workers with short-term visas, are prohibited from buying existing homes. This policy was introduced to relieve pressure on housing availability and ensure that locals have a better chance of buying property. It reflects a growing trend in nations where housing markets face rapid price increases and limited supply. For Australian citizens, the market remains largely accessible, but the rules for non residents highlight how government interventions can shape demand and affordability.
New Zealand has also implemented measures regarding foreign buyers. Historically, foreigners faced broad restrictions when purchasing residential properties. Recently, however, wealthy foreign investors with a golden visa can acquire a high value property, generally worth at least NZ$5 million. This policy aims to attract foreign investment while balancing the need to maintain housing opportunities for New Zealand residents. It demonstrates the delicate line governments often walk between encouraging economic growth and protecting housing access for their citizens.
India offers another example of how first home purchase regulations can be tailored. Foreign investors are generally only allowed to buy property if they meet specific requirements. These include holding Indian citizenship or residing in the country for at least 182 days during the previous year. Additional restrictions exist regarding the size and type of properties that can be acquired. These rules ensure that foreign investment doesn't overwhelm local buyers or destabilize the market while still allowing for controlled participation in the housing sector.
In Saudi Arabia, recent legislation has expanded foreign ownership rights, allowing foreigners to buy residential, commercial and agricultural properties. The policy is part of the country’s Vision 2030 initiative to diversify the economy and attract investment. While local citizens face no such limitations, the introduction of regulated access for foreigners shows how governments can encourage investment without completely opening the market. Saudi Arabia’s example illustrates that restrictions can be selective, targeting only non-residents and can coexist with policies designed to stimulate economic growth.
Greece is known for its “golden visa” program, which grants residency to foreign investors who purchase property worth at least €250,000. However, there are restrictions on islands with populations below 3,100 residents, where the minimum property value is €125,000. Investors are limited to buying only one residence and are prohibited from short-term rentals. These measures are designed to protect small communities while still encouraging foreign capital inflow. Greece demonstrates how countries can create incentives for investment while implementing protective regulations that preserve local housing needs.
Sri Lanka restricts foreign ownership of land entirely. Since 2014, foreigners cannot purchase property directly and may only acquire real estate through longterm leases of up to 99 years. A 15 percent annual tax on the lease amount is also required, paid in advance. This approach allows foreign investment while maintaining national control over land ownership and it reflects a cautious approach to protecting local housing markets from external pressures.
Thailand also has strict limitations on foreign property ownership. Foreigners are prohibited from owning land but can purchase condominiums under certain conditions. Only a specified percentage of units in a condominium building can be foreign owned, which ensures that local residents maintain control over most of the property. This system balances openness to investment with protection of domestic housing availability, showing that ownership rules can be highly targeted while still facilitating investment in certain sectors of the market.
Several European countries have similar restrictions. Finland requires foreign buyers to obtain government approval before purchasing property. Approval is generally granted only if the buyer intends to reside permanently in the country and meets additional requirements. Switzerland enforces strict rules limiting foreign property ownership to those who are Swiss citizens or have resided in the country for at least five years. Austria also has regulations in place, allowing foreigners to buy property only if they hold Austrian citizenship or have lived in the country for at least three years. Local authorities must grant permission and properties must typically be used as primary residences rather than investment holdings.
These examples illustrate that first home purchase restrictions vary widely across the world. They may target foreign buyers, limit property size or value, or require specific residency qualifications. While the policies differ, the common goal is to maintain balanced housing markets, prevent excessive speculation and ensure that locals have access to affordable housing. For anyone considering buying a home abroad or in a market with foreign investment restrictions, understanding the local rules is essential. Consulting with legal experts or real estate professionals who understand regional regulations can help navigate these complex systems effectively and avoid costly mistakes.
In conclusion, countries around the world implement first-home purchase restrictions in diverse ways. Australia, New Zealand, India, Saudi Arabia, Greece, Sri Lanka, Thailand, Finland, Switzerland and Austria all offer examples of policies designed to balance investment opportunities with housing protection. These rules reflect broader economic and social goals, such as promoting fair access, controlling speculation and attracting responsible investment. For prospective homeowners, knowing the limitations and opportunities in each country is a key step in making informed decisions and securing property that meets both personal and legal requirements.
