US Real EstateSep 13, 2023

Cheapest Land in The World to Buy as a Nonresident

Have you ever wondered where to find the cheapest land in the world and how profitable it is as an investment? The need for urban expansion is becoming increasingly obvious in developed countries with overpopulation. 

It’s only a matter of time before it will be on the outskirts of those uninhabited cities today to build new settlements and places to live. Unlike physical real estate, land does not require any maintenance and care.  Investing in land today is just as valuable as investing in gold. It is a very safe investment because it protects the value from potential inflation.

Once you buy it and your name is registered in the cadastre, you know you have safely invested in something that will inevitably bring you serious income. 

Considering the huge interest of investors in the land, it’s crucial to know where it’s most profitable to invest in the land around the world. 

We already shared a list of the best countries to invest in US real estate, but here are the top 10 countries with the cheapest land in the world based on the following parameters: 

  1. Increase in the number of inhabitants (because of this, the price of the land will increase),
  2. Cheap to buy,
  3. Good regulations that enable foreign investors to buy land,
  4. Political stability.

1. Spain 

Spain is the land of flamenco, corrida, paella, and sangria, but also where you can find the cheapest places to buy land. Even though it’s an economically extremely stable and developed country, there are a handful of low-cost land investment options for nonresidents.

Due to its stunning beauty, culture, language, phenomenal beaches, unique architecture, and spirit, this country attracts an increasing number of investors yearly.

If you are interested in investing in the cheapest land in Spain, the good news is that this market is open to foreign investors. 

What is the market regulation like in Spain?

The cost of agricultural land in Spain is about $16.1 thousand per acre. It’s an advanced industrial and farming nation. There are 70% of the land that is privately held.

However, agricultural land, their minimum and maximum area, and the price are not strictly regulated. Before you decide to take this step, here’s what you need to know about the various fees and registrations:

  • Land tax that you must pay: 0.3%
  • Land transfer tax:  6% to 7% of the transaction price
  • Registration fee: From $200 to $600 
  • Notary fee: On average, $300 to $800, depending on the total transaction price.

What to note about the Spanish land reforms?

Once they transfer ownership of forest belts in Spain, it’s crucial to note that they receive government support for eight years and are free from taxes. Each year, the government in Spain sets up an annual agricultural insurance. 

The plan gives Spanish farmers a subsidy covering 50% of the emergency insurance premium. The reason why it’s important is because it aids professional, priority, and young farmers in boosting agricultural productivity.

Brazil is one of the best countries in the world to buy a cheap land

2. Brazil

The largest country in South America, home to tropical beaches, the Amazon forest, and the world’s best soccer players, Brazil also ranks as the country where you can buy the cheapest land in the world.

By area, Brazil is the fifth largest country in the world and a place that investors increasingly choose for their real estate and land investments. Each year, an increasing number of foreigners choose Brazil as their top pick, drawn by its temperate climate, robust amenities, and cost-effective living. 

It makes it an ideal residence or retirement paradise and a prime location for land, vacation homes, or real estate investments. Nonetheless, you need to follow a certain legal procedure before that and fulfill it overseas!

What is the market in Brazil like?

After years of a downturn, there’s a resurgence, making it a prime time for investors to benefit from low prices. Due to the Brazilian economic boost lately, the market has flourished in terms of the following:

  • Improved conditions
  • Notably, decreased interest rates are driving the recovery.

According to Brazil’s legal system, foreign land or real estate ownership is allowed and regulated.

Taxes in Brazil for non-residents 

Before making any investment in land in Brazil, there are certain fees that you need to keep in mind:

  • Annual Property Tax (IPTU): Tax on urban real estate, usually from 0.5% to 1.5% of the property’s value. Note that it depends on the city.
  • Property Transfer Tax (ITBI): From 2% to 4% of the sale price or property’s market value, differing by municipality.
  • Notary Fees: From 1 to 3% of the property’s value for legal validation of transactions.
  • Rural Land Tax (ITR): Annual tax on rural properties. The rate is established on size, location, and usage.
  • Capital Gain Tax: Around 15% of the profit on a sold property.

Why invest in land in Brazil?

From the economic point of view, Brazil stands tall due to its vast cache of resources, spanning from oil and lumber to minerals. 

The country has fulfilled 10% of the world’s food demand. This particular sector contributes nearly a quarter of its GDP. It’s considered as a colossus in agriculture.

Germany offers great cheap land opportunities

3. Germany

Germany is an extremely attractive European destination, not only for tourists but also for land investors, thanks to its rich history, culture, castles, festivals, and excellent beer, but also for the affordable lands to invest in. 

It is a post-industrial country with a leading position in European agricultural production. According to the World Bank, almost half of German land funds make agricultural lands (around 47.5%).

On the other hand, Farmland stands around 33.4% of the entire land fund in the country for the same time.

What is the German market like?

It may surprise you, but regarding this country’s strong economy, all those looking for the cheapest land in the world can find it right here, in the green, colorful expanses of the beautiful nature of this Western European country!

The market is liberal and open to everyone across the world. Finally, after the 20-year-long battle of reforms, corporate farms, and the smaller, family-size farms took ownership. 

Investing without any area constraints

As a foreigner interested in investing in German land, it’s possible to invest in it without any area constraints. Keep in mind it’s possible, though some federal districts, such as Bavaria, have set the minimum purchase sizes, e.g., 2 hectares.

The supply-demand principle generally drives prices in the German market. The market determines the value of lands and properties in general. 

Lands with environmental protections

Some lands possess environmental protections. For example, in East Germany, those who owned land before collectivization and then lost it can repurchase it at 65% of the total market value.

Prior owners of the agricultural lands can purchase them at discounted prices attributable to soil quality. However, they must preserve its primary use for at least 20 years.

Surprisingly Nigeria has one of the cheapest lands in the world

4. Nigeria

Nigeria is an African paradise full of natural sights and wildlife reserves. About 78% of the country’s agricultural land is mostly from smaller family farms. It is crucial to know that Nigeria has the highest GDP of all the countries of the African continent.

The value of a hectare of agricultural land in 2022 in Nigeria was $700. 17% of the entire GDP of Nigeria was made up of an agro-industrial sector. Almost 30% of the entire population of this country is employed in this sector.

Market Regulation in Nigeria

Nonresident investors looking for the cheapest place to buy in the world and come across Nigeria should know the local governor’s written approval to acquire land.

Their farmers can own up to 500 hectares. There’s a 10% tax levied from the entire agricultural land usage. 

Serbia is the place with the cheapest lands in the world

5. Serbia

Serbia is a southeastern European country rich in natural resources, beautiful expanses, and developed agriculture. Every year, more and more tourists are attracted. Serbia is also an ideal place for all those searching for an ideal land to invest in.

Back in 2008, the government of Serbia inked the Stabilization and Association Agreement. It was done with the European Union. The main goal of it was to eliminate any possible trade barriers.

What is the market like in Serbia?

As a foreign investor and EU citizen, according to Serbian law, there’s a possibility to acquire privately owned agricultural land in this country. Depending on their preference, it could be either through purchase or for free.

This type of investment, however, is exclusively relevant to individuals. Companies with a minimum amount of capital of $1 (or 100 dinars) are able to obtain agricultural land. 

The countries with the highest amount of Serbian FDI stock are the US, Italy, and Germany.

Besides them, China, Austria, and France are also among the top countries that have been investing in Serbian land. 

What is the Serbian agricultural sector like? 

New subsidy policies were launched in 2016 to boost agriculture and rural development.

In 2021, Serbia’s agriculture grew to 6.53% of the GDP. It jumped from 6.34% in 2020, thanks to bountiful harvests. The country provides agricultural incentives, such as: 

  • Equipment subsidies
  • Production insurance. 

The principle of reciprocity

Investing in Serbian land is crucial to understand that it is based on reciprocity. Suppose the citizens of Serbia have permission to invest in a certain country. In that case, the citizens of that particular country will also have the right to invest in the Serbian country, and vice versa.

Costa Rica is one of the best destinations to buy a cheap land

6. Costa Rica

Everyone calls Costa Rica the jewel of the Caribbean and Pacific and one of the most beautiful exotic countries in the world. 

Most famous in the world for its rich biodiversity, volcanoes, and breathtaking beaches, this Central American country has become a hidden paradise for foreign investors.

If you’re among those looking for the cheapest land on the American continent, Costa Rica could be the perfect place.

Are foreigners allowed to invest in Costa Rica?

The short answer is yes! Besides locals, foreigners also enjoy the same ownership rights. There’s no need for foreigners and tourists to have a residency or citizenship to purchase property in this country. The tourist visa is enough. 

There are a lot of tax and substantial financial benefits for foreigners who want to invest in Costa Rica. Costa Rica boasts one of Central America’s most affordable living costs. 

It enables both budget-friendly and luxury housing besides the agricultural land. Properties are available across various price ranges.

South Africa offers cheap land for foreign investors

7. South Africa

South Africa has breathtaking wildlife, natural landscapes, and safaris that attract many tourists and investors each year.  

Even though it’s not so open to foreign investors, foreigners can still invest in it. The price of the South African agricultural land is astonishingly low at about $2.9 thousand per hectare. The entire agro-industrial sector of the country employs 9% and contributes 3% to the GDP, while agriculture represents 2.43%. 

However, though 80% is agricultural land, only 15% is arable. The food supply and fruit exports are possible thanks to efficient land usage. The southwest is favorable for winemaking. 

What is the market regulation like?

The South African market regulation is simple: Foreigners can purchase agricultural land in South Africa without restrictions. Nonetheless, he proposed the Regulation of Agricultural Land Holdings Bill’s goal to limit foreign ownership as soon as possible.

Foreign investors who are looking for the cheapest land in the world for sale could only lease such lands for 30 years if the limitation happens. This rule won’t apply to residential properties and those with their existing lands there. 

India as one of the most affordable countries to live in offers the cheapest land in the world

8. India

India is a land of mysticism, the largest democracy, and has become a network in the world. Recently, it has become a real paradise for foreign investors due to the handful of cheap investment lands.

Considering that it is one of the most populous nations in the world, where the population growth is abnormally increasing every day, it is not surprising where the need for land and urban expansion comes from.

Non-Indian residents living in India with valid extended visas or residency permits are able to purchase property in India. Like their counterparts living abroad, there are specific guidelines they must follow, including using the property solely for residential reasons.

Where to invest in land in India?

As the country is huge, it is necessary to know where you can invest in India. Here are a few cities that are very suitable for such a thing:

1, Hoskote, Bangalore

– Neo Bangalore, 25 km from center.

– Near Whitefield IT hub.

– Land: Rs. 1,090 – Rs. 1,893/sq. ft.

– 20 mins to K.R.Puram, major projects on NH75.

– Growth potential.

2. Wagholi, Pune

– Located on Pune-Nagar highway.

– IT/BPO hub, Land: Rs. 799 – Rs. 1,100/sq. ft.

– Close to Viman Nagar and Kharadi.

3. Kundrathur, Chennai

– Emerging hub outside Chennai.

– Near Kundrathur Murugan temple.

– Land: Rs. 1409 – Rs. 2,296/sq. ft.

5. Rajarhat New Town, Kolkata

– Kolkata satellite, IT/residential area.

– India’s first road Wi-Fi.

– Close to the airport, Land: Rs. 3460 – Rs. 5100/sq. ft.

6. Adibatla, Telangana

– By Hyderabad’s ring, near TCS/Aerospace SEZ.

– 20 km from center.

– Land starts at Rs. 800/sq. ft.

Even though Greece gets many tourists each year it offers really cheap lands to choose from

9. Greece

Greece is a unique country with a rich ancient history and one of the sunniest countries in the world. Although Greek land and real estate values remain below pre-crisis levels, Greek properties are more affordable than properties in other European nations. 

Given its promise and competitive pricing, investing in Greek property currently is a wise choice. As a foreign investor, Greece could be the perfect choice for you since EU citizens have no restrictions.

However, non-EU residents must prove both their connections to the Greek country and their intent for property use. In short, foreigners can purchase properties across the country and even acquire a residence permit if the property costs exceed €250,000.

Surprisingly US offers one of the cheapest lands to buy in the world

10. United States

If you’re looking for the place with the cheapest land to buy in the world, you would be surprised to hear that the United States offers many affordable lands for foreign investors. 

You’d also be surprised that the US possesses the most affordable entry land and the number one legal protection for your property. So, the cheapest land to buy in the world can be found in one of the most developed countries like America.

Recommended: 10 Best Places to Buy a House in the USA Under $300K

How can a foreigner invest in land in the USA?

Non-citizens can buy US real estate by researching local laws, taxes, and mortgages. Purchasing involves the following:

Property ownership can be as quick as 30 days with cash or around 60 days with financing. US property is a valuable investment for foreigners, but understanding regulations is crucial. 

Also, as a foreigner who is looking for the cheapest land in the world for sale, you should know that property insurance in the US market is also crucial for you in case something unfortunate happens to your property. 

Why should you consult a professional agency?

If you’re an investor interested in buying the cheapest real estate or land in the US, the best thing you can do is to consult a professional agency that works with nonresidents, and specializes in helping foreign investors navigate the process of purchasing US real estate. 

The best services you’re able to acquire from NRI are:

  • Helping you to open an LLC in the States.
  • Enabling your tax and legal advising
  • Helping you with the banking and financing process
  • Ultimately enabling you with the final real estate investment process

In addition to saving you time, this agency provides maximum professionalism and security, enabling you to make the best land investment decision on the US market! NRI will be your number-one partner through the whole investment process in the US.

Luka
Founder & CEO
Luka Malkovich is a serial entrepreneur with years of experience in international real estate investing. As the CEO of Nonresident Investor, Luka’s mission is to educate foreign nationals about the US real estate market and help them secure funding and buy property in America. That’s why he’s using his expertise to turn the NRI blog into a knowledge hub for anyone interested in learning about US real estate. This article was written by a professional content writer in conjunction with Luka Malkovich. Luka has thoroughly reviewed this article and has given his final approval before publishing.

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