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REAL PROPERTYQ: Does the U.S. restrict the ownership or inheritance of land by nonresident foreign persons?A: U.S. federal law restricts in narrow circumstances, but over half the states still have broad restrictions in place. Q: Do state restrictions on ownership by non-U.S. citizens apply to domestic corporations controlled by noncitizens or to corporations of other states in the U.S. operating under the foreign corporations laws but controlled by noncitizens? A: Some states specifically restrict noncitizen-controlled corporations. Other states have an unresolved conflict between the noncitizen laws and the corporation laws. Q: What kinds of limitations, absent a complete prohibition, do state laws impose on foreign corporations? A: Many states restrict a corporation to ownership of only so much land as is necessary to carry out its corporate purpose. Q: Do state restrictions on the ownership of land by noncitizens apply to a noncitizen who was a general partner in a landholding partnership? A: Yes, they probably would, but that may be avoided by restructuring into a limited partnership. Q: Is there a particular type of land that creates special problems with foreign investment? A: Yes, special problems arise with state statutes restricting the ownership of agricultural land. Q: When does federal law restrict ownership of real property? A: Only in cases such as ownership by a national of countries with which the U.S is at war, or with which special travel and trade restrictions exist, or in connection with a presidential declaration of a national emergency or designation as a terrorist or as supporting terrorism. Q: Are there any specific laws regarding land ownership by foreign governments? A: Yes, some states have laws that address this issue. | |