On restrictions of foreign ownership of real estate

Several countries have legal restrictions on the ownership of real estate by non-resident foreigners, i.e. people who primarily live abroad. Various motivations exist for such restrictions, including irrational ones like blatant xenophobia.

A reasonable motivation for restricting ownership by non-resident foreigners is to deal with absentee landlords. An absentee landlord is a landowner who does not live in the area where he owns property. Absentee landlords are controversial as they extract wealth form the local economy (e.g. by collecting rent) and their interest are often in conflict with the public good.

Of course, not all non-resident foreigners who own real estate are bad. For instance someone who owns a summer home and spends his vacation there each years would be a positive. Hence a total prohibition on ownership of real estate by non-resident is in our opinion undesirable.

Instead we favor to restrict the number of real estate objects foreigners can own in space settlements. We propose that non-resident foreigners who want to obtain real estate in a space settlement should obtain a permit. Such permit will be refused to those who are considered to be a threat for national security.

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