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Greenland's parliament has passed a new law limiting the right of foreigners to own property on the island. The law, adopted on 1 November 2025, permits only permanent residents of Greenland, Denmark or the Faroe Islands to buy land or houses. Non-resident foreigners and companies will need to have paid local taxes for at least two years before purchase. The move responds to growing external interest in Greenland's strategic location and natural resources.
Background
Greenland is the world's largest island and an autonomous constituent of the Kingdom of Denmark. With a sparse population of about 57,000 people, most of whom are Inuit, its economy relies on fishing, tourism and a Danish subsidy. Greenland lies in the Arctic and is rich in minerals such as rare earths, uranium and gold. In recent years, the United States, China and other countries have shown interest in its resources and strategic airfields. The new property law is intended to protect Greenlandic land from speculative foreign purchases and maintain local control over development.
Main provisions of the law
- Eligibility: Only citizens or permanent residents of Greenland, Denmark or the Faroe Islands may freely buy property. Other foreigners may purchase only after living in Greenland and paying taxes there for at least two consecutive years.
- Parliamentary support: The law passed with 21 votes in favour in Greenland's 31-seat parliament, signalling broad political backing.
- Implementation date: The restrictions will come into force on 1 January 2026. Existing foreign property holders are exempt from the new rules.
Implications
By tightening property ownership, Greenland aims to balance economic development with sovereignty. Supporters argue that the law will prevent land speculation and ensure that benefits of resource extraction flow to local communities. Critics caution that restrictions could discourage foreign investment needed to build infrastructure. The decision comes amid increased Arctic competition and debates about self-determination within the Danish realm.
Sources: Mezha (via AFP)