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Question: Did Indiana recently pass a law (similar to several other states) restricting certain foreign individuals and businesses from purchasing and/or leasing residential and commercial properties in Indiana?

Answer:

Yes. Effective July 1, 2026, Indiana’s Senate Enrolled Act 256 (Act) revised the Indiana Code to add a new chapter, “Prohibition on Ownership of Land by Certain Foreign Owned Companies and Foreign Individuals” (IC 32-22-3.5), which significantly expands the State’s restrictions on foreign ownership of real property, specifically with respect to ownership by businesses and citizens from countries deemed “adversarial.” Previously, in 2022 and 2024, Indiana enacted laws prohibiting certain foreign individuals and businesses from purchasing and/or leasing agricultural land within certain areas of Indiana. This Act substantially broadens that prohibition, extending it to residential and commercial properties.

Under the Act, “Foreign Adversary” includes people of the following countries: China, Iran, North Korea, Russia, Venezuela (Nicholas Miduro’s regime), and a country designated as a threat to critical infrastructure by the Indiana Governor in consultation with the Executive Director of the Department of Homeland Security.

The Act defines “Prohibited Persons” as:

1) An individual who is a citizen of a Foreign Adversary.

2) An individual who is domiciled in a Foreign Adversary.

3) A business entity organized under the laws of a Foreign Adversary.

4) A business entity headquartered in a Foreign Adversary.

5) A business entity with a Controlling Person who is a citizen of or domiciled in a Foreign Adversary.

“Controlling Person” = owns at least 51% of the entity; serves as an officer, director, or possesses inside information about the entity because of the individual’s relationship with the entity; or has the ability to directly or indirectly affect an entity’s management or policies.

(C) A business entity or other entity owned or controlled by an individual who is a citizen of or domiciled in a Foreign Adversary, or is directly controlled by the government of a Foreign Adversary.

“Prohibited Persons” do not include an individual:

• Who is a citizen or lawful permanent resident of the United States;
• Has dual citizenship with a Foreign Adversary and the United States; or
• Has been granted asylum in the United States.

The Act restricts a Prohibited Person from purchasing or renting any residential or commercial real property within Indiana, with certain limited exemptions. Specifically, an individual who has a valid, unexpired nonimmigrant visa may purchase Indiana real property if:

(1) the individual's visa is valid for more than 12 months after the acquisition of the property;

(2) the property is zoned for single family residential use;

(3) the property is not more than one-half acre; and

(4) the individual has been determined not to be an agent of a Foreign Adversary.