FDI Land and Buildings Law and Legal Definition

All land and buildings located within an economy, except that owned by foreign governments (such as embassies) are, by convention, regarded as being owned by residents. If an actual owner is a nonresident, the owner is treated as if the ownership had been transferred to a resident notional institutional unit that is deemed to own the land and buildings. The nonresident has a financial investment in this notional unit, which is therefore treated as being a direct investment enterprise.