The most common and most likely answer to this crossword clue is the 5 letter word REICH
I've seen this crossword clue in The Guardian
R
E
I
C
H
More clues leading to the result REICH
- Europe’s capital resides in wealthy German state
- Spain in grip of opulent foreign empire
- English invading prosperous foreign state
- English taking apart absurd Nazi state
- European visits prosperous kingdom
- Point to go into in affluent German state
- State of Germany contributed to by murderer Eichmann
- English residing in opulent German state
- Finally believe in wealthy psychiatrist
- European residing in wealthy German state
Buddy explains!

The straight part
We know that "foreign state" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case foreign state = reich.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.