How to Own Real Estate and Property in the Philippines as a Foreigner

The Philippines continues to attract foreigners who dream of owning a home or investing in real estate. With its tropical climate, beautiful beaches, and welcoming culture, it is no surprise that many are exploring opportunities to purchase property in the country. However, Philippine laws set specific rules for foreign ownership, and understanding these regulations is essential before making any investment.

Can a Foreigner Own Land in the Philippines?

Under the Philippine Constitution, foreign nationals are not allowed to directly own land in the country. This restriction aims to preserve national ownership of Philippine territory. However, there are several legal options that allow foreigners to invest in or enjoy property ownership indirectly.

Legal Options for Foreign Property Ownership

1. Condominium OwnershipForeigners may legally own condominium units in the Philippines, provided that foreign participation does not exceed 40 percent of the condominium corporation’s capital stock or equity. This limit is based on Republic Act No. 4726 (The Condominium Act of 1966). Because of its clarity and accessibility, condominium ownership remains one of the most convenient property investment options for foreigners.

2. Long-Term Lease AgreementsAs of September 2025, Philippine law now allows foreign investors to lease private land for up to 99 years continuously, replacing the previous 50-year lease renewable for 25 years. For non-investors, the limit remains 25 years, renewable once for another 25 years. This updated structure, outlined in Republic Act No. 12252, makes long-term leasing a more flexible and attractive option for foreigners who want to build a home or establish a business without owning land outright.

3. Corporate OwnershipForeigners can indirectly own land through a corporation, provided that:

• At least 60 percent of the corporation is owned by Filipino citizens

• Actual control, voting rights, and beneficial ownership genuinely rest with Filipinos—not merely on paper

While the Constitution allows up to 40 percent foreign equity, the Supreme Court strictly enforces anti-dummy rules, applying the Grandfather Rule when ownership structures appear designed to circumvent Filipino control.

This framework is governed by RA 8179, which amends RA 7042 (The Foreign Investments Act).

4. Inheritance from a Filipino SpouseIf a foreigner is married to a Filipino citizen, they cannot directly own the property, but they may inherit it through succession if the Filipino spouse passes away. However, the land cannot be transferred to foreign heirs if they are not qualified under Philippine law.

Step-by-Step Guide to Buying Property as a Foreigner

1. Determine Eligibility and Property TypeIdentify whether you plan to purchase a condominium, lease land, or invest through a corporation. This will determine the legal structure of your investment.

2. Hire a Licensed Real Estate ProfessionalWork with a licensed real estate broker or lawyer who specializes in property transactions for foreigners. They can help ensure that all documentation complies with Philippine laws.

3. Conduct Due DiligenceBefore purchasing, verify property ownership, titles, and any encumbrances with the Land Registration Authority (LRA). This step prevents legal disputes and ensures a secure transaction.

4. Prepare Legal DocumentsFor condominium purchases, prepare necessary contracts such as the Deed of Sale, Condominium Certificate of Title (CCT), and Tax Declaration. For lease or corporate agreements, ensure notarization and proper registration with relevant agencies.

5. Pay Taxes and FeesBuyers must pay taxes such as the Documentary Stamp Tax (DST), Transfer Tax, and Registration Fees. Sellers usually shoulder the Capital Gains Tax (CGT), but terms may vary depending on your agreement.

6. Register the PropertyThe final step is the registration of the property under your name (or corporation’s name) with the Registry of Deeds. This ensures legal ownership and issuance of the title.

Important Considerations Before Investing

• Work with a trusted developer: Choose established real estate developers to ensure compliance with regulations and quality standards.

• Review local zoning laws: Some areas have restrictions on land use, especially near coastlines or agricultural zones.

• Check for condominium management quality: Since foreigners often purchase condos, review the property’s management track record and amenities.

The Advantage of Investing in the Philippines

Real estate ownership in the Philippines offers more than just financial returns. It provides an opportunity to be part of a vibrant culture and community. With strong economic growth, expanding infrastructure, and attractive property prices compared to other Asian countries, the Philippines continues to be a promising market for investors.

Foreigners seeking a home or investment property can find options that fit their needs while complying with the law. Whether for retirement, business, or leisure, the Philippines offers a welcoming environment where your property can truly feel like home.