How Foreigners Can Buy Property in the Philippines (2026)

What you legally CAN own

Philippine law restricts land ownership to Filipino citizens. As a foreigner, you can legally own:

1. A condominium unit, provided not more than 40% of the units in that condo corporation are owned by foreigners. (In most large Manila/Cebu buildings, the cap is monitored by the condo corporation - ask before you commit.)
2. A house structure built on land you don't own. The land is on a long-term lease.
3. Land via long-term lease - up to 50 years, renewable for another 25. You can lease residential, commercial, or industrial land this way.
4. Land jointly with a Filipino spouse - the title goes in the Filipino spouse's name; you don't legally hold it.

What you can NOT do

• You can't own land in your sole name. Period. No exceptions through corporate structures unless the corporation is at least 60% Filipino-owned, and even then, the foreign-controlling-interest test applies.
• Be wary of "dummy" arrangements (paying a Filipino to hold land for you). These violate the Anti-Dummy Law and can result in losing the property and criminal prosecution.

Financing options

Most Filipino banks do not offer mortgage loans to non-resident foreigners. Options:

• Pay in cash (most common foreign-buyer path)
• Arrange financing through a bank in your home country secured against home-country assets
• Some developers offer in-house financing with 30-50% downpayment, 5-10 year terms - interest is high (8-12% typical), but it's available
• If you have a Filipino spouse, joint application through a Philippine bank becomes feasible

The buying process (foreigner, condo)

1. Reserve the unit with a developer or seller - typically PHP 50,000-100,000 reservation fee.
2. Sign a Reservation Agreement specifying price, payment terms, and unit details.
3. Submit ID and visa documents - passport, ACR/I-Card (for residents), proof of address.
4. Pay the downpayment - typically 10-30% of the purchase price, sometimes over 12-24 months for pre-selling units.
5. Sign the Deed of Absolute Sale when the unit is fully paid (or when financing is in place).
6. Pay closing costs:

- Documentary Stamp Tax: 1.5% of selling price - Transfer Tax: 0.5-0.75% - Registration fee: ~0.25% - Notary: 1-2%

1. Get your Condominium Certificate of Title (CCT) - this is the proof of ownership. Allow 3-6 months after sale for the registry to issue it.

Tax obligations as an owner

• Annual real property tax (amilyar): 1-2% of the assessed value per year. Paid to the LGU.
• Capital Gains Tax on resale: 6% of selling price or zonal value (whichever higher). Paid by seller.
• Rental income tax: 25% withholding for non-resident foreign owners renting out the unit.

If you stay in the Philippines for more than 180 days in a year, you may become a resident for tax purposes - tax rates can be more favourable for long-term residents. Consult a Philippine tax accountant.

Common pitfalls

• Pre-selling project gets delayed or cancelled - verify the developer's HLURB licence and track record.
• The 40% foreign cap is exceeded - always get a certification from the condo corporation that the unit count is within the limit.
• Power of attorney abuse - if you buy remotely via an SPA (Special Power of Attorney), use a Philippine lawyer to draft it, not the seller's lawyer.
• Inheritance - Philippine inheritance law applies to the property. Have a will. Foreigners can inherit condos and house structures (but not land directly).

Best cities for foreign buyers in 2026

• Makati / BGC - most liquid market, best rental income, English-friendly.
• Cebu City - IT Park condos rent reliably to BPO professionals and digital nomads.
• Tagaytay / Baguio - vacation rentals, cooler climate, good for retirees.

Browse condos in Makati, condos in Cebu City, and condos in BGC Taguig on BalayHub.

Final advice

Never sign anything you haven't had a Philippine lawyer review independently. Brokerage commissions are paid by the seller, so a buyer's broker has reduced incentive to push you into a bad deal - use one.

The Philippines is foreigner-friendly for property, but the rules are strict and the title system isn't fully digital. Slow due diligence saves you years of regret.

How to buy property in the Philippines from abroad, step by step

You do not need to fly home to buy. Thousands of OFWs and overseas buyers close on a property here every year remotely, and the process follows a clear sequence.

1. Set your budget and pick an area. Decide the all-in amount, then narrow to one or two cities. Check the going rate on our price per square meter tool, and start from our buy from abroad hub.
2. Shortlist online. Browse listings for sale and save three to five units.
3. Get eyes on the ground. Have a trusted person, a broker or a paid inspector visit and send a live video walk-through, not just photos.
4. Reserve and review. A reservation fee holds the unit while you, or a lawyer, read the contract.
5. Sort financing. Pay cash or in staged remittances, take a Pag-IBIG loan from abroad with our Pag-IBIG OFW guide, or arrange bank financing from overseas. Size a monthly send with the remittance tool.
6. Sign through a Special Power of Attorney. An SPA lets someone you trust sign on your behalf; our SPA guide covers executing and authenticating it abroad.
7. Pay, transfer the title and register. Settle the balance and the closing costs, then the title is transferred and registered in your name.

Settle the ownership question first, since Filipino citizens can buy land and condos while foreign nationals can own condo units but not land. After that, buying from abroad is mostly paperwork and a person you trust on the ground.