Buying Property in the Philippines: A Practical Guide for Foreigners and Overseas Filipinos
For many overseas Filipinos and foreign investors, buying property in the Philippines feels like more than just a financial decision. It’s often about coming home or starting something new. Whether it’s a sleek condo in BGC or Cebu, a beach retreat in Siargao, an industrial site for a long-term project, or re-acquiring the family home sold when you left the country, investing in Philippine real estate can be both exciting and rewarding. But before diving in, it’s important to understand the country’s ownership rules and how to navigate them safely.
The General Rule on Land Ownership
Under Philippine law, private land ownership is reserved for Filipino citizens and for companies that are majority Filipino-owned. This means that foreign individuals cannot directly own land. However, that doesn’t mean property investment is out of reach. There are several legal ways for foreigners and overseas Filipinos to invest in real estate, depending on the type of property and the structure of ownership.
What Foreigners Can Own in the Philippines
Foreign nationals can legally own condominium units, provided that foreign ownership in the building does not exceed 40 percent. This is why condos are often the most accessible real estate option for foreign investors. Buyers should still confirm that the project complies with this limit before finalizing a purchase.
Foreigners can also own buildings or structures even if they do not own the land beneath them. This is usually done through long-term lease agreements with Filipino landowners. Leases can now extend for nearly a century, making them a viable option for long-term investors, resort developers, or retirees seeking stable property rights without ownership of the land itself.
Inheritance and Mixed-Nationality Couples
Foreigners may acquire land in the Philippines through inheritance when it passes to them by operation of law. This is a limited but recognized exception. For mixed-nationality couples, property ownership requires careful planning. Couples are encouraged to seek legal advice on how to structure purchases, especially when one spouse is a foreign national, to ensure the transaction follows ownership restrictions while protecting both parties’ interests.
Corporate Ownership as an Investment Path
Another way for foreign investors to participate in the Philippine real estate market is through corporate ownership. By investing in or forming a Philippine corporation that is at least 60 percent Filipino-owned, foreigners can indirectly own land through the company. This setup is commonly used for commercial or industrial projects. It is important, however, that ownership and control genuinely rest with Filipino shareholders to stay compliant with anti-dummy and foreign investment laws.
Property Ownership for Overseas Filipinos
Filipino citizens living abroad retain the same property ownership rights as residents. Those who have reacquired or retained their Philippine citizenship can freely buy and own land in their name. Even former natural-born Filipinos who have not reacquired citizenship are allowed to purchase a limited area of land for residential or business use, provided they meet the legal conditions.
Key Considerations Before Buying Property
Before purchasing, verify the property’s title and ensure it’s properly registered and free of liens or encumbrances. For condominiums, check the developer’s ownership records to confirm compliance with foreign ownership limits. For leased properties, make sure the agreement is notarized and registered with the Registry of Deeds. Factor in taxes such as transfer tax, capital gains tax, and documentary stamp tax to avoid surprises later on. Working with local counsel or trusted legal representatives can make the process much smoother and safer.
How New Wave Lawyers Can Help
At New Wave Lawyers, we help overseas Filipinos, mixed-nationality couples, and foreign investors navigate property transactions in the Philippines with ease and confidence. Our team collaborates with trusted partner lawyers in the country to handle due diligence, contracts, and compliance, making your investment process simple and secure — wherever you are in the world.
