Foreigners often move to the Philippines for long-term living, retirement, or business opportunities. One of the most common questions is whether foreigners can legally buy property. The rules are clear but restrictive, and knowing them early helps you avoid mistakes and costly misunderstandings.
This guide explains every rule a foreigner must follow when buying land, condos, or houses in the Philippines in 2025.
Can Foreigners Own Land?
Foreigners cannot own land in the Philippines.
This includes residential lots, agricultural land, and most types of titled land.
However, there are legal alternatives that still allow foreigners to live, invest, or build in the country safely.
What Foreigners Can Own
1. Condominiums
Foreigners may own a condo unit as long as no more than 40 percent of the building is foreign-owned.
This is the most straightforward and common way foreigners acquire property.
2. Buildings (But Not the Land)
A foreigner may own the structure built on land, but not the land underneath it.
This is common in long-term lease situations.
3. Long-Term Leases of Land
Foreigners may lease private land for:
- 25 years, renewable for another 25 years
This allows long-term living without land ownership.
4. Inheritance by Operation of Law
A foreigner may inherit property from a Filipino spouse or relative, but only under legally recognized conditions.
The property cannot be freely sold or transferred without following specific procedures.
Buying Property Through a Filipino Spouse
Many foreigners buy property legally through a Filipino spouse. In this case:
- The property title will be in the Filipino spouse’s name
- The foreigner may be listed in the marriage contract, but not on the land title
- A foreigner cannot legally force the sale or claim full ownership
This is legal, but should be handled carefully. Pre-marital agreements and clear documentation are recommended.
Buying Through a Corporation
Foreigners may own up to 40 percent of a Philippine corporation.
This corporation may then own land. Requirements include:
- 60 percent Filipino ownership
- Proper SEC registration
- Valid business purpose
This route is used for commercial or investment properties rather than personal homes.
Can a Foreigner Buy a House and Lot Package?
Yes, but with limits.
A foreigner may own the house, but not the land.
Developers usually handle this through lease agreements or Filipino ownership structures.
Agricultural Land Rules
Foreigners cannot own agricultural land.
They may, however:
- Lease farmland
- Own shares in a corporation that operates farms
- Enter joint ventures with Filipino citizens
Ownership of agricultural land remains strictly restricted.
Required Documentation
Foreigners buying legal property (such as condos) will need:
- Passport
- Valid visa or entry status
- Tax Identification Number (TIN)
- Proof of funds
- Signed contracts and developer documents
TIN is required for signing deeds, tax filings, and property transfers.
Risks to Avoid
Risk 1: “Backdoor” Ownership Schemes
Any scheme where a foreigner “controls” land by using a Filipino dummy owner is illegal.
These are prosecuted under the Anti-Dummy Law.
Risk 2: Unverified Titles
Always verify the Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) at the Registry of Deeds.
Risk 3: Paying Before Verification
Never pay deposits, down payments, or reservation fees without checking the developer’s legitimacy.
Safest Options for Foreigners
- Buy a condo legally
- Lease land for 25 + 25 years
- Own buildings without owning land
- Invest through a properly structured corporation
These options give security without violating ownership laws.
FAQ
Q: Can I own a house if I can’t own land?
A: Yes. You may own the building, but you’ll need to lease the land or have it owned by a qualified Filipino.
Q: Is it safe to buy a condo in the Philippines?
A: Yes, as long as the foreign ownership in the building stays below the 40 percent limit.
Q: Do I need a lawyer when buying property?
A: It’s strongly recommended to avoid fraud, unclear titles, or contract issues.
Q: Can I open a bank account for property payments?
A: Yes. Banks will require identification and proof of address.
Q: Should I use a VPN when handling property documents online?
A: Yes. A VPN adds security when using public or hotel Wi-Fi.
