How to Buy Real Estate Property in the Philippines | Guide for Foreign Investors

​Real Estate Philippines: How To Buy a Property for Foreigners

With its breathtaking sceneries and stunning beaches to its rich culture and friendly locals, people from all over the world can't help but fall in love with the beauty of the Philippines. Millions of foreign tourists visit the country yearly to enjoy its scenic beaches. Many foreigners even choose to live, retire, and start a family in the Philippines due to the low cost of living. However, there are restrictions to owning real estate property in the Philippines for foreigners.
 
Whether you're an immigrant or an expat, this guide can help foreign investors on how to buy real estate property in the Philippines.

How to Buy Real Estate Property in the Philippines as a Foreigner

But before you read further, here are the following restrictions for foreigners regarding owning real estate property in the Philippines:

• Foreigners can legally possess a residence/home in the Philippines but are not allowed to own the land.
• According to the Philippine Condominium Act, foreigners are allowed to own a condo unit if 60% of the owners are Filipinos.
• Foreigners can buy real estate property from corporations, given that 60% of the owners are Filipino citizens.
• Foreigners can enter a long-term lease agreement with Filipino landowners for up to 50 years with a renewable option of another 25 years, applicable to residential and commercial properties.

LOCATION AND BUDGET

The location is essential in purchasing a real estate property in the Philippines. When choosing a location, various factors should be considered, including lifestyle, growth opportunities, accessibility, and proximity to schools, hospitals, and business districts. These factors will also affect the property value, varying from rural and urban areas.
 
Once you’ve chosen an ideal location and property, check your financial capacity and determine your budget. You can also look for other financing options available for foreign investors. Afterward, get assistance from a reputable real estate agent and begin house hunting.

Buy a House or Condo

As stated earlier, foreigners are forbidden to own land in the Philippines. Nonetheless, they can legally own a house and other structures standing on it. Hence, foreigners can only lease a property and purchase a freestanding home. Based on the Investor's Lease Act of the Philippines, foreign nationals can rent a property with a Filipino landowner for up to 50 years and renew the agreement once for 25 years.
 
Meanwhile, you may consider buying a condo if you’re looking for the easiest way to purchase a real estate property in the Philippines. However, the restriction still applies to this property. Foreigners can legally own the condo unit but not the land where it stands. Also, foreigners can only own condo units if 60% of the building owners are Filipinos.

Buy via Company or Filipino Spouse

Since corporations can legally own land in the country, foreigners can purchase property in the Philippines through a company. However, 60% or more of the company's land owners should be Filipino citizens, while the remaining can be foreign partners. Furthermore, the corporation should register with the Philippine government's Board of Investment and meet the equity stake requirement to buy, sell, or negotiate real estate transactions.
 
For foreigners who married Filipino citizens, the law allows them to own a residence on an urban land of up to 1,000 square meters or a rural land of 2.5 acres. The same applies when buying through a corporation. Additionally, the property title should be under the Filipino spouse's name. Nevertheless, the foreign citizen can include his or her name in the Real Estate Purchase Agreement contract. By doing so, the foreigner can still sell the property if the spouse suddenly passes away or they get separated legally.