By: BAJARealEstate.ph
Foreigners generally cannot own land in the Philippines, but they can own certain types of real estate. Here’s a comprehensive guide on how non-Filipinos can legally invest in property in the country.
1. Can Foreigners Own Property in the Philippines?
✅ Yes, but with restrictions:
• Foreigners cannot own land.
• Foreigners can own condominiums and buildings under specific conditions.
• They can invest in corporations that own land.
• Special visas or exemptions allow some ownership rights.
2. Ways for Foreigners to Own Property
A. Buying a Condominium
• Foreigners can own condo units as long as foreign ownership does not exceed 40% of the building.
• Condos are the most straightforward option for foreign investors.
• Ideal for rental income or vacation homes.
B. Long-Term Lease of Land
• Foreigners can lease land for up to 50 years, renewable for another 25 years.
• This allows them to build homes or businesses without owning the land.
C. Buying Property Through a Filipino Spouse
• A foreigner cannot own land but can purchase it under a Filipino spouse’s name.
• In case of separation, the land remains with the Filipino spouse, but the foreigner may have rights over the house or improvements.
D. Owning Property Through a Corporation
• Foreigners can own up to 40% of a Philippine-registered corporation that owns land.
• The remaining 60% must be Filipino-owned.
• This is often used for commercial real estate investments.
E. Special Visas with Investment Privileges
Some visas allow property ownership benefits:
- Special Resident Retiree’s Visa (SRRV) – Allows retirees to invest in condos, townhouses, or long-term land leases.
- Special Investor’s Resident Visa (SIRV) – Grants residency to foreigners investing at least $75,000 in approved businesses.
3. Steps to Buying Property as a Foreigner
Step 1: Identify Your Investment Goals
• Are you looking for a residence, rental income, or business investment?
Step 2: Choose the Right Property Type
• Condominiums are the best option for direct ownership.
• Leased land works for those who want to build.
• Corporate investment is ideal for business-related purchases.
Step 3: Work with a Licensed Real Estate Agent
• A trusted agent can help you find properties that comply with foreign ownership laws.
Step 4: Verify Property Documents
• Ensure the Condominium Certificate of Title (CCT) or Transfer Certificate of Title (TCT) is clean.
• Check if the condo project complies with the 40% foreign ownership limit.
Step 5: Secure Financing
• Most Philippine banks do not offer home loans to foreigners.
• Options include cash purchases or financing through foreign banks.
Step 6: Pay Fees and Taxes
Foreign buyers must pay:
• Documentary Stamp Tax – 1.5% of property value
• Transfer Tax – 0.5%–0.75%
• Registration Fee – Varies based on property value
• Notarial Fees – 1%–2%
Step 7: Finalize the Sale and Title Transfer
• Sign the Deed of Absolute Sale before a notary public.
• The developer or seller will transfer the title to your name (for condos).
4.Things to Watch Out For
⚠ Beware of Fake Titles – Always verify documents at the Registry of Deeds.
⚠ Check Condo Developer Reputation – Avoid unfinished projects or scams.
⚠ Understand Restrictions – No land ownership unless through a corporation or spouse.
⚠ Factor in Taxes & Fees – These can add up to 5%–8% of the purchase price.
5. Is Buying Property in the Philippines a Good Investment for Foreigners?
✅ Yes, if you choose wisely. Condos in prime locations like Metro Manila, Cebu, and Davao offer strong rental demand and property appreciation.
Need help finding the right investment? Let’s discuss the best options for you!
