Guide to Investing in Philippine Real Estate for Foreigners

Investing in Philippine Real Estate: A Guide for Foreigners


Investing in real estate means buying properties like houses and buildings. It can be a good way to make money, especially in the Philippines. The Philippine real estate market has lots of opportunities for people from other countries who want to invest. This guide will help foreigners understand the process and things to think about when investing in Philippine real estate.

Rules and Regulations

Foreigners can invest in Philippine real estate, but there are rules they have to follow. Here are the ways they can do it:

1. Condominium Units: Foreigners can own some units in a condominium building, but not too many. They can’t own more than 40% of all the units.

2. Land for Building a House: If a foreigner used to be a Filipino citizen, they can buy land to build a house. But they can only buy up to 1,000 square meters of land. If they are married, they can buy twice as much.

3. Long-Term Lease: Foreigners can rent land for a long time, like 50 years, and they can renew the lease for 25 more years. This means they can use the land for a long time without owning it.

4. Ownership by Corporations: Foreign companies can invest in real estate by starting a company in the Philippines. But they can only own 40% of the company, and the rest must be owned by Filipino citizens.

Choosing the Right Place

The Philippines has many different regions, each with its own good qualities and chances for investment. When picking a place to invest, it’s important to do research and think about these things:

1. Economic Growth: Look for places that are doing well economically and have chances to grow more. Big cities like Metro Manila, Cebu, and Davao are popular for investments because they are stable and have good infrastructure.

2. Tourism and Fun: Places like Boracay, Palawan, and Siargao are famous tourist spots. Investing in resorts, hotels, or vacation rentals there can be a good idea.

3. Close to Transportation and Business: Pick places near airports, seaports, or business centers. This can attract people who want to rent or buy your property.

Understanding the Market

Before investing in real estate, it’s important to learn about the Philippine real estate market. Here are some things to know:

1. Property Prices: Look at how much properties cost in the past and now, to see if they’re a good price. Ask a professional to help you decide how much a property is really worth.

2. Rental Income: Find out how much money you can make from renting out your property. Look at how high the demand is, how many people want to rent, and how much they will pay.

3. Taxes and Expenses: Learn about the taxes and costs you have to pay when you own real estate. These can change how much money you will make from your investment.

Getting Help from Professionals

To make investing in real estate easier, it’s a good idea to work with professionals who know about Philippine real estate laws. Here are some professionals you can work with:

1. Real Estate Broker: They can help you find good investments, talk to sellers, and check if the property is good.

2. Real Estate Lawyer: They can help you understand the law, look at contracts, and make sure you follow all the rules.

3. Accountant: They know about taxes and can help you make a plan to pay the right amount.

How to Pay

Foreigners investing in Philippine real estate can pay in different ways:

1. Cash: You can pay for the property all at once with cash, but you need a lot of money.

2. Bank Financing: Some banks in the Philippines can help foreigners pay over time. But you usually have to pay a lot of money at the start.

3. Developer Financing: Some property developers can give you a special payment plan if you’re a foreigner. Make sure you understand the terms and conditions.

Frequently Asked Questions

Q1: Can foreigners own land in the Philippines?

A1: Usually, foreigners can’t own land in the Philippines. But there are exceptions for people who used to be Filipino citizens or for foreign companies.

Q2: How many condominium units can foreigners own?

A2: Foreigners can own up to 40% of all the units in a condominium building.

Q3: Do I need to create a company in the Philippines to invest in real estate?

A3: No, it’s not necessary. But some foreign companies may choose to start a Philippine company to invest in real estate.

Q4: Are there any limits on foreigners leasing properties?

A4: No, foreigners can lease properties in the Philippines for up to 50 years, and they can renew the lease for 25 more years.

Q5: Do foreigners have to pay special taxes or fees?

A5: Foreigners usually have to pay the same taxes and fees as people from the Philippines. But it’s important to talk to a tax professional to make sure you’re following the law.


– Official Gazette of the Republic of the Philippines:
– Philippine Retirement Authority:
– Philippine Real Estate Brokers Association:
– Philippine Statistics Authority:

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