What You Should Know about Buying Property in the Philippines

Buying Property in the Philippines: What You Need to Know


Buying property in the Philippines is an important decision. Whether you are from the Philippines or another country, it is crucial to understand the rules and ways to finance your purchase. This article will guide you through the process and provide essential information.

The Legal Framework for Property Ownership

Filipino Citizens

If you are a Filipino citizen, you have the right to own land and property in the Philippines. You can buy property directly, inherit it, or receive it as a gift. However, there are limits to the amount of land you can own.


Foreigners face restrictions when buying land in the Philippines. The most common way for foreigners to acquire property is through long-term leases that can last for 25 to 50 years.

Condominium Ownership

Foreigners can own condominium units as long as the total foreign ownership in a single project does not exceed 40%. This allows you to enjoy shared ownership and use amenities.

Corporate Ownership

Foreigners who want to buy land for business purposes can do so through a Philippine corporation. However, the corporation must be at least 60% Filipino-owned, with the remaining 40% available for foreign ownership.

Financing Options

Cash Purchase

If you have enough money, you can buy property in the Philippines with cash. This means you don’t need to get a loan and can negotiate better deals.

Bank Financing

Local banks in the Philippines offer mortgage loans to eligible buyers. These loans have fixed interest rates for a certain period and then become variable. The amount you can borrow and the interest rates depend on your creditworthiness, income stability, and the property’s value.

Developer Financing

Some property developers in the Philippines offer financing options. This means you can pay a down payment and the rest of the amount in installments. The interest rates for these arrangements are often lower than those of bank loans.

Property Hunting Tips

Work with a Licensed Real Estate Broker

A licensed real estate broker can help you find the right property. They have knowledge of the local market and can assist you with the whole process, from choosing a property to completing the legal requirements.

Location Research

Before buying property, it is essential to research and choose the right location. Consider things like amenities, transportation, safety, and future developments. Understanding the market trends of the location will help you make a good investment decision.

Property Inspection

Before finalizing a purchase, inspect the property thoroughly. Check its structure, electrical and plumbing systems, and overall condition. It is advisable to hire a professional inspector to identify any existing or potential issues. Also, make sure essential utilities like water, electricity, and internet are available.


Here are some frequently asked questions about buying property in the Philippines:

Q: Can foreigners own land in the Philippines?
A: Foreigners cannot own land in the Philippines, except through long-term leases or a Philippine corporation.

Q: Are there any restrictions on owning property as a foreigner?
A: Yes, foreigners have restrictions on land ownership, but they can own condominium units and buy property through a Philippine corporation.

Q: What is the maximum duration of a lease for foreigners?
A: The lease duration can range from 25 to 50 years, with the possibility of renewal.

Q: Is it better to pay in cash or finance the property?
A: It depends on your financial situation. Paying in cash offers negotiation flexibility, while financing options make the property more affordable.

Q: Can a foreigner own multiple condominium units?
A: Yes, foreigners can own multiple condominium units, as long as the total foreign ownership in one project does not exceed 40%.


– Philippine Condominium Act 4726: https://thelawphilippines.com/wp-content/uploads/2020/10/PD4726.pdf
– Foreign Investment Act of the Philippines: https://www.bsp.gov.ph/downloads/Regulations/attachments/2007/m018.pdf
– Real Estate Brokers Act: https://professionalregulationcommission.gov.ph/legres13/RES%20399%20Series%2029.pdf
– Home Loan Basics in the Philippines: https://www.lamudi.com.ph/journal/what-are-the-basics-of-home-loan-in-the-philippines/
– Top Residential Areas in the Philippines: https://www.property24.com.ph/articles/top-10-residential-areas-in-the-philippines/689