Buying property in the Philippines as a foreigner

Can foreigners own property in the Philippines?

Yes — foreigners can own condominium units outright under the Philippine Condominium Act (Republic Act 4726). The key restriction is the foreign ownership quota: no more than 40% of the units in any condominium project can be foreign-owned. The remaining 60% must be held by Filipino citizens or Philippine corporations.

Foreigners cannot own land in the Philippines in their own name. This means standalone houses and lots are not available to foreign buyers on a freehold basis. Condominiums are the standard and legally secure route for international investors.

Bringing money into the Philippines

Purchase funds must be remitted into the Philippines from abroad in foreign currency through a Bangko Sentral ng Pilipinas (BSP) authorised bank. The bank will provide a Bangko Sentral Registration Document (BSRD), which you must retain — it is required when you wish to repatriate funds on resale.

This is important: without a BSRD, repatriating your sale proceeds in foreign currency becomes significantly more complicated. Always remit funds through a BSP-authorised bank and keep your documentation.

The buying process

• Reservation — a reservation fee (typically PHP 20,000–100,000) secures your unit and removes it from sale while contracts are prepared.
• Contract to Sell — the developer's standard agreement setting out the payment schedule, unit specifications and handover conditions. Review this with a lawyer.
• Payment schedule — off-plan developments typically require a down payment of 20–30%, with the balance paid in instalments or on completion depending on the developer's terms.
• Remit funds from abroad — transfer in foreign currency through a BSP-authorised bank and retain your BSRD.
• Deed of Absolute Sale — signed on completion. Both parties sign before a notary public.
• Title transfer — the Condominium Certificate of Title is transferred to your name at the Registry of Deeds.

Taxes and fees on purchase

• Documentary Stamp Tax (DST): 1.5% of the selling price — paid by the buyer.
• Transfer Tax: 0.5% of the selling price — paid by the buyer.
• Registration fee: Approximately 0.25% — varies slightly by Registry of Deeds.
• Notarial fee: Typically 1–2% of the selling price.
• Capital Gains Tax: 6% of the selling price or zonal value (whichever is higher) — paid by the seller on resale.

Tax rules can change. Always verify current rates with a qualified Philippine lawyer before completing a purchase.

Annual property tax

Real Property Tax (RPT) is levied annually by local government units. Rates vary by location but are generally modest — typically 1–2% of the assessed value of the property, which is usually significantly lower than the market value.

Visa options for property owners

Owning property in the Philippines does not automatically grant long-term residency. The most relevant visa options for foreign property buyers include:

• Special Resident Retiree's Visa (SRRV) — available to retirees aged 35+ who meet a minimum deposit requirement with the Philippine Retirement Authority. Grants indefinite stay.
• Special Investor's Resident Visa (SIRV) — for investors committing a minimum of USD 75,000 to approved investments. Grants indefinite stay.
• Tourist visa extensions — standard tourist visas can be extended for up to 3 years in total, making them a practical short-term option for part-time residents.

Visa regulations change periodically. Verify current requirements with the Philippine Bureau of Immigration or a licensed immigration lawyer.

Why the Philippines stands out

Beyond the legal framework, the Philippines offers something few markets can match: a young, English-speaking population, a thriving BPO and tech sector driving urban rental demand, and island destinations like Boracay and Cebu that consistently attract international tourism. For buyers seeking both lifestyle and yield, it is one of the region's most compelling markets.