Can Foreigners Own Real Property in the Philippines? A Complete Guide for Investors
Understanding foreign ownership rules, legal pathways, and investment options
The Philippines continues to attract investors, expatriates, entrepreneurs, and retirees from all over the world. Beautiful locations, strong economic growth, expanding infrastructure, and competitive property values make the country a compelling real estate destination.
One of the most common questions foreigners ask is:
“Can I own real property in the Philippines?”
The answer is:
Yes — foreigners can own certain types of real estate in the Philippines, but with specific limitations.
This guide breaks down what foreign nationals can and cannot own, the legal rules involved, and the structured pathways that allow foreigners to invest and build wealth through Philippine property.
1. What Types of Property Can Foreigners Own?
✔ 1. Condominiums (Up to 40% of the total project)
Under the Philippine Condominium Act (RA 4726), foreigners can legally own condominium units, as long as:
- Foreign ownership in the entire building does not exceed 40%
- The condominium corporation remains at least 60% Filipino-owned
This is the most common and straightforward method for foreigners to acquire real estate in the country.
Foreigners can own a condo 100% in their name.
✔ 2. Buildings or Improvements (But Not the Land)
Foreigners are allowed to own:
- Houses
- Townhouses
- Buildings
- Villas
- Structures
But not the land they stand on.
This is protected under:
- The 1987 Philippine Constitution
- The Public Land Act
Meaning:
You can own the structure, but the land must be owned by a Filipino or a Filipino-controlled entity.
✔ 3. Long-Term Leasehold Rights
Foreigners cannot own land, but they can lease land long-term, under:
Republic Act No. 7652 – The Investor’s Lease Act
Foreigners may lease land for:
- Initial term: 50 years
- Renewable: Additional 25 years
This gives safe, secure, and long-term control of land without violating ownership laws.
2. What Foreigners Cannot Own
❌ Foreigners cannot own land outright
This includes:
- Residential lots
- Agricultural land
- Commercial lots
- Industrial land
Exceptions are limited and must still comply with constitutional restrictions.
❌ Foreigners cannot own land through a corporation unless Filipinos own at least 60%
A corporation must be:
✔ 60% Filipino-owned
✔ 40% foreign-owned or less
A majority Filipino-owned company can buy land, even if foreigners are minority shareholders.
3. Legal Ways Foreigners Can Own or Control Real Estate
Foreign nationals have several legal, safe, and widely used methods to invest in Philippine property.
1. Buy a Condominium Unit (Most Popular and Easiest)
This is the simplest and most secure pathway.
Advantages:
- 100% foreign ownership allowed
- Good rental demand (especially in Manila, Makati, BGC, Ortigas, Cebu, Davao)
- Easy to resell
- Low maintenance
- Strong appreciation in prime locations
- No land ownership issues
This is the recommended option for most expats and investors.
2. Long-Term Lease of Land (50 + 25 Years)
Lease agreements allow foreigners to:
✔ Build a home
✔ Build a commercial structure
✔ Use the land for residence or business
This is ideal for:
- Retirees
- Married couples
- Long-term residents
- Foreign entrepreneurs
Land still remains Filipino-owned, but control is contractually granted.
3. Incorporate a Philippine Company (60% Filipino / 40% Foreign)
Foreigners can own land through a corporation as long as:
- 60% of shares are owned by Filipinos
- 40% owned by foreigners
This method is common for:
- Large commercial developments
- Industrial projects
- Office buildings
- Hotels, resorts, and rental businesses
4. Property Owned by a Filipino Spouse
Foreigners married to Filipinos cannot own land in their own name, but:
✔ Property can be titled exclusively to the Filipino spouse
✔ Foreign spouse may co-own the building
✔ Foreign spouse has rights to jointly acquired property (but land remains Filipino-owned)
This is governed by:
- The Family Code of the Philippines
- The Constitution on Ownership Restrictions
5. Inheritance Rights (With Limitations)
Foreigners may inherit land in the Philippines only through hereditary succession, meaning:
- The Filipino spouse or parent dies
- The foreign heir inherits the land
This is protected under constitutional interpretation and jurisprudence.
4. Why the Philippines Restricts Foreign Land Ownership
Land ownership is regulated for reasons such as:
- Protecting national patrimony
- Preventing foreign land monopolies
- Ensuring Filipino control over natural resources
- Preserving cultural and economic stability
These restrictions are common in many Asian countries, including Thailand, Indonesia, and Vietnam.
5. Is It Safe for Foreigners to Invest in Philippine Real Estate?
Yes — as long as the investment follows legal pathways.
✔ Condos are 100% safe and foreigner-friendly
✔ Long-term leases are secure and legally protected
✔ Corporations allow commercial land ownership
✔ Residential property is stable and growing
✔ Expats enjoy high rental yields in prime districts
The Philippines remains one of the most attractive real estate markets in Southeast Asia.
6. Best Property Options for Foreign Investors
🏙 1. Condominiums in Metro Manila CBDs
Makati, BGC, Ortigas Center, Mandaluyong, Eastwood.
🛫 2. Condos in Cebu, Davao, Clark, and Subic
Strong BPO and tourism markets.
🏬 3. Commercial or Office Units
Foreigners can own office units — not land — in buildings with condo titles.
🏭 4. Commercial and Industrial Projects Via Corporations
Through properly structured companies.
🌴 5. Resort or Hospitality Businesses
Using lease agreements or corporate structures.
Final Thoughts: Foreigners Can Own Real Estate in the Philippines — Legally and Safely
Despite land restrictions, foreigners have legitimate and secure options:
✔ Own a condo 100%
✔ Own buildings and improvements
✔ Lease land long-term (50 + 25 years)
✔ Invest through a corporation
✔ Acquire property through marriage or inheritance
These pathways allow foreign nationals to enjoy the appreciation, rental income, and investment potential of Philippine real estate — with legal protection and long-term value.
FAQ: Can Foreigners Own Real Estate in the Philippines?
Q1: Can foreigners own land in the Philippines?
No. Under the 1987 Philippine Constitution, foreigners cannot own land in the Philippines. Land ownership is reserved for Filipino citizens and Filipino-owned corporations (at least 60% Filipino ownership).
Q2: What type of property can a foreigner legally own?
Foreigners can legally own:
- Condominium units, as long as foreign ownership does not exceed 40% of the entire project (RA 4726, Condominium Act).
- Buildings or improvements (houses, townhouses, structures) — but not the land.
- Leasehold rights over land (50 years + renewable for 25 years, under the Investor’s Lease Act, RA 7652).
Q3: Can a foreigner buy a condominium in the Philippines?
Yes. A foreigner can own a condominium unit 100% in their name, provided foreign ownership within the building does not exceed 40%. This is the simplest and safest method of foreign property ownership.
Q4: Can a foreigner own land through a corporation?
Yes — as long as the corporation is at least 60% Filipino-owned and 40% or less foreign-owned. The corporation may legally purchase land.
Q5: Can a foreigner lease land long-term?
Yes. Under RA 7652 (Investor’s Lease Act), foreigners may lease private land for:
- 50 years initial term, and
- 25 years renewal option This is a legal way for foreigners to control land without owning it.
Q6: Can foreigners own property if married to a Filipino?
Yes. A foreigner can own the building or house, but the land title must remain under the Filipino spouse’s name.
However, the foreign spouse may have rights to the property under the Family Code, depending on the marital property regime.
Q7: Can foreigners inherit land in the Philippines?
Foreigners may inherit land only through hereditary succession, meaning the land is passed on to them because of death, not through sale. This is allowed under constitutional interpretation and Philippine jurisprudence.
Q8: What is the safest way for foreigners to invest in Philippine real estate?
The safest and most straightforward method is to buy a condominium unit, which foreigners may legally own 100%.
Long-term leases and Filipino-majority corporations are also widely used pathways.
Q9: Can foreigners own commercial or office units?
Yes. Foreigners can own commercial units inside a condominium-titled building, subject to the 40% foreign ownership limit of the entire building.
Q10: Are there penalties for foreigners who illegally try to own land?
Yes. Any attempt to circumvent land ownership restrictions — such as “fronting” through nominees — can result in contract invalidation and legal consequences under Philippine law.
Thinking of investing in the Philippines?
Landlord Realty Development can guide you through:
- Foreigner-eligible condos
- Long-term lease agreements
- Investment properties
- Due diligence
- Developer-accredited projects
- Safe, legal acquisition options
Rafael Penilla, MBA
Licensed Real Estate Broker
PRC License No. 0004428
DHSUD No. NCR-B-6576
📩 Contact us today for expert, licensed guidance.
