Buying Property in the Philippines as a Foreigner: What Is Actually Possible

Property ownership is one of the most misunderstood topics for foreigners considering the Philippines. Here is a clear account of what is and is not possible.

The basic rule

Foreigners cannot own land in the Philippines. The Philippine Constitution restricts land ownership to Philippine citizens and corporations that are at least 60% Philippine-owned. This is not a technicality — it is a constitutional provision and it is enforced.

What foreigners can own

Foreigners can own condominium units — subject to one limitation: the building cannot have more than 40% foreign ownership in aggregate. Once 40% of the units in a building are foreign-owned, no further units can be sold to foreigners.

In practice, in Davao City's major condominium developments, this limit is rarely reached. There is a practical and accessible market for foreign condo buyers.

The process

You need a Philippine TIN. You sign a contract to sell with the developer or seller. The notarial and transfer process is managed by a local property lawyer. After completion you receive a Condominium Certificate of Title (CCT) in your own name.

Additional costs: 3–5% in notarial, documentary stamp, and registration fees. Annual property tax: approximately 1–1.5% of assessed value. Monthly condominium dues: PHP 2,000–10,000 depending on the building and its facilities.

Price guide for Davao City (2026)

Entry-level (studio or small 2-bed, 30–50 sqm): PHP 3–5M (€47,000–80,000). Mid-range (2–3 bedroom, modern): PHP 5–10M (€80,000–160,000). Luxury (Aeon Towers, Dusit Thani Residences): PHP 10–25M (€160,000–400,000).

What is not possible and not legal

Nominee arrangements — where a Filipino holds title to land on behalf of a foreigner — are illegal. The Foreign Investment Act and Anti-Dummy Law make these arrangements criminal, not merely voidable. The consequences fall on the foreigner as well as the nominee. We do not facilitate or advise on nominee arrangements.

Foreigners married to Philippine citizens do not acquire land ownership rights through the marriage. The land is the Philippine citizen's alone.

Land leasing — up to 25 years, extendable by a further 25 — is legal and available. For those who want more permanent arrangements, structuring a long-term lease is a legitimate alternative to ownership.