How to Buy Property in the Philippines (2025 Update)

Introduction

The Philippines continues to be one of Southeast Asia’s most attractive destinations for real estate investment, lifestyle relocation, and retirement. Its tropical climate, English-speaking population, affordable cost of living, and diverse islands make it appealing for both local and foreign buyers.

However, buying property in the Philippines—especially as a foreigner—comes with legal nuances, market-specific risks, and documentation requirements. This updated 2025 guide walks you through the step-by-step process, property options, costs, and legal framework you’ll need to understand before buying.

1. Can Foreigners Buy Property in the Philippines?

✅ YES, but with restrictions:

Under Philippine law, foreigners cannot directly own land. However, they can own:

• ✅ Condominium units (up to 40% of the total building)

• ✅ Buildings and structures (not the land underneath)

• ✅ Long-term land leases (up to 50 years + 25-year extension)

• ✅ Property through a Filipino spouse or corporation

❌ Foreigners cannot own:

• Land (unless inherited or naturalized)

• Agricultural or forest land

• More than 40% of a condo project

Workaround Tip: Create a long-term lease agreement (renewable) or form a corporation with 60% Filipino ownership if land access is necessary.

2. Who Can Buy Property in the Philippines?

3. Types of Properties Available for Purchase

Condominiums

• Easiest option for foreigners

• Popular in Metro Manila, Cebu, Davao, etc.

• No need to lease land

• Can be rented out (Airbnb depends on HOA)

Houses & Lots

• Only available to Filipino buyers or via marriage/corporation

• Foreigners may own the house but not the lot

Beachfront Properties

• High demand, but land usually unavailable for foreign buyers

• Lease arrangements common (e.g., 25–50 years)

Pre-Selling Properties

• Purchased before construction is complete

• Often cheaper with installment payment plans

• Beware of delivery delays or developer defaults

Ready-for-Occupancy (RFO) Properties

• Units ready to use or rent

• Higher upfront cost, faster return potential

4. The Step-by-Step Process to Buy Property in the Philippines

✅ Step 1: Determine Eligibility

• Confirm if you qualify (citizenship, marital status, corporate ownership)

• Foreigners: focus on condos or leased property

✅ Step 2: Choose the Right Property

• Research location, developer, and nearby infrastructure

• Hire a licensed real estate broker (PRC ID required)

• Visit properties or take a virtual tour

✅ Step 3: Verify Ownership or Developer Status

• For resale: Ask for a Certified True Copy of the title (TCT or CCT)

• For new: Check developer license from HLURB or DHSUD

✅ Step 4: Sign the Reservation Agreement

• Usually PHP 25,000–100,000

• Locks in your unit for 30–60 days

• Non-refundable

✅ Step 5: Pay Downpayment & Start Financing

• Pre-selling: 10–20% downpayment, 80–90% via bank or in-house

• RFO: Often higher initial payment or lump sum required

✅ Step 6: Sign the Contract to Sell or Deed of Absolute Sale

• After full payment or loan approval

• Notarized and registered with the Registry of Deeds

✅ Step 7: Transfer Title & Pay Fees

• Handled by developer or legal team

• Transfer Certificate of Title (land) or CCT (condo) issued in your name

5. Required Documents (For Foreign Buyers)

• Passport (photocopy)

• Tax Identification Number (TIN from BIR)

• Valid visa or proof of stay (optional but useful)

• Reservation form and buyer’s information sheet

• Proof of income or bank statement (for financing)

• If married to a Filipino: Marriage certificate

6. Total Costs of Buying Property

Tip:

• Always confirm if the advertised price is VAT inclusive.

• Developers may offer promotions covering some closing costs.

7. Foreigners Buying via Marriage or Corporation

‍❤️‍ Married to a Filipino

• You can co-own property with your spouse

• Title will be in Filipino spouse’s name

• Include “waiver of rights” for asset protection

Using a Corporation

• Must be 60% Filipino-owned

• Registered with the SEC

• Can buy land and buildings

• Best for commercial or large investments

8. Legal Risks and How to Avoid Scams

✅ Always work with:

• Licensed real estate brokers (PRC)

• Reputable law firms or notaries

• Bank-accredited developers

9. Financing a Property in the Philippines

Bank Loan

• Local banks offer loans to foreigners with stable income

• Interest rates: 6–9% annually (fixed 1–5 years)

• Requirements: income documents, credit check, visa

In-House Financing

• Offered by developers (easier approval)

• Shorter terms (5–10 years)

• Higher interest

Cash Purchase

• Often gets discounts of 5–10%

• Faster processing, especially for RFO units

10. Best Places to Buy Property in 2025

Metro Manila

• Makati, BGC, Ortigas, Quezon City

• High-end condos, urban investments

Cebu

• IT Park, Lahug, Mactan

• Beach + city hybrid lifestyle

Davao

• Affordable and peaceful

• Gated communities, new condos

Pampanga, Clark

• Rising infrastructure hub

• Proximity to new Clark International Airport

Palawan & Siargao

• Eco-luxury, tourism-led growth

• Lease-only beachfront options

Conclusion

Buying property in the Philippines as of 2025 is a viable and rewarding investment for both locals and foreigners—with the right due diligence. While land ownership remains limited for non-Filipinos, condos and long-term leases offer excellent alternatives.

Whether you’re investing, retiring, relocating, or planning a vacation base, follow legal procedures, verify ownership, and work with licensed professionals to protect your interests.

With steady economic growth and ongoing infrastructure upgrades, now may be the perfect time to secure your slice of paradise in the Philippines.