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Can Foreigners Own Property in the Philippines? What the Law Allows in 2026

By Rodel Lacorte, CPAAs of 27 October 2026

This guide summarizes the Constitution, statutes and Supreme Court decisions linked below, as viewed on 27 October 2026. It is general information, not legal advice. Have a Philippine lawyer review any specific purchase or lease.

"Can I buy property here?" is one of the first questions foreign retirees and investors ask me. The short answer is that you can't own land, but you can own a condominium unit, hold a long lease, and in a few defined cases acquire land. Here is what the law actually says.

The quick answer

What you wantCan a foreigner do it?Main legal basis
Own land (lot, house and lot, farm)No, except by hereditary succession or as a former natural-born Filipino1987 Constitution, Art. XII Secs. 7–8
Own a condominium unitYes, while foreign ownership in the project stays within 40%RA 4726, Sec. 5; Hulst v. PR Builders
Lease private landYes, up to 25 years, renewable once for 25PD 471
Lease land for a registered investmentYes, up to 99 years in aggregate, with conditionsRA 7652 as amended by RA 12252
Own shares in a land-owning corporationYes, up to 40%Art. XII Secs. 2 and 7

Why land is off-limits

Article XII, Section 7 of the 1987 Constitution says that, "save in cases of hereditary succession," private lands may only be transferred to those qualified to hold public land. That means Filipino citizens and corporations or associations at least 60% owned by Filipinos. The Supreme Court applies this strictly. In Muller v. Muller it held that aliens, whether individuals or corporations, are disqualified from acquiring private lands.

Condominiums: the 40% rule

Condos are the main way foreigners own property outright. Under RA 4726 (the Condominium Act), Sec. 5, where the common areas are held by a condominium corporation, a unit can't be transferred to a foreigner if doing so would push alien interest in that corporation past the legal limit. The Supreme Court in Hulst v. PR Builders confirmed that foreigners may acquire condominium units and shares up to not more than 40% of the condominium corporation's capital stock.

In practice: before you pay a reservation fee, ask the developer or condominium corporation in writing whether the project's foreign quota still has room.

Long-term leases

  • Individuals (including retirees): PD 471 caps leases of private land to aliens at 25 years, renewable for another 25 upon mutual agreement. A contract that goes beyond this is void, and both parties face penalties.
  • Registered foreign investors: RA 12252 (approved 3 September 2025) amended the Investors' Lease Act. It allows an aggregate lease period of up to 99 years, but only for a foreign investor with an approved and registered investment (for example under the Foreign Investments Act or CREATE/CREATE MORE). The land must be used solely for that investment, and the lease must be registered and annotated on the title. Tourism projects need an investment of at least USD 5 million. The BOI reports that the implementing rules have been signed.
  • Important: the law says foreigners not investing under it remain covered by PD 471. A retiree leasing a home is still limited to 25 + 25 years.

The exceptions

1. Hereditary succession. A foreigner can inherit land as an heir. Interpreting the same constitutional wording, the Supreme Court held in Ramirez v. Vda. de Ramirez that the exception covers succession by operation of law (intestate), not a will leaving land to a foreigner.

2. Former natural-born Filipinos. Art. XII, Sec. 8 lets a natural-born Filipino who lost citizenship acquire private land, within limits set by law:

  • For a residence: up to 1,000 sq m of urban land or 1 hectare of rural land (BP 185).
  • For business or other purposes: up to 5,000 sq m urban or 3 hectares rural (RA 7042, Sec. 10 as inserted by RA 8179).
  • Under each law you may hold no more than two lots, in different cities or municipalities. A married couple shares one limit, and someone who acquires urban land can't also acquire rural land under the same law, and vice versa.

3. Reacquiring citizenship. Under RA 9225, natural-born Filipinos who became foreign citizens can reacquire Philippine citizenship by taking an oath. They then enjoy full civil and political rights, so they can own land like any Filipino. For former Filipinos, this is often the cleanest route.

Married to a Filipino?

Your Filipino spouse can own land, but you acquire no ownership right in it, even if your money paid for it. In Muller v. Muller, the Supreme Court refused to order reimbursement to a foreign husband who had funded a house and lot titled to his wife. As summarized in Matthews v. Taylor, the Court in Cheesman v. IAC held that an American husband acquired no right over land bought during the marriage and titled to his wife, so he could not undo her sale of it. Never put land in the name of a Filipino "dummy" or nominee. That can violate the Anti-Dummy Law (CA 108), on top of the constitutional ban.

Corporations: 60/40

A corporation at least 60% owned by Filipinos can own land, and foreigners can hold up to 40%. It works for genuine businesses, but arrangements that hand foreigners control the Constitution reserves to Filipinos are risky. Have counsel review the structure.

Retirees: using your SRRV deposit for a condo

If you hold an SRRV Classic, PRA allows the visa deposit to be converted into a condominium purchase in your name or a qualifying long-term lease worth at least USD 50,000, for residential use, with PRA's restriction annotated on the title (PRA conversion charter). See our SRRV requirements 2026 guide and our Retire in the Philippines page.

Taxes and costs when you buy

For a resale (a non-developer seller holding the property as a capital asset), the main transfer taxes are:

Tax or feeRate and basisSource
Capital gains tax6% of the gross selling price or fair market value, whichever is higher. Return due within 30 days of saleNIRC Sec. 24(D); Sec. 27(D)(5) for corporate sellers
Documentary stamp taxPHP 15 per PHP 1,000 (1.5%) of the price or fair market value, whichever is higherNIRC Sec. 196 (TRAIN)
Local transfer taxUp to 0.5% (provinces) or 0.75% (cities). Due within 60 days of the deedLocal Government Code Secs. 135, 151
Registration feesPer the Registry of Deeds/LRA scheduleLand Registration Authority

The Register of Deeds won't transfer the title until the BIR certifies that the taxes have been paid (NIRC Sec. 58(E)). By law, capital gains tax and local transfer tax fall on the seller, but parties often agree a different split, so put it in writing. Buying new from a developer is different: the sale is usually part of the developer's business, so other taxes such as VAT may apply instead of capital gains tax. Ask for an all-in price breakdown.

A CPA's due-diligence checklist

  1. Get a certified true copy of the title from the Registry of Deeds and read every annotation (mortgages, liens, adverse claims).
  2. Match the seller to the title. Check IDs, spousal consent, and a notarized special power of attorney if an agent signs.
  3. Check the real property tax clearance and the tax declaration with the city or municipal assessor.
  4. For pre-selling or new projects, confirm the developer's license to sell (PD 957, now administered by DHSUD) and get written confirmation of the 40% foreign quota.
  5. Compute all taxes before you sign, using the higher of price or fair market value, and agree in the contract who pays what.
  6. Document your money trail. Keep bank records of funds you remitted from abroad.
  7. Follow through to the new title in your name (or the registered lease annotation). Don't stop at a notarized deed.

Frequently asked questions

Can a foreigner buy a house and lot in the Philippines? Not the land. The Constitution reserves land to Filipinos and 60% Filipino-owned corporations, with exceptions for hereditary succession and former natural-born Filipinos.

Can foreigners buy a condo in the Philippines? Yes, as long as foreign ownership in the condominium corporation does not exceed 40% (RA 4726 and Hulst v. PR Builders).

Does the new 99-year lease law apply to retirees? No. RA 12252 covers foreign investors with an approved and registered investment, and the land must be used for that investment. Other foreigners remain under PD 471's 25 + 25-year limit.

Can I inherit land from my Filipino spouse? The Constitution allows transfers by hereditary succession. The Supreme Court has read this to cover intestate succession, not land left to a foreigner by will. Get legal advice for your situation.

I used to be Filipino. Can I buy land? Yes, within limits: 1,000 sq m urban or 1 hectare rural for a residence (BP 185), or 5,000 sq m urban or 3 hectares rural for business (RA 8179). If you reacquire citizenship under RA 9225, those limits no longer apply.

What taxes apply when buying a resale property? Typically 6% capital gains tax, 1.5% documentary stamp tax, a local transfer tax of up to 0.5% or 0.75%, and registration fees.

Talk to IPAC before you sign

IPAC's Real Estate Transactions & Documentation service helps foreign buyers, retirees and investors check titles, compute taxes, review documents and follow through to registration, working with licensed lawyers where legal opinions are needed. Investors can also see our International Business page.

Book a free consultation. Mobile: 0917 823 6858 Please text your full name, business name and business location first before calling.

IPAC is a consultancy. It is not a law firm, a government agency or a licensed real estate broker. This article is general information, not legal or tax advice for your specific situation.

About the author

Rodel Lacorte, CPA has been a Certified Public Accountant since 1993 and began his career at PwC Philippines (1992–1996). He has since run his own CPA practice, operated five Shell stations as a dealer for 20 years, founded Taza Mia Coffee in 2011, and led hydropower and land-development ventures. He founded IPAC to give business owners, investors and retirees practical, numbers-first advice. More about Rodel

Sources (viewed 27 October 2026)