Foreign Ownership of Land in the Philippines

Real Estate Ownership in the Philippines

Philippines real estate law does not allow outright ownership of real property by foreign nationals. Filipinos and former Filipino citizens and Philippine majority owned corporations are permitted to own land, buildings, condominiums and townhouses.

Foreign nationals may buy condominiums units in Philippine condos (shares in condominium corporations) as long as not more than 40% of the units in a project are acquired by foreigners (Republic Act 4726 , otherwise known as the Condominium Act).

Exceptions to the 40% Foreign Ownership of Philippine Real Property

  • Land Aquired before the 1935 constitution
  • Acquisition through hereditary succession if the foreigner is a legal or natural heir
  • Former natural-born Filipino citizen subject to the limitations prescribed by Law (Batas Pambansa 185  and R.A. 8179)

    1 - For residential purpose - 1,000 square meters of urban land or one (1) hectare of
         rural land (
    BP 185)
    2 - For business or other purpose - 5,000 square meters of urban land or three
          hectares of rural land.

Ownership Of Houses or Buildings by Foreigners in the Philippines

Foreigners my own buildings or houses in the Philippines legally; as long as they do not own the land on which it is built.

Foreign individuals, corporations or associations may lease land for a period of 25 years renewable for another 25 years. (P. D. No 471 , Fixing a Maximum Period for the Duration of Leases or Private Lands to Aliens)

Companies or individuals investing in the Philippines may receive government permission to lease land for up to 50 years renewable for another 25 years. (Republic Act No. 7652, otherwise know as the Investors’ Lease Act)



Dummy incorporator. There is a law known as the Anti-Dummy Law which punishes Filipinos and Foreigners for circumvention of the laws on the nationalization of certain rights, franchises or privileges. In simple terms a Filipino citizen who fronts for a Foreigner as the owner of land or a corporation which may not be foreign owned is considered a Dummy Shareholder and is open to the penalties of the law.





Foreigner's Guide

By law, foreigners don't have the right to acquire land in the Philippines (there have been many proposals to amend this law but of this writing, it is unlikely to change). The simplest way for a foreigner to acquire real estate properties is to have a Filipino spouse purchase a property. Another alternative is having a Filipino partner when acquiring a property. The partner owns 51% or more and the remainder is owned by the foreigner. (Tip: The foreigner can have a blank deed of sale signed by the Filipino partner for security)


Filipino citizens and corporations or partnerships that is at least 60% Philippine owned are entitled to acquire land in the Philippines. An exception to this rule, is foreign acquisition of a Philippine real estate in the following cases:

* Acquisition before the 1935 constitution.

* Acquisition thru hereditary succession if the foreign acquire is a legal or natural heir. This means that when you are married to a Filipino citizen and your husband/wife dies, you as the natural heir will become the legal owner of his/her property. The same is true for the children. Every natural child (legitimate or illegitimate) can inherit the property of his/her Filipino father/mother even if he/she is not a Filipino citizen.

* Purchase of not more than 40% interest in a condominium project.

* Purchase by a former natural-born Filipino citizen subject to the limitations prescribed by law. (natural born Filipinos who acquired foreign citizenship is entitled to own up to 1,000 square meter of residential land, and 1 hectare of agricultural or farm land) 

* Filipinos who are married to aliens who retain their Filipino citizenship, unless by their act or omission they have renounced their Filipino citizenship.

Owning of houses or buildings is legal as long as the foreigner does not own the land on which the house is build. 

Setting up a corporation with 40% of the stocks in the foreigner's name and 60% to Filipinos is a good alternative. There must be a minimum of 5 stockholders, and foreigner can have the Filipino stockholders sign blank transfer of the stocks for security.  


The land can be leased by the foreigner or a foreign corporation on a long term contract for an initial 50 year period and renewable every 25 years. A foreigner can rent a lot and at the same time legally own the house on the rented land.


The Condominium Act of the Philippines, R.A. 4726, expressly allows foreigners to acquire condominium units and shares in condominium corporations up to not more than 40 % of the total and outstanding capital stock of a Filipino owned or controlled condominium corporation.

Those who claim that foreigners can own a house & lot in the Philippines have a condominium title to their property. There are a very few single-detached homes or Townhouses in the Philippines with condominium titles. Most condominiums are high rise buildings. 

If you wish to stay permanently in the Philippines or if you frequent the Philippines and stay for long periods. Avail of the government's  Special Resident Retirement Visa (SRRV).


Malapascua Island 

Foreign Ownership of Land in the Philippines

Visayan Sea, Cebu, Philippines,

[Getting there]
[Lodging, Resorts]
[Island Map]
[Treasure Hunt]
[Sale, Real Estate]
[Terms of Use]