Buying a House in the Philippines

What foreigners can own, what it costs and how the purchase works

In short: As a foreigner – whether you are American, Australian, Canadian or European – you can buy a house in the Philippines, but not the land it stands on. The land is leased, for private individuals for up to 25 years with one renewal of another 25 years. A condominium unit, on the other hand, you can own outright. Know these rules, have every deal checked properly, and buying here is safe.

What can foreigners own in the Philippines?

The Philippine Constitution (Article XII, Section 7) reserves land ownership for Filipino citizens and for companies that are at least 60% Filipino-owned. That restriction does not apply to buildings. The result:

A full overview is in our guide What Can Foreigners Buy in the Philippines?

Your options at a glance

1. Buy the house, lease the land – the usual way

You buy the building, and the Filipino landowner leases the land to you. For private individuals, Presidential Decree 471 applies: a maximum of 25 years, renewable once for another 25 years if both sides agree. A contract with a longer term is void from the start.

What to look out for:

• Put the renewal option in writing in the contract, together with a right of first refusal in case the land is sold.
• Have the lease registered with the Registry of Deeds. It is then annotated on the land title and binds any future owner.
• The house gets its own tax declaration in your name. That makes clear the building belongs to you.

2. The new 99-year lease – does it apply to you?

Since September 2025, Republic Act 12252 allows leases of up to 99 years. That sounds like the answer for every house buyer, but it is not: the 99 years apply only to foreign investors with an approved and registered investment project. For tourism projects the minimum investment is 5 million US dollars. For foreigners who are not investing, the law expressly keeps PD 471 in place – 25 + 25 years.

For your private home this means: if someone offers you a “99-year lease” on an ordinary residential lot, be careful. A term beyond the legal limit puts the whole contract at risk.

3. A condo instead of a house

A condominium unit is the simplest way to real ownership. You receive your own title (CCT) in your name, with no lease. More in our guide Buying a Condo in the Philippines.

4. Buying through your Filipino spouse

Very common and legal: the land is registered in the name of your Filipino husband or wife. Important to know: the land then legally belongs to them alone, even if you paid for it. Divorce is only possible in exceptional cases in the Philippines, which does not make property disputes any easier. You can protect yourself with a registered lease or usufruct in your favour and with a will.

5. A company with Filipino majority ownership

A corporation that is at least 60% Filipino-owned may own land. Dummy arrangements, however, are a criminal offence under the Anti-Dummy Law. Only take this route with genuine Filipino partners and a lawyer – not as a trick to buy land.

6. Former Filipino citizens

Natural-born Filipinos who have taken another citizenship may own up to 1,000 sqm of urban land or 1 hectare of rural land for residential use (BP 185). If you are a former Filipino, ask about dual citizenship as well (RA 9225) – it restores full land ownership rights.

What does buying a house cost on top of the price?

Taxes are calculated on the highest of three values: the price in the deed of sale, the BIR zonal value or the fair market value in the tax declaration. Who pays what is negotiable. This split is common:

In short: as a buyer, plan for about 3–4% closing costs on top of the price. The seller usually pays the 6% capital gains tax and the broker.

Who is legally liable, which deadlines apply and a full example calculation are explained in our guide Taxes and Fees When Buying a House in the Philippines.

Every year you also pay real property tax (locally called “amilyar”). It is based on the assessed value and is usually low by Western standards. For the purchase and the taxes you will also need a Philippine tax identification number (TIN).

The process step by step

1. Choose your model and budget: house with a lease, condo, or purchase through your spouse? Everything else depends on this.
2. Find and view the property: in person or by video viewing from abroad.
3. Reservation: only pay a reservation fee against a written agreement that states clearly when it is refunded.
4. Due diligence: certified true copy of the title from the Registry of Deeds, tax declaration, proof of paid real property tax, boundaries surveyed by a geodetic engineer, right of way, zoning and flood risk. More in our guide Land Titles in the Philippines.
5. Contracts: deed of absolute sale for the house and a lease for the land, both notarised.
6. Pay the taxes: only once all taxes are paid to the BIR do you get the clearance for registration (eCAR). Deadlines and who pays what: Taxes and Fees.
7. Registration: have the lease annotated on the land title and a new tax declaration for the house issued in your name.

The most common mistakes

• Land in your girlfriend’s name: without marriage and without a registered right, you have nothing in your hands if things go wrong.
• Land without a title: especially in rural areas, “rights” are sold with only a tax declaration. A tax declaration is not proof of ownership.
• Unregistered lease: if the land is sold, a new owner can challenge your lease.
• Verbal agreements and paying up front: no written contract, no money.
• Building by the water: along shores and rivers there are legal easements that cannot be built on. Always check this with beach lots.
• Too much hurry: anyone who pushes usually has a reason. A legitimate sale can survive a week of checks.

Matching listings

Current houses can be found under House & Lot, lots by the sea under Beach Lots and condominium units under Condo.

Sources

• 1987 Constitution of the Philippines, Article XII, Section 7 (land ownership)
• Presidential Decree 471 (leases to foreigners, 25 + 25 years)
• Republic Act 12252 of 3 September 2025 (amending the Investors’ Lease Act RA 7652, up to 99 years)
• Republic Act 4726, Condominium Act (40% limit)
• Batas Pambansa 185 (land acquisition by former Filipino citizens)
• Bureau of Internal Revenue: Documentary Stamp Tax, Capital Gains Tax
• Land Registration Authority: Registry of Deeds, title verification

As of October 2026. This guide is not legal advice. Have the title and all contracts checked by a Philippine lawyer before you buy.

❓ Common Questions