Can American citizen buy property in the Philippines?

Last updated on June 18, 2025

Authored by the expert who managed and guided the team behind the Philippines Property Pack

buying property foreigner The Philippines

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Americans can legally own condominiums and houses in the Philippines, but cannot directly own land.

The property ownership laws for foreigners are specific and come with clear restrictions that every American investor needs to understand before making any purchase decisions in the Filipino real estate market.

If you want to go deeper, you can check our pack of documents related to the real estate market in the Philippines, based on reliable facts and data, not opinions or rumors.

Quick Summary:

Americans can own up to 40% of condominium units in any building and can own houses but must lease the land underneath for up to 50 years.

No residency or special visa is required for property purchase, and Americans can buy remotely through a Special Power of Attorney notarized at Philippine consulates.

Property Type	Ownership Rights	Key Restrictions
Condominium Units	Full ownership allowed	Maximum 40% foreign ownership per building
Houses/Buildings	Full ownership of structure	Land must be leased (50 years + 25 year renewal)
Land	No direct ownership	Long-term lease or corporate ownership only
Purchase Process	Remote buying allowed	Special Power of Attorney required if not present
Financing	Bank mortgages available	20-30% down payment, 6.8% average interest rates
Taxes & Fees	Multiple transfer costs	Total costs typically 2-3% of property price
Popular Areas	Metro Manila, Cebu, Davao	₱70,000-₱400,000 per sqm depending on location

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, The Philippines, Indonesia, Australia, etc.).

We are a team of financial experts, legal professionals, developers, and local real estate specialists dedicated to helping people like you avoid mistakes when investing in real estate in a foreign place, particularly in the Philippines. If you'd like to learn more about us, you can check our presentation page.

How this content was created 🔎📝

At BambooRoutes, we explore the Filipino real estate market every day. Our team doesn't just analyze data from a distance—we're actively engaging with local realtors, investors, and property managers in cities like Manila, Cebu, and Davao. This hands-on approach allows us to gain a deep understanding of the market from the inside out.

These observations are originally based on what we've learned through these conversations and our observations. But it was not enough. To back them up, we also needed to rely on trusted resources

We prioritize accuracy and authority. Trends lacking solid data or expert validation were excluded.

Trustworthiness is central to our work. Every source and citation is clearly listed, ensuring transparency. A writing AI-powered tool was used solely to refine readability and engagement.

To make the information accessible, our team designed custom infographics that clarify key points. We hope you will like them! All illustrations and media were created in-house and added manually.

Can Americans legally own land or property in the Philippines?

Americans cannot directly own land in the Philippines, but they can own certain types of property with specific restrictions.

The Philippine Constitution prohibits all foreigners, including American citizens, from owning land directly. This restriction applies to all non-Filipino citizens regardless of their visa status or length of residence in the Philippines.

However, Americans can legally own condominium units and house structures, subject to the ownership limitations set by Philippine law. The Condominium Act (RA 4726) allows foreigners to own up to 40% of the units in any condominium building, while the remaining 60% must be owned by Filipino citizens.

For houses, Americans can own the building structure itself but must lease the land underneath from a Filipino landowner. These land lease agreements can extend up to 50 years with the possibility of a 25-year renewal.

As we reach mid-2025, these ownership laws remain strictly enforced, and attempts to circumvent them through dummy arrangements or nominee schemes are illegal and heavily penalized.

What kind of properties can Americans buy in the Philippines—condos, houses, or land—and what are the legal limitations?

Americans can purchase condominium units and house structures, but face complete restrictions on direct land ownership.

Property Type	Ownership Rights for Americans	Legal Limitations
Condominium Units	Full ownership allowed	Foreign ownership cannot exceed 40% of total units in building
Houses/Buildings	Full ownership of structure	Land must be leased for maximum 50 years (renewable once for 25 years)
Residential Land	No direct ownership	Only through long-term lease agreements or corporate structures
Commercial Land	No direct ownership	Corporate ownership possible with 60% Filipino ownership requirement
Townhouses	Building ownership only	Same land lease requirements as standalone houses
Married to Filipino	Property in spouse's name	American spouse has no legal claim to land ownership
Corporate Ownership	Indirect ownership possible	Corporation must be minimum 60% Filipino-owned

Do Americans need to be residents or have a specific visa to buy property in the Philippines?

No residency requirements or specific visas are needed for Americans to purchase property in the Philippines.

Americans can buy condominiums and houses regardless of their visa status or whether they are residents of the Philippines. Tourist visa holders, temporary visitors, and non-residents all have the same property ownership rights under Philippine law.

However, if you plan to live in the Philippines long-term after purchasing property, you will need to obtain an appropriate visa for extended stay. Popular options include the Special Resident Retiree's Visa (SRRV) for those over 50, or various investment visas for business purposes.

The property purchase process itself does not grant any residency rights or visa privileges. These are separate legal processes that must be handled independently through the Bureau of Immigration.

Can Americans buy property in the Philippines without being physically present in the country?

Yes, Americans can purchase property in the Philippines remotely through a properly executed Special Power of Attorney.

The remote purchase process requires appointing a representative who can act on your behalf during the transaction. This representative must be granted authority through a Special Power of Attorney (SPA) that is notarized and authenticated at the nearest Philippine consulate in the United States.

The SPA must specifically outline the representative's authority to sign contracts, make payments, and complete all necessary documentation for the property purchase. Many Americans choose to appoint a trusted Filipino friend, relative, or professional service provider as their representative.

While remote purchasing is legally possible, some Philippine banks may require your physical presence for mortgage applications and account opening procedures. Cash purchases can typically be completed entirely through your appointed representative.

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What is the exact step-by-step process for an American to purchase property in the Philippines, and which documents are required?

The property purchase process involves eight distinct steps with specific documentation requirements at each stage.

1. **Property Research and Due Diligence** - Verify the property title, developer credentials, and legal status through the Registry of Deeds2. **Letter of Intent (LOI)** - Submit written expression of interest with proposed purchase terms and conditions3. **Reservation Fee Payment** - Pay ₱20,000 to ₱50,000 to reserve the property while finalizing the purchase agreement4. **Down Payment** - Provide 10% to 30% of the total purchase price as specified in the contract5. **Contract Signing** - Execute either a Contract to Sell (for pre-selling) or Deed of Absolute Sale (for ready units)6. **Tax and Fee Settlement** - Pay all required transfer taxes, documentary stamp tax, and registration fees7. **Title Transfer** - Register the new ownership with the Registry of Deeds and obtain the updated title8. **Tax Declaration Update** - Update the property's tax declaration with the local assessor's office**Required Documents:**- Valid U.S. passport- Philippine Tax Identification Number (TIN)- Alien Certificate of Registration (ACR) if residing in the Philippines- Proof of funds or income statements- Special Power of Attorney (if buying remotely)- Marriage certificate (if applicable)- Bank statements and financial records

Is hiring a local lawyer mandatory or just recommended when buying property as an American?

Hiring a local lawyer is not legally mandatory but is strongly recommended for due diligence and contract protection.

Philippine law does not require foreign buyers to engage legal counsel during property transactions. However, the complexity of property laws, title verification processes, and potential legal complications make professional legal guidance extremely valuable.

A qualified Philippine lawyer can conduct thorough title searches, verify property ownership history, review contracts for hidden clauses, and ensure compliance with foreign ownership regulations. They can also identify potential red flags such as pending legal cases, encumbrances, or fraudulent documentation.

Only licensed real estate brokers and salespersons can legally facilitate property transactions in the Philippines. Working with unlicensed individuals can void contracts and result in financial losses.

Legal fees typically range from ₱30,000 to ₱100,000 depending on property value and transaction complexity, representing a small but crucial investment in protecting your purchase.

What are the taxes, fees, and fiscal implications for Americans buying, owning, and eventually selling property in the Philippines?

Property transactions in the Philippines involve multiple taxes and fees that typically total 2% to 3% of the property's purchase price.

Tax/Fee Type	Rate	Paid By
Capital Gains Tax	6% of selling price	Seller
Documentary Stamp Tax	1.5% of selling price or fair market value	Buyer
Transfer Tax	0.5% to 0.75% of selling price	Buyer
Registration Fee	0.25% of selling price	Buyer
Annual Real Estate Tax	1% (Metro Manila) or up to 2% (provinces)	Owner
Special Education Fund	1% of assessed value annually	Owner
Rental Income Tax	Up to 23.94% for non-residents	Owner

**Additional Costs:**- Notary fees: ₱15,000 to ₱25,000- Legal fees: ₱30,000 to ₱100,000 - Broker commission: 3% to 5% of property value- Miscellaneous fees: ₱20,000 to ₱50,000

Can Americans get a mortgage from a Filipino bank, what are the conditions, current interest rates, and any tips to increase approval chances?

Americans can obtain mortgages from Philippine banks, though approval is easier for residents with local income sources.

As of June 2025, government-backed Pag-IBIG Fund offers home loans at 5.75% to 6.25% interest rates, while private banks typically charge around 6.80% for 5-year fixed-rate mortgages. Most lenders require a down payment of 20% to 30% of the property value.

Philippine banks evaluate foreign applicants based on local income, employment stability, and credit history. Americans working for multinational companies with Philippine operations or those with established local business income have significantly higher approval rates.

To increase approval chances, maintain strong proof of income documentation, consider adding a Filipino co-borrower, explore developer in-house financing options, and establish a relationship with the bank through deposit accounts before applying.

Some developers offer direct financing with more flexible terms than traditional banks, though interest rates may be slightly higher. These arrangements often require smaller down payments and have streamlined approval processes for foreign buyers.

infographics rental yields citiesthe Philippines

We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.

What are the most popular areas among Americans to settle in the Philippines, and why?

Metro Manila, Cebu City, and Davao City are the three most popular destinations for American expatriates and property investors.

**Metro Manila** attracts Americans due to its business opportunities, international schools, modern healthcare facilities, and established expat communities. Makati and Bonifacio Global City (BGC) offer Western-style amenities, high-end shopping, and easy access to international airports.**Cebu City** appeals to Americans seeking a more relaxed lifestyle while maintaining urban conveniences. The city offers excellent healthcare, international flights, strong English-speaking population, and proximity to beach destinations. The cost of living is significantly lower than Manila while providing comparable amenities.**Davao City** draws Americans looking for affordability, safety, and a growing economy. The city is known for its strict law enforcement, clean environment, and emerging business opportunities in agriculture and tourism sectors.**Clark/Pampanga** has gained popularity due to its proximity to Clark International Airport, former U.S. military presence creating familiar infrastructure, and significantly lower property prices compared to Manila.**Iloilo City** attracts Americans interested in emerging markets with strong educational institutions, growing technology sector, and authentic Filipino culture with minimal overtourism.

Which cities or regions currently have the best combination of livability, rental yield, tourism demand, and long-term capital appreciation for American investors?

Metro Manila business districts offer the highest rental yields and capital appreciation, while secondary cities provide better value and growth potential.

City/Region	Livability Score	Average Rental Yield	Capital Appreciation Potential
Makati/BGC	Excellent	6% to 8% annually	High (8-12% annually)
Cebu City	Very Good	7% to 9% annually	High (7-10% annually)
Davao City	Good	5% to 7% annually	Medium-High (6-8% annually)
Clark/Pampanga	Good	6% to 8% annually	High (8-11% annually)
Iloilo City	Good	5% to 7% annually	High (7-9% annually)
Baguio	Very Good	4% to 6% annually	Medium (5-7% annually)
Cagayan de Oro	Good	5% to 7% annually	Medium-High (6-8% annually)

What is the price range per square meter in the most relevant cities and regions for Americans like Manila, Cebu, Davao, and key tourist spots?

Property prices vary significantly across Filipino cities, with Metro Manila commanding premium prices and secondary cities offering better value propositions.

**Metro Manila (₱200,000 to ₱400,000 per sqm):**- Makati CBD: ₱300,000 to ₱400,000 per sqm- Bonifacio Global City: ₱280,000 to ₱380,000 per sqm - Ortigas Center: ₱200,000 to ₱300,000 per sqm- Quezon City: ₱120,000 to ₱200,000 per sqm**Cebu City (₱100,000 to ₱180,000 per sqm):**- IT Park area: ₱150,000 to ₱180,000 per sqm- Lahug district: ₱120,000 to ₱160,000 per sqm- City center: ₱100,000 to ₱140,000 per sqm**Davao City (₱80,000 to ₱150,000 per sqm):**- Lanang area: ₱120,000 to ₱150,000 per sqm- Downtown core: ₱80,000 to ₱120,000 per sqm**Secondary Cities:**- Clark/Pampanga: ₱90,000 to ₱150,000 per sqm- Iloilo City: ₱70,000 to ₱120,000 per sqm- Baguio: ₱100,000 to ₱180,000 per sqm**Tourist Destinations:**- Boracay beachfront: ₱150,000 to ₱300,000 per sqm- Palawan (Puerto Princesa): ₱80,000 to ₱150,000 per sqm- Bohol (Panglao): ₱100,000 to ₱200,000 per sqm

What are the most common mistakes or scams that Americans fall into when buying property in the Philippines, and how can they avoid them?

Americans frequently encounter title fraud, unlicensed brokers, and illegal dummy arrangements when purchasing Filipino property.

**Most Common Scams and Mistakes:**1. **Fake or Encumbered Titles** - Properties with forged documentation or existing liens that aren't disclosed to buyers2. **Unlicensed Brokers** - Working with individuals who lack proper PRC licensing and cannot legally facilitate transactions 3. **Dummy Arrangements** - Illegal nominee schemes where Filipinos hold land titles on behalf of foreigners4. **Below-Market Pricing** - Suspiciously cheap properties that often involve fraudulent documentation or legal complications5. **Incomplete Due Diligence** - Skipping proper title verification and background checks on properties and sellers6. **Advance Fee Fraud** - Demands for upfront payments before property viewing or contract signing**Prevention Strategies:**- Always verify titles directly with the Registry of Deeds and check for any pending legal cases- Work exclusively with PRC-licensed real estate professionals and verify their credentials online - Avoid any arrangements involving Filipino nominees or "dummy" ownership structures- Conduct thorough market research to identify realistic property values in your target area- Hire qualified legal counsel for contract review and title verification- Never make payments without proper documentation and legal safeguards in place- Visit properties personally or through trusted representatives before making purchase decisionsIt's something we develop in our Philippines property pack.

Conclusion

This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.

Americans can successfully purchase condominium units and house structures in the Philippines while navigating the legal restrictions on land ownership.

The key to successful property investment lies in understanding the 40% foreign ownership limit for condos, properly structuring land lease agreements for houses, and working with licensed professionals throughout the transaction process.