Authored by the expert who managed and guided the team behind the Philippines Property Pack
Everything you need to know before buying real estate is included in our The Philippines Property Pack
Americans can legally buy houses and condominiums in the Philippines, but cannot directly own land.
As of June 2025, foreigners including Americans can own condominium units and lease land for up to 50 years renewable for another 25 years. The Philippines residential property market offers attractive opportunities for American buyers, particularly in Metro Manila, Cebu, and beach destinations where prices range from ₱60,000 to ₱400,000 per square meter depending on location and property type.
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.
Americans can purchase condominium units and houses in the Philippines but are restricted from owning land directly.
Property purchases can be completed remotely with proper legal representation, and mortgages are available with 70-80% loan-to-value ratios at 5-8.5% interest rates.
| Property Type | Ownership Rights | Key Restrictions |
|---|---|---|
| Condominium Units | Full ownership allowed | Foreign ownership limited to 40% per building |
| Houses/Buildings | Can own structure | Cannot own underlying land |
| Land | Leasehold only | 50-year lease renewable for 25 years |
| Through Corporation | Indirect ownership | Corporation must be 60% Filipino-owned |
| Price Range (per sqm) | ₱60,000-₱400,000 | Varies by location and property type |
| Mortgage LTV Ratio | 70-80% | 20-30% minimum down payment required |
| Interest Rates | 5-8.5% | Fixed for 1-5 years typically |
Can Americans legally buy a house in the Philippines, or are there restrictions compared to locals?
Americans can legally buy houses and buildings in the Philippines, but face significant restrictions compared to Filipino citizens.
Foreign nationals including Americans can own the physical structure of a house or building but cannot directly own the land underneath it. This means you can purchase a house and own it fully, but the land must be leased or owned through alternative legal structures.
Filipino citizens enjoy unrestricted property ownership rights and can buy both land and buildings without any limitations. Americans must navigate the 40% foreign ownership rule for condominiums and are limited to long-term lease arrangements for land ownership.
The restriction stems from the Philippines Constitution Article XII, which reserves land ownership to Filipino citizens and corporations that are at least 60% Filipino-owned. This constitutional provision has been in place since 1987 and remains unchanged as of mid-2025.
Despite these restrictions, the Philippines residential property market remains attractive to American buyers due to affordable prices, English-speaking population, and strong rental yields in major cities.
Can Americans own land in the Philippines, or are they limited to certain types of property like condos or leaseholds?
Americans cannot directly own land in the Philippines but have several property ownership options available.
| Ownership Type | What Americans Can Own | Key Limitations |
|---|---|---|
| Condominium Units | Full ownership of unit and share of common areas | Foreign ownership cannot exceed 40% of total units in building |
| Leasehold Land | 50-year lease renewable for 25 years | Cannot own land title, only lease rights |
| Corporate Ownership | Land through Filipino corporation | Corporation must be minimum 60% Filipino-owned |
| House/Building Only | Structure built on leased land | Land remains under lease agreement |
| Inheritance | Land inherited from Filipino spouse | Must sell within reasonable period unless naturalized |
| Former Citizens | Up to 5,000 square meters residential | Only for former Filipino citizens who lost citizenship |
| Mixed-Use Developments | Residential portions of approved projects | Subject to Foreign Investment Act regulations |
What are the residency or visa requirements for an American to purchase property in the Philippines?
Americans do not need to be residents or hold specific long-term visas to purchase property in the Philippines.
Tourist visa holders can buy condominium units and enter into lease agreements for land. The Bureau of Internal Revenue (BIR) requires foreign buyers to obtain a Tax Identification Number (TIN), but this is part of the purchase process rather than a residency requirement.
Americans planning to live in their Philippines property should consider obtaining a Special Resident Retiree's Visa (SRRV) for those 50 years and older, or a Special Investor's Resident Visa (SIRV) for younger investors. The SRRV requires a $10,000 to $50,000 deposit depending on age and military veteran status.
Marriage to a Filipino citizen provides a pathway to permanent residency but doesn't grant automatic land ownership rights. However, it allows the Filipino spouse to own land while the American spouse can own the house structure.
As we reach mid-2025, visa processing times have normalized post-pandemic, with most applications taking 30-60 days for approval through Philippine consulates or embassies in the United States.
Do Americans need to be physically present in the Philippines to buy real estate, or can it be done remotely?
Americans can successfully purchase Philippines real estate remotely using a Special Power of Attorney (SPA).
Remote purchases are particularly common for pre-selling condominium units and off-plan developments where buyers make staged payments over 12-36 months. The SPA must be notarized at a Philippine consulate in the United States and authenticated by the Department of Foreign Affairs in the Philippines.
Your appointed attorney-in-fact can handle contract signing, payments, and documentation on your behalf. However, you must personally appear for the final deed signing and title transfer, or grant specific authority for these actions in your SPA.
Many American buyers visit the Philippines for initial property viewing and due diligence, then complete the purchase remotely. This approach allows you to verify the property condition, developer reputation, and legal documentation before committing to the purchase.
Virtual property tours, drone footage, and video calls with local real estate agents have become standard practice since 2023, making remote purchases more viable for Americans who cannot travel frequently to the Philippines.
What documents and step-by-step process are required for Americans to legally buy property in the Philippines?
Americans need specific documentation and must follow a structured process to legally purchase Philippines property.
Required documents include a valid US passport, Tourist or appropriate visa, Alien Certificate of Registration (ACR) if staying over 59 days, Tax Identification Number (TIN) from the Bureau of Internal Revenue, and proof of funds through bank statements or foreign exchange documentation.
The purchasing process follows these steps: conduct due diligence on property title and developer background, submit Letter of Intent with reservation fee of ₱20,000-₱50,000, review and sign the Contract to Sell or Deed of Absolute Sale, make down payment typically 10-30% of purchase price, arrange financing if needed, and pay balance according to payment schedule.
Final steps include paying transfer taxes and fees (buyer pays 0.5-0.75% transfer tax, 0.25-1% registration fee, and notary fees), registering the deed with the Registry of Deeds, and updating tax declaration with the local Assessor's Office.
It's something we develop in our Philippines property pack.
Don't lose money on your property in the Philippines
100% of people who have lost money there have spent less than 1 hour researching the market. We have reviewed everything there is to know. Grab our guide now.
Is hiring a lawyer or a local representative mandatory or strongly recommended for American buyers?
Hiring a Philippines lawyer is not legally mandatory but strongly recommended for American property buyers.
Real estate lawyers charge ₱50,000-₱150,000 ($900-$2,700) for complete transaction services including title verification, contract review, and registration assistance. This cost typically represents 0.5-1% of the property value and provides essential protection against common issues like fake titles, undisclosed liens, or fraudulent sellers.
Lawyers perform critical due diligence services including verifying clean title through the Registry of Deeds, checking for tax delinquencies with local assessors, confirming building permits and certificates of occupancy, and reviewing condominium corporation bylaws for foreign ownership compliance.
Many American buyers also engage licensed real estate brokers who can provide market insights and negotiate prices. Licensed brokers must display their Professional Regulation Commission (PRC) license and Real Estate Service Act (RESA) registration.
Without legal representation, Americans risk common scams including duplicate title schemes, overpriced properties sold to foreigners, and violations of foreign ownership restrictions that could void their purchase.
Can Americans get a mortgage in the Philippines, and what are the typical interest rates and conditions?
Americans can obtain mortgages from Philippines banks, but face stricter requirements than local borrowers.
As of June 2025, mortgage interest rates for foreigners range from 5.0% to 8.5% annually, with most banks offering fixed rates for 1-5 years before converting to variable rates. Loan terms typically extend 10-20 years, with some banks offering up to 25 years for well-qualified borrowers.
Foreign borrowers face loan-to-value (LTV) ratios of 70-80%, requiring minimum down payments of 20-30%. Monthly income requirements are typically 3-4 times the monthly amortization, and borrowers must demonstrate stable employment or business income for at least 2 years.
Major banks offering foreigner mortgages include BDO Unibank, Bank of the Philippine Islands (BPI), Metropolitan Bank & Trust Company (Metrobank), and Security Bank. Each institution has specific requirements for foreign borrowers including ACR registration, local income sources, and comprehensive financial documentation.
Processing time for foreign mortgage applications typically takes 45-90 days, compared to 30-45 days for Filipino citizens. Banks may require higher insurance coverage and guarantee deposits from foreign borrowers.
What are the tax implications for Americans buying, owning, and selling property in the Philippines?
Americans face tax obligations in both the Philippines and United States when buying, owning, and selling Philippines property.
Purchase taxes in the Philippines include transfer tax at 0.5-0.75% of property value paid by the buyer, registration fees of 0.25-1% of property value, and documentary stamp tax typically paid by the seller at 1.5% of property value or fair market value, whichever is higher.
Annual ownership requires payment of real property tax to the local government unit, typically 0.25-0.5% of assessed value for residential properties. Condominium owners also pay monthly association dues ranging from ₱50-₱200 per square meter depending on building amenities and location.
Upon sale, Filipino tax obligations include capital gains tax of 6% of selling price or fair market value (whichever is higher) paid by the seller, and documentary stamp tax of 1.5% of selling price paid by the seller. Transfer tax and registration fees are paid by the buyer.
US tax implications require Americans to report worldwide income including Philippines rental income and capital gains to the IRS. The US-Philippines Tax Treaty provides some relief from double taxation, but Americans should consult tax professionals familiar with both jurisdictions.
Where do Americans typically prefer to live or invest in the Philippines, and why?
Americans show strong preferences for specific Philippines locations based on lifestyle factors, expat communities, and English proficiency.
1. **Metro Manila Areas**: Makati Central Business District attracts Americans working in finance and business, with high-rise condominiums priced ₱200,000-₱400,000 per square meter. Bonifacio Global City (BGC) offers modern infrastructure and international dining options popular with younger American expats.2. **Cebu City**: The Queen City of the South draws Americans for its combination of urban amenities and beach access, with established expat communities and direct flights to major US cities. Property prices range ₱120,000-₱200,000 per square meter for condominiums.3. **Davao City**: Known as one of the safest large cities in Southeast Asia, Davao attracts American retirees seeking affordable living costs and excellent healthcare facilities. English is widely spoken, and property prices are significantly lower at ₱80,000-₱120,000 per square meter.4. **Beach Destinations**: Subic Bay and Clark offer special economic zone benefits and large American expat populations due to former US military presence. Boracay and Palawan attract lifestyle buyers and investors targeting the tourism rental market.5. **Tagaytay**: The cool climate and proximity to Manila make this mountain city popular for weekend homes and retirement properties, with prices ranging ₱100,000-₱180,000 per square meter.
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.
Which cities or regions currently offer the best mix of livability, capital appreciation potential, and rental yields for American buyers?
Metro Manila, Cebu, and select beach destinations provide the optimal combination of investment returns and livability for American buyers as of mid-2025.
| City/Region | Rental Yield | Capital Appreciation (5-year) | Livability Score |
|---|---|---|---|
| Makati/BGC | 4-6% annually | 8-12% annually | Very High |
| Cebu City | 5-7% annually | 6-10% annually | High |
| Davao City | 6-8% annually | 5-8% annually | High |
| Clark/Subic | 5-7% annually | 7-11% annually | High |
| Boracay | 8-12% annually | 4-7% annually | Medium |
| Palawan | 7-10% annually | 6-9% annually | Medium |
| Tagaytay | 4-6% annually | 5-8% annually | High |
What's the current price range of residential real estate per square meter across major Philippine cities and regions?
Philippines residential property prices vary significantly by location, property type, and development quality as of June 2025.
Metro Manila commands the highest prices with Makati Central Business District and Bonifacio Global City leading at ₱200,000-₱400,000 per square meter for luxury condominiums. Mid-range developments in these areas typically cost ₱150,000-₱250,000 per square meter, while house and lot packages range ₱120,000-₱250,000 per square meter.
Cebu City represents the second-tier market with condominium prices of ₱120,000-₱200,000 per square meter in prime areas like Ayala Business Park and IT Park. House prices range ₱80,000-₱150,000 per square meter depending on subdivision location and amenities.
Davao City offers more affordable options with condominium units priced ₱80,000-₱120,000 per square meter and houses ranging ₱60,000-₱100,000 per square meter. The city's growing business process outsourcing (BPO) sector drives consistent rental demand.
Beach destinations show premium pricing with Boracay and Palawan properties commanding ₱150,000-₱300,000 per square meter for condominiums and ₱100,000-₱200,000 per square meter for houses, driven by tourism and foreign buyer demand.
It's something we develop in our Philippines property pack.
What are the common mistakes or pitfalls Americans make when buying property in the Philippines, and how can they avoid them?
Americans frequently encounter specific pitfalls when purchasing Philippines property that can be avoided with proper preparation and local knowledge.
1. **Inadequate Due Diligence**: Many Americans fail to verify property titles thoroughly, leading to purchases of properties with liens, disputes, or fake documentation. Always hire a lawyer to conduct Registry of Deeds searches and verify land titles before signing any contracts.2. **Illegal Dummy Arrangements**: Some Americans attempt to circumvent land ownership restrictions by using Filipino citizens as nominal owners. These arrangements are illegal under Anti-Dummy Law and can result in property forfeiture and criminal charges.3. **Underestimating Total Costs**: Beyond the purchase price, Americans often overlook transfer taxes (0.5-0.75%), registration fees (0.25-1%), legal fees (₱50,000-₱150,000), and ongoing costs like association dues and property taxes.4. **Remote Purchases Without Verification**: Buying property sight unseen or based solely on online listings has led to situations where properties don't match descriptions or developers fail to deliver completed projects.5. **Ignoring Condominium Corporation Bylaws**: Foreign ownership restrictions at the building level can prevent purchases even when individual units are available. Always verify current foreign ownership percentage before making offers.6. **Currency Exchange Timing**: Large purchases require significant peso conversions, and Americans often lose money by not timing exchanges properly or using unfavorable exchange services.7. **Inadequate Insurance Coverage**: Many Americans underinsure their Philippines properties or fail to obtain appropriate coverage for natural disasters common in the region.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.
The Philippines property market offers compelling opportunities for American buyers willing to navigate ownership restrictions and legal requirements.
Success requires thorough due diligence, proper legal representation, and understanding of both Philippines and US tax obligations to maximize investment returns while ensuring legal compliance.
It's something we develop in our Philippines property pack.
Sources
- Regina Drury - Can United States Citizen Buy House or Land Philippines
- Emerhub - Buying Property in the Philippines as a Foreigner
- International Surf Properties - Buying Property in the Philippines as a Foreigner
- Respicio Law - Foreigner Acquiring Land in the Philippines
- Ziggurat Real Estate - 6 Ways Foreigners Can Own Land Buy Real Estate in the Philippines
- Lord Law - Foreign Ownership of Real Estate
- Global Property Guide - Philippines Buying Guide
- Wise - Buy House in Philippines