Buying and owning property in Central Luzon as a foreigner

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

Who is the author of this content?

BAMBOOROUTES

A team specialized in real estate investing in APAC countries (Japan, Thailand, 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 Central Luzon. 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 Philippine 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 Angeles, Clark, and Subic Bay. 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.

What types of property can foreigners legally buy in Central Luzon, and what are the restrictions compared to locals?

Foreigners can legally purchase condominium units in Central Luzon, with the restriction that foreign ownership cannot exceed 40% of any single condominium building.

You can also buy buildings that are not attached to land, such as commercial structures, provided the land beneath remains under Filipino ownership. Long-term lease arrangements offer another pathway, allowing foreigners to lease land for up to 50 years with a possible 25-year extension.

Direct land ownership remains completely prohibited for non-Filipinos under the Philippine Constitution. This means you cannot buy houses with land, vacant lots, or any property where land ownership is involved. Filipinos, in contrast, can own any type of real estate without restrictions.

It's something we develop in our Philippines property pack.

Are there any differences in rules between foreigners of different nationalities or visa statuses?

Property ownership rules apply equally to all foreign nationalities in Central Luzon and throughout the Philippines.

Your visa status does not affect your ability to purchase eligible property types. Whether you hold a tourist visa, work visa, retirement visa, or any other immigration status, the same 40% condominium ownership rule and land ownership prohibition apply.

The only distinction exists for former Filipino citizens who have acquired foreign citizenship. They may be eligible for different property rights under specific reacquisition programs, but this applies regardless of their current nationality.

Special economic zones like Clark and Subic Bay may offer additional investment incentives, but the fundamental property ownership rules remain consistent across all foreign nationals.

Do foreigners need permanent residency or a specific visa to purchase and own property?

No permanent residency or specific visa is required to purchase eligible property in Central Luzon as a foreigner.

You can buy a condominium unit while holding any valid visa status, including tourist visas. The property purchase process is completely separate from immigration requirements.

However, if you plan to live in your property long-term, you will need appropriate visas for extended stays. Popular options include the Special Resident Retiree's Visa (SRRV) for those over 50, or various work and investment visas.

The key requirement is having a valid passport and sufficient financial resources to complete the purchase. Banks may require proof of income and residency status if you apply for a mortgage, but this doesn't affect cash purchases.

Is it mandatory for a foreign buyer to be physically present in the Philippines during the transaction, or can it be handled remotely?

Physical presence is not mandatory for property purchases in Central Luzon, and transactions can be handled remotely through proper legal channels.

You can complete the entire purchase process by appointing a trusted representative with a Special Power of Attorney (SPA). This document must be notarized at a Philippine consulate or embassy in your home country.

Remote transactions require careful document preparation, including notarized copies of your passport, proof of funds, and signed purchase agreements. Your representative can handle property viewings, negotiations, and document submissions on your behalf.

While remote purchases are legally valid, many buyers prefer to visit at least once to view properties personally and meet with lawyers and brokers. This helps build trust and ensures you understand exactly what you're purchasing.

What are the step-by-step procedures and documents required to buy property as a foreigner?

The property purchase process in Central Luzon follows a structured sequence starting with property selection and ending with title transfer.

Step	Action Required	Key Documents
1. Property Selection	Choose property and verify 40% foreign ownership compliance	Building foreign ownership certificate
2. Reservation	Pay reservation fee (typically PHP 20,000-50,000)	Reservation agreement, valid passport
3. Due Diligence	Verify clean title and legal compliance	Condominium Certificate of Title, tax declarations
4. Contract Signing	Execute Deed of Absolute Sale	Notarized sales contract, TIN certificate
5. Payment	Pay balance and transfer taxes	Proof of funds, bank transfer receipts
6. Title Transfer	Register property with Registry of Deeds	New Condominium Certificate of Title
7. Final Registration	Complete Bureau of Internal Revenue registration	BIR Certificate Authorizing Registration

Is hiring a lawyer or legal representative required, or is it just recommended?

Hiring a lawyer is not legally mandatory but strongly recommended for foreign property buyers in Central Luzon.

Legal representation protects you from common fraud schemes, ensures proper due diligence, and verifies that all documents comply with Philippine law. Lawyers can identify issues like forged titles, tax liens, or violations of the 40% foreign ownership rule.

The cost of legal services typically ranges from PHP 30,000 to PHP 100,000 depending on property value and complexity. This investment often saves much larger amounts by preventing costly mistakes or fraudulent transactions.

Many experienced foreign buyers also engage licensed real estate brokers who understand foreign ownership requirements and can guide you through the process safely and efficiently.

Can foreigners get a mortgage in the Philippines, and if so, what banks offer them, under what conditions, and at what rates?

Foreigners can obtain mortgages from select Philippine banks, though conditions are considerably stricter than those for Filipino citizens.

HSBC Philippines and United Overseas Bank (UOB) are the primary lenders offering foreign mortgage products as of September 2025. These banks typically require higher down payments of 20-30% compared to 10-20% for locals.

Interest rates for foreign borrowers range from 6-7% annually, with loan terms usually limited to 15-20 years. Banks require proof of stable income, local residency or long-term visa status, and comprehensive financial documentation.

The mortgage application process can take 60-90 days, and banks often require additional collateral or guarantees. Many foreigners find cash purchases more straightforward, especially for properties under PHP 10 million.

It's something we develop in our Philippines property pack.

What are all the taxes, fees, and additional costs involved in buying, owning, renting out, and eventually selling property?

Property transaction costs in Central Luzon include several mandatory taxes and fees that buyers must budget for beyond the purchase price.

Transfer taxes range from 0.5% to 0.75% of the property value, while documentary stamp tax adds 1.5%. Registration fees cost 0.25% of the property value, and legal or broker fees typically add 2-5% to the total cost.

Annual property taxes vary by location but generally remain below 1% of assessed value. If you rent out your property, rental income is taxed at 20-25% for non-resident foreigners, with potential reductions through tax treaties.

When selling, you'll pay capital gains tax of 6% on the gross sale price, regardless of actual profit or loss. Additional transfer taxes and fees apply to the new buyer, but sellers may need to settle unpaid property taxes before completing the sale.

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 areas in Central Luzon are most popular with foreigners, and why?

Subic Bay Freeport Zone ranks as the most popular destination for foreign property buyers in Central Luzon due to its special economic status and established expat community.

Clark, including Angeles City, attracts significant foreign investment because of its proximity to Clark International Airport, established entertainment districts, and growing business process outsourcing sector. The area offers modern shopping centers, international restaurants, and reliable infrastructure.

Bataan province, particularly areas near Subic Bay, appeals to foreigners seeking beachfront properties and resort-style living. The region benefits from duty-free shopping, streamlined business processes, and natural attractions.

These areas offer established property management services, international healthcare facilities, and active expat communities that ease the transition for foreign residents. Infrastructure development and government investment continue to enhance their appeal.

Where are the best spots in Central Luzon for living, renting out, or capital appreciation, based on the latest data?

Clark and Angeles City offer the strongest rental yields in Central Luzon, with gross rental returns averaging 6-8% annually as of September 2025.

For capital appreciation, properties near major infrastructure projects like the New Clark City development show the highest growth potential. This planned smart city is expected to drive property values up by 15-20% over the next five years.

Subic Bay remains the top choice for livability, scoring highest on international amenities, security, and healthcare access. The area's tourism infrastructure supports strong short-term rental markets for investors.

Coastal areas in Bataan province offer the best combination of affordable pricing and appreciation potential, particularly as tourism development accelerates and new resort projects launch.

It's something we develop in our Philippines property pack.

What is the breakdown of property prices per city and province in Central Luzon right now?

Property prices in Central Luzon vary significantly by location, with Clark and Angeles City commanding the highest rates as of September 2025.

City/Area	Condo Price per sqm (PHP)	House Price per sqm (PHP)
Clark/Angeles City	120,000 - 150,000	40,000 - 60,000
Subic Bay Freeport	100,000 - 130,000	45,000 - 65,000
San Fernando, Pampanga	80,000 - 110,000	30,000 - 45,000
Malolos, Bulacan	90,000 - 120,000	35,000 - 50,000
Cabanatuan, Nueva Ecija	60,000 - 85,000	25,000 - 35,000
Bataan Coastal Areas	70,000 - 95,000	35,000 - 45,000
Tarlac City	55,000 - 75,000	20,000 - 30,000

What are the most common mistakes and pitfalls foreigners face when buying property, and how can they avoid them?

The most serious mistake foreigners make is attempting to circumvent land ownership laws through illegal "dummy" arrangements with Filipino nationals.

These schemes involve having a Filipino citizen hold title to land on behalf of a foreigner, which violates the Constitution and can result in property forfeiture. Always work within legal frameworks using proper condominium purchases or legitimate lease arrangements.

Other critical errors include:

1. Failing to verify the 40% foreign ownership limit in condominium buildings before purchase2. Not conducting proper title searches to confirm clean ownership and tax compliance3. Skipping building inspections and overlooking structural or maintenance issues4. Underestimating total costs including taxes, fees, and ongoing maintenance expenses5. Working with unlicensed brokers or lawyers who lack proper credentials and experience

Avoid these pitfalls by engaging licensed professionals, conducting thorough due diligence, and never rushing major financial decisions. Professional legal and real estate guidance costs significantly less than correcting expensive mistakes later.

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.

Sources

1. Veles Club - Philippine Property Investment Guide
2. Respicio Law - Foreign Real Estate Ownership Restrictions
3. Exiap - Buy Property in the Philippines Guide
4. Pro Realty Network - Philippines Property Buying Guide 2025
5. TransferGo - Buying Property in the Philippines
6. HSBC Philippines - Mortgage Calculator
7. UOB - Home Loan Services
8. Alasoplas CPAs - Tax Rules 2025