Authored by the expert who managed and guided the team behind the Philippines Property Pack
Yes, the analysis of Manila's property market is included in our pack
Foreigners can own condominium units in Manila but are generally prohibited from directly owning land. The 40% foreign ownership cap per building applies to all condominiums, while land ownership requires Filipino citizenship or corporation structures with majority Filipino ownership.
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.
Foreigners in Manila can purchase condominium units with full ownership rights, subject to a 40% foreign ownership limit per building. Land ownership is restricted to Filipino citizens, but foreigners can lease land for up to 50 years or own property through corporations with majority Filipino ownership.
Property purchases can be completed remotely through a Special Power of Attorney, with typical costs including 1.5% documentary stamp tax, 0.5-0.75% transfer tax, and various registration fees. Popular areas for foreign investment include Makati CBD, Bonifacio Global City, and Ortigas Center.
| Property Type | Ownership Rights | Key Restrictions |
|---|---|---|
| Condominium Units | Full ownership with CCT | 40% foreign ownership cap per building |
| Land | Prohibited | Filipino citizens only |
| Houses/Buildings | Structure only, not land | Must lease land separately |
| Land Lease | 50-year lease, renewable 25 years | Lease agreement required |
| Corporate Ownership | Through Philippine corporation | Minimum 60% Filipino ownership |
What kind of properties are foreigners actually allowed to buy in Manila compared to locals?
Foreigners in Manila can purchase condominium units with full ownership rights, but face significant restrictions compared to Filipino citizens.
Condominium units represent the most straightforward ownership option for foreigners. You can obtain a Condominium Certificate of Title (CCT) and enjoy complete ownership rights, provided the building hasn't exceeded the 40% foreign ownership cap. This means that in any given condominium building, only 40% of the total units can be owned by non-Filipino citizens.
Land ownership remains strictly prohibited for foreigners under the Philippine Constitution. Only Filipino citizens or corporations with at least 60% Filipino ownership can directly own land. This restriction extends to houses and buildings when they come with the underlying land.
However, foreigners can own the structure of a house or building separately from the land through legal arrangements. This typically involves a long-term land lease agreement where you lease the land and own the building constructed on it.
Filipino citizens, in contrast, can purchase any type of property without restrictions - condominiums, houses, land, or commercial buildings - with full ownership rights.
Are there any exceptions or workarounds that let foreigners own land, or is it strictly prohibited?
Land ownership is strictly prohibited for foreigners, but several legal workarounds exist to achieve similar outcomes.
The most common workaround is the long-term land lease arrangement. Foreigners can lease land for up to 50 years, with the option to renew for an additional 25 years. This 75-year total lease period provides substantial long-term security for property development or residence.
Corporation structures offer another pathway. Foreigners can own property through a Philippine corporation, but must maintain minority ownership - the corporation must be at least 60% owned by Filipino citizens. While you won't have direct personal ownership, you can have control and benefit from the property through your corporate share.
Hereditary succession provides a limited exception. If you become a legal heir to land owned by a Filipino citizen, you can inherit the property. However, this doesn't grant you the right to purchase additional land independently.
Marriage to a Filipino citizen doesn't automatically grant land ownership rights. While properties owned by your Filipino spouse may be jointly managed, you cannot independently own land through marriage alone.
Do different nationalities face different restrictions, or are the rules the same for all foreigners?
Property ownership restrictions are uniform for all foreigners regardless of nationality under Philippine law.
The Philippine Constitution applies the same limitations to all non-Filipino citizens. Whether you're American, British, Japanese, Chinese, or from any other country, you face identical restrictions: the 40% condominium ownership cap and prohibition from land ownership.
This uniform approach means that nationality-based preferences or special agreements don't exist in the Philippine real estate sector. The law treats all foreigners equally in terms of property ownership rights and restrictions.
However, certain visa programs may provide indirect advantages for property management and long-term residence. The Special Resident Retiree's Visa (SRRV) or Special Investor's Resident Visa (SIRV) can offer extended stay privileges that make property ownership more practical, but these don't change the fundamental ownership restrictions.
Some bilateral investment treaties between the Philippines and other countries may provide additional protections for foreign investors, but these typically focus on dispute resolution and investment protection rather than expanding ownership rights.
What kind of visa or residency status do I need in order to buy and own property in the Philippines?
No specific visa or residency status is required to purchase condominium units or enter into land lease agreements in Manila.
You can buy property as a tourist on a standard visitor visa. The Philippine government doesn't impose residency requirements for condominium ownership or land leasing, making property investment accessible even for non-residents.
However, longer-term visas provide significant advantages for property management and ongoing residence. The Special Resident Retiree's Visa (SRRV) offers multiple benefits including extended stay privileges, easier re-entry, and simplified property management procedures.
The SRRV requires a deposit of $50,000 for retirees aged 50 and above, or $20,000 for former Filipino citizens. This visa provides indefinite stay privileges and can be particularly valuable if you plan to use your Manila property as a primary or secondary residence.
Special Investor's Resident Visa (SIRV) caters to business investors and provides similar long-term residence benefits. While not specifically required for property purchase, these visas make ongoing property ownership more practical by eliminating visa renewal concerns.
Don't lose money on your property in Manila
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.
Do I need to be physically present in Manila to complete the purchase, or can I do it remotely with a representative?
Physical presence in Manila is not required to complete property purchases - transactions can be conducted entirely remotely through legal representation.
The Special Power of Attorney (SPA) mechanism allows you to appoint a trusted representative to act on your behalf throughout the entire purchase process. This representative can be a lawyer, licensed real estate broker, or trusted individual with legal authorization.
The SPA must be properly executed and notarized, preferably authenticated by the Philippine consulate in your country of residence. This document grants your representative the authority to sign contracts, make payments, and complete all necessary paperwork for the property transaction.
Remote transactions require careful documentation and communication. You'll need to review all contracts and documents digitally, provide authorization for each transaction step, and ensure secure payment transfer methods. Many buyers use online banking or wire transfers for down payments and final settlements.
While remote purchase is legally permissible and commonly practiced, some buyers prefer to visit Manila at least once during the process to personally inspect the property and meet key parties involved in the transaction.
What are the step-by-step procedures and documents required for a foreigner to buy property?
| Step | Procedure | Required Documents |
|---|---|---|
| 1 | Property Selection & Initial Offer | Offer to Purchase, Valid ID, Proof of Income |
| 2 | Due Diligence & Title Verification | Certificate of Title, Tax Declaration, Property Survey |
| 3 | Contract Execution | Contract to Sell, Special Power of Attorney (if applicable) |
| 4 | Payment Processing | Reservation Agreement, Down Payment Receipts |
| 5 | Final Documentation | Deed of Sale, Transfer Certificate of Title |
| 6 | Registration & Tax Payment | BIR Returns, Registry of Deeds Forms |
| 7 | Title Transfer Completion | New Condominium Certificate of Title |
Is hiring a lawyer mandatory, and if not, when is it strongly recommended?
Hiring a lawyer is not legally mandatory for property purchases in Manila, but it is strongly recommended for protecting your investment and ensuring legal compliance.
Legal counsel becomes particularly crucial during the due diligence phase. A lawyer can verify property titles, check for encumbrances or liens, confirm tax compliance, and ensure the seller has clear ownership rights. This verification process protects you from purchasing properties with disputed ownership or outstanding legal issues.
Contract review and negotiation represent another critical area where legal expertise proves valuable. Philippine property contracts often contain complex terms and conditions that may not be familiar to foreign buyers. A lawyer can explain these terms, suggest modifications, and ensure your interests are protected.
For remote purchases, legal representation becomes even more important. Your lawyer can act as your local representative, coordinate with other parties, and ensure all procedures are completed correctly in your absence.
Complex transactions involving corporate ownership structures, land lease arrangements, or disputed properties require mandatory legal assistance. The cost of legal counsel is typically modest compared to the protection and expertise provided.
Can foreigners get mortgages in Manila, and if yes, what are the rates, conditions, and tips to secure one?
Foreigners can obtain mortgages for condominium purchases in Manila, but options are limited and conditions are more restrictive than those for Filipino citizens.
Interest rates for foreign borrowers typically range from 5% to 7% per annum as of September 2025. These rates are generally higher than those offered to local citizens and may include additional fees for foreign applicant processing.
Down payment requirements are substantial, often ranging from 30% to 40% of the property value. This higher down payment requirement reflects the perceived higher risk associated with foreign borrowers and limited legal recourse options.
Loan tenures are typically shorter for foreigners, usually ranging from 10 to 20 years compared to the 25-30 year terms available to Filipino citizens. This shorter period results in higher monthly payments but reduces the total interest paid over the loan lifetime.
Documentation requirements are extensive and may include foreign income statements, employment contracts, bank statements from both local and foreign accounts, and proof of remittance capacity. Some banks require establishing a local banking relationship before considering mortgage applications.
It's something we develop in our Philippines property pack.
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 taxes, fees, and additional costs should I expect when buying and later reselling a property?
Property transactions in Manila involve multiple taxes and fees that can add 3-5% to your total purchase cost and 6-8% to your selling costs.
Purchase-side costs include documentary stamp tax at approximately 1.5% of the property value or zonal value, whichever is higher. Transfer tax ranges from 0.5% to 0.75% depending on the local government unit, while registration fees typically amount to 0.25% of the property value.
Additional purchase costs include notary fees (usually PHP 1,000-3,000), legal fees (typically 1-2% of property value), and real estate agent commissions (usually 5-6% paid by the seller but sometimes negotiated differently). Property inspection and appraisal fees may add another PHP 10,000-20,000.
When reselling, capital gains tax represents the largest cost at 6% of the sale price or Bureau of Internal Revenue zonal value, whichever is higher. This tax applies to all property sales regardless of how long you've owned the property.
Withholding tax may apply in certain situations, particularly for non-resident sellers. Real estate agent commissions (5-6%) are typically paid by the seller, along with various documentation and transfer fees similar to those paid during purchase.
Ongoing ownership costs include annual real estate tax (typically 0.5-2% of assessed value) and condominium association dues (varies widely but usually PHP 50-150 per square meter monthly).
Which neighborhoods or areas in Manila are most attractive for foreigners to live, rent out, or see capital appreciation?
Central Business Districts offer the highest potential for capital appreciation and rental yields due to strong demand from expats and Filipino professionals.
Makati CBD remains the premier choice for foreign investors, featuring established infrastructure, international companies, and a large expatriate community. Properties in this area command premium prices but offer strong rental yields and consistent appreciation potential.
Bonifacio Global City (BGC) in Taguig has emerged as Manila's most modern business district, attracting multinational corporations and affluent residents. The area offers high-quality infrastructure, international schools, and premium shopping centers, making it particularly attractive for families and business executives.
Ortigas Center provides a middle-ground option with good connectivity, established business presence, and more moderate pricing than Makati or BGC. This area appeals to investors seeking solid returns without premium pricing.
Tourism-oriented areas like Malate and Ermita offer opportunities for short-term rental income due to proximity to cultural sites, universities, and entertainment districts. However, these areas may have more variable rental demand and require active management.
Growth corridors including parts of Quezon City near major business districts and Mandaluyong offer potential for future appreciation as infrastructure development continues. These areas typically offer lower entry prices but may require longer investment horizons.
What are the typical price ranges for properties across different parts of Manila and nearby regions?
| Area | Price per Square Meter (PHP) | Typical Unit Size (sqm) |
|---|---|---|
| Makati CBD | 200,000 - 350,000 | 25-60 |
| Bonifacio Global City | 220,000 - 380,000 | 30-80 |
| Ortigas Center | 150,000 - 250,000 | 25-55 |
| Quezon City | 90,000 - 180,000 | 20-50 |
| Manila (Malate/Ermita) | 80,000 - 160,000 | 20-45 |
| Mandaluyong | 120,000 - 200,000 | 25-50 |
| Pasay/Parañaque | 100,000 - 180,000 | 22-48 |
What are the most common mistakes or pitfalls foreigners make when buying property in the Philippines, and how can they be avoided?
The most critical mistake foreigners make is purchasing properties with unclear or disputed titles, which can result in complete loss of investment.
Title verification failures occur when buyers don't conduct thorough due diligence on property ownership history. Always insist on seeing the original Certificate of Title, verify it with the Registry of Deeds, and check for any annotations indicating liens, mortgages, or legal disputes.
Underestimating total costs represents another common pitfall. Many foreigners focus only on the property price without accounting for the 3-5% in additional taxes, fees, and legal costs. Create a comprehensive budget that includes all transaction costs, ongoing maintenance, and potential management fees.
Failing to verify the foreign ownership ratio in condominium buildings can lead to purchase contract cancellation. Always confirm that the building hasn't exceeded the 40% foreign ownership cap before signing any agreements.
Working with unlicensed brokers or developers creates legal and financial risks. Verify that your real estate agent holds a valid Professional Regulation Commission (PRC) license and that developers have proper permits and good track records.
Remote purchase mistakes include inadequate documentation of Special Power of Attorney arrangements and insufficient communication with local representatives. Ensure your SPA is properly executed and authenticated, and maintain regular contact with your local representative throughout the process.
It'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.
Foreign property ownership in Manila offers genuine opportunities through condominium purchases, despite land ownership restrictions.
Success requires thorough due diligence, proper legal representation, and understanding of the 40% foreign ownership cap per building.
Sources
- EmerHub - Buying Property in the Philippines as a Foreigner
- Respicio Law - Foreign Real Estate Ownership Restrictions
- Lord Law - Foreign Ownership of Real Estate
- International Surf Properties - Buying Property as a Foreigner
- MyHouse.ph - Can Foreigners Buy Property in the Philippines
- NDV Law - How Can a Foreigner Own a House in the Philippines
- Juwai - Philippines Property Investment Guide
- Lawyer Philippines - Permanent Visa and Property Purchase