How to move to Philippines and buy a property?

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 the Philippines. If you'd like to learn more about us, you can check our presentation page.

How straightforward is it for a foreigner to move to the Philippines compared to western countries?

Moving to the Philippines as a foreigner is considerably easier than relocating to most western countries due to multiple accessible visa pathways and less restrictive immigration policies.

The Philippines offers several long-term visa options that don't require massive investments or complex qualification processes. The Special Resident Retiree's Visa (SRRV) requires deposits starting from $20,000, which is significantly lower than golden visa programs in Europe that often demand €250,000 to €500,000 investments.

Unlike western countries that may require years of temporary residency before permanent status, the Philippines allows immediate long-term residency through programs like SRRV and SIRV. The bureaucratic processes, while sometimes slow, are generally more straightforward than navigating immigration systems in countries like the United States, Canada, or Australia.

The language barrier is minimal since English is widely spoken and is an official language alongside Filipino. This eliminates the language proficiency requirements that many western countries impose on immigrants.

As of September 2025, processing times for most Philippine visas range from 1-3 months, compared to 6-24 months for equivalent programs in western nations.

What visas or permits are needed to live in the Philippines long-term, and which ones are optional?

What documents should I prepare before starting the moving and property buying process?

Document preparation is crucial for a smooth relocation and property purchase process in the Philippines.

Essential documents for relocation include a valid passport with at least 6 months validity, birth certificate (authenticated by Philippine consulate), police clearance from your home country, medical certificate, and proof of financial capacity. For married applicants, you'll need a marriage certificate authenticated by the Philippine consulate or embassy.

For property purchases, the core documents are your passport with proof of legal entry, Alien Certificate of Registration (ACR I-Card), Tax Identification Number (TIN) from the Bureau of Internal Revenue, and comprehensive proof of funds including bank statements and income documentation.

Additional property-specific documents include the Deed of Sale, Transfer Certificate of Title, Tax Declaration, and Tax Clearance Certificate. If buying through a spouse, you'll need your authenticated marriage certificate and your spouse's Filipino citizenship documents.

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

Can I start or complete the property buying process without being physically in the Philippines?

You can initiate the property buying process remotely, particularly with new developments, but physical presence or legal representation is required for completion.

Many developers allow initial reservations and deposits through online platforms, international wire transfers, and digital documentation. Pre-selling condominiums often accommodate overseas buyers through virtual tours, digital contracts, and remote payment processing.

However, final transactions require either your physical presence or a trusted attorney with a Special Power of Attorney (SPA). Critical steps like signing the Deed of Sale, transferring titles, and registering the property with the Registry of Deeds typically mandate in-person participation or authorized representation.

If using an SPA, ensure your attorney is licensed by the Philippine Bar, has specific real estate experience, and provides detailed transaction reports. The SPA document itself must be authenticated by the Philippine consulate in your home country.

Bank account opening for property transactions generally requires physical presence, though some banks offer preliminary account setup for qualified applicants through their international branches.

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What property types can foreigners buy, and what is completely off-limits?

Foreigners can legally own condominium units, buildings, and leasehold rights, but direct land ownership is strictly prohibited by the Philippine Constitution.

Condominium ownership is limited to 40% foreign ownership per building or development project. This means if a building has 100 units, only 40 can be foreign-owned. Once this quota is reached, additional foreign buyers must wait for existing foreign owners to sell.

Foreigners can own the building structure on leased land through long-term lease agreements, typically 25-50 years with renewal options. However, the land itself must be owned by a Filipino citizen or a corporation with at least 60% Filipino ownership.

Prohibited transactions include direct land purchases, agricultural land ownership (reserved for Filipino citizens), and residential lots in subdivisions unless through a Filipino spouse or qualifying corporation structure.

Townhouses present a complex situation - foreigners can own the structure but not the small land plot it sits on, requiring lease agreements or corporate ownership structures that comply with foreign investment laws.

Where do foreigners typically buy property in the Philippines, and why are these areas attractive?

1. Metro Manila - Business hub with international schools, hospitals, shopping centers, and the largest expat community. Makati, Bonifacio Global City, and Ortigas offer premium condominiums with modern amenities.
2. Cebu - Second largest city with growing IT sector, direct international flights, and lower costs than Manila. Popular areas include IT Park, Lahug, and beachfront locations in Mactan.
3. Davao - Safest major city with excellent infrastructure, international airport, and proximity to beaches and mountains. Attracts retirees and business investors.
4. Subic Bay - Former US naval base with tax incentives, established expat community, and high security standards. Popular for both residence and business.
5. Palawan (Puerto Princesa/El Nido) - Tourism-focused with stunning natural beauty, but limited infrastructure and seasonal rental markets.
6. Boracay - Premier beach destination with strong rental potential, though subject to environmental regulations and seasonal fluctuations.
7. Baguio - Mountain city with cooler climate, popular with retirees seeking escape from tropical heat and pollution.

Are real estate agents reliable, and what should I watch out for?

Real estate agent reliability varies significantly in the Philippines, requiring careful screening and verification before engagement.

Licensed agents should hold valid Professional Regulation Commission (PRC) licenses and be affiliated with accredited real estate companies. Always verify agent credentials through the PRC website and check their company's SEC registration and business permits.

Red flags include agents pushing immediate decisions without proper due diligence, requesting large upfront payments outside official channels, showing properties without proper owner authorization, or avoiding questions about title verification and legal documentation.

Reliable agents provide comprehensive market analysis, assist with legal document verification, coordinate with reputable lawyers and banks, and maintain transparent communication throughout the transaction process. They should freely share client references and have established relationships with legal and financial professionals.

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

Does the legal system protect foreign buyers, and what precautions should I take?

The Philippine legal system provides basic protections for foreign property buyers, but the risk level is higher than most western countries, requiring extra precautionary measures.

Legal protections include registered property titles through the Registry of Deeds, contract law enforcement through the court system, and consumer protection regulations. However, judicial processes can be slow, expensive, and sometimes unpredictable.

Essential precautions include conducting comprehensive title searches through the Registry of Deeds, verifying that sellers have clean ownership with no liens or encumbrances, and ensuring all taxes are current. Always engage licensed lawyers specializing in real estate law and avoid transactions that seem too good to be true.

Common scams include fake titles, properties sold by non-owners, undisclosed liens or mortgages, and subdivisions without proper permits. Professional due diligence services can verify property legitimacy, survey boundaries, and confirm zoning compliance.

Consider title insurance where available, maintain detailed documentation of all transactions, and use escrow services for large payments to minimize fraud risks.

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 common mistakes foreigners make when buying Philippine property?

The most critical mistake is attempting to buy land directly, which violates Philippine law and can result in property forfeiture and legal penalties.

Financial mistakes include underestimating total transaction costs, failing to budget for ongoing maintenance and association dues, and not securing adequate insurance coverage. Many foreigners also rush purchases without proper market research, overpaying for properties in less desirable locations.

Documentation errors include accepting properties with unclear titles, not verifying tax payments, and failing to register transfers properly with government agencies. Skipping professional inspections for structural issues, termites, and building code compliance often leads to expensive surprises.

Legal oversights include not understanding condominium corporation bylaws, ignoring zoning restrictions, and failing to secure proper permits for renovations. Many buyers also neglect to establish relationships with local legal and tax professionals before making purchases.

Investment mistakes include buying in oversupplied markets, ignoring rental yield potential, and not considering long-term exit strategies for property disposal or inheritance planning.

How long does the complete process take from start to ownership?

What are all the taxes, fees, and extra costs involved?

Total transaction costs typically range from 8-12% of the property purchase price, significantly higher than many western countries.

Transfer taxes include the Documentary Stamp Tax at 1.5% of the property value or zonal value (whichever is higher), Transfer Tax ranging from 0.5% to 0.75% depending on location, and Registration Fees of approximately 0.25% of the property value.

Professional fees encompass real estate agent commissions (typically 5-6% split between buyer and seller), lawyer fees for document preparation and verification (₱50,000-₱150,000 depending on complexity), and notary fees for document authentication.

Government processing includes Capital Gains Tax at 6% (paid by seller but sometimes negotiated to buyer), Creditable Withholding Tax, and various municipal permits and clearances totaling ₱10,000-₱30,000.

Ongoing costs include annual Real Property Tax (0.2-2% of assessed value), condominium association dues (₱100-₱500 per square meter monthly), property management fees, and homeowner's insurance premiums.

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

Can I buy with cash or get a mortgage as a foreigner, and what are the conditions?

Cash purchases are the most common and straightforward method for foreigners buying Philippine property, while mortgage financing is extremely limited and restrictive.

Cash transactions allow faster processing, stronger negotiating positions, and elimination of complex bank requirements. Funds can be transferred through international wire transfers, with banks typically requiring source documentation for amounts exceeding $10,000.

Mortgage options for foreigners are rare, with only select banks like BDO, BPI, and Metrobank offering limited programs. Interest rates range from 6-10% annually, requiring 30-40% down payments and proof of stable local income or significant collateral.

Qualification requirements include demonstrated income of at least ₱100,000 monthly, existing bank relationships in the Philippines, valid long-term visa status, and comprehensive financial documentation. Loan terms typically max out at 15-20 years compared to 25-30 years for Filipino citizens.

Alternative financing includes developer payment plans for new projects, allowing 12-60 month installment schedules, though these often carry premium pricing and require full payment before title transfer.

Is there a path from property ownership to residency or citizenship?

Property ownership alone does not provide any pathway to Philippine residency or citizenship - these are completely separate processes with distinct requirements.

Residency options remain the same regardless of property ownership: SRRV for retirees with $20,000+ deposits, SIRV for investors with $75,000+ business investments, work visas through employment, or marriage to Filipino citizens. Property ownership may demonstrate financial stability but doesn't substitute for visa requirements.

The SIRV program requires active business investment in approved sectors rather than passive real estate ownership. Qualifying investments include manufacturing, mining, fishing, forestry, or tourism-related businesses that contribute to economic development.

Citizenship pathways are extremely limited for foreigners. Naturalization requires 10+ years of continuous residency, fluency in Filipino or local languages, and renunciation of previous citizenship since the Philippines generally doesn't allow dual citizenship for naturalized citizens.

Marriage to a Filipino citizen provides the most direct path to permanent residency through the 13A visa, eventually leading to naturalization eligibility after meeting residency and other requirements.

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. Veronica Hanson - Moving to Philippines Guide
2. VisaGuide World - Philippines Long Stay Visa
3. Philippine Embassy - Visa Categories
4. Siam Relocation - Philippines Expatriation Guide
5. TransferGo - Buying Property in Philippines
6. Company Formation Philippines - Long Stay Visa
7. AP Residences - Documents for House Buying
8. Filepino - Real Estate Deed Transfer
9. Expatra - Moving to the Philippines
10. Wise - Moving to Philippines as American