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Everything you need to know before buying real estate is included in our The Philippines Property Pack
Yes, we do answer your questions about buying property on Panay Island as a foreigner, and we update this article regularly to keep it accurate.
Panay Island is a popular destination for foreign buyers looking at Iloilo City condos, Boracay beachfront, and residential areas in Aklan, Antique, and Capiz provinces.
This guide explains the real rules, legal structures, and practical steps for buying residential property on Panay Island in 2026.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Panay Island.
Insights
- The Philippine Constitution prohibits direct land ownership by foreigners, yet approximately 40% of condominium buyers in Iloilo City developments like Iloilo Business Park are foreign nationals or overseas Filipinos, showing strong demand through legal alternatives.
- Republic Act 12252, signed in September 2025, extended the maximum lease term for foreign investors from 75 years to 99 years, making Panay Island more competitive with Singapore and Malaysia for long-term property investments.
- Residential property prices in Iloilo City currently range from 60,000 to 93,000 pesos per square meter (roughly 1,050 to 1,630 USD), making it one of the most affordable major city markets in the Philippines compared to Manila or Cebu.
- The Anti-Dummy Law (Commonwealth Act 108) carries penalties of up to 5 years imprisonment and property forfeiture, yet local lawyers estimate that 15% to 20% of foreigner-involved property deals on Panay Island still use risky nominee arrangements.
- Boracay Island in Malay, Aklan has unique foreshore complications where coastal strips within 20 meters of the high-tide line are public domain and cannot be privately owned, catching many foreign buyers off guard.
- The Panay-Guimaras-Negros Islands Bridge project, budgeted at 187.5 billion pesos, is expected to reduce travel time across the region from hours to under one hour, potentially boosting property values in connected areas by 2028.
- Western Visayas, which includes Panay Island, recorded 7.2% GDP growth in 2023, and OFW remittances to the region increased by 3% in the first half of 2024, driving sustained demand for residential property.
- Closing costs for land transactions on Panay Island typically range from 3% to 5% of the purchase price, including capital gains tax, documentary stamp tax, local transfer tax, and registration fees at the Registry of Deeds.
- Pre-selling condominium scams remain common in Panay Island, with Presidential Decree 957 requiring developers to register projects with DHSUD, yet buyers still lose deposits to unlicensed sellers in areas around Iloilo City and Boracay.
Can a foreigner legally own land in Panay Island right now?
Can foreigners own land in Panay Island in 2026?
As of early 2026, foreigners cannot legally own land outright on Panay Island because the Philippine Constitution reserves private land ownership exclusively to Filipino citizens and corporations that are at least 60% Filipino-owned.
The main land-ownership ban comes directly from Article XII, Sections 7-8 of the 1987 Constitution, which means no private contract or workaround can legally override this rule for residential lots in Iloilo City, Boracay, or anywhere else on Panay Island.
The closest legal alternatives for foreigners wanting to control residential property on Panay Island are condominium ownership (where the land is held by the condo corporation) or a long-term registered lease of land, which can now extend up to 99 years under Republic Act 12252 signed in September 2025.
The constitutional restriction applies to all foreigners regardless of nationality, so there is no preferential treatment for citizens of any particular country when it comes to land ownership on Panay Island.
Can I own a house but not the land in Panay Island in 2026?
As of early 2026, foreigners on Panay Island can legally own a house or building separately from the land if they hold a properly registered long-term lease on the land beneath it.
When a foreigner builds a house on leased land in Panay Island, they typically receive documentation showing ownership of the structure (improvements) while the land lease is recorded as an annotation on the land title at the Registry of Deeds.
When the underlying land lease expires on Panay Island, the fate of the building depends on what the lease contract says, so it is critical to negotiate clear terms about building ownership, compensation, or removal before signing.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
Do rules differ by region or city for land ownership in Panay Island right now?
The foreign land-ownership ban is a national constitutional rule that applies equally across all four provinces of Panay Island: Aklan, Antique, Capiz, and Iloilo.
What does vary significantly between local government units on Panay Island are the local transfer tax rates, zoning rules, and how strictly officials enforce documentation requirements, particularly in tourism-heavy areas like Boracay in Malay, Aklan.
These local differences exist because Philippine law allows provinces and cities to set their own tax ordinances and land-use policies within the national framework, which means closing costs and timelines can vary between Iloilo City and rural Capiz, for example.
We cover a lot of different regions and cities in our pack about the property market in Panay Island.
Can I buy land in Panay Island through marriage to a local in 2026?
As of early 2026, marriage to a Filipino citizen does not automatically grant a foreigner the right to own land on Panay Island, so the land must generally be titled in the Filipino spouse's name only.
Foreign spouses buying property through a Filipino partner on Panay Island should have clear documentation about the source of funds and the nature of the arrangement, ideally reviewed by a lawyer familiar with both property law and family law.
If the marriage ends in divorce or annulment in the Philippines, the foreign spouse typically has no direct claim to land titled in the Filipino spouse's name, though Philippine family law may allow for some division of conjugal property depending on the specific circumstances.
There is a lot of mistakes you can make, we cover 99% of them in our list of risks and pitfalls people face when buying property in Panay Island.
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
What eligibility and status do I need to buy land in Panay Island?
Do I need residency to buy land in Panay Island in 2026?
As of early 2026, residency status in the Philippines does not change the constitutional restriction on foreign land ownership, so even a permanent resident foreigner generally cannot own land on Panay Island.
For buying a condominium unit on Panay Island, no specific visa or residency permit is required, though you will need valid identification and typically a Philippine Tax Identification Number (TIN) to complete the transaction.
It is legally possible for a foreigner to buy property on Panay Island remotely through a Special Power of Attorney, but this approach requires extra caution because verifying the title and seller legitimacy from abroad is where most foreign buyers encounter problems.
Do I need a local tax number to buy lands in Panay Island?
In practice, you will need a Philippine Tax Identification Number (TIN) to complete most property transactions on Panay Island because the Bureau of Internal Revenue requires it for tax filings related to the sale.
Obtaining a TIN as a foreigner in the Philippines typically takes a few days to a few weeks, requiring a visit to a BIR Revenue District Office with your passport and a completed application form.
While not always legally mandatory, opening a local Philippine bank account is highly recommended for foreign buyers on Panay Island because it creates a clear payment trail and simplifies the transfer of funds for the transaction.
Is there a minimum investment to buy land in Panay Island as of 2026?
As of early 2026, there is no government-mandated minimum investment amount for foreigners to purchase condominium units or enter into land leases on Panay Island.
The practical minimum depends on market prices, with entry-level condominiums in Iloilo City starting around 2 to 3 million pesos (roughly 35,000 to 53,000 USD or 32,000 to 48,000 EUR), while Boracay properties typically command much higher prices.
Are there restricted zones foreigners can't buy in Panay Island?
Since foreigners generally cannot own land anywhere in the Philippines, the concept of "restricted zones" on Panay Island shows up more as areas where even leasing or condo buying becomes extra complicated.
The main restricted categories on Panay Island include foreshore and coastal public domain areas (especially around Boracay's beaches), agricultural land covered by agrarian reform, and areas with unresolved ancestral domain claims.
To verify whether a specific property on Panay Island falls within a restricted category, you should request a Certified True Copy of the title from the Registry of Deeds and have a local lawyer check for annotations indicating CARP coverage, foreshore classification, or other restrictions.
Can foreigners buy agricultural, coastal or border land in Panay Island right now?
Foreigners face significant restrictions across all three categories on Panay Island: agricultural land is constitutionally reserved for Filipinos and often subject to agrarian reform, coastal land may include public-domain foreshore, and border restrictions are less relevant since Panay is an island.
Agricultural land on Panay Island is particularly risky for foreign buyers because it may be covered by the Comprehensive Agrarian Reform Program (CARP), meaning it cannot be freely sold without DAR clearance, even to Filipino buyers.
Coastal land purchases around Boracay, Roxas City, and other Panay Island beach areas require extra scrutiny because the foreshore strip (typically within 20 meters of the high-tide line) is considered public domain and cannot be privately owned by anyone.
Since Panay Island has no international land borders, the more relevant "border-like" restriction is the coastline public domain issue, which affects many properties marketed as "beachfront" in tourism areas.
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What are the safest legal structures to control land in Panay Island?
Is a long-term lease equivalent to ownership in Panay Island right now?
A long-term lease on Panay Island is not ownership, but following the September 2025 passage of Republic Act 12252, foreign investors with registered projects can now secure land leases of up to 99 years, which provides near-ownership control for most practical purposes.
The maximum lease length for foreign investors on Panay Island is now 99 years under RA 12252 (up from the previous 50+25 year structure), though this applies to registered investment projects and the lease must be recorded with the Registry of Deeds to be enforceable.
Lease rights on Panay Island can generally be sold, transferred, or used as collateral if the lease contract explicitly permits this and proper registrations are completed, though you should always have a lawyer verify transferability before relying on it.
Can I buy land in Panay Island via a local company?
A foreigner can purchase land on Panay Island through a Philippine corporation only if that corporation is at least 60% owned by Filipino citizens, which means the foreigner can hold a maximum 40% stake in the land-owning entity.
Using a company structure where Filipino shareholders are merely placeholders while the foreigner exercises actual control is illegal under the Anti-Dummy Law and can result in criminal penalties plus forfeiture of the land.
What "grey-area" ownership setups get foreigners in trouble in Panay Island?
Local lawyers estimate that 15% to 20% of foreigner-involved property deals on Panay Island still use some form of grey-area arrangement, despite the serious legal risks involved.
The most common grey-area structures on Panay Island include putting land in a Filipino nominee's name with a secret side agreement, buying "tax declaration only" properties without proper Torrens titles, and purchasing agricultural land disguised as residential without DAR clearance.
If Philippine authorities discover a foreigner is using an illegal ownership structure on Panay Island, the consequences can include nullification of the sale, forfeiture of the property, and criminal prosecution under the Anti-Dummy Law with penalties of up to 5 years imprisonment.
By the way, you can avoid most of these bad surprises if you go through our pack covering the property buying process in Panay Island.
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.
How does the land purchase process work in Panay Island, step-by-step?
What are the exact steps to buy land in Panay Island right now?
The typical process for a foreigner buying property on Panay Island (whether a condo or through a qualified structure) involves: (1) obtaining a Certified True Copy of the title from the Registry of Deeds, (2) verifying encumbrances and seller authority, (3) signing a notarized deed, (4) paying BIR taxes (capital gains tax and documentary stamp tax), (5) paying local transfer tax, (6) registering with the Registry of Deeds for a new title, and (7) updating the tax declaration with the local Assessor's Office.
If the title is clean and all parties are responsive, the entire land purchase process on Panay Island typically takes 6 to 12 weeks from signing to final registration, though complications with heirs, missing documents, or DAR issues can extend this significantly.
The key documents you will sign during a Panay Island property purchase include the notarized Deed of Absolute Sale, BIR tax forms for capital gains tax and documentary stamp tax, and various registration forms required by the Registry of Deeds.
What scams are common when it comes to buying land in Panay Island right now?
What scams target foreign land buyers in Panay Island right now?
Property scams targeting foreigners are common on Panay Island, particularly in high-demand areas like Boracay and rapidly developing parts of Iloilo City where prices are rising and buyers feel pressure to act quickly.
The most common scams on Panay Island include selling properties with only tax declarations (not clean Torrens titles), double-selling the same lot to multiple buyers, pre-selling subdivision lots without DHSUD compliance, and marketing foreshore public domain as "beachfront you can own."
The top warning signs of a fraudulent land deal on Panay Island are: (1) the seller cannot produce a Certified True Copy of the title from the Registry of Deeds, (2) the price is significantly below market value with pressure to close fast, and (3) the seller discourages you from hiring your own lawyer or conducting independent verification.
Legal recourse for foreign scam victims on Panay Island exists through Philippine courts, but recovery is difficult, expensive, and time-consuming, which is why prevention through proper due diligence is far more effective than trying to recover losses after the fact.
We cover all these things in length in our pack about the property market in Panay Island.
How do I verify the seller is legit in Panay Island right now?
The best method to verify a land seller on Panay Island is to request a Certified True Copy (CTC) of the title directly from the Registry of Deeds and confirm that the seller's name and identification match the registered owner exactly.
To confirm a title is clean on Panay Island, carefully review the CTC for annotations showing mortgages, adverse claims, lis pendens (pending litigation), or other encumbrances that could affect your ownership.
You can check for existing liens, mortgages, or debts on Panay Island property by examining the title annotations and also verifying with the local Assessor's Office that real property taxes are current and there are no outstanding arrears.
The most essential professional for verifying seller legitimacy on Panay Island is a local real estate lawyer who can conduct independent title verification, check court records for disputes, and ensure all documents are properly executed.
How do I confirm land boundaries in Panay Island right now?
The standard procedure for confirming land boundaries on Panay Island before purchase is to hire a licensed geodetic engineer to conduct a relocation survey and compare the results against the technical description in the title.
The official documents you should review to verify land boundaries on Panay Island include the Transfer Certificate of Title (which contains a technical description with bearings and distances), the approved subdivision plan if applicable, and any existing survey plans on file with the DENR.
Hiring a licensed geodetic engineer is not legally required for all purchases on Panay Island, but it is strongly recommended, especially for lots outside established subdivisions where fences and "local knowledge" often do not match the legal boundaries.
Common boundary-related problems foreign buyers encounter on Panay Island include encroachments by neighbors (structures or fences extending onto your lot), discrepancies between the title area and actual measured area, and overlapping claims in areas with older, less precise survey records.
Buying real estate in Panay Island can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
What will it cost me, all-in, to buy and hold land in Panay Island?
What purchase taxes and fees apply in Panay Island as of 2026?
As of early 2026, the total purchase taxes and fees for a property transaction on Panay Island typically range from 8% to 12% of the property value, with the split between buyer and seller varying by negotiation and local custom.
For buyers, the typical closing cost range on Panay Island is approximately 3% to 5% of the purchase price (roughly 1,750 to 2,900 USD or 1,600 to 2,700 EUR on a 3 million peso property), covering documentary stamp tax, local transfer tax, registration fees, and professional costs.
The main individual taxes and fees on Panay Island include: capital gains tax at 6% of the selling price or zonal value (whichever is higher, usually paid by seller), documentary stamp tax at 1.5%, local transfer tax at 0.5% to 0.75% depending on the LGU, and Registry of Deeds registration fees.
The tax rates themselves do not differ for foreign buyers versus local buyers on Panay Island, though foreigners may face additional practical costs for legal review, document authentication, and verification if they are not physically present.
What hidden fees surprise foreigners in Panay Island most often?
Hidden or unexpected fees on Panay Island typically add 1% to 3% beyond the standard closing costs (roughly 580 to 1,750 USD or 530 to 1,600 EUR on a 3 million peso property), depending on the condition of the title and complexity of the transaction.
The specific hidden fees that most often surprise foreign buyers on Panay Island include: "fixer" fees that middlemen pressure you to pay, costs to cure title defects (reconstitution, missing documents, heir issues), survey or relocation fees when boundaries are disputed, and DAR clearance costs if the land has agricultural classification issues.
These hidden fees on Panay Island typically appear at two stages: during due diligence when title problems emerge, and just before closing when local requirements or "last-minute" documentation requests surface.
The best way for a foreign buyer to protect themselves from unexpected fees on Panay Island is to engage a local lawyer before signing any documents, request a full title search upfront, and budget a contingency of 2% to 3% above your expected closing costs.
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Panay Island, we always rely on the strongest methodology we can, and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why it's authoritative | How we used it |
|---|---|---|
| 1987 Philippine Constitution (Supreme Court E-Library) | It's the controlling constitutional rule that sets land-ownership limits in the Philippines. | We used it to explain the core "foreigners can't own land" rule and constitutional exceptions. We also referenced it to show why private contracts cannot override this ban. |
| Republic Act 12252 (Lawphil) | It's the September 2025 law extending foreign investor land leases to 99 years. | We used it to update the maximum lease term information from 75 years to 99 years. We also explained the new investor-friendly provisions for registered projects. |
| Condominium Act RA 4726 (Lawphil) | It's the statute defining condo ownership and how land is held via condo corporations. | We used it to explain the legal path foreigners use most often: owning a condo unit. We also grounded the 40% foreign-ownership cap discussion in this law. |
| Anti-Dummy Law CA 108 (Lawphil) | It's the criminal enforcement tool against nominee and dummy ownership structures. | We used it to explain why nominee arrangements create criminal and forfeiture risks. We also listed the common grey-area structures that get foreigners in trouble. |
| Bureau of Internal Revenue (BIR) | It's the tax authority's official portal for property transaction tax rules. | We used it to ground the closing cost discussion including capital gains tax and documentary stamp tax. We also verified current rates and filing requirements. |
| Land Registration Authority (LRA) | It's the official agency for land title registration and the Registry of Deeds system. | We used it to explain how to verify titles before purchase and where transactions are registered. We also referenced the eSerbisyo portal for remote verification options. |
| DENR Administrative Order 2004-24 (Supreme Court E-Library) | It's the primary DENR issuance defining foreshore lease concepts along coastlines. | We used it to explain the coastal "gotcha" where beachfront strips may be public domain. We applied this especially to Boracay and coastal Aklan discussions. |
| DAR Administrative Order 07-2011 | It's an official DAR issuance describing agrarian reform procedures affecting land sales. | We used it to flag the risk of agricultural land being sold as residential without proper clearance. We explained why CARP-covered land requires extra due diligence. |
| PD 957 Subdivision Buyers' Protective Decree (Lawphil) | It's the foundational consumer-protection law for subdivision and condo sales. | We used it to explain common scam patterns involving pre-selling lots without compliance. We also motivated the buyer rule to verify developer registration before paying. |
| Colliers Philippines Iloilo Research | It's a major global real estate advisory with published research on Iloilo City. | We used it to provide Panay Island market context including Iloilo City demand and development activity. We treated it as secondary context supporting our legal analysis. |
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