Can Indians buy property in Philippines?

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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 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 Manila, Cebu, and Davao. 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.

Can Indians directly own land in the Philippines?

No, Indians cannot directly own land in the Philippines under any circumstances.

The Philippine Constitution strictly reserves land ownership for Filipino citizens only. This prohibition applies to all foreigners, including Indian nationals, regardless of their investment amount or length of stay in the country.

The only exceptions are extremely rare cases involving inheritance through legal succession or land purchased before the 1935 Constitution took effect. These situations are virtually non-existent for modern property buyers.

Even marrying a Filipino citizen does not grant Indians the right to own land directly. The land ownership restriction remains absolute for all foreign nationals.

Indians seeking to acquire land must explore alternative legal structures such as long-term leases or corporate ownership with Filipino majority partners.

What types of property can Indians legally purchase in the Philippines?

Indians can legally purchase condominium units and house structures (without the underlying land) in the Philippines.

Condominium ownership is the most straightforward option for Indians, provided the building maintains the required Filipino-foreign ownership ratio. The condominium unit includes the interior space and a proportional share of common areas.

House structures can technically be owned by Indians, but this is impractical since the land beneath must be leased separately. Most Indians prefer condominiums for their simplicity and legal clarity.

Indians can also lease land for up to 50 years with a possible 25-year extension, making long-term leasing a viable alternative to ownership. This arrangement works well for those wanting to build houses or establish businesses.

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

What is the maximum foreign ownership percentage for condominiums?

Foreigners, including Indians, can own a maximum of 40% of the total units in any condominium building.

This means that for every condominium project, at least 60% of the units must be owned by Filipino citizens. The 40% cap applies to both the number of units and the total floor area occupied by foreign owners.

Before purchasing a condo unit, Indians must verify that the building has not reached its 40% foreign ownership limit. Developers and real estate agents are required to provide this information upon request.

If a building has already reached the 40% foreign ownership cap, Indians cannot purchase units in that specific project, even if they offer above-market prices.

This regulation ensures that Filipino citizens maintain majority control in all residential condominium developments across the country.

How long can Indians lease land in the Philippines?

Indians can lease Philippine land for an initial period of 50 years, renewable for an additional 25 years, totaling 75 years maximum.

The initial 50-year lease term is guaranteed under Philippine law, and the 25-year extension is typically negotiable depending on the lease agreement terms. Both the lessor and lessee must agree to the extension.

Long-term lease agreements must be properly documented and registered with local government offices to ensure legal enforceability. Lease payments can be structured as lump-sum payments or periodic installments.

Indians can construct houses, commercial buildings, or other structures on leased land, and they own these improvements. However, ownership of improvements may revert to the landowner when the lease expires, unless otherwise specified.

Land lease agreements should include clear terms regarding renewal options, rent escalation, and property improvements to protect Indian lessees' interests.

What are the key legal steps for Indians to purchase property?

1. **Verify Foreign Ownership Compliance** - Check the condominium's current foreign ownership ratio - Ensure the building has not exceeded the 40% foreign ownership limit - Obtain written confirmation from the developer or condominium corporation2. **Engage Professional Services** - Hire a reputable real estate agent familiar with foreign transactions - Retain a qualified Philippine lawyer to review all documentation - Consider using a licensed real estate broker for complex transactions3. **Due Diligence Process** - Verify the developer's track record and legal standing - Review the condominium's Certificate of Title and building permits - Conduct a thorough inspection of the unit and building facilities4. **Execute Purchase Agreement** - Sign a reservation agreement with earnest money deposit - Finalize the Contract to Sell or Deed of Absolute Sale - Ensure all documents are properly notarized by a Philippine notary public5. **Complete Legal Requirements** - Obtain Tax Identification Number (TIN) from the Bureau of Internal Revenue - Secure Certificate Authorizing Registration (CAR) for tax clearance - Register the sale with the Registry of Deeds and obtain the new title

Each step requires careful attention to detail and compliance with Philippine real estate laws to ensure a successful property acquisition.

Do Indians need a Philippine corporation to acquire land?

Yes, Indians need a Philippine corporation with at least 60% Filipino ownership to legally acquire land.

The corporation must be registered with the Securities and Exchange Commission (SEC) and maintain continuous Filipino majority ownership. Indian investors can hold a maximum of 40% equity in such corporations.

This corporate structure requires identifying reliable Filipino partners who will hold the majority shares. The partnership arrangement should include detailed agreements regarding decision-making, profit distribution, and exit strategies.

Indians cannot bypass this requirement by creating a 100% foreign-owned corporation, as such entities are prohibited from owning land. Anti-dummy laws prevent arrangements where Filipinos act as mere nominees for foreign investors.

Legal compliance requires genuine Filipino participation in the corporation's operations and decision-making processes, not just nominal ownership on paper.

What government permits are required for property purchases?

Indians must obtain several government clearances and permits to finalize property purchases in the Philippines.

The primary requirement is securing a Tax Identification Number (TIN) from the Bureau of Internal Revenue (BIR), which is mandatory for all property transactions. This TIN will be used for all future tax filings and property-related transactions.

A Certificate Authorizing Registration (CAR) from the BIR is required to prove that all applicable taxes have been paid before the property title can be transferred. This document serves as tax clearance for the transaction.

Registration with the Registry of Deeds is essential to legally transfer property ownership and obtain the new Condominium Certificate of Title. This process typically takes 30-60 days from submission of complete documents.

Anti-money laundering documentation may be required for large transactions, including proof of fund sources and compliance with foreign exchange regulations administered by the Bangko Sentral ng Pilipinas.

What taxes and fees must Indians pay when buying property?

Tax/Fee Type	Rate	Basis of Calculation
Transfer Tax	0.5% - 0.75%	Property selling price or assessed value
Documentary Stamp Tax	1.5%	Higher of sale price or fair market value
Registration Fee	0.25%	Selling price or market value
Notarial Fees	1% - 2%	Sale price (negotiable)
Attorney's Fees	1% - 3%	Property value (varies by complexity)
Real Estate Agent Commission	3% - 6%	Selling price (usually paid by seller)
Miscellaneous Fees	₱10,000 - ₱50,000	Fixed amounts for various documents

The total cost for taxes and fees typically ranges from 3% to 4% of the property's purchase price, which Indians must budget for in addition to the property cost.

What annual property taxes do Indians pay?

Indians who own property in the Philippines must pay annual real property tax ranging from 1% to 2% of the assessed property value.

Property tax rates vary by city and municipality, with Metro Manila areas typically charging higher rates than provincial locations. Makati City, for example, charges approximately 2% annually, while some provincial areas charge as low as 1%.

The assessed value used for tax calculation is usually lower than the market value and is determined by local government assessors. Property owners can contest assessments they believe are incorrect through formal appeal processes.

Property taxes are payable quarterly or annually, with discounts often available for early payment. Late payments incur penalties and interest charges that accumulate over time.

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.

Can Indians get financing from Philippine banks?

Philippine banks rarely provide mortgages to Indians and other foreign nationals, making cash purchases the preferred method.

Most local banks have strict requirements for foreign borrowers, including proof of Philippine income, local employment, or substantial peso deposits. Non-resident Indians face even more stringent requirements and higher interest rates.

Some major developers offer in-house financing options for condominium purchases, with payment terms ranging from 12 to 60 months. These arrangements typically require larger down payments compared to bank mortgages.

Indians should prepare for cash transactions when budgeting for Philippine property purchases. This includes not only the purchase price but also all associated taxes, fees, and legal costs.

Foreign exchange regulations require proper documentation of fund sources, especially for large property transactions exceeding certain thresholds set by the Bangko Sentral ng Pilipinas.

Do Indians need specific visas to own property?

No, Indians do not need specific visas or residency status to own condominium units in the Philippines.

Property ownership and visa requirements are separate under Philippine law. Indians can purchase and own condominiums while maintaining tourist status or any other valid visa category.

However, owning property does not automatically grant Indians the right to reside permanently in the Philippines. Separate visa applications are required for extended stays, work, or retirement purposes.

Indians planning to live in their Philippine properties should consider appropriate long-term visas such as the Special Resident Retiree's Visa (SRRV) for those over 50, or investment visas for substantial business investments.

Property ownership may support visa applications by demonstrating ties to the Philippines, but it does not guarantee approval for any specific visa category.

What restrictions apply to property resale and inheritance?

Indians can freely resell their Philippine properties, but the buyer must comply with foreign ownership restrictions.

When selling condominium units, the new foreign buyer must ensure the building maintains compliance with the 40% foreign ownership cap. If the building is at capacity, the unit must be sold to a Filipino buyer.

Property inheritance by Indian heirs is legally permitted for condominium units, but inherited land must generally be sold within a specified timeframe. Philippine succession laws can be complex for foreign inheritances.

Repatriation of sale proceeds to India is allowed but requires proper documentation of the original fund source and tax clearance certificates from the Bureau of Internal Revenue.

Indians should maintain detailed records of their property purchase, including bank transfer documentation and tax payments, to facilitate future sales or inheritance processes.

What are the main risks Indians should consider?

1. **Regulatory Changes** - Philippine property laws can change, potentially affecting foreign ownership rights - Tax rates and fees may increase over time - New restrictions could be imposed on foreign property investors2. **Market Volatility** - Philippine property values can fluctuate significantly - Economic downturns may affect rental yields and capital appreciation - Currency exchange rate changes impact investment returns for Indian buyers3. **Legal Complications** - Title disputes can arise with improper documentation - Inheritance issues may complicate estate planning - Anti-dummy law violations can result in property forfeiture4. **Liquidity Concerns** - Foreign-owned properties may have limited resale markets - Finding qualified buyers who comply with ownership restrictions takes time - Emergency sales may require significant price discounts5. **Management Challenges** - Absentee ownership requires reliable local property management - Maintenance and repair costs can be unpredictable - Tenant issues may be difficult to resolve from India

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.

Sources

1. Ziggurat Real Estate - 6 Ways Foreigners Can Own Land
2. Emerhub - Buying Property as a Foreigner
3. MyHouse.ph - Can Foreigners Buy Property
4. Investasian - Property Investment Risks Philippines
5. Veles Club - Philippine Property Guide
6. Lawyer Philippines - Foreigner Land Inheritance
7. Respicio Law - Condo Purchase Guidance
8. China Briefing - Foreign Ownership Rules Philippines
9. Wise - Buy House in Philippines
10. Dominium - Foreign Condominium Ownership Rights