Can Koreans easily buy property in Philippines?

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 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 South Koreans legally buy land in the Philippines or are there restrictions?

South Koreans cannot legally own land directly in the Philippines under any circumstances.

The Philippine Constitution strictly prohibits foreign nationals from owning land, regardless of their nationality, including Korean citizens. This fundamental restriction applies to all types of land ownership, from residential lots to commercial properties.

Only Filipino citizens or corporations with at least 60% Filipino equity can own land in the Philippines. The only exceptions are very limited cases involving inheritance from Filipino parents or specific historic acquisitions that are not available to most foreign investors today.

As of September 2025, these land ownership restrictions remain firmly in place and show no signs of changing, making direct land ownership impossible for Korean nationals.

What types of properties can Koreans actually own outright in the Philippines?

Koreans can own condominium units outright and the structures of buildings, but not the land beneath them.

Condominium ownership represents the most straightforward property investment option for Korean buyers. You can purchase and hold full title to individual condo units, including the right to sell, rent, or transfer ownership freely. The underlying land remains owned by the homeowners' association, which is typically Filipino-controlled.

For houses and other buildings, Koreans can own the physical structure but must lease the land it sits on. This arrangement allows you to own the building itself while entering into a long-term lease agreement for the land rights.

Commercial properties follow similar restrictions where Korean investors can own buildings and structures but must secure land access through leasing arrangements or compliant corporate structures.

What are the current rules for condominium ownership by foreigners, including the exact percentage limit?

Foreign ownership in any single condominium building cannot exceed 40% of the total floor area or unit count.

This "40/60 rule" means that in any given condominium project, at least 60% must be owned by Filipino citizens, while foreigners (including Koreans) can collectively own up to 40%. The calculation is based on either total floor area or the number of units, whichever method the developer chooses to apply.

Each individual Korean buyer can own multiple units within a building, as long as the total foreign ownership across all foreign nationals stays within the 40% limit. Once a building reaches its 40% foreign ownership cap, no additional units can be sold to foreign buyers.

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

This rule applies building by building, so a Korean investor could potentially own units in multiple buildings within the same development, provided each individual building maintains the 40/60 ratio.

Is it possible for Koreans to lease land in the Philippines long-term, and what's the maximum lease duration?

Koreans can lease private land in the Philippines for up to 99 years under new legislation signed in September 2025.

This represents a significant improvement from the previous system, which allowed only 50-year leases with a possible 25-year extension. President Ferdinand Marcos Jr. signed the amendment to the Investors' Lease Act, extending the maximum lease period to 99 years for all foreign nationals, including Korean citizens.

These long-term leases must be properly registered with the Registry of Deeds and must specify the intended use of the land. The lease agreement should clearly outline terms, renewal options, and any restrictions on the land use.

For residential purposes, such as building a house, these 99-year leases provide substantial security of tenure, though potential complications can arise with resale and mortgage financing due to the leasehold nature of the arrangement.

Are there legal ways for Koreans to indirectly own land through corporations, and what percentage can they hold?

Corporate Structure	Korean Maximum Equity	Requirements
Standard Philippine Corporation	40%	60% Filipino ownership mandatory
Real Estate Corporation	40%	Minimum PHP 10M paid-up capital
Joint Venture	40%	Filipino majority partner required
Holding Company	40%	Cascading ownership rules apply
Business Partnership	40%	All partners must comply with limits
Investment Vehicle	40%	SEC registration required

What are the minimum capital requirements for Koreans to set up a corporation to own property?

Korean investors need a minimum paid-up capital of PHP 10 million (approximately $175,000) to establish a foreign-invested corporation for real estate activities.

This capital requirement applies specifically to corporations engaged in real estate business activities and may vary depending on the specific nature of the business and the region where you plan to operate. The Philippine Securities and Exchange Commission (SEC) sets these minimum thresholds to ensure adequate capitalization for foreign-invested enterprises.

The corporation must maintain this minimum capital throughout its operation, and any reduction below the required threshold could result in compliance issues. Additionally, the 60% Filipino ownership requirement means Korean investors must find trustworthy Filipino partners or nominees to hold the majority stake.

Beyond the minimum capital, corporations also face ongoing compliance costs, annual reporting requirements, and tax obligations that Korean investors should factor into their investment calculations.

Do Koreans need special visas or residency permits to buy property in the Philippines?

No special visa or residency permit is required for Koreans to purchase condominium units or building structures in the Philippines.

Property ownership rights in the Philippines are separate from immigration status, meaning Korean tourists, business visitors, or residents all have the same property purchasing capabilities. You can buy a condo unit even on a short-term tourist visa.

However, if you plan to stay long-term or engage in business activities related to your property investment, you may want to consider specific visa options like the Special Resident Retiree's Visa (SRRV) or business investor visas. These can provide benefits for extended stays but are not requirements for property ownership.

For Koreans planning to manage rental properties or engage in real estate business activities, appropriate business visas and work permits may be necessary, but these are separate from the basic right to own property.

What are the step-by-step legal procedures for a Korean buyer to purchase a condominium unit?

Korean buyers must follow a seven-step legal process to purchase condominium units in the Philippines.

1. **Property Selection and Foreign Ownership Verification**: Choose your desired unit and confirm that the building hasn't exceeded its 40% foreign ownership limit. Request documentation from the developer or seller showing current foreign ownership percentage.2. **Due Diligence Process**: Verify the Condominium Certificate of Title (CCT), check building compliance with local regulations, research the developer's reputation, and ensure all permits are in order.3. **Reservation Agreement**: Sign a reservation agreement and pay the required reservation fee (typically 1-5% of the purchase price) to hold the unit while completing the transaction.4. **Purchase Contract**: Execute either a Contract to Sell (for installment purchases) or Deed of Absolute Sale (for cash transactions) and pay the required deposit, usually 10-30% of the purchase price.5. **Tax Payment and Registration**: Pay all applicable taxes and fees, then register the sale with the local Registry of Deeds in the city or municipality where the property is located.6. **Title Transfer**: Obtain the Condominium Certificate of Title (CCT) in your name as the new owner, confirming your legal ownership of the unit.7. **Turnover and Possession**: Complete final payment, receive keys, and take possession of your unit once all legal requirements are satisfied.

How much are the typical property taxes, transfer fees, and ongoing costs for foreign owners?

Korean property buyers face transaction costs totaling 6-16% of the purchase price, plus ongoing annual expenses.

**Transaction Costs:**- Transfer Tax: 0.5-0.75% of selling price paid to local government- Documentary Stamp Tax: 1.5% of selling price paid to Bureau of Internal Revenue - Registration Fees: Approximately 0.25% of selling price- Broker's Commission: 3-5% (usually paid by seller)- Legal fees and other miscellaneous costs: 1-3%**Ongoing Annual Costs:**- Real Property Tax: 1-2% of assessed value per year (varies by Local Government Unit)- Condominium Association Dues: PHP 80-150+ per square meter per month- Property management fees: 5-10% of rental income if renting out- Property insurance: 0.1-0.3% of property value annually

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.

Are there restrictions on inheritance if a Korean passes property to their heirs?

Korean property owners can pass their Philippine properties to heirs, but the same foreign ownership restrictions apply to the inheritors.

If you pass away and leave condominium units to your Korean heirs, they can inherit and own the properties directly since condos are allowed for foreign ownership. However, the 40% foreign ownership rule per building still applies to the overall project.

For properties involving land (such as long-term leases or corporate-owned land), Korean heirs must either divest the property or restructure the ownership to comply with Philippine law. The exception is when inheritance comes from a Filipino parent, which may allow the foreign heir to retain land ownership under specific hereditary succession rules.

Korean heirs inheriting structures on leased land can continue the lease arrangement according to the original lease terms, provided the lease agreement includes inheritance and transfer provisions.

What are the main risks Koreans should watch out for when buying property in the Philippines?

Korean buyers face several significant risks that require careful attention during the property acquisition process.

**Title and Legal Risks:**- Double-selling schemes where the same property is sold to multiple buyers- Fabricated or fraudulent land titles that appear legitimate but are invalid- Boundary disputes with neighboring properties or unclear property lines- Properties with existing liens, mortgages, or legal encumbrances not disclosed**Market and Financial Risks:** - Overpaying in developments specifically targeting foreign buyers with inflated prices- Buildings that exceed the 40% foreign ownership limit, making your purchase invalid- Developers with poor track records or insufficient capitalization to complete projects**Operational Risks:**- Unlicensed real estate brokers or agents operating without proper credentials- Leasehold complications that make properties difficult to resell or finance- Currency fluctuation risks affecting the value of your investment- High association dues or special assessments that weren't properly disclosed

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

Can Koreans get mortgage financing from Philippine banks, and what are the usual terms?

Most Philippine banks do not offer mortgages to Korean buyers without local residency or substantial collateral within the Philippines.

The vast majority of foreign property purchases in the Philippines are cash transactions due to restrictive lending policies. Banks typically require borrowers to have permanent residency status, local employment, or significant business operations in the Philippines before considering mortgage applications.

In rare cases where financing is available, Korean borrowers face stricter terms including higher down payment requirements (often 30-50%), shorter loan terms (5-10 years versus 15-20 years for locals), and higher interest rates typically ranging from 6-8% annually.

Many Korean investors choose to secure financing in South Korea using their domestic assets as collateral, or they save sufficient funds for cash purchases. Some also explore developer financing options, where the property developer offers installment payment plans during the construction period.

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 - Property Ownership Guide
2. Respicio & Co - Condo Purchase Requirements
3. BambooRoutes - Moving to Philippines Property Guide
4. EmerHub - Foreign Property Ownership
5. Los Angeles Philippine Consulate - Property Ownership
6. Bangkok Post - 99-Year Land Leases
7. Reuters - Philippines Land Lease Extension
8. Philippine Daily Inquirer - Land Lease Cap Extension