Buying Property In The Philippines As A Foreigner: The 40 Percent Condo Rule, Long Leases, And Why FX Planning Matters

Can foreigners own land in the Philippines?

As a general rule, foreign nationals cannot own land in the Philippines. The most common legal pathway for a foreign buyer who wants to live or invest in a property is through condominium ownership or long term leasing structures. 

The 40 percent condominium rule explained simply

Foreign nationals may buy condominium units, but only if the building’s foreign ownership does not exceed 40%. This is a widely cited practical rule and is explained in official guidance aimed at overseas buyers.

What this means in real life is that the condo you want might be legal for you to buy, but only if the building has not already reached the cap.

How to protect yourself before you pay a deposit

Foreign buyers should always verify:

• The project’s foreign ownership percentage and remaining allocation
• Whether the unit purchase is compliant at the time of sale
• The developer or condo corporation’s documentation confirming eligibility

This is one of the most important checks in the entire transaction because it determines whether you can legally register ownership.

Long leases: a common alternative route

For buyers who want the lifestyle of a house or land, leasing is a common alternative structure used internationally in markets where direct land ownership is restricted for foreigners. Guidance on the Philippines market also references long leases as one pathway used by foreign buyers.