May 24, 2025
The Philippines continues to attract global investors with its robust economy, growing expat community, and prime locations offering both lifestyle and investment potential. Whether you’re looking for a luxury condominium in the heart of Makati, a vacation home in Cebu, or a rental income property in Boracay, the opportunities are abundant.
However, foreign investors must navigate specific regulations and market nuances to ensure a smooth and profitable investment. Here’s everything you need to know about investing in Philippine real estate as a foreigner.
1. Can Foreigners Own Property in the Philippines?
Yes — with certain limitations. Foreigners can legally own:
Condominium units, as long as foreign ownership in the building does not exceed 40%.
Buildings or improvements on land they lease.
Foreigners cannot directly own land, but there are legal ways to enjoy property rights and long-term use.
2. Legal Options for Land Use
a. Long-Term Lease
Foreigners can enter into a lease agreement of up to 50 years, renewable for another 25 years. This allows you to develop and use the land while complying with ownership laws.
b. Corporation Setup
If a corporation is at least 60% Filipino-owned, it can purchase land. As a foreigner, you can be a minority shareholder while still benefiting from the investment.
c. Marriage to a Filipino Citizen
If married to a Filipino, the property title can be under your spouse’s name, but be mindful of marital property laws.
3. Investment Hotspots
Metro Manila (Makati, BGC, Ortigas) – Prime business districts with high demand for rentals and capital appreciation.
Cebu City – A thriving hub for business, leisure, and expats.
Boracay & Palawan – Popular for vacation rentals and resort investments.
Davao City – Emerging market with strong infrastructure growth.
4. Why Invest in the Philippines?
Strong rental yields – Especially in central business districts.
Growing tourism sector – Supports short-term rental demand.
Competitive property prices – Compared to other Asian capitals.
Favorable foreign exchange rates – For USD, EUR, and other major currencies.
5. Taxes and Costs to Consider
When purchasing property, foreigners should budget for:
Documentary Stamp Tax – 1.5% of property value
Transfer Tax – 0.5% to 0.75% depending on location
Registration Fee – 0.25% of property value
Capital Gains Tax – 6% when selling (paid by seller)
For rentals, applicable income taxes will apply based on your chosen tax regime.
6. How Auralion Helps Foreign Investors
At Auralion Real Estate Solutions, we simplify the process for foreign buyers by:
Identifying high-return investment opportunities
Coordinating legal and due diligence requirements
Facilitating negotiations with developers, brokers, and owners
Assisting with property setup for rentals or resale
Managing your property for consistent income generation
With 10+ years of combined real estate experience in the mid to ultra-luxury market, we ensure your investment journey is seamless, transparent, and profitable.
Final Thoughts
Foreign investment in Philippine real estate can be incredibly rewarding — but only when approached with the right strategy and trusted local expertise. With careful planning, legal compliance, and professional guidance, your Philippine property can be both a lifestyle asset and a powerful income generator.