Philippines
The Philippine property market this year presents a highly segmented landscape, driven by urban development in the capital and growing interest in coastal hubs. While the low cost of living and warm climate make it an attractive base for retirees, navigating the purchase process requires setting aside any Western assumptions about real estate transactions. It is a market that rewards patience, thorough due diligence, and a clear understanding of the strict limits placed on foreign buyers.
This guide explains exactly what you can legally own, where British and American expats choose to settle, and the practical costs you must budget for. As an introducer, our role at The Expat Investor is to connect you with vetted legal and real estate specialists in the Philippines rather than selling you a property ourselves, ensuring you get impartial advice from people who understand the local landscape.
The market is heavily dominated by large domestic conglomerates that build massive, mixed-use developments containing residential high-rises, shopping malls, and office spaces. While there is a substantial volume of new-build condominium stock available, the secondary resale market is less structured and can be difficult to navigate without professional local representation. Sellers frequently market off-plan units with long lead times, meaning buyers must carefully assess the developer's track record before committing funds.
Property options differ significantly depending on the region you target. In the dense metropolitan areas, high-rise living is the norm, with buyers prioritising proximity to modern healthcare and international standard services. In contrast, provincial areas offer more low-rise developments and a slower pace of life, though these locations often come with infrastructure trade-offs, such as less reliable internet connectivity and longer travel times to major airports.
Recent infrastructure projects, including new toll roads and expanded provincial airports, have started to open up regions outside of the traditional expat hubs. While these improvements have made suburban and semi-rural areas more accessible, they have also led to speculative pricing in certain pockets. Buyers should look beyond the marketing material to verify whether local roads, power grids, and water supplies can support the growing number of residential developments.
| Under £80,000 | A compact, entry-level studio condominium in a secondary city or an older high-rise unit in the suburbs of a major metropolitan area, often requiring some modernisation. |
|---|---|
| £80,000 to £150,000 | A modern one-bedroom condominium in an established district of a major city or a newly built unit in a provincial university town, usually with access to shared swimming pools and security. |
| £150,000 to £300,000 | A spacious two-bedroom apartment in a prime urban business district or a high-quality coastal unit with good access to local infrastructure and dining options. |
| Over £300,000 | A premium multi-bedroom penthouse in a top-tier metropolitan location or a luxury condominium unit in an exclusive gated estate featuring advanced security and private facilities. |
No price list, no development names on this page — by design. Those are worth going through one to one, when we know what you are working with.
Foreigners can own a condominium unit outright (freehold) as long as foreign ownership across the building stays within the 40% cap, but cannot own land directly. Land is instead held through a long-term lease (recently extended up to 99 years for qualifying projects) or via a genuine majority-Filipino company.
To understand the property market here, you must first accept that foreign nationals are strictly prohibited from owning land directly in the Philippines. You can, however, own a condominium unit outright under a freehold title, provided that the total foreign ownership of the specific building does not exceed the statutory cap of 40%. This makes condominiums the most straightforward and secure route for international buyers looking for clean, hassle-free titles.
If you wish to secure a house and garden, you must use alternative legal structures. This typically involves holding the land through a long-term lease—which has recently been extended up to 99 years for qualifying projects—or purchasing via a genuine majority-Filipino corporation where foreign equity is legally capped at 40%. These routes require careful legal structuring and independent advice; informal agreements using local nominees are illegal and leave you with no protection if a dispute arises.
For the buyer, one-off costs are roughly 4-5% — documentary stamp tax of 1.5%, transfer tax of 0.5-0.75%, plus registration and notary fees — while the 6% capital gains tax is customarily the seller's. Foreigners can own condominium units (not land), and title transfer through the Registry of Deeds takes some weeks.
When preparing your budget, you need to allow roughly 4% to 5% of the purchase price to cover one-off buying costs. This sum is made up of a 1.5% documentary stamp tax, a transfer tax of between 0.5% and 0.75%, alongside local registration fees and legal notary fees. These taxes must be settled promptly to ensure your transaction is registered correctly with the local authorities.
The 6% capital gains tax is customarily paid by the seller, but you must verify this in the initial negotiations, as some contracts attempt to shift this burden onto the buyer. It is also important to remember that the physical transfer of the title through the Registry of Deeds is not an instant process; it typically takes some weeks of administrative processing before the new land title is officially issued in your name.
Informal nominee land schemes. Buying land in the name of a local partner or spouse is illegal under Philippine law, meaning you have no legal ownership rights if the relationship ends.
Breaching the 40% foreign condo limit. If a developer mistakenly sells more than 40% of a building's units to foreigners, those transactions above the cap can be declared void, leaving you without a valid title.
Unrealistic off-plan completion dates. Construction delays are common, and recovering deposits from developers who fail to complete projects on time can turn into a lengthy and expensive legal battle.
High maintenance fees in older buildings. Expats often overlook the cost of building association dues, which can rise sharply in older high-rises where elevators and pools require constant maintenance.
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See if you qualify →Yes, but with strict limitations. You can own a condominium unit outright under a freehold title, provided that total foreign ownership of the building remains under 40%, but you cannot directly own land in your own name.
The Philippines operates a territorial tax system, meaning residents are only taxed on income earned within the country. Your foreign pension, retirement income remitted from abroad, and pensions held by SRRV visa holders are explicitly exempt from local taxation, though your home country's tax rules may still apply.
The registration process requires navigating several government departments to pay taxes and clear the title. Once all fees are paid, the final transfer through the Registry of Deeds typically takes some weeks to complete.
Yes, you can lease land and own the physical house built on it. Qualifying projects now allow long-term leases of up to 99 years, which provides a secure, long-term residential option without violating land ownership laws.
Securing local bank financing as a non-resident foreigner is extremely difficult, and those banks that do lend often charge high interest rates. Most international buyers choose to pay in cash or use developer financing, which usually requires a significant down payment.