Philippines financing guideThe Philippines is one of the few Asian markets where the law, not the bank, is the main constraint. Foreign nationals cannot own land, so almost every overseas purchase is a condominium unit. Finding a mortgage in the Philippines for foreigners is the second hurdle: most banks lend to citizens or to residents with Philippine income, and developers fill the gap with in-house payment plans.
What the law lets you own
The constitution reserves land for Filipinos. A foreigner can, however, buy a condominium unit as long as foreign owners hold no more than 40% of the project's total units, which developers track. Buildings on leased land are possible too, and a long lease of private land is allowed: up to 99 years for investors with approved projects under the Investors' Lease Act as amended in September 2025 (previously 50 years plus one 25-year renewal); ordinary residential leases to foreigners are generally limited to 25 years, renewable once. Foreign-owned corporations can hold buildings but not land, and a corporation that is at least 60% Filipino-owned can own land.
Because of these limits, our listings for foreign buyers centre on apartments, studios and penthouses, with houses and land relevant mostly to Filipino or dual-citizen buyers, former natural-born Filipinos or companies with a local partner. Read the Philippines buying guide for detail.
Do banks lend to foreigners?
Big domestic banks, such as BDO, BPI, Metrobank and Security Bank, offer home loans, but they focus on Filipino citizens and foreigners who live and work in the country with a valid visa and local income. Pag-IBIG, the government housing fund, is for Filipino members only. A non-resident foreigner with only offshore income will normally be declined or asked for heavy security, such as pledging cash deposits.
Loans are in pesos and interest has historically been higher than in the eurozone or the United States. The central bank sets the policy rate, and mortgage rates are repriced every one to three years, so ask about the repricing mechanism, not just the headline number. The peso also moves against the dollar, which matters if you convert foreign earnings. The mortgage calculator can show the effect of different rates.
How foreign buyers actually pay
| Route | How it works | Main risk |
|---|---|---|
| Developer instalments | Down payment of 10-20%, then monthly payments over 2-5 years; balance on turnover | Construction delay, developer solvency |
| Cash on completion | Pay in full after turnover, often discounted | Large foreign-exchange conversion |
| Bank loan for resident foreigners | Needs visa, local income and local credit history | Few applicants qualify |
| Home-country equity | Remortgage abroad and remit funds | Cost of two currencies |
| Filipino spouse or partner buys | May use local financing and own land | Legal complexity, relationship risk |
Taxes and fees on a condo purchase
Costs add up, so budget carefully. For a resale unit the seller usually bears the creditable withholding tax of about 6%, while the buyer pays the documentary stamp tax (around 1.5%), transfer tax (typically 0.5% to 0.75%), registration fees and notary costs. New units from developers may include VAT and charges for utilities and association dues. Real property tax, around 1-2% of assessed value depending on the city, is billed yearly. These numbers are approximate, and local governments vary, so confirm them with a lawyer. Condos in Metro Manila, Cebu or tourist islands such as Siargao come with different management fees.
Due diligence for off-plan purchases
Pre-selling is common, so check:
- The developer's License to Sell and Certificate of Registration from the housing regulator.
- The project's building permit and its ownership of the underlying land.
- The condominium certificate of title (CCT) once the unit is turned over, and whether it will be issued in your name.
- The foreign-ownership tally, since a project that has reached the 40% limit cannot accept more foreigners.
- The contract's penalty terms if the developer delays, and your rights to refund.
Run a title check with a Filipino lawyer before sending a deposit.
Planning your budget
Price brackets vary hugely between Makati, Cebu and resort areas. Compare lower-cost units under cheap listings and under 100,000, consider commercial space if you hold a local company, and track demand with the Philippines market analysis. Our full Philippines property pages show what is on sale now.
In the Philippines the buildings are for sale to foreigners and the ground is not. Choose the condo, then choose how you pay.
Last updated 8 October 2026
Frequently asked questions
Can foreigners own property in the Philippines?
They can own condominium units, subject to a 40% foreign cap per project, but not land. Long leases of land are possible under investor lease rules.
Can a foreigner get a Philippine bank loan?
Rarely, unless resident with local income and a valid visa. Most foreign buyers use developer payment plans or cash.
What is the 40% rule?
It limits the share of units in a condominium project that can be owned by foreigners. Once a project reaches the cap, it can only sell to Filipinos or qualifying entities.
What taxes should I expect on a resale condo?
Roughly 1.5% documentary stamp tax and 0.5-0.75% transfer tax for the buyer, while the seller pays a withholding tax of about 6%. Rates vary, so verify.
Can I leave the property to my heirs if I am a foreigner?
Foreigners can pass on a condo unit, and the rules on land are different. Take advice from a Filipino lawyer and consider a will drafted for local recognition.
Are developer payment plans safe?
They depend on the developer. Check regulatory licences, completed projects and your refund rights before you sign.