Foreigners have ample reasons to invest in real estate in the Philippines. Home to the most inviting beaches, beautiful flora and fauna, tropical climate, friendly locals, and excellent financial prospects – it’s safe to say the Philippines is among the top choices for travel destinations and property investment options for locals and foreign nationals alike.
A collection of more than 7,000 islands, this archipelagic nation is bordered by Taiwan to the north, the Pacific Ocean to the east, Indonesia and Malaysian Borneo to the south, and the South China Sea to the west.
The country’s tourism industry generated a revenue of P208.96 billion (US$3.68 billion) in 2022, a whopping 2,465 percent increase from 2021. The Department of Tourism (DOT) reported 2.65 million international visitor arrivals from February to the end of December 2022, as the country reopened its borders for all types of travelers only in the second month of last year. The DOT further noted that tourist arrivals exceeded their 1.7 million targets for the year.
Of the total 2.65 million international visitor arrivals, 628,445 were returning Filipinos, while 2.02 million tourists were foreigners from the country’s top tourist markets from the United States (505,089), South Korea (428,014), Australia (137,974), Canada (121,413), the United Kingdom (101,034), Japan (99,557), Singapore (53,448), India (51,542), Malaysia (46,805), and China (39,627).
The Philippines is more than just a tourist spot. The country is known to be home to many foreigners, whether they are investors or not.
So if you’re a foreign citizen looking to purchase and own land, check out our guide below to assist you regarding real estate purchase and ownership in the Philippines.
TABLE OF CONTENTS
1. The Current State of the Real Estate Market in the Philippines
Residential real estate in the Philippines comprises many residential properties, from public and private housing to mid-range subdivisions, condominiums, and high-class villages. A survey done in 2020 revealed that most Filipino households live in a single-house unit, with more than half owning the property or having an owner-like possession.
For metropolitan cities like Metro Manila, renting apartments, purchasing rent-to-own units in subdivisions, and leasing a condominium are quite common. The average selling price would depend on the area of the property, reaching as much as P220,000 per square meter for a condo unit.
For metropolitan cities like Metro Manila, renting apartments, purchasing rent-to-own units in subdivisions, and leasing a condominium are quite common. The average selling price would depend on the area of the property, reaching as much as P220,000 per square meter for a condo unit.
A. How OFWs Investment Impact The Residential Real Estate
The Philippines is one of the largest recipients of foreign remittances globally. According to the Bangko Sentral ng Pilipinas (BSP), dollars sent home by overseas Filipino workers (OFWs) hit an all-time high last 2022 after a strong finish in December amidst soaring inflation.
Data released showed personal remittances increased by 3.6% to a record high of US$36.14 billion in 2022 from the previous all-time high of US$34.88 billion in 2021.
The purchasing power of OFWs enables them to invest in numerous residential areas across the Philippines. Most OFWs return home soon after their contract ends or for retirement. A survey done in 2019 on 10,000 OFWs stated that over 80% were considering investing in residential properties in the Philippines in the next 12 months.
From high-class villages to affordable mid-range townhouses, many developers provide a wide range of residential properties that allow OFWs to find their desired homes in the Philippines.
B. Rise of Green Spaces
From high-class villages to affordable mid-range townhouses, many developers provide a wide range of residential properties that allow OFWs to find their desired homes in the Philippines.
Office and residential spaces in Metro Manila are expected to develop more sustainable and eco-friendly office and residential spaces, utilizing green technology during the development and construction of the properties as well as its post-development maintenance. According to Colliers Philippines, around 37% of the buildings in Metro Manila from 2021 to 2023 are likely to become wellness-certified buildings.
C. The emergence of Microcities
A city within a city. Microcities are a mix of residential and commercial buildings clustered into one location, designed to provide amenities such as groceries, malls, gyms, salons, and the like. These developments are structured to offer state-of-the-art amenities and 21st-century demands.
Such development is aimed at the growing population of millennials transitioning into residential areas that fit their needs. Existing microcities, such as the Cebu IT Park in Cebu City, is a primary example that best reflects the characteristics of microcities in the Philippines.
The reopening of on-ground activities of the business and travel borders in the country is one of the main reasons that kept the real estate market in the country afloat. Commercial buildings, rental spaces, and office markets are recovering as the workforce returns to their traditional office operations. Malls and supermarkets are back to welcoming consumers, thus improving the income of retail space.
Not to mention the increasing contribution of the remittances of overseas Filipino workers (OFWs), more employed individuals, and higher government and consumer spending will robust the state of the economy.
So if you’re considering investing in property in the country, knowing the market well and having local help you can trust is crucial.
2. Are foreigners allowed to own land in the Philippines?
The short answer to this question is no. Unfortunately, due to very protective laws, foreigners can only buy a restricted set of properties but are not allowed to purchase lots or land.
The Philippines still undoubtedly has a highly-regulated real estate industry compared to other countries. There are stringent rules regarding foreign nationals purchasing, owning, and investing in real estate. As a general rule, ownership of any land in the Philippines is exclusive and limited only to Filipino citizens, as enshrined in the 1987 Philippine Constitution. By default, foreigners are not allowed to own land.
However, there are several exceptions that would allow foreigners to own or acquire real estate properties in the country. We’ll explain them in more detail below.
3. Exceptions allowing foreign nationals to acquire land in the Philippines
Foreign nationals can own properties in the country subject to the following conditions:
A. Acquisition before the 1935 Constitution
This is pretty straightforward. A foreign citizen who was able to purchase and own land prior to the enactment of the 1935 Philippine Constitution will retain their ownership rights on that property.
Even though the 1987 Philippine Constitution has already replaced the 1935 Constitution, the new Constitution continues to recognize the right of a non-Filipino citizen to use and own the property, including land, as long as the foreign citizen acquired it prior to the 1935 Constitution.
B. Property Purchased by foreign nationals married to a Filipino citizen
If a foreigner is married to a Filipino citizen, the foreigner is allowed to buy land, but — there’s a catch — the title of the land (called the Transfer Certificate of Title or TCT) will be in the name of the Filipino spouse. The foreigner’s name may be included in the Contract or Deed of Sale, but it cannot be in the TCT or land title.
Yes, foreigners may have purchased and acquired the land, but in reality, they do not “own” it. For one, they are not allowed to dispose of the land unilaterally without the explicit permission of the Filipino spouse, the actual “owner” as per the land title.
In the event of the death of the Filipino spouse, the foreigner becomes the natural heir of the property. Since the foreigner is not allowed to own land, the available options include:
- Disposing of the property within a reasonable amount of time and collecting the proceeds of the sale;
- Passing ownership to the children or legal heirs; or
- Passing ownership to the Filipino spouse’s relatives in case the couple is childless.
C. Acquisition through hereditary succession
The Philippine Constitution of 1987 is clear and explicit in its prohibition of land acquisition by foreign citizens. However, Article XII, Section 7 of the same Constitution includes a minor exception that allows heirs to acquire the property, even though the heir may be a foreigner.
According to the relevant section of the 1987 Constitution:
Section 7 (Article XII). “Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain.”
Simply speaking, if the foreign citizen is a legal or natural heir by hereditary succession and was duly included and instituted in the “Last Will and Testament” by a property owner, then that foreigner is allowed by Philippine laws to acquire said real estate property.
Again, the law will still have to check if the foreigner instituted in the will is a “compulsory heir” by virtue of “hereditary succession”. According to Article 887 of the Philippines’ New Civil Code, “legitimate children and descendants, with respect to their legitimate parents and ascendants,” are considered compulsory heirs.
Atty. Persida Acosta of the Public Attorney’s Office (PAO) also reiterated this in her column in The Manila Times: “if the said non-Filipino has been instituted in a will as an heir to a real property; he is capacitated to acquire the said real property on the basis of the will. The provision of the Constitution is clear that even non-Filipino citizens can own real properties in the Philippines by virtue of hereditary succession.”
The same rules apply for “intestate succession”, where the land owner died without leaving a “Last Will and Testament”. By virtue of intestate succession, the foreign citizen is allowed by Philippine laws to own and acquire the land.
Specifically, the order of intestate or hereditary succession recognized by the law is as follows, starting from the first (#1) to the last (#7):
Order of hereditary or intestate succession under Philippine law:
- Legitimate children or descendants of the deceased;
- Legitimate parents or ascendants;
- Illegitimate children or descendants;
- Surviving spouse;
- Siblings (brothers and sisters), nephews, and nieces;
- Other collateral relatives within the fifth degree; and finally,
- The State (Philippines).
Can a foreigner, who is not at all related to the land owner, be legally assigned in the last will and testament as the heir who will inherit the land? Philippine laws do not allow this. Foreign citizens are allowed to inherit land only by virtue of hereditary or intestate succession (dying without leaving a will).
Testamentary succession, or inheriting land merely by being included in the will, is prohibited. Current laws disallow this because this could be used as a circumvention of what’s prescribed in the Philippine Constitution. If this was allowed, foreigners could pay any land owner to assign them to be their testamentary heirs so they could inherit and thus own land.
D. Purchase of a condo unit
This scenario is perhaps the easiest to understand since this has been typically cited as the most common way for a foreigner to own property in the Philippines.
Under the Condominium Act of the Philippines or Republic Act (RA) 4726, foreign citizens are allowed to buy condo units in any condominium project as long as foreign ownership of that project does not exceed 40%.
Let’s say Condominium Project X is currently offering 100 units for sale. Under the law, all 100 unit owners become owners of Project X Condominium Corporation, the residual owner of the condo building. The condo developer may market and sell condo units to foreign citizens as long as the percentage of foreign ownership in that project does not exceed 40%.
For example, the following groups of foreigners bought the following units of Condominium Project X:
- 20 Chinese citizens bought 1 condo unit each = a total of 20 units
- 8 Korean citizens bought 2 condo units each = a total of 16 units
- 1 American citizen bought 4 condo units = a total of 4 units
- Total condo units in Project X owned by foreigners = 40 units
Given that the foreigners’ ownership in the condo project is a combined total of 40 units out of 100, the required 40% foreign ownership limit is met, which is, therefore, allowed. Anything above that, say 41 units or more, is illegal and a violation of the law.
But who’s in charge of monitoring the foreign ownership percentage of the condo? It will be unfair to pass that burden to the foreigner buying the unit. This responsibility lies with the management of the condominium corporation or the condominium homeowners’ association. They are in charge of regularly and religiously checking that foreigners only own up to 40% of the units sold in that condo project.
Wait, does it mean that since foreigners can own condo units, they also own the land where the condo is situated? No, not really.
The land where the condo was built is not owned by any individual owner. In reality, the land is owned by the Condominium Corporation. (However, in cases where the land is merely leased and not bought and acquired by the condominium corporation, the land is likely owned by another company and will revert to the latter upon extinction of the lease of the condo building.)
For lands owned by the Condominium Corporation, upon the termination of the corporation (usually after 50 years from its incorporation), the unit owners will vote and decide what to do with the land. These are their typical options:
- Choose to demolish the building and erect a brand-new condo while simultaneously instituting a new condominium corporation that will own the new building; or
- Decide to sell the land where the existing building is situated while sharing the proceeds of the sale among themselves depending on their ownership stake in the condominium corporation.
E. Purchase of land by a corporation
A valid and legal loophole used by foreigners looking to own land in the Philippines is creating a domestic corporation. This requires establishing a company to be registered with the Securities and Exchange Commission (SEC).
The only requirement is that the corporation must still abide by the 40% foreign ownership rule, which means Filipinos must still have majority ownership — at least a 60% stake in that corporation.
Once approved by the SEC, the corporation may now purchase any real estate property, including land, house and lot, condominium units, or commercial buildings. As a part-owner of this corporation, the foreigner can enjoy the use and benefits of the acquired property. However, the foreigners’ combined stake in the ownership is limited to just 40%.
Upon dissolution of the corporation, the foreigner is entitled to receive his proportionate share in the company’s remaining assets, but this doesn’t mean they can get to own the land owned by the corporation. The land may be sold, and the cash proceeds distributed to the owners, including the foreigner.
F. Settle for a freestanding house
Foreigners can legally own a home and other types of properties, but not the land where it sits. To work around this, you can buy a freestanding house but lease the property.
Under the Investor’s Lease Act of the Philippines, a foreign national can enter into a lease agreement with a Filipino landowner for a long-term lease with an initial period of up to 50 years and a one-time option to renew for 25 years.
Of course, the purchase price will depend on where you buy. The closer you are to a major city, the higher the price. The average price per square foot in a city center nationally is about US$207.50, making a 1,200-square-foot home US$249,000.
If you choose to live outside the city, it costs roughly US$119 per square foot, meaning that same-sized home costs just under US$143,300. The average interest rate for a 20-year fixed-rate mortgage is about 7.1% nationally.
G. Purchase by a foreigner who was a natural-born Filipino
Natural-born Filipinos who lost their Filipino citizenship and acquired foreign citizenship are eligible to own lands in the Philippines under the 1987 Constitution. The relevant provision states that:
Section 8 (Article XII). “…a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law.”
This simply means foreign citizens, who were former natural-born citizens of the Philippines, are eligible to acquire and own lands.
First things first, what is a “natural-born Filipino”?
The Philippine Constitution defines a natural-born Filipino as a “citizen of the Philippines from birth without having to perform any act to acquire or perfect their Philippine citizenship.”
The following people are classified as natural-born Filipinos, specifically:
- A citizen of the Philippines at the time of the adoption of the 1987 Constitution;
- Born after January 17, 1973, whose fathers or mothers are citizens of the Philippines at the time of their birth;
- Born before January 17, 1973, may be born anywhere in the world to a Filipino father; or to a Filipino mother, and that person elects Filipino citizenship upon reaching the age of majority (which is 18 years old)
- Naturalized under the Philippines’ Naturalization Law;
- A citizen of the Philippines who married a foreigner but has not renounced their Filipino citizenship;
- Those who acquired Dual citizenship (i.e., Filipino and another citizenship);
- Those who acquired Derivative (origin or descent) citizenship (i.e., the unmarried child, legitimate or not or adopted, below 18 years of age, of those who re-acquire Philippine citizenship upon effectivity of RA 9225 or the Citizenship Retention and Re-acquisition Act of 2003)
The specific laws governing land ownership rights of natural-born Filipinos, who acquired foreign citizenship, are Batas Pambansa 185 (BP 185), enacted in 1982 and Republic Act 8179 (RA 8179), which amended the Foreign Investment Act of 1991.
4. Land ownership rules for foreigners who were natural-born Filipinos
Here are the limitations for land ownership of non-Filipino citizens who were originally natural-born Filipinos:
- Lot area limits for the acquisition of land to be used for residence:
- 1,000 square meters (sqm) of urban land
- 1 hectare of rural land
- Lot area limits for the acquisition of land to be used for business or commerce:
- 5,000 square meters (sqm) of urban land
- 3 hectares of rural land
Either of the spouses (who are both former natural-born Filipinos) may avail of this privilege. However, the total acquisition shall not exceed the maximum area allowed.
In addition, those who acquired urban or rural land for residential purposes while still a Filipino citizen may acquire additional urban or rural land for residential purposes, provided that when added to that already owned land, the total shall not exceed the maximum area stated above.
Similarly, the same rules apply to those who already owns urban or rural land, while still a Filipino citizen, to be used for business purposes.
The same land ownership guidelines state that a natural-born Filipino may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines, provided that the total area of those lots does not exceed 1,000 sqm. for urban land or one (1) hectare for rural land for use as a residence, or do not exceed 5,000 sqm for urban land or three (3) hectares of rural land for commercial use.
The law also disallows a person who has already acquired urban land for residential purposes to acquire rural land for residential purposes and vice versa.
Under Section 4 of Rule XII of the Implementing Rules and Regulations of RA 704 as amended by RA 8179, “a transferee who has already acquired urban land shall be disqualified from acquiring rural land and vice versa.” However, if the transferee has disposed of his rural land, they may still acquire rural land and vice versa provided that this will be used for business.
We have more practical examples of the application of these land ownership rules for natural-born Filipinos in the FAQ below, but for now, let’s answer a question that has confused some foreign retirees looking to own land:
5. FAQs on Land Ownership for “Natural-Born Filipinos”
Question #1: I am a former natural-born Filipino citizen but have become a naturalized citizen of another country. Am I allowed to own land in the Philippines?
Answer: Yes. Any natural-born Filipino citizen who has lost their Filipino citizenship may still own private land in the Philippines up to a maximum area of 5,000 square meters in the case of rural land. See ownership limits in Case 4 above.
Question #2: If I can own a maximum of two lots in different municipalities or cities, can I own a 5,000 square-meter urban lot in one city (for example, Quezon City) and three hectares of rural land and vice versa?
Answer: No. A former natural-born Filipino citizen who has already acquired urban land shall be disqualified from acquiring rural land and vice versa.
Question #3: Can a former natural-born Filipino citizen own more than 5,000 square meters of urban land or three hectares of rural land?
Answer: Yes. If a former natural-born Filipino citizen acquires Philippine citizenship, they can acquire land without an area limit.
Question #4: I was a Filipino citizen who changed citizenship afterwards. What will happen to the land and properties I acquired as a Filipino citizen?
Answer: Filipinos who lost their Filipino citizenship and acquired foreign citizenship will remain the owners of any property they have acquired before changing nationalities.
Question #5: Can my children inherit my land and property in the Philippines if I were already a foreign citizen when they were born?
Answer: Yes. Foreign nationals (even if they were not former natural-born Filipino citizens) can own land in the Philippines if they acquire it by inheritance. These nationals should, however, inherit the property by intestate succession. Intestate succession means the foreign national inherits the property because they are an heir under Philippine law. Naming one’s heir by simply executing a “Last Will and Testament” or a “Living Will” will not work to validly transfer real property in the Philippines to a foreign national.
Question #6: My spouse is a natural-born citizen of another country (foreigner). Can he buy a condominium unit in the Philippines and have the title in his name?
Answer: Yes. The land on which a condominium building stands is owned by a condominium corporation. When a person buys a condominium unit, they automatically become a stockholder in the corporation which owns the land. Under Philippine law, foreigners are allowed to become stockholders of a corporation that owns the land, but only up to a maximum of forty percent (40%) of the corporation’s shares. Foreigners, therefore, are allowed to own condominium units provided the total floor area owned by all foreigners in the condominium building does not exceed forty percent (40%).
Question #7: Is Philippine citizenship acquired by blood or by country of birth?
Answer: Philippine citizenship is acquired by blood (jus sanguini). A child is deemed a Filipino citizen if at least one of the parents is a Filipino citizen at the time of their birth. Even if the child was born outside the Philippines, the child is Filipino as long as at least one of the parents is a Filipino citizen. On the other hand, if both parents are non-Filipinos, the child is not a Filipino citizen, even if they were born in the Philippines.
Question #8: Our son was born in the U.S. at the time when my wife and I were still Filipino citizens. One week after our son’s birth, my wife and I took our oaths as US citizens. Did our son lose his Philippine citizenship when we became American citizens?
Answer: No. The child was vested with Philippine citizenship at the time of his birth. He keeps his Philippine citizenship even if his parents acquire foreign citizenship after his birth.
Question #9: My daughter was born in the U.S. at the time when my wife and I were still Filipino citizens. She has been using a US passport for 20 years but has never visited the Philippines. Is my daughter considered a Philippine citizen even if she is already an American citizen?
Answer: Yes. Philippine law allows dual citizenship. A child can be both an American citizen and a Filipino citizen simultaneously. Under present laws, people lose their Philippine citizenship if they renounce it. They shall be treated as foreigners — in which case restrictions to land ownership will apply. Using a US passport exclusively and not visiting the Philippines does not amount to a renunciation of their Philippine citizenship. Additionally, for foreigners entitled to Philippine citizenship that opts to follow through with the naturalization process, local laws will apply to any other national from the Philippines.
Question #10: If my child is born in the US at the time when my wife and I are still Filipino citizens, what should we do to document his Philippine citizenship?
Answer: A copy of the child’s birth certificate should be submitted to the nearest Philippine consulate to transmit the birth certificate to the Philippine Statistics Authority or PSA (formerly known as NSO or National Statistics Office) in the Philippines for registration purposes.
6. Can Foreigners with Special Retirement Visas own land in the Philippines?
There is, unfortunately, a misconception among foreign retirees in the Philippines, specifically those holding a Special Resident Retirees Visa or SRRV, on whether they are allowed to own land. According to the Philippine Retirement Authority (PRA) – the agency in charge of issuing SRRVs, foreigners holding an SRRV are NOT allowed to own land or real estate property in the Philippines.
If the foreign retiree is legally married to a Filipino citizen, the foreigner may purchase land but, like in Case III–B above, the property will be registered under the name of the Filipino spouse.
The exception is if the foreign retiree holding an SRRV is a former natural-born Filipino. The applicable rules will be the same as those for natural-born Filipinos who acquired foreign citizenship, as stated in Case 4 above.
7. Buying Real Estate in the Philippines: Let’s Talk About Costs
If you’re thinking of buying a property in the Philippines, the price you pay will be influenced significantly by where you want to live and which type of property you wish to acquire.
Read on to see an overview of how much a house will cost you in the Philippines and which taxes and fees you’re expected to pay when purchasing a property.
A. How much does a house cost in the Philippines?
As mentioned below, location plays a huge role when it comes to house pricing. Here you can find an overview of average property prices in some of the most popular cities in the Philippines:
City | Price (sqft) in the city center | Price (sqft) outside of the city center |
Manila | US$367.09 | US$263.45 |
Quezon | US$159.37 | US$65.28 |
Davao | US$242.12 | US$132.18 |
B. What are the fees and taxes for buying a property in the Philippines?
Other than the purchase price for the house, you might want to look up which taxes and fees are applicable, as they can influence how much it’ll cost you in the end.
Below you’ll find some of the most common property taxes and fees:
Type of fee | Amount (%) |
Local Transfer Tax | 0.5% – 0.75% |
Notary Fees | 1% – 2% |
Registration Fees | 1% |
Exchange Rate | Variable |
Real estate agent fees (3% – 5%), capital gains tax (6%), and documentary stamp tax (1.5%) are shouldered by the seller.
8. How do I get started in buying foreign land in the Philippines?
Buying a property in the Philippines can be quite different from buying a home in Europe or North America. Foreign buyers are subject to restrictions, and the market is less regulated. It’s essential that you get the right, qualified local help to ensure the property you’re buying is being sold legally.
Once you’ve found someone to help you out, here are the steps you’ll need to follow:
Step 1. Choose the property you wish to purchase.
Step 2. Agree with the seller on the sales price and, with the help of a lawyer, create and notarize the Deed of Absolute Sale (DOAS).
Step 3. Get the Land Tax Declaration from the Bureau of Internal Revenue (BIR) and submit it to the relevant Assessor’s office.
Step 4. Pay for the real estate tax on the city treasury.
Step 5. The Assessor’s office will analyze the value of the house.
Step 6. You’ll have to pay the transfer taxes. This has to be done at the Assessor’s office.
Step 7. The seller pays the Capital Gains Tax and Documentary Stamp Tax (to the BIR).
Step 8. The old property title — under the seller’s name — is replaced by the new one on the Registry of Deeds (RD).
Step 9. You’ll get a copy of the new deed and request the Assessor’s office for tax declaration documents.
Step 10. You made it! Sit back and enjoy your new Philippine home.
The process should take around 40 days to be completed.
Most importantly, it is best to invest in well-known and reputable real estate developers. Next to safety and world-class amenities, they offer the best and most trustworthy offers that will help investors boost their financial horizons.
9. Finding and Choosing Property in the Philippines
Now that we’ve been through the steps of purchasing a property, the pricing and the fees you’ll have to pay, we can give you some tips on how and where to go after your home in the Philippines.
A. How much does a house cost in the Philippines?
- Best Places in Luzon For Real Estate Investment
Luzon has a lot of great places to live in. You can surely find an excellent real estate investment in the largest island of the Philippines, especially if you start with the following provinces:
- Manila
Manila, the capital of the Philippines, houses 1.8 million people, making it the second-largest city in the country. If you’re looking for an ex-pat lifestyle and work opportunities, this might be the right city for you. It’s also worth checking the Metro Manila area, which encompasses Manila, Quezon, and several other cities, one of the largest metropolitan areas in Asia.
- Makati City
Makati City is the “Financial Capital of the Philippines” and Metro Manila’s “Wall Street.” Noted for its skyscrapers, expensive retail malls, restaurants, and entertainment venues, the city is an attractive spot for professionals and foreigners to dwell. IT facilities, business process outsourcing companies, and other local and international companies are based in the city’s commercial and central business districts.
- Quezon City
Quezon is the largest city in the Philippines, with almost 3 million inhabitants. It also served as the country’s capital during the 40s and 70s. Most Filipinos, particularly students, have made the city their home as it’s home to some of the country’s most prestigious schools, including the University of the Philippines, Ateneo de Manila, and Miriam College.
- Pampanga
Another province up north that can be considered among the best places to live in the Philippines is Pampanga. It gives you easy access to the Clark International Airport, North Luzon Expressway (NLEX), and Subic-Clark-Tarlac Expressway (SCTEX).
- Laguna
Laguna is the foolproof choice for many real estate investors. It has a sophisticated mix of urban and rural living. It also serves as a gateway to holiday destinations such as Tagaytay and Batangas. Laguna is a powerhouse when it comes to business, as it houses many major manufacturing plants and businesses.
- Tagaytay
Tagaytay is known for its cool climate. The city is on a ridge overlooking the Taal Volcano, making it a perfect spot to enjoy nature and view breathtaking sights. Moreover, it has numerous tourist attractions, such as the Taal Vista Hotel, People’s Park in the Sky, and Tagaytay Ridge.
- Batangas
The province has an abundance of beaches, mountains, and lakes. It’s not too urbanized but not too rural―perfect for people who want to steer away from Metro Manila’s busy and fast-paced environment. It’s an excellent option for starting families looking for a peaceful and quiet place where their children can enjoy nature and outdoor activities.
- Cavite
If you’re looking for a reasonably priced real estate package in a location poised for growth, consider Cavite as one of the best places to live in the Philippines. It has access to three major expressways: the Cavite-Laguna Expressway or CALAX (that connects you to SLEX), the Muntinlupa-Cavite Expressway or MCX (also connects you to SLEX), and the Manila-Cavite Expressway (CAVITEX).
- Antipolo
Its proximity to Manila and its calming, rural feel makes Antipolo one of the best places to live in Luzon. The city is also known for its many religious sites and tourist spots, such as the Our Lady of Peace and Good Voyage Shrine, Hinulugang Taktak, and the Pinto Art Museum. If you’re looking for a place to build your forever home, Antipolo can be the perfect spot.
- Taguig City
Taguig is a business haven, with top local enterprises and notable foreign organizations located in the city due to its current apex of city architecture, notably in its blending of commercial and real estate properties and public facilities that are well-planned and maintained.
- Best Places in Visayas For Real Estate Investment
The best place to live in the Philippines may be somewhere other than in Luzon, so consider scoping out locations in different cities, too, like in Visayas.
- Cebu City
Known as the “Queen City of the South”. Those who have been to Cebu City for a vacation or business trip will tell you it’s like being in Makati or Taguig. This is primarily because of its bustling environment, which is perfectly displayed by towering skyscrapers, posh restaurants, and massive business parks. However, its rich culture keeps it grounded, and its proximity to holiday destinations, such as Oslob and Bohol, makes it an even better choice.
- Iloilo City
Iloilo City is one of the best places to live in the Philippines for those who want to integrate historical hints and sensibilities into urban living. This is because major architectural themes lean towards Spanish aesthetics, and many districts still have plazas. It has been a premier center of trade, commerce, finance, health, and tourism in the Western Visayas region.
- Bacolod City
Bacolod is part of the Bacolod Metropolitan Area, which also includes the cities of Talisay and Silay. While the city thrives in agriculture, it also has companies heavily focused on IT and business process outsourcing. Moreover, the City of Smiles is a bustling coastal city. It has busy seaports, a clear indicator of active trade and a rising economy.
iii. Best Places in Mindanao For Real Estate Investment
Still, looking for the best place to live in the Philippines? Don’t worry because you might find what you want in Mindanao.
- Cagayan de Oro City
In recent years, Cagayan de Oro has been considered one of the next-wave cities in the country. Real estate think-tanks even said that this Northern Mindanao city is worth keeping an eye on, as it’s on the brink of a real estate “explosion.” It also makes a good location for real estate investors, especially now that the city’s investing heavily in infrastructure.
- Davao
Davao is the third largest city in the Philippines, with a population of 1.6 million. It’s very much like Metro Manila when it comes to economic performance, as it’s home to diverse industries. Tourism is also a significant contributor to the city’s success, as demonstrated by hospitality businesses, such as Marco Polo Davao, Apo View Hotel, and Pearl Farm Beach Resort.
B. Make sure to check the condition of the property
It’s a smart idea, though not required by law, to survey any property you choose or any land you decide to lease before you commit. This isn’t necessarily standard practice, so you should ask your lawyer about how to find a local surveyor you can trust.
10. Bottomline
Property prices vary significantly in the Philippines – just like anywhere in the world. It depends on location, size, condition, and features. To help ensure that everything goes as smoothly as possible, and to protect your rights, consult with an experienced real estate agent and an attorney.
Once you pick the general area where you want to settle down, your real estate agent can show you various properties, help narrow down your choices and provide general guidance throughout the process. They can also help you understand the rules regarding property ownership and what you can and can’t purchase as a foreigner.
Now that we’ve been through the most important aspect to look out for when buying property or land in the Philippines, you’re ready to go after your new home!
KEY TAKEAWAYS
- Due to very protective laws, foreigners can only buy a restricted set of properties but are not allowed to purchase lots or land.
- A foreign citizen who was able to purchase and own land prior to the enactment of the 1935 Philippine Constitution will retain their ownership rights on that property.
- If a foreigner marries a Filipino, they may acquire land in the Philippines, but the title to the property will be in the name of the Filipino spouse.
- Foreign citizens are allowed to inherit land only by virtue of hereditary or intestate succession (dying without leaving a will).
- Under the Philippine Condominium Act, foreigners are allowed to own condominium units provided the total floor area owned by all foreigners in the condominium building does not exceed forty percent (40%).
- Foreigners can purchase land through a corporation, provided Filipino citizens own a 60% stake in that corporation.
- Under the Investor’s Lease Act of the Philippines, a foreign national can enter into a lease agreement with a Filipino landowner for a long-term lease.
- Foreign citizens, who were former natural-born citizens of the Philippines, are eligible to acquire and own lands subject to limitations.
- Foreigners holding an SRRV are not allowed to own land or real estate property in the Philippines unless the foreign retiree holding the SRRV is a former natural-born Filipino.
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