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Property

Philippines — Property: Foreign Ownership

Foreigners cannot own Philippine land under Article XII of the Constitution but can own condominium units up to a 40% foreign cap and lease land under the Investors Lease Act, extended to 99 years by RA 12252.

VerifiedGovernment / official sourceSupreme Court e-Library / Republic Act 12252 and Condominium Act (RA 4726)Last reviewed: 2026-10-23

Key facts

  • The Supreme Court holds that the ban on transferring land to aliens comes from Sections 2, 3 and 7 of Article XII of the 1987 Constitution, and reaches leases amounting to transfer of substantially all dominion.
  • Under the Condominium Act (RA 4726) a non-Filipino may own a condominium unit provided non-Filipino shareholdings in the condominium corporation do not exceed 40%; the foreign investment negative list reflects this cap.
  • The Investors Lease Act originally allowed leases up to 50 years renewable once by 25; Republic Act 12252, signed 3 September 2025, allows an aggregate of up to 99 years, with shorter periods possible for critical sectors.
  • Courts have struck down arrangements that gradually transfer ownership to foreigners, including a 99-year lease with an option to buy (Lui She).

Steps

  1. Step 1: Determine Eligibility — Check the types of properties that can be owned by foreigners and ensure you meet the relevant requirements.
  2. Step 2: Choose the Right Type of Property — Decide on the type of property you want to buy, such as a condominium or apartment, which is allowed for foreigners.
  3. Step 3: Comply with Foreign Ownership Regulations — Familiarize yourself with the relevant laws and regulations governing foreign ownership of property in the Philippines.

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