Owning property in the Philippines as an American

An American can own a condo unit in Manila outright. What an American can't own is land, and that one rule shapes every other option.

The short version

The 1987 Constitution bars transfers of private land to foreigners, except by hereditary succession [1].
Condos are the exception that works. Under the Condominium Act, foreigners can own units as long as the project stays at least 60% Filipino-owned, which is the familiar 40% foreign cap [2].
Residential leases of private land to foreigners are capped at 25 years, renewable once for 25 more [3].
Investor leases used to be 50 years plus 25. Since September 3, 2025, Republic Act 12252 allows up to 99 years in total, but only for approved investments, not a retirement house [4][5].
Former natural-born Filipinos can buy limited land. Dual citizens under RA 9225 have the full rights of Filipino citizens [6][7][8].

This is general information about Philippine law, not legal advice. A Philippine real estate lawyer can check your situation before you sign anything.

The big rule: no land for foreigners

Article XII, Section 7 of the 1987 Constitution says: "Save in cases of hereditary succession, no private lands shall be transferred or conveyed" except to people and companies qualified to hold public land, which means Filipino citizens and corporations at least 60% Filipino-owned [1].

For Americans used to buying a house and lot in Phoenix or Tampa, that's a culture shock. In the Philippines, you can't hold title to a house lot in your own name, and putting it in a Filipino friend's name, or in a corporation you secretly control, doesn't get you around the ban. Arrangements like that put the property at risk and can be void.

The inheritance exception

The word "hereditary succession" matters. A foreigner can end up owning land through inheritance [1]. If your Filipino spouse dies and you inherit part of the family's land, the constitutional bar doesn't block that transfer. How far the exception reaches, for instance whether it covers land left to you by will, is a question for a Philippine lawyer, not a blog.

Condos: what Americans actually buy

The Condominium Act (Republic Act 4726, approved June 18, 1966) is the reason foreigners can own homes in Manila at all [2]. A condo unit is separate from the land, which is held by the condominium corporation. Section 5 says that where the common areas are held by a corporation, a unit can't be transferred to non-Filipinos if that would push foreign interest in the corporation past the limits in law. Where the common areas are co-owned, units can go only to Filipinos or to corporations at least 60% Filipino-owned [2].

The practical result is the 40% foreign ownership cap per project. Developers in Makati, BGC and Ortigas track their foreign quota closely.

What that means for you:

Ask the developer or seller for the current foreign quota before you pay a reservation fee. If the building is already at 40%, your purchase can't be registered in your name.
Pay with money from abroad and keep the paper trail. Banks and registries look at inward remittances, so keep every wire confirmation.
The title is a Condominium Certificate of Title (CCT) in your name. Check it at the Registry of Deeds, not just on a photocopy.
Budget for transfer taxes and fees. They're usually split between buyer and seller by contract. Get the current rates from your lawyer or the Bureau of Internal Revenue, because they change.

What you want to own	Can an American own it?	Legal basis
Condo unit	Yes, within the 40% foreign cap per project	RA 4726, Sec. 5 [2]
House and lot	Only the house structure, not the land	Constitution Art. XII, Sec. 7 [1]
Land by inheritance	Yes, by hereditary succession	Constitution Art. XII, Sec. 7 [1]
Long lease of private land, residential	Yes, 25 years renewable once for 25	PD 471 [3]
Long lease for an approved investment	Yes, up to 99 years in total	RA 7652 as amended by RA 12252 [4][5]

Leasing land: the 25+25 rule and the new 99 years

If you want a house rather than a condo, the usual route is to lease the land and own or build the house yourself.

Residential leases: 25 plus 25

Presidential Decree 471 (May 24, 1974) caps leases of private land to foreigners at 25 years, renewable for another 25, and the renewal needs both sides to agree [3]. A lease that breaks the rule is void from the start, and both parties can face fines or jail [3]. So a "50-year lease" on a beach lot for your retirement house, signed in one go, is a red flag.

Investor leases: from 50+25 to 99 years

The Investors' Lease Act (Republic Act 7652, June 4, 1993) gave registered foreign investors leases of up to 50 years, renewable once for up to 25 [4]. That's the "50 plus 25" you'll still see quoted online.

That changed on September 3, 2025. Republic Act 12252 amended the law so that "the aggregate period of the lease contract shall not exceed ninety-nine (99) years" [5]. The President can set shorter terms for critical infrastructure, and registration of the lease is what makes it binding against third parties [5].

The catch hasn't changed: these leases are for investments, meaning foreign equity registered with the SEC and land used "solely for the purpose of the investment" [4]. The listed uses are things like factories, industrial estates, agro-industry and tourism [4]. If you stop using the land for the approved investment, the lease ends automatically [5]. It isn't a backdoor way to lease a lot for your retirement house.

If you were born Filipino: two routes

Many Americans in Manila are former Filipinos who naturalized in the US. You have more options than other Americans.

Option 1: buy limited land as a former natural-born Filipino

Section 8 of Article XII lets a natural-born Filipino who lost Philippine citizenship receive private land, within limits set by law [1].

For a home: Batas Pambansa 185 (March 16, 1982) allows up to 1,000 square meters (about 10,760 square feet) of urban land or one hectare (about 2.5 acres) of rural land, as a residence, in no more than two lots in different cities or towns [6].
For business: Republic Act 8179 (March 28, 1996) allows up to 5,000 square meters (about 53,800 square feet) of urban land or three hectares (about 7.4 acres) of rural land for business or other purposes, again in no more than two lots [7].

Married couples share the cap: if both of you use the privilege, the total still can't exceed the maximum [6][7].

Option 2: reacquire Philippine citizenship under RA 9225

Republic Act 9225, the Citizenship Retention and Re-acquisition Act of 2003 (approved August 29, 2003), lets natural-born Filipinos who became US citizens get their Philippine citizenship back by taking an oath of allegiance [8]. Unmarried children under 18 follow as derivative citizens [8]. Those who reacquire "shall enjoy full civil and political rights" [8]. In plain English, you can own land like any other Filipino, with no area limits from BP 185 or RA 8179.

The US side is simple: the US allows dual citizenship, and taking the Philippine oath doesn't by itself end your US citizenship. Your US tax filing duties continue either way.

The US side of owning property abroad

FBAR and Form 8938. Directly owned foreign real estate isn't reportable on either form, but the Philippine bank accounts you use to pay for it are, once they cross the thresholds [9].
Rental income. If you rent out your Makati condo, the rent goes on your US return, and you can generally claim a foreign tax credit for Philippine tax on it. A US expat tax preparer can check your case.
Selling. The gain is taxable in the US, and currency swings between the peso and the dollar can create a gain or loss of their own.

Before you put down a reservation fee, ask our community group for Americans in the Philippines about developers and buildings other Americans have actually dealt with.

Owning property in the Philippines: condos yes, land no (with a few exceptions)