Can a Foreigner Buy a Condominium in the Philippines? What the Law Says

Yes — a foreigner can buy a condominium unit in the Philippines, but only within the limits set by the Condominium Act. The rule turns on how the land and common areas of the project are held. Where the common areas are owned by the unit owners as co-owners, no unit may be conveyed to anyone other than Filipino citizens or corporations that are at least sixty percent Filipino-owned, except by hereditary succession. Where a condominium corporation holds the common areas, the transfer is valid only if the buyer's stake in that corporation does not push alien interest beyond the limits set by existing laws.

What the Condominium Act says about foreign buyers

Republic Act No. 4726, the Condominium Act, defines a condominium as an interest in real property made up of a separate interest in a unit plus an undivided interest in the common areas and the land on which the building stands. The common areas may instead be held by a condominium corporation, of which unit owners automatically become members or shareholders.

The foreign ownership rule sits in Section 5 of the Act. It creates two scenarios:

• Common areas held in co-ownership. No condominium unit may be conveyed or transferred to persons other than Filipino citizens, or to corporations at least sixty percent of whose capital stock belongs to Filipino citizens. The only exception is hereditary succession.
• Common areas held by a corporation. No transfer of a unit is valid if the accompanying transfer of membership or stockholding in the condominium corporation would cause alien interest in that corporation to exceed the limits imposed by existing laws.

In practice, this is why foreigners typically buy in projects where a condominium corporation holds the common areas, and where the resulting foreign share in that corporation stays within the legal ceiling.

Why the 60% Filipino ownership rule matters

The restriction is not aimed at the unit itself. It protects the land and common areas, which remain subject to the constitutional and statutory limits on alien ownership of Philippine real property.

When the common areas are co-owned, the sixty percent Filipino requirement applies directly to the buyer. When they are corporate-held, the test is applied to the corporation's ownership mix. A purchase that would breach the ceiling is invalid as to that transfer.

A foreign buyer should therefore confirm, before paying anything, how the project holds its common areas and what the current ownership mix of the condominium corporation looks like.

The master deed and declaration of restrictions

Under Section 4 of the Act, the condominium regime applies only once an enabling or master deed is recorded with the Register of Deeds and annotated on the certificate of title. The master deed must describe the land, the building and its units, the common areas, the nature of the interest a buyer acquires, and any use restrictions.

Section 9 requires the project owner to register a declaration of restrictions before conveying any unit. These restrictions bind all unit owners and provide for the management body — which may be a condominium corporation, an association of owners, a board of governors, or a management agent.

Both documents can affect what a foreigner may buy and how the unit may be used, so they should be reviewed as part of due diligence.

What a foreign buyer actually acquires

Under Section 6, the boundary of a unit runs along the interior surfaces of its perimeter walls, floors, ceilings, windows, and doors. Structural elements, lobbies, stairways, and central services remain common property.

The same section gives each owner the exclusive right to mortgage, pledge, or encumber the condominium, and the absolute right to sell or dispose of it — unless the master deed requires that the unit first be offered to the other owners within a reasonable period. A foreign buyer should check whether such a first-offer clause exists.

Registration and assessments

Section 18 requires that a conveyance of a condominium be registered with the Register of Deeds, which annotates the transfer on the certificate of title and issues the buyer a condominium owner's copy. A subsequent conveyance must be accompanied by a certificate from the management body confirming that it complies with the declaration of restrictions.

Section 20 makes assessments under a registered declaration of restrictions an obligation of the owner at the time the assessment is made. Once a notice of assessment is registered, the amount becomes a lien on the unit, superior to later-registered liens except real property tax liens.

Frequently asked questions

Can foreigners own land in the Philippines through a condominium? No. A condominium purchase gives a separate interest in a unit and an undivided interest in the common areas, which remain subject to the ownership limits in Section 5 of the Condominium Act. It is not a route to owning the land outright.

How much of a condominium project can foreigners own? The Act does not set a single project-wide percentage. It bars transfers that would breach the sixty percent Filipino ownership requirement where common areas are co-owned, or that would push alien interest in the condominium corporation beyond the limits imposed by existing laws.

Can a foreigner buy from another foreigner? Only if the transfer still complies with Section 5. If the common areas are co-owned, a conveyance to a non-Filipino is barred except by hereditary succession. If a corporation holds them, the transfer must not breach the alien interest ceiling.

Practical takeaways

• A foreigner may buy a condominium unit, but the land and common areas remain subject to the sixty percent Filipino ownership rule under Section 5 of the Condominium Act.
• Check whether the project's common areas are co-owned or held by a condominium corporation — the rule applies differently in each case.
• Review the master deed and the declaration of restrictions before committing, since these govern use, management, and any first-offer clause.
• Confirm the ownership mix of the condominium corporation to ensure the purchase will not breach the alien interest ceiling.
• Register the conveyance with the Register of Deeds and secure the condominium owner's copy of the title.

Primary sources

The rules discussed above are drawn from the following primary sources. Where the firm's library holds the document as a PDF it is embedded here in full; the rest are cited by title.

RMC No. 30-2025 — Circularizing the Implementing Rules and Regulations of RA No. 12001, titled "An Act Instituting Reforms in Real Property Valuation and Assessment in the Philippines, Reorganizing the Bureau of Local Government Finance, Granting Tax Amnesty on Real Property and Special Levies on Real Property, and Appropriating Funds Therefor"Open in Law LibraryDownload PDF

• REPUBLIC ACT NO. 4726 - AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS FOR ITS CREATION, AND GOVERN ITS INCIDENTS.

• REPUBLIC ACT NO. 7899 - AN ACT AMENDING SECTION FOUR AND SECTION SIXTEEN OF REPUBLIC ACT NUMBERED FOUR THOUSAND SEVEN HUNDRED TWENTY-SIX, OTHERWISE KNOWN AS THE CONDOMINIUM ACT"

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.