Philippine REITs for Foreign Investors in 2026: A Guide to SEC Memorandum Circular No. 1 and Strategic Property Investment

For foreign investors seeking recurring, dividend-based returns from Philippine income-generating real estate without acquiring direct land ownership — a constitutional prohibition that remains in force in 2026 — the Real Estate Investment Trust (REIT) structure has become the most sophisticated and legally resilient vehicle available. The Philippines' REIT market, though younger than its regional counterparts in Singapore and Thailand, has matured substantially. And the January 2026 issuance of SEC Memorandum Circular No. 1, Series of 2026 — effective January 25, 2026 — changes several rules that matter to foreign investors and sponsors.

This article is written for foreign investors, whether individuals or corporate entities, who are evaluating Philippine REIT investment in 2026. It is also written for foreign sponsors and promoters who may be considering contributing income-generating real estate assets to a newly formed REIT corporation. Where the law remains unclear or where practical ambiguities exist, this article says so explicitly.

1. The Legal Framework: Republic Act No. 9856 and the 2026 SEC Revisions

The REIT Act of 2009 (Republic Act No. 9856)

The foundational statute governing Philippine REITs is Republic Act No. 9856, the Real Estate Investment Trust Act of 2009, which lapsed into law without the President's signature on December 17, 2009. RA 9856 established the legal framework authorizing the creation of REIT corporations in the Philippines, defining the tax treatment of REIT dividends, and prescribing the minimum public ownership requirements, mandatory distribution rules, and the regulatory authority of the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE).

Under RA 9856, a REIT is defined as a corporation established primarily for the purpose of acquiring and owning real estate assets — not for development and sale — that produces recurring, income-generating cash flows. The REIT corporation must be listed on the PSE and must distribute at least 90% of its annual distributable income as dividends to shareholders. This mandatory distribution rule is the structural feature that makes REITs tax-efficient investment vehicles: the corporation pays minimal corporate income tax, and the income flows through to shareholders as dividends, taxed at the shareholder level.

The Implementing Rules and Regulations (IRR) of RA 9856 have been amended several times. The minimum public ownership requirement — at least 1,000 public shareholders each owning at least 50 shares and together owning at least one-third of the outstanding capital stock — comes from the statute itself (Section 8.1). The SEC approved the original IRR on May 13, 2010, and issued a Revised IRR through SEC Memorandum Circular No. 1, Series of 2020. The January 2026 amendments under SEC Memorandum Circular No. 1, Series of 2026, revise that 2020 Revised IRR.

SEC Memorandum Circular No. 1, Series of 2026: Key Changes Effective January 25, 2026

SEC Memorandum Circular No. 1, Series of 2026, was issued on January 8, 2026, and took effect on January 25, 2026. It introduces four categories of significant amendments:

• Expanded definition of income-generating real estate — now expressly listing rental properties from infrastructure (toll roads, airports, data centers, energy infrastructure assets) and from logistics properties (warehouses or storage facilities, parking lots), and covering assets held through unlisted special purpose vehicles (SPVs) or incorporated joint ventures.
• Extended sponsor reinvestment period — from one year to two years for proceeds from the sale or transfer of real estate assets to a REIT.
• Enhanced disclosure and governance requirements — more detailed REIT Plan disclosures, clearer definitions of public shareholders (anyone holding 10% or more of the REIT's shares is deemed to have substantial influence and is not a public shareholder), and strict rules against duplicate management fees.
• Look-through distribution rule — if a REIT invests through an unlisted SPV or joint venture, that entity's constitutive documents must require it to distribute at least 90% of its distributable income to the REIT (and any other shareholders) before the REIT declares its own dividends.

The circular does not change the foreign ownership rules; those still come from the Constitution and RA 9856 (see Section 2 below). For foreign investors, the most practically significant change is the express listing of infrastructure assets — toll roads, airports, data centers, and energy infrastructure — among the sources of a REIT's regular stream of income.

2. Foreign Ownership Rules: The 60/40 Rule, Leasehold Structures, and the HARBOR Registry

The Constitutional Constraint on Foreign Land Ownership

The 1987 Philippine Constitution, Article XII, Section 7, provides: "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." Read with Article XII, Section 2, which limits those corporations to ones at least sixty per centum of whose capital is owned by Filipino citizens, this establishes the 60/40 Filipino ownership rule — a corporation holding land in the Philippines must be at least 60% Filipino-owned. RA 9856 applies the same limit to REITs: a REIT that owns land in the Philippines must comply with the foreign ownership limitations under Philippine law (Section 6).

Foreign nationals cannot own private land in the Philippines directly. This restriction is absolute and has not changed in 2026. It applies to all forms of freehold land ownership — whether through direct purchase, donation, inheritance, or corporate acquisition. The Constitution's exceptions are hereditary succession (Section 7) and transfers to natural-born Filipinos who have lost their citizenship, subject to limits set by law (Section 8).

For REIT corporations that intend to own land (freehold), this constitutional constraint means the REIT must be at least 60% Filipino-owned. Foreign investors can hold up to 40% of such a REIT corporation. For REIT corporations that hold only leasehold rights — long-term leases of private land from Filipino landowners, which the Investors' Lease Act as amended by Republic Act No. 12252 allows for up to 99 years in aggregate (the amended Investors' Lease Act) — the foreign ownership restriction does not apply, since Section 6 of RA 9856 imposes it only on a REIT that owns land, and the REIT can be 100% foreign-owned.

100% Foreign-Owned REIT Structures: Leasehold-Only Portfolios

Because Section 6 of RA 9856 imposes the foreign ownership limits only on a REIT that owns land, a REIT corporation can be 100% foreign-owned if it does not own freehold land and its portfolio consists exclusively of:

• Leasehold rights — long-term leases from Filipino landowners within the aggregate cap under RA 12252 (the amended Investors' Lease Act allows qualified foreign investors to lease private land for up to 99 years in total)
• Buildings, structures, and improvements without ownership of the underlying land

This is a significant structuring option for foreign investors who want to establish or sponsor a Philippine REIT while maintaining full control and avoiding the dilution inherent in seeking Filipino co-investors to reach the 60% threshold. The tradeoff is that the REIT cannot own freehold land, which limits the types of income-generating assets it can hold — and leasehold structures carry their own risks, including the risk of lease non-renewal or adverse lease terms.

Under the 2026 amendments, assets qualifying for REIT inclusion now explicitly include real rights over properties — including usufruct, easements, and registered leases. This provides a clearer legal basis for leasehold REIT structures than previous iterations of the IRR.

The HARBOR Beneficial Ownership Registry: New Reporting Obligations for Foreign Investors

For foreign investors holding interests in Philippine REIT corporations, the SEC's new HARBOR (Hierarchical and Applicable Relations and Beneficial Ownership Registry) platform — operational since January 30, 2026, under SEC Memorandum Circular No. 15, Series of 2025 — introduces mandatory beneficial ownership reporting that applies directly to REIT shareholders.

Under the HARBOR rules, any natural person who directly or indirectly owns at least 20% of the voting rights, voting shares, or capital of a REIT corporation must be disclosed as a beneficial owner. This includes foreign nationals. The required disclosures include full legal name, nationality, date of birth, residential address, TIN or passport number, PEP status, nature of control, ownership percentage, and the date beneficial ownership was acquired.

For foreign investors who hold REIT shares through intermediary entities — such as a foreign holding company or a personal investment vehicle — the HARBOR rules require tracing through multiple corporate layers to identify the ultimate natural person beneficial owner. A person who exercises effective control at any level must be identified even if their multiplied ownership is below 20%. Only if no natural person is identifiable under any of the other categories, after exhausting reasonable means of identification, are the persons in senior management positions disclosed as beneficial owners.

Changes in beneficial ownership must be reported through an amended declaration within seven calendar days of the change. Failure to comply carries fines scaled to retained earnings for stock corporations, and a finding of false declaration may result in fines of up to PHP 2,000,000 and potential corporate dissolution.

3. Qualifying Assets Under the 2026 Amendments: What a REIT Can Now Hold

The Expanded Definition of Income-Generating Real Estate

The 2026 amendments substantially broaden what qualifies as income-generating real estate for REIT purposes. The prior IRR definition already covered real property held to generate a regular stream of income such as rentals, toll fees, user's fees, ticket sales, parking fees, and storage fees, but it did not list asset types. The 2026 circular keeps that language, defines "regular stream of income" as recurring and predictable cash inflows from leases, similar arrangements, and other passive income, and expressly lists rental properties from:

• Infrastructure-related assets — toll roads, railways, airports and air navigation facilities, ports, ICT infrastructure, energy infrastructure assets, and data centers
• Logistics properties — warehouses or storage facilities and parking lots
• Traditional commercial real estate — buildings and malls, together with immovable fixtures, machineries, facilities, and structures
• Real rights over properties — including usufruct, easements, and registered leases
• Indirect ownership through SPVs and joint ventures — REITs can hold income-generating assets through unlisted SPVs or incorporated joint ventures, provided the REIT holds at least two-thirds (2/3) of the outstanding and voting capital stock of such entities

The express listing of infrastructure assets is the change most relevant to foreign infrastructure investors. Toll roads, airports, data centers, and energy infrastructure are capital-intensive, long-duration assets that produce highly predictable cash flows — exactly the profile that makes them attractive for REIT structures in developed markets. Philippine infrastructure REITs could attract significant foreign capital, particularly from sovereign wealth funds, infrastructure funds, and institutional investors seeking stable, long-duration returns.

The look-through distribution rule — requiring the constitutive documents of SPVs and joint ventures to mandate distribution of at least 90% of their distributable income to the REIT and any other shareholders before the REIT's own dividend declaration, with a failure to distribute treated as a violation of the REIT's own distribution obligation — ensures that income is not trapped at the subsidiary level and that the tax efficiency of the REIT structure is preserved even when assets are held indirectly.

Excluded Assets: Properties Held Primarily for Sale

The 2026 circular adds an express exclusion: real properties held primarily for sale or disposition — such as inventory properties and assets whose income comes mainly from their sale rather than their continuing use or operation — are not income-generating real estate. A REIT cannot hold property for development and sale; it must hold income-generating assets that produce recurring cash flows through leases, similar arrangements, or other passive income.

The 75% Income-Generating Real Estate Requirement

At least 75% of a REIT's deposited property must be invested in, or consist of, income-generating real estate, and the portion invested in income-generating real estate located in the Philippines can never be less than 35% of the deposited property (Rule 5, Section 1.1(a) of the REIT IRR, which the 2026 circular leaves unchanged).

4. The Investment Process: How Foreign Investors Buy Philippine REIT Shares

Step 1: Understand Your Position as a Foreign Investor in Philippine REITs

As an individual foreign investor, you can freely invest in listed Philippine REIT shares on the PSE without specific foreign ownership limits. The REIT corporation itself bears the responsibility for complying with the 60/40 Filipino ownership rule if it holds freehold land. You, as an individual shareholder, are not constrained by the rule — but you cannot use your REIT investment to indirectly acquire freehold land in your own name.

For foreign corporate investors — including foreign-incorporated holding companies, funds, or institutional investors — the same principles apply. A foreign corporation can purchase REIT shares freely, subject to the REIT corporation's own Filipino ownership compliance obligations.

Step 2: Open a PSE-Accredited Brokerage Account

To purchase REIT shares on the PSE, a foreign investor must open a brokerage account with a PSE-accredited stockbroker. The PSE publishes a list of accredited brokers on its official website. Many Philippine universal banks (such as BDO, BPI, Metrobank, RCBC) have affiliated securities brokerage subsidiaries that offer trading accounts. Online brokers are also available for foreign residents who prefer digital platforms.

Required documentation for foreign investors typically includes:

• Valid passport (primary identification)
• Proof of address (utility bill, bank statement, or equivalent in the investor's home country)
• Customer Account Information Form (CAIF)
• Specimen signature card
• Tax Identification Number (TIN) — either a Philippine TIN (obtainable from the BIR) or, for reporting purposes in certain treaty situations, the foreign jurisdiction's tax identification number
• For corporate investors: Certificate of Incorporation, Board Resolution authorizing the investment, and corporate secretary's certificate

Some brokers may require an initial cash deposit. Minimum investment amounts can be as low as PHP 5,000 to PHP 10,000 depending on the REIT's share price and PSE board lot rules, making REIT investing accessible even for smaller portfolio allocations.

Step 3: Ask About a Name-on-Central Depository (NoCD) Account

The REIT rules require that REIT shares be traceable to the names of the shareholders or investors, and the REIT's transfer agent must monitor transfers to make sure of it. Shares may still be registered under a nominee, such as your broker, as long as the nominee gives the transfer agent the shareholders' names as often as the transfer agent needs them (Rule 4, Section 5.1(a) of the REIT IRR). A Name-on-Central Depository (NoCD) account goes further and registers the shares in your own name rather than the broker's. The NoCD system is administered by the Philippine Depository and Trust Corporation (PDTC), which serves as the central depository for scrip-less shares traded on the PSE. Ask your broker whether it opens a NoCD account for REIT shares as part of the account opening process.

NoCD registration means your REIT shares are identifiable as yours — you receive dividends directly, and you can transfer or sell them without the broker acting as an intermediary in ownership terms. For foreign investors, this is an important transparency feature, particularly given the HARBOR beneficial ownership reporting obligations that apply at the REIT corporate level.

Step 4: Fund the Account and Place a Buy Order

Foreign investors typically fund their brokerage accounts via international wire transfer to a peso-denominated account designated by the broker for inward remittances. Under Bangko Sentral ng Pilipinas (BSP) regulations, inward remittances for stock market investments are generally freely convertible and repatriable, meaning you can move funds in and out without BSP approval, subject to standard documentation requirements.

Once your account is funded, you can research available REITs listed on the PSE and place a buy order through the broker's trading platform. REIT shares trade like any other PSE-listed security, and the minimum investment is determined by the share price multiplied by the board lot. REIT prices fluctuate based on Net Asset Value (NAV) per share, dividend yield expectations, and broader market conditions.

Step 5: Receive Dividends and Monitor the Investment

REITs distribute at least 90% of their annual distributable income as dividends — typically semi-annually or quarterly, depending on the REIT's dividend policy. Dividends are paid directly to your NoCD-registered account and can be reinvested through a Dividend Reinvestment Plan (DRIP) if the REIT offers one, or withdrawn and repatriated to your home country.

For foreign investors, dividend taxation depends on your jurisdiction and whether a tax treaty exists between your country and the Philippines. Dividends paid by a REIT are subject to a final tax of 10% under Section 14 of RA 9856, unless a non-resident investor is entitled to a treaty rate lower than 10%. Foreign investors should consult Philippine tax counsel to determine whether a lower treaty rate applies and the process for claiming treaty benefits, which requires a Tax Residency Certificate from their home tax authority.

5. Tax Treatment of REIT Investments for Foreign Investors

Dividend Withholding Tax

Dividends paid by a Philippine REIT to a non-resident foreign corporation are subject to a final withholding tax (FWT) of 10% under Section 14 of RA 9856 — lower than the 25% rate that would otherwise apply to dividends paid to non-resident foreign corporations under Section 28(B)(1) of the National Internal Revenue Code (NIRC), as amended. (Dividends received by a domestic corporation or resident foreign corporation are exempt.) This is a final tax — the foreign corporation does not declare the dividend income in a Philippine tax return, and no credit is available in the Philippines for taxes paid on the same income in another jurisdiction (unless a specific tax treaty provides otherwise).

Because the 10% REIT dividend rate is already lower than most treaty dividend rates, a treaty matters only where it provides a rate below 10% (Section 14(a), RA 9856). To access a treaty rate:

• Obtain a Tax Residency Certificate from the tax authority of its home country
• Demonstrate beneficial ownership of the REIT shares (i.e., that the recipient is the actual beneficial owner and not a conduit)
• Where the treaty rate is applied, the withholding agent (the REIT or its dividend disbursing agent) files a request for confirmation with the BIR's International Tax Affairs Division (ITAD) after the close of the taxable year, under RMO No. 14-2021 as clarified by RMC No. 77-2021

Capital Gains on Sale of REIT Shares

A sale of listed REIT shares through the PSE is not subject to capital gains tax. Instead, the seller pays stock transaction tax of one-tenth of one percent (0.1%) of the gross selling price (Section 13 of RA 9856; Section 127(A) of the NIRC, as amended by RA 12214), and the sale is exempt from documentary stamp tax. If REIT shares are sold outside the exchange, a non-resident foreign corporation is subject to a 15% final tax on the net capital gain (Section 28(B)(5)(c) of the NIRC, as amended).

The same applies to individual foreign investors: sales through the PSE bear the 0.1% stock transaction tax, and gains on shares not sold through an exchange are taxed at 15% of the net capital gain, including for non-resident aliens not engaged in business in the Philippines (Sections 24(B)(3) and 25(B) of the NIRC, as amended by RA 12214). Individual advice from Philippine tax counsel is still advisable.

BIR Form 1709 and Transfer Pricing Considerations

BIR Form No. 1709 (Related Party Transactions form) must be filed with the annual income tax return by large taxpayers, taxpayers enjoying tax incentives, taxpayers reporting net operating losses for the current and two preceding years, and their related parties that transact with them — such as through management fees, lease payments between a REIT and a sponsor, or intercompany loans (RR No. 34-2020, Section 2). Transfer pricing documentation becomes mandatory for those taxpayers above the materiality thresholds in Section 3 of the same regulation (for example, annual gross revenue above PHP 150 million with related party transactions above PHP 90 million). The BIR's Transfer Pricing Audit Unit has intensified scrutiny of intercompany arrangements in recent years, and REIT structures are not immune from this scrutiny.

Foreign investors who are also sponsors contributing assets to a REIT should ensure that any asset transfer pricing, management fee arrangements, and lease terms with the REIT are arm's length and properly documented. The BIR's Transfer Pricing Guidelines under Revenue Regulations No. 2-2013 and Section 50 of the NIRC apply to REIT structures.

6. Practical Scenarios for Foreign Investors

Scenario A: Foreign Individual Investor — Purchasing Listed REIT Shares

A foreign national resident in Singapore wants to invest PHP 2,000,000 (approximately USD 35,000) in a Philippine REIT to generate peso-denominated dividend income. He has no intention of owning land in the Philippines and wants a liquid, PSE-traded investment.

He opens a brokerage account with a Philippine bank's securities subsidiary, funds it via international wire transfer, and purchases shares in a retail mall REIT listed on the PSE. As a foreign individual investor, he faces no ownership restrictions. Dividends are subject to the 10% final tax on REIT dividends (or a lower treaty rate, if one applies), and a sale of his shares on the PSE is subject to the 0.1% stock transaction tax instead of capital gains tax. His shares are held in his NoCD name, he receives dividends directly, and he can repatriate proceeds without restriction under BSP regulations.

Scenario B: Foreign Corporate Sponsor — Contributing Assets to a New REIT

A foreign multinational owns a portfolio of warehouse and logistics properties in the Philippines, all held under Filipino-incorporated subsidiaries. The multinational decides to contribute these assets to a newly formed REIT corporation that will be listed on the PSE, enabling it to monetize the assets while retaining a significant equity stake.

Because the REIT will own freehold land (the warehouse properties), it must comply with the 60/40 Filipino ownership rule. The multinational cannot hold more than 40% of the REIT corporation. It must find Filipino co-investors to hold the remaining 60%. Alternatively, if the multinational wants to maintain full control, it could structure the REIT to hold only leasehold rights — leasing the properties from the Filipino landowners under long-term leases — in which case the REIT can be 100% foreign-owned. However, this limits the REIT to leasehold assets only and raises lease renewal risk.

As a sponsor, the multinational is subject to the two-year reinvestment requirement under the 2026 amendments: proceeds from the sale of assets to the REIT must be reinvested in Philippine real estate or infrastructure projects within two years. If the multinational fails to reinvest, it may face additional tax consequences. The REIT must comply with HARBOR beneficial ownership reporting, disclosing the multinational's ultimate beneficial owners to the SEC.

Scenario C: Foreign Infrastructure Fund — Investing in an Infrastructure REIT

A foreign infrastructure fund based in London wants to invest in a Philippine REIT whose portfolio includes toll road assets. Under the 2026 amendments, rental properties from toll roads are expressly listed among the sources of a REIT's regular stream of income.

The fund purchases shares in an existing infrastructure REIT listed on the PSE through a PSE-accredited broker. As a foreign institutional investor, it faces no ownership restrictions on its shareholdings. The REIT corporation ensures the toll road assets are held through a structure that complies with the 60/40 rule if freehold land is involved, and the fund receives dividends subject to the 10% final tax on REIT dividends. A treaty rate applies only if it is lower than 10%; where one is applied, the withholding agent files a request for confirmation with the BIR. The fund's beneficial ownership interest in the REIT — tracing through its fund structure to identify the ultimate natural persons, since only natural persons can be beneficial owners — must be disclosed under HARBOR if it meets the 20% threshold or confers control.

7. The Full Compliance Checklist for Foreign REIT Investors and Sponsors

For Foreign Investors Buying Listed REIT Shares

• Open a brokerage account with a PSE-accredited broker
• Provide valid passport, proof of address, CAIF, and specimen signature
• Obtain or confirm a TIN (Philippine or foreign jurisdiction equivalent)
• Ask your broker about a NoCD account so your scrip-less shares are registered in your own name
• Fund the account via international wire transfer (BSP freely convertible and repatriable remittance)
• Research available REITs and evaluate dividend yield, NAV per share, and portfolio quality
• Place buy orders through the broker's trading platform
• Monitor dividends and tax withholding on dividend income
• Assess whether a treaty provides a dividend rate below the 10% REIT rate, and provide the Tax Residency Certificate the withholding agent needs
• If you reach the 20% threshold (voting rights, voting shares, or capital) or otherwise control the REIT, expect the REIT to disclose you as a beneficial owner through HARBOR, and supply your information promptly
• Tell the REIT promptly of any change in your beneficial ownership — the REIT must report changes within seven calendar days

For Foreign Sponsors Contributing Assets to a REIT

• Determine whether the REIT will hold freehold land or leasehold rights only
• If freehold: structure the REIT to comply with the 60/40 Filipino ownership rule; find Filipino co-investors for the required 60%
• If leasehold only: confirm the REIT owns no Philippine land, so that the foreign ownership limits under Section 6 of RA 9856 do not apply
• Ensure all asset transfers are at arm's length and properly valued for transfer pricing compliance
• Confirm that at least 75% of the deposited property is income-generating real estate, with at least 35% in income-generating real estate in the Philippines
• Comply with the two-year reinvestment requirement for proceeds from asset sales to the REIT
• Prepare detailed REIT Plan disclosures as required under the 2026 amendments
• Register all beneficial owners (natural persons with at least 20% of voting rights, voting shares, or capital, or control under the other categories) on HARBOR
• Ensure fund manager and property manager fees do not exceed 1% of the NAV of the assets under management (Section 8.18, RA 9856) and are not duplicated at the SPV level
• Confirm the REIT distributes at least 90% of distributable income annually (and that any SPV or joint venture holding REIT assets does the same)
• Obtain all required PSE and SEC approvals for listing and public ownership compliance

For Foreign Investors with Related-Party Transactions with REITs

• Assess whether you fall within the categories required to file BIR Form No. 1709 under RR No. 34-2020 (large taxpayers, incentive holders, taxpayers with three straight years of net operating losses, and their related parties)
• If yes, file BIR Form No. 1709 with the annual income tax return
• Ensure all intercompany arrangements (management fees, leases, loans) are arm's length and documented
• Prepare transfer pricing documentation as required under BIR transfer pricing regulations
• Monitor for changes in related-party transaction volumes that trigger BIR Form 1709 obligations

8. Conclusion: Why 2026 Is the Pivotal Year for Foreign REIT Investment in the Philippines

The January 2026 amendments under SEC Memorandum Circular No. 1, Series of 2026, have meaningfully expanded the investment thesis for Philippine REITs — particularly for foreign investors. The express listing of infrastructure assets as sources of REIT income aligns with the Philippines' substantial infrastructure development pipeline. The extended sponsor reinvestment period, the SPV and joint venture rules, and the look-through distribution rule all contribute to a more coherent and internationally competitive regulatory framework.

For foreign investors, the key strategic considerations in 2026 are:

• Leasehold structures — for foreign sponsors who want 100% ownership, the leasehold-only REIT structure is available because Section 6 of RA 9856 limits foreign ownership only in a REIT that owns land, though it requires accepting the limitations of leasehold asset ownership
• Infrastructure REITs — the expressly listed infrastructure assets create opportunities for foreign infrastructure funds to access Philippine infrastructure cash flows through a listed, liquid vehicle
• HARBOR compliance — the new beneficial ownership reporting regime is not optional, and foreign investors who cross the 20% threshold will be disclosed by the REIT and should supply and update their information promptly
• Treaty optimization — foreign investors from treaty jurisdictions should check whether their treaty provides a dividend rate below the 10% REIT rate and supply the Tax Residency Certificate the withholding agent needs

The Philippine REIT market in 2026 is more sophisticated, more transparent, and more accessible to foreign capital than at any prior point in its history. Foreign investors who understand the structural constraints — particularly the 60/40 rule and the constitutional land ownership prohibition — and who navigate the compliance requirements systematically will find REIT investment in the Philippines to be a resilient, income-generating component of a broader Philippine investment strategy.

This article is for general informational purposes only and does not constitute legal advice. Foreign investors considering Philippine REIT investment should consult qualified Philippine legal counsel to address their specific circumstances, particularly with respect to tax treaty optimization, HARBOR beneficial ownership compliance, and transfer pricing obligations.