What Every Foreigner Should Know About Real Estate Ownership in the Philippines
Land ownership is among the hottest issues faced by many foreigners who wish to buy real estate properties in the Philippines. Americans and Europeans are a bit surprised when they realized that they cannot simply buy house and lot packages in the Philippines and have the Land Title placed in their names. In their countries, anyone who can afford to purchase real estate can do so regardless of citizenship. Here in the Philippines, land ownership is confined to Filipino Citizens, corporations with at least 60% Filipino interest, and Dual Citizens or Former Filipinos with some limitations.
Special Cases for Foreigners
In rare circumstances, it is possible for a foreigner can own land in the Philippines. Consider the following cases:
- Land acquisition before the 1935 Constitution took effect.
- Acquisition by hereditary succession. The foreigner must be a legal or natural heir.
Foreigner Married To Filipino
The most common practice done by foreigners is to have the Land Title in the name of the Filipino (also Filipina) spouse; in other words, have the Filipino spouse buy the real estate. In the event of death (which will eventually happen) of the Filipino spouse, the foreigner may do any of the following:
- Dispose of the property for a reasonable time and collect all the proceeds.
- Turn over the ownership of the property to legal heirs or children.
- If the couple have no children, pass ownership to the relatives of the Filipino spouse.
Foreign Ownership as Corporate Entity
An alternative method of acquiring land in the Philippines is by forming a Philippine Corporation. The corporation must be at least 60% Filipino-owned and consists of at least five (5) incorporators — the foreigner being one of them. The corporation can own the land; the foreigner can own 40% of the corporation. A foreigner who wants to do this should consult a competent lawyer.
Condominium Units can be owned by a foreigner provided it does not exceed 40% interest of a condominium corporation. This is true, because the land on which the condominium building stands is owned by the corporation and the unit owners become stock holders of the condominium corporation.
Foreign Leasing of Philippine Real Estate
A foreigner or his corporation may also enter into a lease agreement with Filipino landowners. A leasehold may be entered into for an initial 50-year contract and successively renewable for 25 years, thereafter. It is perfectly legal to own the house or building erected on the leased land.
Hello there, so what I have just seen on this website, I am a Canadian married to a philippine woman, If I buy land or house, I must have her sign that she is the owner, even though my money is put into this investment. Roy
[…] or a Corporation with at least 60% Filipino ownership. As a foreigner, it would be helpful to be aware of this limitation on your right of owning Land in the Philippines. Please refer to the article that discusses land ownership in the Philippines […]
Hi Roy,
The Law of the Philippines requires that the Land Title be in the name of a Filipino or a corporation with at least 60% Filipino interest. Unfortunately, it doesn’t care where the investment money is coming from.
I am a filipino but a british citizen could i buy a property in the phils. in my name
Hi Catherine,
I suppose you have a dual citizenship. Yes, you still can have it in your name provided you meet the limitation on the size of land you can own.