In general, only Filipino citizens and corporations or partnerships with least 60% of the shares are owned by Filipinos are entitled to own or acquire land in the Philippines. Foreigners or non-Philippine nationals may, however, purchase condominiums, buildings, and enter into a long-term land lease. It is for this reason that foreigners have set up businesses and own land via setting up corporation and partnerships. The Filipino government has incentives in place to entice foreigners to set up businesses in the Philippines.
Nikkifarrell.com has the relevant contacts that can help foreigners, expatriates/expats, former Filipino nationals, OFWs, Balikbayans, and corporations purchasing and acquiring real property in the Philippines and can provide relevant information on Philippine laws and regulations regarding property purchase and acquisition, reviewal of general contracts, asset protection contracts, deeds of sale, taxes, and entire estate planning. In addition, our local real estate broker Peter T. Go will assist you in finding the type of property you are looking for in the Philippines. Click here to reach him
In the Philippines, owning land can be complicated for non-Filipinos. However, there's a potential loophole: if a company has at least 60% Filipino ownership, it might be treated as a local entity. Nevertheless, investors aiming for complex ownership structures must grasp the intricacies of the Philippines' Anti-Dummy Law. This statute restricts the participation of foreign members on a company's Board of Directors to 40%, potentially influencing the ownership arrangements. Non-compliance with these regulations could result in the forfeiture of the property. Thus, a comprehensive understanding of the legal landscape is imperative before making any investment moves. Again, please use the expertise of Broker Peter Go to guide you.
Yes, there are. The list of exceptions to the restriction are as follows:
Foreign nationals, expats or corporations may completely own a condominium or townhouse in the Philippines. To take ownership of a private land, residential house and lot, and commercial building and lot, they may set up a domestic corporation in the Philippines. This means that the corporation owning the land has less than or up to 40% foreign equity and is formed by 5-15 natural persons of legal age as incorporators, the majority of which must be Philippine residents.
Leasing land in the Philippines on a long-term basis is an option for foreigners, expats or foreign corporations with more than 40% foreign equity. Under theInvestors’ Lease Act of the Philippines, they may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years renewable once for an additional 25 years.
Foreign ownership of a residential house or building in the Philippines is legal as long as the foreigner or expat does not own the land on which the house was built.
The Condominium Act of the Philippines (RA 4726) expressly allows foreigners to acquire condominium units and shares in condominium corporations up to 40% of the total and outstanding capital stock of a Filipino-owned or controlled condominium corporation.
However, there are a very few single-detached homes or townhouses in the Philippines with condominium titles. Most condominiums are high-rise buildings.
If holding a title as an individual, a typical situation would be that a foreigner married to a Filipino citizen would hold title in the Filipino spouse’s name. The foreign spouse’s name cannot be on the Title but can be on the contract to buy the property. In the event of the death of the Filipino spouse, the foreign spouse is allowed a reasonable amount of time to dispose of the property and collect the proceeds or the property will pass to any Filipino heirs and/or relatives.
Former natural-born Filipinos who are now naturalized citizens of another country can buy and register, under their own name, land in the Philippines (but with limitations in land area). However, those who avail of the Dual Citizenship Law in the Philippines can buy as much as any other Filipino citizen.
Under theDual Citizenship Law of 2003 (RA 9225), former Filipinos who became naturalized citizens of foreign countries are deemed not to have lost their Philippine citizenship, thus enabling them to enjoy all the rights and privileges of a Filipino citizen regarding land ownership in the Philippines.
Foreign ownership of a residential house or building in the Philippines is legal as long as the foreigner or expat does not own the land on which the house was built.
If a former Filipino who is now a naturalized citizen of a foreign country does not want to avail of the Dual Citizen Law in the Philippines, he or she can still acquire land based on Batas Pambansa (BP) 185 and RA 8179, but limited to the following:
For Residential Use (BP 185 – enacted in March 1982):
For Business/Commercial Use (RA 8179 – otherwise known as the Foreign Investment Act of 1991):
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