Can a foreigner own a property in the Philippines? Yes and No. In general, only Filipino citizens and corporations or partnerships with at least 60% of the shares are owned by Filipinos are entitled to own or acquire land in the Philippines. However, foreigners may purchase condominiums, buildings, and enter into a long-term land lease.
This is a simplified guide for foreigners (including those who are married to a Filipino citizen) who want to acquire and own real estate property in the Philippines.
When we speak of ownership of real estate property, we mean the “independent right of person to the exclusive enjoyment and control of a property including its disposition and recovery subject only to the restrictions established by law and rights of others.” It includes the following bundle of rights:
Right to possess
Right to use and enjoy
Right to the fruits
Right to dispose
Right to vindicate or recover
I. As a general rule, only Filipino citizens or corporations at least 60% of the capital of which is owned by Filipinos are entitled to acquire and own land in the Philippines.
“The purpose of prohibiting the transfer of lands to foreigners is to uphold the conservation of our national patrimony and ensure that agricultural resources remain in the hands of Filipino citizens,” the Supreme Court explained.
A foreigner can buy land provided the title of the property is under his/her spouse’s name. When his/her spouse died, he/she can inherit the land. A foreigner can do the following: (a) dispose the property and collect the proceeds, (2) transfer the ownership to their children, and (3) transfer the ownership to his/her spouse’s relatives if they have no children.
II. Can a foreigner own a house in the Philippines?
Yes. A foreigner can own a house in the Philippines and lease the land in which the house is built. PD 471, Fixing a Maximum Period for the Duration of Leases or Private Lands to Aliens, allows a foreign individual, corporation or association to lease land for a period of 25 years renewable for another 25 years upon mutual agreement of both lessor and lessee. It also provides that any contract or agreement made or executed in violation thereof shall be null and void ab initio.
III. Can a foreigner buy a condo in the Philippines?
Yes. A foreigner can buy a condo in the Philippines provided the purchase does not exceed the 40% foreign ownership of the condominium project.
R.A. 4726, Condominium Act of the Philippines, allows a foreigner to buy and register, under his/her own name, a condominium unit. The Condominium Certificate of Title (CTC) will be registered under the foreigner’s name.
Note: There are houses or villas with condominium titles. In this case, a foreigner can own the house or villa. This is not a common case but the 40% foreign ownership restriction applies to these houses or villas.
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IV. Can a foreigner inherit property in the Philippines?
Yes. A foreigner can inherit property in the Philippines. The 1987 Philippine Constitution, Section 7 of Article XII on National Economy and Patrimony, 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.”
It means that “a foreigner can acquire land through intestate inheritance, i.e. the default laws on inheritance which are not transfers of ownership by way of a last will and testament.”
V. Can a former Filipino citizen buy property in the Philippines?
Yes. A natural-born Filipinos who acquired foreign citizenship can buy property in the Philippines subject to the limitations prescribed by BP 185 and RA 8179. a. For residential purposes - 1,000 sqm of urban land or 1 hectare of rural land. b. For business purposes - 5,000 sqm of urban land or 3 hectares of rural land.
VI. Can a Dual Citizen Filipino buy property in the Philippines?
Yes. A Dual Citizen Filipino acquires all the rights of a Filipino citizen. Thus, he is not subject to the limitation we discuss above for former Filipino citizen.
For more information about the topic or any inquiries about buying a property in Cebu, please contact us at 0920-207-5035 or email us at cebuhousefinder@yahoo.com. We help home buyers to find their dream house at the best price and location… for free!