Can foreigners own property in the Philippines?
Yes and no. Generally, only Filipino citizens and corporations or partnerships where Filipinos own at least 60% of the shares can own or acquire land in the Philippines. However, foreigners can purchase condominiums, buildings, and enter into long-term land leases.
This guide is for foreigners, including those married to Filipino citizens, who want to own real estate in the Philippines.
When we talk about owning real estate, we mean having the "independent right to the exclusive enjoyment and control of a property, including its disposition and recovery, subject only to legal restrictions and the rights of others." This 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. General Rules for Foreign Ownership of Land
As a general rule, only Filipino citizens or corporations with at least 60% Filipino ownership can acquire and own land in the Philippines. The Supreme Court explained that this restriction is to preserve the nation's patrimony and ensure that agricultural resources remain in Filipino hands.
A foreigner can buy land if the title is under their Filipino spouse's name. If the spouse passes away, the foreigner can inherit the land. Options for the foreigner include:
Selling the property and collecting the proceeds
Transferring ownership to their children
Transferring ownership to the 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 on which the house is built. PD 471, Fixing a Maximum Period for the Duration of Leases on Private Lands to Aliens, allows foreigners to lease land for 25 years, renewable for another 25 years upon mutual agreement.
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 limit in the condominium project. Under R.A. 4726, the Condominium Act of the Philippines, foreigners can buy and register a condominium unit in their own name, and the Condominium Certificate of Title (CTC) will be issued under their name.
Note: Some houses or villas with condominium titles are also available to foreigners, subject to the 40% ownership restriction.
IV. Can a foreigner inherit property in the Philippines?
Yes. Foreigners can inherit property in the Philippines. The 1987 Philippine Constitution, Section 7 of Article XII on National Economy and Patrimony, states: “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.”
This means foreigners can acquire land through intestate inheritance, where property passes according to default inheritance laws, not through a last will and testament.
V. Can former Filipino citizens buy property in the Philippines?
Yes. Natural-born Filipinos who have acquired foreign citizenship can buy property in the Philippines, subject to limitations prescribed by BP 185 and RA 8179:
For residential purposes: up to 1,000 sqm of urban land or 1 hectare of rural land.
For business purposes: up to 5,000 sqm of urban land or 3 hectares of rural land.
VI. Can Dual Citizen Filipinos buy property in the Philippines?
Yes. Dual Citizen Filipinos have all the rights of Filipino citizens and are not subject to the limitations applicable to former Filipino citizens.
FOR EXAMPLE
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This guide aims to help foreigners navigate the complexities of owning property in the Philippines, ensuring that you understand your rights and the opportunities available to you.
This guide is for educational purposes only. Consult a lawyer for advice on your specific situation. If you have any questions or need personalized assistance, contact us at 0920 207 5035 or email cebuhousefinder@yahoo.com. We're here to guide you every step of the way, ensuring a smooth and confident buying experience.
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