Foreigner's Opportunity to Own Real Estate

Foreigner's Opportunity to Own Real Estate

The general rule is that only Filipino citizens and corporations or partnerships, at least 60% Philippine owned are entitled to acquire real estate in the Philippines. As an exception to this rule, an alien acquisition of Philippine real estate is allowed in the following cases:

• acquisition before the 1935 Constitution
• acquisition thru hereditary succession if the foreign acquire is a legal heir
• purchase of not more than 40% interest as a whole in a condominium project
• purchase by a former natural born Filipino citizen subject to the limitations prescribed by law.

Filipinos who are married to aliens retain their Filipino citizenship, unless by their act or omission they are deemed to have renounced their Filipino citizenship.

Special Visas for Foreigners Allowing 100% Land Ownership

There are visa options available to foreigners that allow 100% ownership and control of Philippine land and real estate properties.

New Dual Citizenship Laws Affecting Property Ownership

Dual citizenship means having two citizenship's and passports from two different countries. Dual citizenship is now newly available for the following:

• Former Filipino citizens born in the Philippines, but that have immigrated to another country and obtained citizenship of that country.
• A foreign spouse married to a Filipino citizen. Dual citizenship allows the citizenship holder full rights of possession of Philippine real property. Currently this is a new law and it is still unclear as of the procedures involved to implement it. Check back for updates.

Foreigner Married to a Filipino Citizen

If holding 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 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.

Foreign Ownership of a Philippine Corporation

Foreign nationals and or corporations may own 100% of a Philippine condominium or town home. For private land, residential home with land lot and or commercial building with land lot ownership, the foreign national and/or corporation forms a Philippine Corporation to take ownership of the property. A Philippine Corporation by law will be a maximum of 40% foreign owned, and a minimum of 60% Filipino owned with a minimum of five incorporators. The corporation by law shall have a main bank account tied to it upon incorporation. A foreign national may be the sole person on the Philippine corporation bank account. Thus allowing the foreign national total control over the funds derived and paid out from the Philippine Corporation and from the income or sale of the asset or real estate property.

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