Due to several causes, like our tropical environment, the friendliness of the Filipino people, and fantastic financial potential, more and more foreigners are interested in purchasing real estate in the Philippines. However, there is widespread uncertainty over whether or not foreigners are allowed to legally hold property in the nation. The short answer is that foreigners can own real estate in the Philippines, but they can’t own land they can only lease the land. Foreign ownership of property in our nation is not absolute and subject to limits. Most foreign investors set up ltd companies in the Philippines to get around this and the company then owns the property and land with a local national as a shareholder in the company.
Condominiums established in the Philippines can legally be owned by non-citizens. Due to the similarities between a condominium project and a corporation, the Philippine government still requires that at least 60% of condo units be held by Filipinos. The laws of our country make it quite obvious that non-citizens are not permitted to possess land, and that their ability to acquire other types of real estate holdings is severely constrained.
Property in the Philippines can be purchased by non-Filipinos, but only under certain circumstances.
Land was purchased with the passage of the Constitution in 1935.
The process of passing real estate down through generations.
This signifies that a non-Filipino inherited land or property that may have been obtained under the Philippine Constitution of 1935.
No more than forty percent (40%) of the condos in a building.
If the property was purchased when the owner was a Filipino citizen by birth but subject to the limits imposed by law.
According to Batas Pambansa Bilang 185, a former natural born citizen may only hold a maximum of 1,000 square metres of urban land and a maximum of 1 hectare of rural land for residential purposes.
Under this provision, each member of a married couple may possess real estate so long as the overall land area does not exceed the maximum allowed.
When a Filipina marries an expat, she does not immediately lose her Filipino citizenship. Citizens of the Philippines who marry aliens shall keep their citizenship, unless by their act or omission they are judged, under the law, to have renounced it. This provision is found in Article IV, Section 4, of the Constitution of the Philippines. To become a citizen of the nation of one’s foreign spouse is an example of renunciation of one’s Philippine citizenship. Any individual albeit married to a foreigner can buy and possess land in the Philippines for as long as they have not renounced said citizenship. Since they are considered to still be citizens, they are free to buy and possess land as they like.
A natural born Filipino who renounced their Philippine citizenship after they were naturalised to another nation may be able to reacquire it under the Dual Citizenship Law of 2003. After regaining Philippine citizenship, the person is once again a citizen and has full rights to own property there.
Foreigners may own houses or constructions but not the land where the buildings are built on. Land in the Philippines may only be leased, not owned, by a foreigner. Such a leasing agreement must be in the form of a long-term contract valid for 50 years, with further renewals every 25 years.
The question of whether or not Philippine legislation should be modified to increase foreign investment and ownership has been hotly contested for quite some time. Proponents of the idea argue that easing limitations on foreign ownership will attract more investment dollars from outside. However, others who are against it would contradict such statements arguing that economic endeavours from foreign investors are not dependent on property ownership and emphasise the value of national patrimony. Is it sufficient to limit foreign ownership of land, as has been discussed, in order to protect our cultural heritage? Do you think the Philippines should follow the lead of nations like Malaysia, Taiwan, Singapore, and Thailand and open up land ownership to foreigners? Contact is today to buy or sell property in the Philippines fast online
