Buying property in the Philippines

from my understanding foreigners are not allowed to own property here but can own a condo .but you can get say a 50 year lease on a piece of land then build a house but you can,t own the land .but your girlfriend or phillipina wife can but only in her name.another way to get round the system is to form a company and put the company in your name .hope this helps .

Hi sookie31!

Thanks for your help

Armand

sookie31 wrote:

from my understanding foreigners are not allowed to own property here but can own a condo .but you can get say a 50 year lease on a piece of land then build a house but you can,t own the land .but your girlfriend or phillipina wife can but only in her name.another way to get round the system is to form a company and put the company in your name .hope this helps .

Even if you put the land under corporate structure, you will need 60% Philippino investors.  Putting land in your wfes name is an option. However, if she dies, you can live in it but are not allowed to sell the property. I will revert to her family or your kids, not your family.  Also an issue with land is obtaining clean title. Very difficult.

Condos can be owned if 60% of total units are held by Philippinos. Title is easier.  But reselling property is difficult and most will take 6 months or longer.  Very little capital gain if your entering into property market now.

[Moderated: please post in classifieds]

sookie31 wrote:

    from my understanding foreigners are not allowed to own property here but can own a condo .but you can get say a 50 year lease on a piece of land then build a house but you can,t own the land .but your girlfriend or phillipina wife can but only in her name.another way to get round the system is to form a company and put the company in your name .hope this helps .

Even if you put the land under corporate structure, you will need 60% Philippino investors.  Putting land in your wfes name is an option. However, if she dies, you can live in it but are not allowed to sell the property. I will revert to her family or your kids, not your family.  Also an issue with land is obtaining clean title. Very difficult.

Condos can be owned if 60% of total units are held by Philippinos. Title is easier.  But reselling property is difficult and most will take 6 months or longer.  Very little capital gain if your entering into property market now.

yes foriegners connot own property in the phillipines. i have a property its in the name of my wife. my property is in siargao island,surfing capital of the phillipines its a house and lot. which im selling it right now.

Thanks for your contributions!

Harmonie.

Flying Fox is correct on the ownership of land. Our house is on land owned by my wife but the house is in both our names. We also purchased 5 hectares of land in northern Cebu, this land is in Marianne's name only. Land is cheap up there, in some places it's only 200 pesos per square meter. Another American here now broke has 3 houses all in his x-wife's name and she took all of them and all his money leaving him flat broke, so it can happen here. The courts are selling the houses and they split the difference however selling houses here is difficult. I have had mine up for sale now gong on 3 years. We are thinking of renting it out instead.

Wow Charles means if the property you buy on your wives names & someday she walks out your on streets

That's exactly what happened with my friend Dan his wife left him and took all his money and houses he now has nothing flat broke

As for Marianne we now have 3 kids and I am putting her through College. I seriously doubt she will leave at this late a time, however if she ever did, I'd give her the house anyway then I'd go out and be on my own. I still have pension and social security and she gets hers also so I would be OK. But I would not do it again I'll stay single if that happened and just have friends. But My bet is she is in it for the long run.

Thats great God bless your family
All five fingers aren't the same man
Everywhere in the world you will find the good & bad

It is my understanding that if a 13A visa application is granted you (foreigner) can indeed legally own property in The Philippines.

As well as unlimited stay and be able to work.

markandjane wrote:

It is my understanding that if a 13A visa application is granted you (foreigner) can indeed legally own property in The Philippines.

As well as unlimited stay and be able to work.

Only real advantage is not to have to do visa runs.  But then your subject to exit tax.

CharlesHarman wrote:

vijay.singh why don't you join my site and post there I also have a forum it's brand new nothing going on on it yet. retiringphilippines.org
Charles Harman

Definitely Charles I shall do that.cheers!!

Cool, trying to get that started so far no one's there.

Charles, could you please avoid redirecting Expat.com members to your own forum ? that's not nice

Julien wrote:

Charles, could you please avoid redirecting Expat.com members to your own forum ? that's not nice

You won't have probs there, Julien.

This is one the best organised and informative forums Ive come across

No problem will stop, sorry about that kind of a habit.

Yes I agree this is a great Forum Best I have ever come across. and it Is my personal favorite.

Thinking of building some small apartments on our land in northern Cebu The Koreans are investing heavily in that area, alreayd putting up a condo which anyone can own here, and they have a gulf course, not sure how that works. Anyone have any experience in building apartments or renting them?

dhnindc wrote:

markandjane wrote:

It is my understanding that if a 13A visa application is granted you (foreigner) can indeed legally own property in The Philippines.

As well as unlimited stay and be able to work.

Only real advantage is not to have to do visa runs.  But then your subject to exit tax.

Depends on your own situation.....yes, no more visa runs. The main reason for me getting the resident visa 13a, is that it will save  me whole bunch of British income tax, as long as I dont work any longer there than 6 months of the year.

The exit tax is a small price to pay for what im going to save.

markandjane wrote:

dhnindc wrote:

markandjane wrote:

It is my understanding that if a 13A visa application is granted you (foreigner) can indeed legally own property in The Philippines.

As well as unlimited stay and be able to work.

Only real advantage is not to have to do visa runs.  But then your subject to exit tax.

Depends on your own situation.....yes, no more visa runs. The main reason for me getting the resident visa 13a, is that it will save  me whole bunch of British income tax, as long as I dont work any longer there than 6 months of the year.

The exit tax is a small price to pay for what im going to save.

If your residing in the Philippines, then assume you will have little income. You do not need the 13A to comply that your overseas as I understand, just need to show the UK exit stamp on your passport showing outside the Uk for the requisite period.

Also, double check whether you can buy property under 13A.  My understanding is only a citizen can buy landed prop. You can still put under wife name, but if she dies, you can only reside in it but not sell it. Title transfers first to her children and then to her Philippino family. Not to you.

dhnindc wrote:

markandjane wrote:

dhnindc wrote:

Only real advantage is not to have to do visa runs.  But then your subject to exit tax.

Depends on your own situation.....yes, no more visa runs. The main reason for me getting the resident visa 13a, is that it will save  me whole bunch of British income tax, as long as I dont work any longer there than 6 months of the year.

The exit tax is a small price to pay for what im going to save.

If your residing in the Philippines, then assume you will have little income. You do not need the 13A to comply that your overseas as I understand, just need to show the UK exit stamp on your passport showing outside the Uk for the requisite period.

Also, double check whether you can buy property under 13A.  My understanding is only a citizen can buy landed prop. You can still put under wife name, but if she dies, you can only reside in it but not sell it. Title transfers first to her children and then to her Philippino family. Not to you.

The 13a resident visa will allow me as a British subject, married to a Filipino to buy property in the Philippines.

Although the said visa costs a fraction of what we paid for my wife's British settlement visa, it notoriously difficult to obtain for many.

The sticking point being, showing and proving you are earning enough money to sustain your family. The only way many ex pats can get this is to work a portion of the year back on home soil. Or of course be retired with regular income from a pension fund.

This is in fact the time (retirement) many ex pats apply for the 13a.

In the unlikely hood of my good lady wife passing away before me, Ive not a problem the family home being passed to our first born   It will be there inheritance anyway. We have a growing family, my wife is expecting again  due next May. The house will go to both mine and my wife's flesh and blood....rightly so

A residence visa/permit is required to obtain a refund of the tax I would of paid in the, in my case, 3 months worth.

There is a woman in Lapu-Lapu who does all the processing and running around for you for the 13A processing, that is she completes all the paperwork and makes runs to your home to get signatures and paperwork. I can send you her contact and price information in a private message. The nice thing is she does all the leg work for you. I hope this is not considered an advert.

CharlesHarman wrote:

There is a woman in Lapu-Lapu who does all the processing and running around for you for the 13A processing, that is she completes all the paperwork and makes runs to your home to get signatures and paperwork. I can send you her contact and price information in a private message. The nice thing is she does all the leg work for you. I hope this is not considered an advert.

charlie does she do british visas and how much if she does i want tourist visa

CharlesHarman wrote:

There is a woman in Lapu-Lapu who does all the processing and running around for you for the 13A processing, that is she completes all the paperwork and makes runs to your home to get signatures and paperwork. I can send you her contact and price information in a private message. The nice thing is she does all the leg work for you. I hope this is not considered an advert.

I would greatly appreciate that, Charles....we are going back out there for a month next year  in time for all souls day.

Advance thanks Charles

CharlesHarman wrote:

There is a woman in Lapu-Lapu who does all the processing and running around for you for the 13A processing, that is she completes all the paperwork and makes runs to your home to get signatures and paperwork. I can send you her contact and price information in a private message. The nice thing is she does all the leg work for you. I hope this is not considered an advert.

Hi Charles

I wud like to know the details too if you don't mind.the cost,requirements & the duration

I will contact her monday and let you know.

A foreigner can hold a lease of 50 years (plus extension?).

What would prevent a foreigner contractually agreeing to purchase a lease on property for an amount equal to the purchase price so that the purchase and the lease were simultaneous transactions therefore providing 50 year security and perhaps avoiding losing the property in the event of a marital split?

For example, a property valued at $50,000. The property is purchased in the wife's name. The wife agrees to lease the property to the husband or a company created for the purpose for the sum of £50,000 for the maximum period possible. The transactions are conditional and simultaneous (not an uncommon practice in many western countries).

Theoretically, a "leasehold" property has a value reflecting the remaining lease period and the property's market value and the lease could be transferred, sold or passed on by will depending upon any restrictions in the lease agreement.

Can anyone see where I am going with this?

MalcolmEdward wrote:

A foreigner can hold a lease of 50 years (plus extension?).

What would prevent a foreigner contractually agreeing to purchase a lease on property for an amount equal to the purchase price so that the purchase and the lease were simultaneous transactions therefore providing 50 year security and perhaps avoiding losing the property in the event of a marital split?

For example, a property valued at $50,000. The property is purchased in the wife's name. The wife agrees to lease the property to the husband or a company created for the purpose for the sum of £50,000 for the maximum period possible. The transactions are conditional and simultaneous (not an uncommon practice in many western countries).

Theoretically, a "leasehold" property has a value reflecting the remaining lease period and the property's market value and the lease could be transferred, sold or passed on by will depending upon any restrictions in the lease agreement.

Can anyone see where I am going with this?

Well, I know what my wife would say about the idea...I won't say for fear of getting banned hahaha.
I would have to agree with her...its a marriage, not a business arrangement...that's the difference between our cultures, marriage is indeed ' till death do us part'. Many can adapt, a few can't.

Anyway, I digress.

Good Luck

(Moderated)

(Moderated: no free ads on the forum pls)

Hi Charles,

I would love to go visit your place in Cebu, I will advise you when our plans with family pushes through.

I will simply agree to the fact that foreigners can purchase condos  and put the title on his name. Question : are there foreigners owning residential homes, townhouses,commercial places? yes with a corporation owned by 60% Filipinos. In our village alone, a Singaporean owns about 20+ units of townhouses, a number of residential homes in Ayala Alabang, a commercial building and who knows what else, but he stays in Singapore most of the time. What a smart and intelligent investor!

It is sad that some Pinays take advantage of expats and it leaves us a very bad reputation. And I hope that expats take extra precaution with the woman that they get involved with before they take in the dive.

Kudos to you Charles because it seems like you found a good and trustworthy woman so you better take care of her!

Under whose name should the title be? Think asset protection.Think estate planning. Do you really think it's wise to have the title of any property on any of the spouse? To whom do you want to leave your legacy to? to the government? to your family here in the Philippines or any family member from your country of origin?

One last note: do yourself a favor. I know that most of the expats are mostly retired. Please start writing up your will, set up a trust, go to the local bank and ask for their trust services, get a lawyer, do some wealth preservation and start making plans for the unexpected.



Pinaymentor

Good advice about the attorney, so happens I have a friend who will be here visiting us in a week and he is an attorney actually a probate attorney so he will know about wills. I actually did write one when we were still in Texas and have it here on file. I will ask him about it and what I need to do to make it good.

We own 5 hectares of land in northern cebu of which is in my wife's name, wanted it that way as I won't last for ever. The house in Bogo is in both names but the land it sits on is in her name. Also we have decided that Marianne will continue her education and after the pharmacy degree is completed pursue a Medical Degree in Pediatrics, so she will become a full doctor. then set up a clinic with a Pharmacy in it. This takes care of her for the rest of her life. I'm willing to do as much as I can and do without some of my usual luxuries, to get her through school. Have a great day... Fun in the Sun

By the way the lady charges 50,000 for the complete processing of 13A Residency. But I found out it will run you 25,000 if you do it all yourself. So maybe worth it. Just send me a private email and I will respond with all the details and contact info for her service.

Acquisition and ownership of land in the Philippines is restricted to Philippine citizens or corporations (at least 60% of equity is owned by Filipinos). To acquire ownership or a land, residential house and lot, or commercial building and lot, foreign investors may have to establish or invest in an existing Philippine corporation but in no case should their equity exceed 40% of the total capital of the corporation. However, a foreign investor may own condominium units or a townhouse, provided that the land on which the property is built is owned by a Filipino or a corporation of which at least 60% of the equity is owned by Filipinos.

If you want to buy land, it's best to ask for the copy of the following:

1. Transfer Certificate of Title (TCT) - ask for the whole page, ensure that there are no encumbrances. If there are many owners stated in the title, there should be an attach agreement and signed by all lot owners that they are selling the property with no objection.

2. Tax Declaration - it should be updated on the current year. Always compare the name of land owner in TCT and the one in the Tax declaration. If names does not match, there is problem in the property ownership.

3. Location/Vicinity Map - check the directions shown in the map if it matches the description stated in the TCT.

4. If you are buying from agent or relatives of the owner, ask for the Authority to Sell the property.

Then bring the documents stated in 1-3 to the Registry of Deeds where the property is registered. From there you can ask for the authenticity of the property documents.

Then please do tell me where Ive misunderstood on your very own Philippine Embassy website ' Foreigners in possession of a valid 13a residency visa can purchase land / property to reside on'...looking forward very much to being enlightened.

I agree on all you say and you made very good points on the second half of your post but, being in possession of the said visa opens up a whole new ballpark.

Cheers!

Ishar is stating the law. Only a Philippino citizen can own land. A 13a residency does not grant citizenship. Study the law and not the embassy website. You can have your Philippino spouse who is a citizen purchase land but will be in her name.

Charles,

if your wife dies ahead of you, then you owe all the estate taxes due on all of the properties under her name. Ask your lawyer about setting up a corp instead. And set up an Financial/ Estate planning to go with it so that whether you or wife dies ahead of the other, no one will be burdened with financial obligations to the government. You have kids right? So, it will be right to presume that you would want to leave your legacy to your children. Would be interested to find out what your friend lawyer has to say. I'm looking for an estate planning lawyer in Cebu, let me know if it will interest him to join our network of professionals servicing Cebu and other parts of Visayas.

the 50k fee is quite high, please send details as to what is included. thanks!

pinaymentor


pinaymentor