Buying land in Philippines

No still not permitted only condo

A foreigner CANNOT own property/land in the Philippines. Under some circumstances a foreigner can purchase a condominium.

Anyone who knows the best of the two ways of acquiring  land - Lease contract or establishing a Ltd. with purpose to buy land?

I own a condo in Makati and looking for an opportunity to also have a place near a nice beach for retirement!

My information the best by far is lease. Using a company it must be 40/60% - so  the Filipino with 60% effectively owns it. With lease I think also you you do not have an estate tax liability.

Ok thanks - I'm going to Phil next month so I'll start searching for land and see what options there's to acquire the land

Pure and simple as a Foreigner you cannot own land in the Philippines, I have been here 6 years and it is not going to change, Condo's some you can own, lease, yes for 50 years max with a renewal clause

It is not only condominium that you can own in Philippines as a foreigner. If you can divide any type of house into a building and a lot, you can own the building, but not the lot. If u have a child from a filipina, you can put the lot in the name of the child and building in your name. But then you can not sell the lot as long as your child is under 18 yrs. old. It means it may also become difficult to sell the building before the child is 18 yrs. old.

If you're foreign forget about owning property here - the laws in the Philippines are archaic

Let me correct my last response. You can sell the lot even if the child is minor provided the mother of the child gives her consent to sell it. If this case comes to the court you need to convince the judge that  the money will be used for the benefit of the child, like for his education etc. Hope I made myself clear.

In some cases BIR can make problems to accept dividing the house into lot and building and to accept a foreigner as the owner of the building. It happens only because BIR doesn't understand the law properly. But the law is very clear that a foreigner can own any building in Philippines, but not the lot.

It is true that there had been some suggestions to change the law so that foreigners can also own the lot, but they are still at low level and I can't see that any change will come in the coming years.

Foriegn People can only acquire/own a land if he/she is married to a Filipino/Filipina Or if his or her parent/s have a filipino blood.

You are 100% wrong, a foreigner cannot own land in the Philippines under any circumstances.

Thanks popsantos,

I sent you mail

Leif Moen

Honeyclaire88 wrote:

Content has been Moderated

@ Honeyclaire88,
How can you practice or offer to practice a real estate service to help expats here without full disclosure and listing your credentials (including proper registration, education and or license)?  Are you in agreement with the Philippine Government's goals to "supervise and regulate the registration, licensure and practice of real estate service in the Philippines"?

Who is the 'we" you state and why are you providing misinformation regarding a foreigner owning land if married to a local?  Are you officially in the category of a registered "Real estate service practitioner"?  Can you provide your "Professional Indemnity Insurance/Cash or Surety Bond"?

Can you confirm that your postings and offerings of assistance to expats "buying property" here are in compliance with RA 9646?

Are you aware of the related Penal Provisions of RA 9646? 
"Section 39. Penal Provisions, - Any violation of this Act, including violations of implementing rules and regulations, shall be meted the penalty of a fine of not less than One hundred thousand pesos (P100,000.00) or imprisonment of not less than two (2) years, or both such fine and imprisonment upon the discretion of the court. In case the violation is committed by an unlicensed real estate service practitioner, the penalty shall be double the aforesaid fine and imprisonment."

Are you an "unregistered real estate service practitioner"? Yes or no?

At this point, it is possible that your postings have made you very suspect and some may think you only joined expat in Dec 2015 to relieve expats of their savings?  I apologize in advance of any errors in my assumptions listed herein.  Please do reply and clarify at your leisure.

Hi Calif-Native,
My apology if I wasn't able to include on what real estate company I am working with. Well, I work in Ayala Land just to confirm you the real estate company I am connected. I don't mean to disclosed or whatsoever about my credentials. And YES, I am license real estate salesperson and I do have surety bonds as part of the requirements as imposed of the Philippine governance. I am fully aware of the provisions stated.
>Furthermore about what I have said in one of the post regarding on the foreign buying a lot. Sorry if I wasn't able to discuss it further. If a foreign want to buy a lot and build yet stay in the Philippines for good then he/she should marry Filipino/filipina but he/she will only be the finance meaning the title will be in her/his wife/husband name and the moment that there is something happen to a Filipino/ Filipina the property will be given to heirs either daughter/son if there is and if there is none then it will be in her/his first degree relatives. *If a foreign have a Filipino blood (either his/her parents is a Filipino) he/she can own a land. How? He/she can apply for a dual citizenship. * Another choices is A foreign national and or corporation may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years, and renewable for another 25 years.
>Foreign nationals or corporations may completely own a condominium or townhouse. To take ownership of a private land, residential house and lot, and commercial building and lot, foreign nationals or corporations should form a Philippine corporation. The corporation is to be 40% foreign-owned (maximum) and 60% Filipino-owned (minimum), and with at least five [5] incorporators. Upon incorporation, a main bank account should be tied to it. A foreign national may be the sole person in the bank account, allowing him/her total control over the funds derived from the corporation and the income or sale of the asset or property.
I hope I make myself clear and yet not be suspected like just wanna get money/the savings of the expats here . You can check my fb if you want more info about me Claire Cordeta (I am not scammer) 

Honeyclaire88 wrote:

Hi Calif-Native,
My apology if I wasn't able to include on what real estate company I am working with. Well, I work in ****** just to confirm you the real estate company I am connected. I don't mean to disclosed or whatsoever about my credentials. And YES, I am license real estate salesperson and I do have surety bonds as part of the requirements as imposed of the Philippine governance. I am fully aware of the provisions stated.
>Furthermore about what I have said in one of the post regarding on the foreign buying a lot. Sorry if I wasn't able to discuss it further. If a foreign want to buy a lot and build yet stay in the Philippines for good then he/she should marry Filipino/filipina but he/she will only be the finance meaning the title will be in her/his wife/husband name and the moment that there is something happen to a Filipino/ Filipina the property will be given to heirs either daughter/son if there is and if there is none then it will be in her/his first degree relatives. *If a foreign have a Filipino blood (either his/her parents is a Filipino) he/she can own a land. How? He/she can apply for a dual citizenship. * Another choices is A foreign national and or corporation may enter into a lease agreement with Filipino landowners for an initial period of up to 50 years, and renewable for another 25 years.
>Foreign nationals or corporations may completely own a condominium or townhouse. To take ownership of a private land, residential house and lot, and commercial building and lot, foreign nationals or corporations should form a Philippine corporation. The corporation is to be 40% foreign-owned (maximum) and 60% Filipino-owned (minimum), and with at least five [5] incorporators. Upon incorporation, a main bank account should be tied to it. A foreign national may be the sole person in the bank account, allowing him/her total control over the funds derived from the corporation and the income or sale of the asset or property.
I hope I make myself clear and yet not be suspected like just wanna get money/the savings of the expats here . You can check my fb if you want more info ***(I am not scammer) 

____________________________________________________________________________________

Is this you?   https://facebook.com/Rheinclaire?fref=ts

I see no license listed, no contact info directing clients to Ayala land, no phone numbers.  Can you provide these items and do you have an official listing other than your personal Facebook page?

Thanks

Honeyclaire88 wrote:

….
>Furthermore about what I have said in one of the post regarding on the foreign buying a lot. Sorry if I wasn't able to discuss it further. If a foreign want to buy a lot and build yet stay in the Philippines for good then he/she should marry Filipino/filipina but he/she will only be the finance meaning the title will be in her/his wife/husband name and the moment that there is something happen to a Filipino/ Filipina the property will be given to heirs either daughter/son if there is and if there is none then it will be in her/his first degree relatives.

@Honeyclaire88,

Most expats in this forum seem to be aware of the facts on this topic and my post was not to ask you to later inform expats.  My post /concern relates to Sections 3, 27 & 33 of the RESA Law and the fact that non of the details you now state were stated in your prior posts and that is misleading/unethical.  Not sure why you were not able/unwilling to discuss this further in your first offer posting?  Is it possible that your posting relates to the expectation/anticipation of collecting a commission in accordance with Section 3, (g), (5), which states:

"(5) Real estate salesperson - a duly accredited natural person who performs service for, and in behalf of. a real estate broker who is registered and licensed by the Professional Regulatory Board of Real Estate Service for or in expectation of a share in the commission, professional fee, compensation or other valuable consideration."

In the name of full disclosure, are you now stating that you are a corporate employee or are you a hired independent contractor working for Ayala?  If an independent, how would a corporate bond cover your actions?

There is nothing wrong about being an independent since Section 32 of RA 9646 states:

"Subject to the provisions of the Labor Code, a corporation or partnership may hire the services of registered and licensed real estate brokers, appraisers or consultants on commission basis to perform real estate services and the latter shall be deemed independent contractors and not employees of such corporations."

However, a clear response to the above and Section 33 below could clear up your actual status some.  RA 9646, Section 33 states the following:

“Section 33. Display of License in the Place of Business. – Every registered and licensed real estate service practitioner shall establish and maintain a principal place of business and such other branch offices as may be necessary,"

Many expats feel we are approached with misinformation on purpose so the early commission payments to persons like "salespersons" become the number one catalyst for aggressively feeding expats with various forms of misinformation (as early as possible in the game).  Thus a reasonable person will most like feel like they have been scammed when the legal details are finally learned and their deposits remain un-refunded, often without threat of litigation for months.

Please also understand that wheather married, single or divorced, the expat in the PI should not ever be told or lead to believe that they can "purchase a lot", or "let me find a nice lot for you", which eludes to lot ownership via a TCT.  Of course, most will accept the expat's money as a deposit and only inform him/her about the proper/legal ownership much later. 

We all understand that we can pay for land (i.e., be on the Sales Contract) but that will never equal the expat's name on the new TCT as true owner.  Many may not want to get married just to purchase a lot and that is also where the details on zero ability to hold proper title are so often left out when these offers of lot sales activities are presented to an expat.

Some expats are finding more retirement friendly countries (Central/South America) where legal ownership of land is permitted (a different topic).  However, for those of us that select to live here, it would be refreshing to see more honest, ethical and forthcoming offers of help from locals that are authorized in RA 9646.  Nonetheless, the norm here in the PI seems to be to count on an uninformed expat to rapidly deposit money just to later find out the details (details you initially left out of your post to an expat).

I hope the nature of my questioning you on this most important topic to expats is very clear.  Thank you.

P.S. You may want to contact the Philippine Professional Regulation Commission (http://www.prc.gov.ph/services/default.aspx?id=16) and ask them why they have a Verification check status of "No matching record found" under the name "Claire Cordeta"

Hi Prolm,

I already replied to your email.

Regards

That is not correct! If a  Filipina married to a foreigner dies the land that she owns and left to her husband can legally be owned by him. i stumbled across this whilst trying to find a way around the law. The Philippines needs to get it's law brought into line with countries that allow Filipinos to buy.

The extract below is taken from the web site legal updates

What are the exceptions to the restriction on foreigners' acquisition of land in the Philippines?

[1] Purchase by a former natural-born Filipino citizen subject to the limitations prescribed by Batas Pambansa 185 and R.A. 8179
[2] Acquisition before the 1935 Constitution
[3] Purchase of not more than 40% interest in a condominium project
[4] Acquisition through hereditary succession if the foreigner is a legal or natural heir

see note 4.

What is meant by ownership on the basis of hereditary succession?

When the foreigner is married to a Filipino citizen, and the spouse dies, the non-Filipino as the natural heir will become the legal owner of the property. Children, as legal heirs, may also own real property. Every natural child, legitimate or illegitimate can inherit real property even if he or she does not hold Filipino citizenship.

I think that the above is pretty clear that under these circumstances a foreigner can own land in the Philippines

As things are NOW the only way a foreigner can own land in the Philippines is through hereditary succession.

I have some insights about the law re foreigners buying properties in the Philippines.

Message me

Foreigners CANNOT BUY/OWN LAND IN THE PHILIPPINES. . .period. Re my previous post - as things are NOW the only way a foreigner can own land in the Philippines is through hereditary succession.

There is of course no shortage of Filipinos trying to sell property and land to foreigners.

Immee. . . .the law is very clear on foreigners buying land and/or property in the Philippines

did you planned to buy one before?

Don't understand the question - sorry

Hi Boriloco,

The Philippine Constitution Foreigners, as a general rule, are not allowed to own real property in the Philippines.

who are citizens of other countries. By “general rule”, we mean that there are certain exceptions, and two of such exceptions are discussed below.

The prohibition on foreigners owning Philippine lands is embodied in no less than the Philippine Constitution. This, in fact, is one of the usual reason cited by those who want to revise or amend the Constitution.  The Constitution 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.” (Article XII, Section 7)

It's clear from this provision that private land may be transferred only to persons or entitles who/which has the capacity “to acquire or hold lands of the public domain.” Those who are qualified to acquire or hold lands of the public domain are as follows:

Filipino citizens.
Corporations at least 60% of the capital of which is owned by Filipinos.
In other words, the Constitution explicitly prohibits non-Filipinos from acquiring or holding title to private lands. Among the exceptions are as follows: (1) transfer to an alien by way of legal succession; or (2) if the acquisition was made by a former natural-born citizen. The 1987 Constitution provides that:

“Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law.” (Art. XII, Sec. 8)

There are other exceptions to the prohibition on aliens owning real property in the Philippines, like full ownership by foreigners of condominium units,


Some other Foreigner in order to get away from this is they established a holding corporation where in 60% of shares are hold by Filipinos and the remaining 40% is hold by the foreigner but this is risky since you need to look for Filipinos who you can trust.

There are other exceptions to the prohibition on aliens owning real property in the Philippines, like full ownership by foreigners of condominium units,

Foreigners may own houses or building but not the land where the structures are built on. A foreign individual or corporation may only lease and not own Philippine land. Such lease shall be in a long-term contract which must be good for 50 years and after which, the rent is renewable every 25 years.


- If you have further questions regarding this matter or wanted a more further and thorough discussion on acquiring real properties here in the Philippines, feel free to reach me at rdsombilon16(@)gmail.com

Ry Sombilon

This is Correct as based on the law and requirement of the 1987 Philippine Constitution if the Foreigner is the legal heirs of the owner and successor any property left by the Owner will be inherited by the Foreigner, this is one of the exception, I have one client with this kind of situation

hi Prolm interested with some properties?

feel free to contact me via **

madhatter868 wrote:

You are 100% wrong, a foreigner cannot own land in the Philippines under any circumstances.

CORRECT! All this crap about a foreigner being able to inherit land from a deceased spouse is also rubbish. Law specifically states that a foreigner must sell the inherited property within 6 months (to fully benefit from the proceeds - and only if no next of kin) and the 'Laws of Succession" apply in the Philippines [Google it].

You can own property under a shell company as the 60% Filipino shareholders can immediately sign-over (undated) authorities for you to have full control. This is the common work-around here in the Philippines as well as in other countries (e.g. Thailand). HOWEVER - there can be future tax implications and future 'unknowns' that may effect the viability of this work-around (as well as the bureaucracy of annual corporate submissions) etc. At the moment it works "OK" but of course with anything that directly flouts the Law - it could come back to haunt you in the future...

If you are an expat married to a Filipino, the best you can do is get your name on the title, at least then any sale requires your signature whilst you are alive (dodging bullets from your wife's hitman?)

Condo's can of course be purchased freehold (for life) under the usual 60/40 Pinoy/Foreigner mix. And expect many to be worthless long-term, as better, newer developments supersede them.....

That's life!

The law of the Philippines IS QUITE CLEAR; a foreigner legally married to a Filipino can own property through hereditary succession should the wife die. The importance of having a legal will here.

jonnyboy wrote:

The law of the Philippines IS QUITE CLEAR; a foreigner legally married to a Filipino can own property through hereditary succession should the wife die. The importance of having a legal will here.

Indeed - "The Laws of Succession" apply (dependent upon any living/surviving parents, children, grandchildren of the deceased wife) Husband would inherit 100% (or 50% if other heirs)  - unless a Will wrote-out specific heirs for whatever reason......

I guess it can get 'messy' if you have children but wish to protect THEM against 'other' family members benefiting in the event of the foreigner's earlier death.

Trust/sound relationship with your spouse is obviously key anywhere in the world.....

The laws of the Philippines are archaic to say the least which is why a legal will, dealt with by a reputable lawyer, is essential here. I strongly suggest the trustees to the will should include at least one close (friend) westerner; not only Filipino relations or friends. Also, you can be specific who should be precluded as well as those who should benefit.

I know many people living here who have ignored the need for a will and assumes their children in UK (or US or elsewhere) will automatically be able to inherit possessions in the Philippines.

There have been many tragic cases where someone did not take precautions in advance and then a partner suddenly and unexpectedly dies and it's too late.

jonnyboy wrote:

The laws of the Philippines are archaic to say the least which is why a legal will, dealt with by a reputable lawyer, is essential here. I strongly suggest the trustees to the will should include at least one close (friend) westerner; not only Filipino relations or friends. Also, you can be specific who should be precluded as well as those who should benefit.

I know many people living here who have ignored the need for a will and assumes their children in UK (or US or elsewhere) will automatically be able to inherit possessions in the Philippines.

There have been many tragic cases where someone did not take precautions in advance and then a partner suddenly and unexpectedly dies and it's too late.

Yes, I know of one classic example here where I live. Although the foreigner was the wife of a filipino husband. No will, one dead son, living daughter and grandson living from the deceased son... Its an absolute nightmare (no Will). Widow lives in USA and is 86 years of age and cannot travel either here or to .PH Embassy in Washington to sort anything out.....

Obviously 'international common-sense' is to have a Will specific to each country where you hold assets - and keep them up to date.

Country specific Wills are very sensible and 99% IGNORED by everyone who can't be bothered with even the most sensible (and relatively cheap) pieces of protective paperwork.

Dying intestate, without a Will in ANY country (where you specifically hold assets) is STUPID and a considerable burden for remaining heirs/beneficiaries.

You can lead horse to water - but you can't make it drink etc etc......

jonnyboy wrote:

The law of the Philippines IS QUITE CLEAR; a foreigner legally married to a Filipino can own property through hereditary succession should the wife die. The importance of having a legal will here.

______________________________________________________________________________________
With regard to a foreigners inheritance of land: 
https://lawyerphilippines.org/2016/03/2 … ilippines/

Jim

sorry you are wrong see attached extract from web site legal updates.

Constitutional provision on foreign ownership of land in the Philippines?

Section 7, Article XII of the 1987 Constitution 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.

So heredity succession is a fact. The mandatory succession rights, take precedence, of which the surviving spouse is one,  the surviving foreign spouse can inherit all or part of the land, within certain limits. What the foreign spouse cannot do, is bequeath or sell to another foreigner.
I have investigated this scenario quite closely, as I intend to purchase property under normal PH rules. with the proviso of a 50 year lease renewable for 25 years. I can bequeath this lease to my foreign child, I intend to buy 2 properties one for renting out. I may just make my son the lessee  on the 2nd house. It is not perfect but it safeguards the property for the rest of your life.