Philippine Property Ownership Law
Below is a MRR and PLR article in category Finance -> subcategory Real Estate.
Philippine Property Ownership Law
Overview
Foreign nationals seeking to own real estate in the Philippines can primarily acquire property through the purchase of condominium units or townhouses governed by the Condominium Act, with a Condominium Certificate of Title.
Foreign Ownership of Real Estate
Under Republic Act 4726, also known as the Condominium Act, foreigners can acquire condominium units and shares in condominium corporations. However, their ownership is limited to a maximum of 40% of the total capital stock of a Filipino-owned or controlled corporation.
Visa Requirements for Long-Term Stays
Foreign nationals planning extended stays in the Philippines can apply for a Retirement Visa through the Philippine Leisure and Retirement Authority (PLRA). Investments such as previously purchased condominium units can qualify applicants for this visa. These investments are accepted instead of the typical US dollar time deposit.
Applicants must provide specific documents, such as a Condominium Certificate of Title (CCT) and a Deed of Absolute Sale, proving that the property's purchase price met the required minimum amount.
Land Ownership Restrictions
Philippine law restricts land ownership to Filipino citizens and corporations with at least 60% Filipino ownership. Foreigners can own land through:
1. Acquisitions before the 1935 Constitution.
2. Hereditary succession if they are legal heirs.
3. Up to 40% interest in a condominium project.
4. Purchases by former natural-born Filipino citizens, with certain limitations.
Investing through a Philippine Corporation
Foreign nationals can form a Philippine corporation to manage real estate investments, allowing for reduced risk and increased control. The corporation can own property, but it must be at least 60% Filipino-owned.
Dual Citizenship and Property Ownership
The Citizenship Retention and Reacquisition Act allows former Filipino citizens to regain their citizenship when they naturalize elsewhere. This enables them to own property in the Philippines. Dual citizenship grants rights such as voting, running for office, and holding property.
Unmarried children under 18 of Filipinos who reacquire citizenship also become Philippine citizens.
Foreigners Married to Filipino Citizens
A foreigner married to a Filipino may have property listed under their spouse’s name. While the foreigner's name cannot appear on the property title, it can be included in the contract of sale. Caution is advised when pursuing ownership in this manner.
Condominium Development Regulations
Presidential Decree No. 957 controls the sale of subdivision and condominium developments. The Housing and Land Use Regulatory Board (HLURB) oversees this process. Approval requires a certificate of registration, a performance bond, and building plan endorsements.
For assistance with real estate acquisition in the Philippines, feel free to contact us.
Beth Collingz
PLC International Marketing Networks
You can find the original non-AI version of this article here: Philippine Property Ownership Law.
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