Filipinos are known all over the world for their hospitality, but to foreigners who wish to own Real Estate in the Philippines, Filipinos get less friendly. Foreigners cannot simply buy house and lot packages in the Philippines and have the Land Titles in their names.
The ability to purchase is not so much an issue as citizenship in Real Estate ownership within Philippine jurisdiction. This is a bit surprising to Americans and Europeans alike because in their countries, anyone who can afford to buy real estate can do so regardless of citizenship.
However, foreigners can still own Real property in the Philippines under the following circumstances:
Foreigner Married To Filipino
Foreigners can obtain rights over a piece of property provided the Land Title is in the name of the Filipino/Filipina spouse which means the latter should be the one to purchase the real estate.
Ownership as Corporate Entity
A foreigner may form a Philippine corporation which must be at least 60% Filipino-owned and consists of at least five (5) incorporators – the foreigner being one of them. The corporation can own real property; the foreigner can own 40% of the corporation.
This principle applies in the purchase of a condominium unit by a foreigner. Condominium units can be owned provided it does not exceed 40% interest of a condominium corporation.
Lease Agreement
A lease agreement with Filipino landowners entered into by a foreigner or his corporation can give him the right to own the house or building erected on the leased land.
Under the following special circumstances a foreigner can own land in the Philippines.
Land acquisition before the 1935 Constitution took effect.
Acquisition by hereditary succession. He/She must be a legal or natural heir.
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