In this post for Lamudi Philippines’ Q&A series, we list the ways how a foreign national can legally purchase land in the Philippines.
Q: As a Foreigner, How Do I Navigate the Philippine Real Estate Market?
A: The Philippines is perhaps one of the most restrictive real estate markets in Asia when it comes to foreign ownership of real property. As stipulated in the 1987 Constitution, foreigners are not allowed to own land in the Philippines.
But this does not mean that owning property is impossible. To some extent, foreign nationals and former Filipino citizens are allowed to purchase land in the Philippines, such as in the following instances.
- A foreign national is allowed to purchase condominium units as long as foreign ownership in a single project does not exceed 40 percent. A single project is defined as having one permit issued by the Housing and Land Use Regulatory Board (HLURB).
- A foreign national can enter into a long-term leasehold agreement with a Filipino landowner of up to 50 years, with an option to renew of another 25 years. In addition, a corporation that 60 percent Filipino-owned can enter into a leasehold agreement for an unlimited amount time. The foreigner can then build and own the structure sitting on the leased property.
- A foreign national who is married with a Filipino citizen can purchase land in the Philippines. However, the property can only be registered under the Filipino citizen’s name. In the event of death od the Filipino spouse, ownership of the land cannot be transferred to the foreigner, but he or she can either sell the property and keep the proceeds or pass it on to his or her legal heirs (e.g., children).
- Since corporations are considered legal entities under Philippine laws, a corporation duly registered can acquire a property so long as the same corporation is 60 percent Filipino owned and has a minimum of five persons on its board. The corporation can enter into contracts, acquire financing, and purchase and own land in the Philippines.
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