Comments on: Foreign Ownership of Land in the Philippines

By: Michel

Michel — Mon, 12 Jul 2010 08:55:30 +0000

Hello thank you for all the answers you gave already.
I’m a french citizen, and i have now a natural filipino baby who is just born, living with her mother in Philippines.

I would like to know if i could buy a house and lot, through a corporation of which i will own 40 % share and the baby 60 % ?
Thanks and best regards.

Michel, property can be placed in a trust for your child, who can take full title when he turns 18.

By: John Levitt

John Levitt — Sat, 26 Jun 2010 14:24:33 +0000

Hello, I live as an immigrant in the Philippines and was told by an attorney/notary that I would be allowed to own 1 residential lot of max. 1 ha.
Is that true?

Thanks.

John, foreigners may not own land in the Philippines in their name. Foreigners may own up to 40% of a corporation which owns land.

By: Mariz Ein

Mariz Ein — Wed, 12 May 2010 08:25:55 +0000

My auntie married an australian she bought her parents a land and put the land on thier name. When her mother died she do some paper works saying that her father sold the land to her. The father signed the paper[deed of sale]and her siblings too. But that time she’s already an australian citizen and now she’s going to sell the land, can she do that?

Mariz, former Filipino citizens may own land a certain quantity of land.

By: mary a.

mary a. — Tue, 11 May 2010 19:29:45 +0000

Question to ask:

I am a US citizen born in the Philippines and was married but separated from spouse for 20 years. neither legally separated nor divorced. just drifted apart with no contact.

if i purchase a property(a condo which a foreign national can following the 40% rule)is this purchase going to considered conjugal property and that spouse can come after the property?

thank you.

Mary, yes the condo would be conjugal property.

By: Jane

Jane — Mon, 10 May 2010 12:53:43 +0000

Hi! I’m a real estate investor.
There is a condo in Manila that we want to acquire.The owner is a Saudi national who died 6 years ago. The title has not been transferred yet to the heir and the SPA (special power of attorney) is questionable since it has no signature of the lawyer and has not been notarized. ( The girlfriend , the one who has SPA, claims that all the documents were presented to the Saudi Embassy and Philippine Embassy so they are all legal and above board.
The buyer will shoulder all the taxes like capital gains tax, estate tax and even association dues.
Is there a way where we can verify or ask online from both the Saudi and Philippine embassies about the documents?What can we do here ?
Thank you!

Jane, be very cautious with this transaction as it will be very difficult to verify the authenticity of the documents. The first thing to do is to check the existing title directly at the land title office get an original to make sure that their are no encumbrances (you must obtain this directly or through a trusted person not from the seller). If property taxes have not been paid the property may have been auctioned by the Bureau of Internal Revenue.

By: Stephen

Stephen — Wed, 05 May 2010 00:36:19 +0000

Hi,

I have not read all your answers, so forgive me if this has already been covered.

I plan to establish a corporation owned with my filipina wife (60% owner) to acquire a house and lot in Davao city. I will finance my wife’s purchase of shares in the corporation with a legally documented interest free loan. On sale of the property at some future time I the loan principal would be recoverable from her and she would be entitled to keep any profit. Does that sort of approach comply with the law in respect of foreign ownership?

Stephen, unless you have a prenuptial contract the loan won’t be helpful as the money you are lending your wife is already 50% hers.

By: Lisa

Lisa — Sat, 01 May 2010 01:42:05 +0000

Hi,
If land has to be in a Fillipino’s name, is there any risk to an investor if they purchase a hotel and land and use a Fillipino friend’s name. For example, would the investor have any legal right to the property if the Fillipino reneges and claims it is their property and land. A letter has been signed to say that the investor is the true owner. Apparently this is common practice for foreign ownership of property, is this legally recognized?

Lisa, yes there is high risk as this practice is completely illegal. Read the Philippines Anti Dummy Law

By: Jay

Jay — Thu, 08 Apr 2010 14:39:17 +0000

My foreign national friends would like to acquire land by corporation, as it should be 40% foreign national and 60% filipino national, if we are 5 in a corporation, 3 must be filipino national and 2 foreign nationals, right?

Jay, that is correct.

By: Ail

Ail — Tue, 06 Apr 2010 03:43:53 +0000

My husband and I are US citizens (I was born in the PI and I have a TIN but my husband was born in the US) and considering to purchase a condo in the Phils. Our agent said she will get us a TIN to apply the VAT that we are going to pay when we purchase the unit. She said it will be a temporary TIN. Is this okay? I am confused – we are paying the VAT but we need to provide a TIN?

Ail, all taxpayers need a TIN number. So for you to pay the VAT you need a TIN number.

By: Ken

Ken — Fri, 02 Apr 2010 03:32:52 +0000

I just returned from the Philippines, and have a lot of concerns about going into a business in that country I wrote to you on January 23 before I visited the philippines, I am assuming your comments about partial foreign ownership not being allowed for restaurants is also true for bars and lodging such as hotels or apartments. You comments please.

Ken, foreigners may not own bars but apartments and hotels are allowed to be owned. Up to 40% of a condominium project may be foreign owned.