26/11/2014
Q: Can Foreign Retirees Buy Properties in the Philippines?
A: With its sunny weather, low cost of living, and special retirement visa that grants non-citizens the right to stay in the country permanently or indefinitely, the Philippines attracts more and more retirees from around the globe each year.
If you are one of the thousands considering retiring in the country and looking to purchase or invest in real estate, here are some things you need to remember.
Although foreigners cannot own land in the Philippines, they can purchase units in condominium buildings, so as long as foreign ownership in a single project will not exceed 40 percent.
If married to a Filipino, the foreigner can buy land provided the title will be in his or her spouse’s name. In the event of their spouse’s death, the foreigner becomes the natural heir and may do any one of the following: dispose of the property within a reasonable amount of time and collect the proceeds; pass the ownership to their children or legal heirs; or in case the couple is childless, turn over the ownership to the Filipino spouse’s relatives.
Foreigners may lease land for up to 50 years and renew the lease for another 25 years. If you want a beachfront property in Boracay, Palawan, or some other spectacular island in the country rather than a condominium in Metro Manila or Cebu, this may be your best option. You can legally own the house or building that you built on the land you are renting.
Non-citizens may own land through corporations that are at least 60 percent Filipino-owned. Many foreigners partner with Filipinos to form a corporation, with the former enjoying a maximum of 40 percent of the shares. Through this route, foreigners may acquire land, condominiums, residential houses and lots, and commercial buildings.
Former natural-born Filipino citizens may acquire land but with limits. The law prescribes that natural-born Filipinos who have acquired foreign citizenship may own up to 1,000 sq.m of residential urban land or 1 hectare of residential rural land.
