The Manila Times

Property ownership by foreigners still strictly limited in PH

- BEN KRITZ

of the Philippine­s is attracting increasing numbers of foreign nationals to visit and consider setting up businesses or permanent residence, Philippine law still strictly limits the ownership of property

While easing some of the restrictio­ns is occasional­ly debated, there being taken to open the property market up to more investors and would- be residents from other countries. Here is a quick guide to the current laws regulating foreign real estate ownership.

A foreign national can own a condo unit or townhouse in the Philippine­s by establishi­ng a corporatio­n for the purpose, which must have no more than 40 percent foreign equity and is formed by “natural persons” of legal age – in other words, people who actually exist – at least 60 percent

Under that sort of corporate arrangemen­t, a foreign national can own up to 40 percent of the units of a condominiu­m project, accord know as the Condominiu­m Act.

Another alternativ­e for foreign buyers is to purchase a house, and lease the land where it is located. Under the law, the initial lease can have a term of 25 years, and can be renewed once for another 25 years.

A foreign national married to property jointly with his or her spouse, but only the name of the property title. However, the foreign spouse does have a few rights in terms of disposing the property she can either sell the property for children of the couple, or to the

Philippine citizenshi­p or for Philippine citizens who also are naturalize­d citizens of another country, there are only a few restrictio­ns. lost Philippine citizenshi­p can still own up to a maximum area of 1,000 square meters of residentia­l urban land, or up to 1 hectare of rural land as long as it will be used for residentia­l purposes. In the case of married couples, the total combined area of their property must not exceed these limits.

A natural-born Philippine citizen who has become a naturalize­d citizen of another country can own real estate just like any other

 ?? PHOTO COLLIERS ?? ROOM TO GROW
Space for possible future expansion is a key feature foreign office locators are looking for in Philippine properties, a property consultant said.
PHOTO COLLIERS ROOM TO GROW Space for possible future expansion is a key feature foreign office locators are looking for in Philippine properties, a property consultant said.

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