The Philippine real estate industry has always been an attractive investment not only for the locals but also for foreigners because of its promising economy and potential returns.

However, it still raises some questions about whether or not non-Filipino citizens can buy and own lands, houses, or condominiums units in the Philippines.

The short answer to this is yes. Although foreigners can actually purchase and own real estate properties, you cannot buy land and acquire rights to it. Looking to invest a property in the Philippines this year or in the near future? Read further to learn more.

Property and Land Rights

Under the 1935 Constitution, foreigners may acquire properties, as long as they adhere to the laws under the constitution. They can also buy properties through hereditary succession or if you are a natural heir or heiresses to a property acquired under the 1935 Constitution.

Also, foreigners may legally own a residence, but not land. They may own houses and other buildings, but they will not be granted rights over the area of these structures. It is also illegal for them to acquire land rights regardless if it is sold to them, or transferred through a last will.

Long-term Lease or Rent

Although foreigners are prohibited from owning land and being granted rights to it, they have the option to lease their desired property, provided, it is at least for 50 years. Foreigners may also renew lease agreements with Filipino landowners for another 50 years or so.

Aside from long-term lease agreements, foreigners also have the rent option. The rent period is for at least 25 years and is also renewable.

40-60 Rule

Condominiums and many other real estate properties may be purchased by foreigners, provided they can only own up to 40%. In comparison, 60% of the real estate or condominium buildings will be owned by Filipino citizens. This rule also applies to foreigners interested in owning subdivisions and townhouses.

Under the Philippine Condominium Act, foreigners may own condo units, as long as Filipino citizens own 60% of the condominium building. In addition, they may also purchase and own a property through a corporation if 60% of Filipino citizens own that corporation.

Marriage Benefits

Another option to consider for foreign investors interested in Philippine real estate properties is to use the benefit of marrying a Filipino citizen. Non-Filipino citizens who have married Filipino citizens may purchase a property and put it under the Filipino’s name.

As long as these Filipino citizens, who have married a foreigner, retain their citizenship, they may own properties and share it conjugally with their foreign partners.

Consult a Broker

Foreigners are highly recommended to consult a real estate broker with integrity and competence. Not only will they help in selecting prime locations but will also help them acquire the deeds and titles that come with purchasing properties.

Think Carefully Before Buying Any Properties

Lastly, foreigners must plan thoroughly before buying a house in the Philippines. There are always risks, and these should still be considered in any investment decision.

Want to know where to settle down in the Philippines? Read ”5 Best Places To Settle Down in the Philippines” to learn more.