Philippine citizens who are residents of another country or working overseas who maintain their Philippine citizenship
Philippine dual citizensNatural-born Philippine dual citizens (Those born with a Philippine and foreign citizenship as a result of the concurrent application of the laws of the Philippines and a
foreign country which consider one a citizen of each country, e.g., those born to a Filipino and foreign parent).
Natural-born Philippine citizens who subsequently acquire foreign citizenship involuntarily (i.e., without undergoing foreign naturalization, e.g., marrying a foreign
national whose country automatically considers the Philippine spouse its own citizen) and who have not renounced their Philippine citizenship by any act or omission.
Natural-born Philippine citizens who voluntarily opted to acquire foreign citizenship but eventually chose to reacquire their natural-born Philippine citizenship status
under the Philippine Citizenship Reacquisition Act of 2003 (Republic Act No. 9225), regardless of whether or not they have renounced their previous foreign
citizenship.
There are no area limits on the ownership by Philippine citizens of non-agricultural private land. Private agricultural land acquisition must not exceed a combined total
of 5 hectares (50,000 square meters).Philippine corporations whose capital stock is 60% Filipino-ownedThere are no area limits on the ownership by Philippine corporations of non-agricultural private land. Philippine corporations may lease, but not own, public
agricultural land not exceeding 1,000 hectares for two 25-year periods and own private agricultural land not exceeding a combined total of 5 hectares (50,000 square
meters).
Those entitled to own property under limited conditions
Natural-born Philippine citizens who voluntarily opted to acquire foreign citizenship through naturalization, thereby renouncing their Philippine citizenship, and who do not choose to reacquire Philippine citizenshipUnlike Philippine citizens, former Philippine citizens who are natural-born Filipinos* are only entitled to own either 5,000 square meters of urban land or 3 hectares
(30,000 square meters) of rural land in the Philippines for business or other purposes. The land that may be acquired shall not be more than two parcels situated in
different municipalities or cities anywhere in the Philippines and shall not exceed the stated area limitations. Anyone who has Already acquired urban land is
disqualified from further acquiring rural land and vice versa. In the case of a married couple, the total land area that they are allowed to purchase cannot exceed the
above-stated limitations.
Foreign citizens and corporationsForeign citizens and corporations may acquire and own condominium units where the common area is owned by a condominium corporation, 60% of which is
Filipino-owned. They cannot directly acquire and own land in the Philippines except through intestate hereditary succession, i.e., inheritance by operation of Philippine
laws on intestate succession and not by testate (through a will or testament) succession. They may, however, indirectly own land by subscribing to a Philippine
corporation the capital stock of which is 60% Filipino-owned. They may also lease private land for a maximum of two 25-year periods.
Foreign citizens and corporations investing in the Philippines may lease private land for a 50-year period and can be extended for another 25 years.A natural-born Philippine citizen is one who does not have to do anything to acquire Philippine citizenship, in contrast to a naturalized Philippine citizen who has
to go through a naturalization process to acquire Philippine citizenship.
FOREIGN INVESTORSI am a foreigner, how do I invest in the Philippines?Foreigners may indirectly own land by investing in Philippine corporations registered with the SEC subject to the foreign equity restrictions for ownership of private
land. Such Philippine corporations may then acquire the land for example, Ownership of Condominium Units.Can foreigners directly buy Philippines properties?Unlike private land, foreign nationals and foreign corporations may directly own a condominium unit. However, the land on which the condominium building stands
must be owned by the condominium corporation. When a person buys a condominium unit, he automatically becomes a member of the condominium corporation
which owns the land. Under Philippine law, foreigners are allowed to become members or stockholders of the condominium corporation which owns the land, but
only up to a maximum of 40% of the capital stock of the condominium corporation.
The transfer of a condominium unit shall include the transfer of the appurtenant membership or stockholding in the corporation. No transfer or conveyance of a
condominium unit shall be valid if the concomitant transfer of the appurtenant membership or stockholding in the condominium corporation to a foreigner causes the
alien interest in such corporation to exceed 40%.Seeking to retire in the Philippines?Foreigners intending to retire in the Philippines may apply for the Special Resident Retiree's Visa ("SRRV"), a special non-immigrant visa issued by the Philippine
Bureau of Immigration to foreigners through the retirement program of the Philippine Retirement Authority ("PRA"). For the SRRV to be issued, the PRA requires that a
minimum investment shall be deposited in a PRA-accredited bank by the foreigner. It may only be withdrawn if the foreigner withdraws from the PRA retirement
program. Once issued, the SRRV entitles its holder to multiple entry privileges with the option to reside permanently in the Philippines.
Other benefits under the retirement program include exemption from exit clearance and re-entry permits; exemption from customs duties and taxes for the importation
of personal effects up to US$7,000; exemption from travel tax if the stay in the Philippines is less than a year from the last entry date; exemption from the Bureau of
Immigration's annual registration requirement; assistance in obtaining an Alien Employment Permit; tax-free remittance of annuities and pensions; and guaranteed
repatriation of the investment. The minimum amount of investment required is generally US$75,000, if the foreigner is 35 to 49 years old, and US$50,000, if 50 years
old and above. The minimum investment policy doesn't only apply to foreigners, former Philippine citizens and former Ambassadors are required a minimum
investment of US$1,500, while retired employees of the Asian Development Bank are required a minimum investment of US$25,000. The foregoing investment may,
at the option of the foreigner, be converted to Philippine Pesos or into an approved area of investment such as investment in shares of Philippine corporations as
above-discussed.Married to a Philippine National?Yes. But the Title of the property will be named under the spouse who has a Philippine citizen status.Foreign ownership - by succession?Ownership of assets (whether shares of stock or real property) may also be transferred through donation or succession.
The transfer of property by succession is subject to estate tax at a rate based on the total value of the net estate. The net estate is the total gross estate of the decedent
less allowable deductions. For purposes of computing the gross estate, the fair market value of real property transferred by succession shall be the higher of the
zonal value or the market value under the Tax Declaration of the real property. The estate tax imposed under Philippine tax laws shall be credited with any estate tax
that the estate of the non-resident decedent may have paid to the authority of a foreign country, subject to certain limitations.
LEGAL & DOCUMENTARY REQUIREMENTSWhat documents or requirements do I need to purchase a property, secure finance and/or finalize a purchase.The required document varies depending on the type of property you purchase and the sellers requirements.
- Reservation agreement form for non- auction properties.
- 1% reservation deposit (doesn't apply to auction properties) plus 10% exchange payment or as specified by the seller
- Buyer Information Sheet
- Housing and Land Use Regulatory Board Form (HLURB)
- Association Letter
- Life Form
- 1904 form TIN Number (if required)
- Additional Supplemental Agreement (If required)
- Bank Financing / Pag–ibig documents
- Credit Approval
- SPA (Special Power of Attorney)
- Signed computation sheet
- After your reservation, there will be additional documents required by the seller to complete a finance application or your purchase.
Requirements for non- natural born Filipinos are as follows:Same as above plus-
Photocopy of valid ID (preferably passport), containing spelling that is the same as Final Reservation Agreement and TIN validation
Tax identification number validation (E-TIN or 1904/1903), containing spelling that is the same as the Final Reservation Agreement and passport/ID
Photocopy of marriage contract (if applicable)
SEC registration certificate, articles of incorporation and by laws(if purchasing in a corporation)
If paying Cash or you have secured finance supplied elsewhere (ie. not the seller), you requirements are as follows:
Same of the above plus
Copy of Credit Approval or bank statement confirming cash balance for purchase or deposit
1% reservation deposit (doesn't apply to auction properties) plus 10% exchange payment or what ever payment is agreed upon by the seller
Balance of purchase price within 30 days, unless approved by the seller.
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