Foreigners Buying Property in the Philippines

Foreigners Buying Property in the Philippines have the property in another persons name.

I visited the Philippines for the first time in 1997. Upon arriving at Ninoy Aquino International Airport, I instantly realized that I had come to a country with an ill deserved reputation as over-Americanized and not Asian enough. The warm weather was a relief after coming out of a New York winter. There was a band playing Filipino folk music in the airport, wearing straw hats and the traditional barong tagalong shirts. I was overwhelmed by the sounds and colors that swirled through the streets as I made my way to the domestic airport for a flight to Cebu. I stayed in Cebu for one month and on my return to the U.S., I knew that I wanted a place of my own there to go back to.

In 1998 I made a second visit. This time along with Cebu I took excursions to the islands of Bohol and Palawan, thereby giving myself a look at a few of the over 7,000 islands the Philippines has to offer. Cebu appealed to me because it is a city but with a relaxed air and without the congestion of Manila. I also figured that real estate would be somewhat cheaper, so I decided to concentrate on Cebu.

Philippines Property Categories

There are many categories of properties in the Philippines. The most expensive real estate is the subdivisions. Subdivisions are geared towards foreigners and middle to upper-middle class Filipinos, including those who work abroad. They vary but generally subdivisions have there own infrastructure and security. Developers often set up booths in local malls to display their models. You can buy a house and lot with the developer building the house, or sometimes just the lot and build the house yourself. Subdivisions are good because they usually have flexible payment schemes. If you don’t have money to pay for the house in full you can opt for term payments. Make sure they give you an interest rate you can live with. All of the subdivisions I’ve seen offer a maximum of 5 years to pay. So, for a house that costs $USD20.000 you’re talking about $USD500/month for five years and it’s yours. There are simple subdivisions without pools and clubhouses that offer a house and lot for just over $USD10.000 so shop according to your budget.

Another category of property is the house or house lot outside of a subdivision. This type of property will generally be cheaper, especially if it is outside of a major city like Cebu. One concern is that you have to rely on public services when it comes to water and waste removal, as well as the maintenance of your electrical grid. In other words, you’re in the “real world”. If you fancy the countryside you can find extremely cheap lots and local carpenters to build your nest. Lot listings such as these are easily found on the internet. There are a variety of Filipino realtors online from reputable companies. My advice is to make contact and then get on a plane and take a look.

Another option is the condominium. New and used condominiums are everywhere and like subdivisions, offer payment plans. Newer condos can be overpriced so be picky.

Where to Buy Property in The Philippines

Deciding which island to buy on is a complicated affair. I would suggest thinking about the kind of environment you like. Every major island in the Philippines has an area with ample countryside but not every island has a major city. Cebu is the middle road. There is a good size city and a geographically diverse countryside. Bohol is an almost entirely agricultural island with a quaint seaside town. Palawan, often called the Philippines “Last Frontier”, is vast and breathtaking. If the beach is your thing, you will find it in Palawan. Land in Palawan is much cheaper than other areas of the Philippines. I’ve seen subdivisions with lots advertised as low as $USD1.800. Domestic travel is inexpensive so find out what island speaks to you.

How to Buy Buy Property in The Philippines

The procedure for buying real estate in the Philippines takes some getting used to. Foreigners (non-Filipinos not including former Filipinos) can not buy property outright. The easiest way for a non-Filipino to buy property is to have a Filipino spouse purchase the land. Former Filipinos can buy land up to a certain amount. The foreigner can own the building but not the land, unless the foreigner has a Philippine Special Retirement/Investment Visa. To qualify for this visa you must be at least 35 years old and meet the bank deposit requirement which can be withdrawn at a later date for your investments. There is a processing fee and the amount of the deposit/investment needed depends on whether or not you are married to a Filipino or former Filipino. This allows you almost all of the investment privileges of a Filipino citizen. For specifics on the program, check out the Philippine investors visa website. Foreigners are allowed to own condominium units outright but are only allowed to own 40% of a building or complex. You can also form a corporation where you and a Filipino or former Filipino partner, divide the ownership. This partner could be your spouse or child. For corporations, the Philippine government recognizes the right of succession in the case of foreigners.

The Philippines offers a unique environment for your get-away or permanent home. There are so many islands to choose from and a well developed industry accustomed to accommodating foreigners.

Original Post

However, there are various means by which noncitizens can hold property in the Philippines.

The most common way is a corporate structure. Corporations can own land, so long as Filipino citizens own 60 percent of the company; the rest can be owned by a foreign partner or partners. The arrangement makes it particularly easy for foreigners to buy condominiums, as long as they don’t compose more than 40 percent of a building’s ownership.

As a result, Walters owns two of his properties in his own name. He has put the other two in his wife’s name, a common practice but one that can cause problems in the event of a divorce.

Foreigners cannot claim citizenship in the Philippines without renouncing their original nationalities. Hardly any do.

But people of Filipino descent may be able to claim dual citizenship and, with it, the right to buy land. And even natural born Filipinos who have lost or given up their citizenship can own as much as 5,000 square meters, or about 54,000 square feet, in an urban development or three hectares, or 7.4 acres, in the countryside.

As a result, it is increasingly popular for overseas Filipinos to invest back home.

The expatriate Filipino population is global and extensive, but centered in the United States. Big developers like Ayala Land, Megaworld and Rockwell Land have started advertising their developments in major U.S. cities, trying to attract investment from the Balikbayans, the Filipino word for nationals who live abroad permanently.

Foreigners without local blood ties who want to make purchases other than condos must get more creative. Sometimes they fall back on a variation of the corporate structure: The foreign partner makes an off-the-books arrangement with local “owners.”

“Basically you can set up a Philippines corporation, have your lawyers or Filipino friends as 1 percent owners, but in reality the entire money is foreign,” said Monique Pronove, managing director for Pronove Tai & Associates property consultants. However, there are laws explicitly aimed at preventing such dummy partnerships.

“The reality is, yes, you can do it,” Pronove said. “But I would rather, if you are my client, that you be safe and do it legally and own condominium properties. And anyway, it is easier as well.”

Some foreigners have managed to secure beachfront property legally, through the use of 25-year leases, often with automatic renewals. This is particularly common on the popular resort island of Boracay, where Germans pioneered the resort trade and there are many properties in foreign hands. The lease holders then are free to build homes, although eventually the ground can be sold out from under them.

For the most part, though, foreign interest is centered on high-end condo developments in Manila’s best neighborhoods. There are some condo projects in Cebu, the country’s second city, but almost none elsewhere.

John Riad, chief executive of the online real-estate brokerage HousingInteractive.com, said he specialized in condos in the Makati, Rockwell and Fort Bonifacio neighborhoods, the most exclusive parts of Manila.

Original Post http://www.iht.com/articles/2006/01/19/news/rebuyphil.php

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19 Responses to Foreigners Buying Property in the Philippines

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  2. homeinczechr says:
    April 24, 2008 at 4:56 pm

    great!!!!!!!!This partner could be your spouse or child. For corporations, the Philippine government recognizes the right of succession in the case of foreigners.

  3. deon says:
    November 27, 2008 at 6:45 am

    hi.i want to buy property in phillipines.if i marry a phillipino woman will that make me illigable to buy? how safe is it to buy there? thanks

  4. Tom Coghill says:
    November 28, 2008 at 10:58 pm

    Hi deon
    You cannot own it. She will own the largest protion and there are many horror stories of the girlfreinds taking the house and the guy getting nothing. It is better to lease or rent. You can have a long term lease for a townhouse in your name. The laws favor Filipinoes.

  5. Maria says:
    December 13, 2008 at 7:39 am

    Hi, I have a beautifull house for sale in one of the exclusive subdivision in Cabanatuan, Nueva Ecija I also accept swap my house if they have a house United states so if there is anyone who interested of buying a house in Nueva Ecija please contact me my email add. is mra_trs_1003@yahoo.com thanks..

  6. Lawrence says:
    May 14, 2009 at 9:19 am

    I’m selling a condo in Makati. Just 1 unit. Bare with parking 93 sq. m.

    +639278262826

  7. kenneth delancey says:
    July 8, 2009 at 9:52 am

    my fiance in the philippines has told me of a deal on a lot near the apartment we have been renting.we pay only 4,000 per month for the apartment but my fiance told me of a special deal a friend of hers was offering on a lot in a subdivision.she said that for 10,000 we can assume the loan.i dont know all the particulars and the only reason i went along with this plan is because she managed to get the landlady to agree to accept 5,000 now and 5,000 in one month from now.to me this is not a lot of money and so i decided to trust my fiance.i will western union her the money today(5,000 pesos).the total cost of the loan i believe is 100,000 pesos.the lot has no home on it that will need to be built for an additional cost.the problem im having with this whole deal is what if my eventual marriage to her goes bad and then she gets to have the property and home and i get to take a hike.also for the time being the lot is in her name

  8. mario zettera says:
    July 20, 2009 at 4:10 pm

    I am retired and I want to buy an house in Cebu/Mactan and I would like to live there with my pension and the rent of some properties in Italy: I would like to know if I can obtain a retirement visa, and for how long?
    My monthly pension is 600 EURO and my rent income is 500 EURO per month!
    Thanks for your assistance.
    Best regards,

    Mario Zettera

  9. julie david says:
    July 21, 2009 at 5:36 am

    Hi, My name is Julie David, I reside in San Francisco Bay Area California USA, my permanent residence. I purchased 2 hectares of prime beach property in Palawan, I’m a dual citizen. I want to develop the area turn it into a community residential retreat, developing it on my own takes a lot of money which I don’t. I’m inviting 28 people to co-own this amazing propety into our own private retreat, share all expenses, build our own house and have it rented while we’re back home. We will have property management who will take care of our property and our guests, or use it like time share and promote it on our own. As an owner, I will put up a restaurant for our enjoyment and entertainment at night. Please see my website:
    I encourage you to view the property, invest ona plane ticket and I will take care of your accommodation for 3 days and 2 nights stay, you will have pick and return to the airport. Now, you don’t need a huge lot to own a prime beach property, you have the security of being in a community and in subdivision. There is no offer like what I’m offering in Palawan. Please check the prices for Tigman, Aborlan property, where 4 established resorts, and huge estate right next to my property. Remember this is your very own private winter retreat or as residence. An investment you can not go wrong. We give 25 years least and renewable 25 years for those foreigner who wants to be part of this small community of 28, will have the amenities of the resort. Hope to hear from those people who wants to own a tropical beach property setting.
    Thanks, Julie David

  10. Tom Coghill says:
    July 25, 2009 at 11:16 am

    Hi Julie and David,
    The concept is good. I hope it works for you. Property investments in the Philippines can be risky and therefor hard to get investors.
    I am in Sagada where you can only lease land. I also have set up a few health retreats and just finish setting up http://sagadahosptial.com….. the first integrative holistic treatment hospital in the Philippines so if you can get it built, I would gladly give you direction.

  11. Tom Coghill says:
    July 25, 2009 at 11:19 am

    Hi Mario
    Yes, for $10,000 us investment in the Philippines you can get a retirement visa. The cost is $1400 one time fee.
    I heard you just need to photocopy of a philippine bank statement with that amount showing. You can easily live on that amount.
    I live in Sagada and here living is very cheap with the best climate in the Philippines.

  12. Tom Coghill says:
    July 25, 2009 at 11:38 am

    Hi Kenneth
    There are hundreds of stories of guy who lost it all and ended up broke. And a few where they fell in love and it lasted.
    Most Filippinas are loyal trustworthy women but can alter in seconds after a breakup. Also there is rarely a clear title of ownership.
    Better to rent.

  13. Gina M. Villanueva says:
    August 3, 2010 at 7:37 pm

    Hi,

    Have you heard about CITTA DI MARE, literally the “City by the Sea?” Spanning 50.6 hectares at the heart of Cebu’s South Road Properties. Features a waterfront lifestyle strip and a residential resort town bounded by majestic views of Mactan’s coast and Cebu’s mountainous area:
    IL Corso – a 10.6 hectare waterfront amenity area that offers a range of seaside leisure activities and Residential Resort Town -40 hectares of themed residential communities anchored by The Piazza.
    Right across the residential enclaves, the 10.6 hectare Il Corso takes full advantage of the coastal ambience, offering a watering hole, leisure central and cultural hotspot right by the water’s edge: boardwalk, terraced beach, marina, cafes, bars, restaurants, souvenir shops, home depot/retail outlets, exhibit tent, amphitheater
    Over 65% of the residential resort town is allocated for wide-open spaces and landscaped greens, giving you the generous amenity of verdant parks and lush streetscapes. Low-density community with residential clusters set apart to give residents a sense of freedom and privacy. Residences are carefully laid out to maximize the abundant sunlight and circulation of the invigorating sea air.
    Citta di Mare is a relaxing, pedestrian-friendly community where residents are encouraged to discover the joys of nature. An auto-free zone with the safety and health of residents in mind.
    There are many reasons why to invest: 1) You will experience sea side living 2) This is a resort residential condominiums (rest and recreation) Within its secure, gated premises, makes resort living way of life. Theres a swimming pool, clubhouse, basketball court, rest/event gazebo, parks & play areas, pathwalks and kiddie nooks
    3) Premiere location of pride of Cebu. And many more…

    For more details, you can email me at ginvill07@yahoo.com

  14. Tom Coghill says:
    August 3, 2010 at 7:46 pm

    The place sound amazing. It is expensive to live in CITTA DI MARE?

  15. Gina M. Villanueva says:
    August 4, 2010 at 1:27 pm

    The units available are 2BR (56.79 sqm) and 3BR (113.58 sqm). The pre-selling price at Php75K/sqm and it will rise at Php80K/sqm by August 25, 2010. The charms of seaside living abound, evoking images of world-class waterfront attractions such as Sydney’s Darling Harbour, Newport Beach, Fisherman’s Wharf, and the romantic French Riviera. Citta Di Mare will be surrounded by the biggest SM mall in Visayas and Mindanao (2nd to the mall of Asia), University of the Philippines (Cebu College), Big Foot Studio, and many more…
    Is it ok to get your email add? I want to send the pictures and some of the details of Citta Di Mare.

  16. Tom Coghill says:
    August 4, 2010 at 6:30 pm

    Hi Gina,
    Make a post and ad the pics and your links.

  17. ma. lina yamaguchi says:
    August 20, 2010 at 10:22 pm

    I want to buy house and Lot but long term payment in general santos city

  18. MARIA RHODA D. SIANGCO says:
    September 4, 2010 at 6:59 pm

    To: Mr. Tom Coghill

    I like your idea of developing an area for integrative holistic treatment…I want to ask if you wanna expand such concept here in Moalboal, Cebu (the diving capital of Cebu-kindly browse Moalboal divespots) and maybe add a feature to it by developing retirement villas and or retirement homes…I have available cheap areas up for sale that will suit to this concept of development. Hope to hear from you very soon. u can email me mariarhodasiangco@yahoo.com

  19. Tom Coghill says:
    September 5, 2010 at 12:49 pm

    Hi Maria,
    I just set up a program in PaPua New Guinea with Congressman Jamie Maxtone Graham. I do not invest money. But I can assist in the setup.

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