Nov. 1, 2022
Are You Eligible to Buy a Property in the Philippines?
As a US citizen, overseas investment is enticing due to the high exchange rate of dollars to another country's local currency. If you are considering to purchase a property in the Philippines, here are the things you need to know.
Owning a House
Good news, yes, a US citizen can own a house. Provided you have a valid visa, you may buy a property in the Philippines and allowed to own a residence. Unfortunately, as an individual, you cannot buy and own the land where it is built upon. You will need to enter in a long-term lease agreement with a Filipino landowner.
Buying the Land
How can a US citizen buy the land where the residential houses or buildings are situated? As covered by the Philippine law, land ownership is exclusive and limited to Filipinos only. However, there are various and legal ways to purchase the land.
- The property was acquired before the 1935 Constitution.
- Acquisition through hereditary succession.
- The order of hereditary succession under Philippines law is covered below
- Legitimate children or descendants of the deceased;
- Legitimate parents or ascendants;
- Illegitimate children or descendants;
- Surviving spouse;
- Siblings, nephews, and nieces;
- Other collateral relatives within the fifth degree; and finally,
- The State (Philippines).
- Purchase of a condominium unit
- Under the Condominium Act of the Philippines, foreign citizens are allowed to buy condo units in any condominium project, as long as foreign ownership of that project does not exceed 40%.
- The land where the condominium unit is built is not owned as an individual but as a Condominium Corporation.
- Purchase of land by corporation
- Creating a domestic corporation with 40% foreign ownership and with at least 60% Filipino ownership can be done.
- This corporation must be registered and approved first by the Securities and Exchange Commission prior to acquiring any real estate property as an entity.
- Upon dissolution of the corporation, the land may be sold and cash proceeds are distributed proportionately to the owners including the foreigner.
- Purchase by a foreigner married to a Filipino
- The foreigner is allowed to buy land and his/her name is included in the Contract or Deed of Sale.
- But only the Filipino spouse in registered in the Transfer Certificate of Title (TCT) or the land title.
- In the event of death, the foreign spouse becomes the natural heir and still not allowed to own the land. Therefore the property has to be disposed within reasonable period and collect the proceeds of the sale, pass on ownership to the children or legal heirs, or if childless, pass on ownership to the Filipino spouse's relatives.
- Land ownership as a natural-born Filipino foreigner
- Those who have dual citizenship
- Those naturalized under the Philippines' Naturalization Law
- There are limitations to land ownership as a natural-born citizen.
- For residential use: 1,000 sqm (10,764sqft) of urban land OR 1 hectare (24,710 acre) of rural land;
- For acquisition to be used for business or commerce: 5,000 sqm (53,819sqft) of urban land or 3 hectares (71,131acre) of rural land.
It is best to transact with a licensed real estate brokers or agent when buying a property. You also have the option to get a practicing real estate lawyer for legal matters.
FAQs
Foreigners are prohibited from owning land in the Philippines, but can legally own a residence. The Philippine Condominium Act allows foreigners to own condo units, as long as 60% of the building is owned by Filipinos. If you want to buy a house, consider a long-term lease agreement with a Filipino landowner.
How much land can a US citizen buy in the Philippines? ›
As a US citizen, you cannot buy land in the Philippines. This restriction applies to all types of land, whether for residential or commercial use. The Philippine law specifically prohibits foreigners from owning land, regardless of their nationality.
How much does a house cost in the Philippines in US dollars? ›
Overview of Cebu's real estate prices
| Type | Average price | Average rent price |
|---|
| House | ₱ 12.01 million ($216,164) | ₱ 88,026 ($1,584) |
| Townhouse | ₱ 4.33 million ($77,873) | ₱ 28,767 ($518) |
| Land | ₱ 7.69 million ($138,428) | ₱ 220,654 ($3,972) |
| Commercial | ₱ 18.32 million ($329,771) | ₱ 160,777 ($2,894) |
2 more rowsAs a foreigner you'll have to provide a little extra documentation to back up your loan application, including your ACR certificate, and your visa. However, aside from this, the requirements are fairly straightforward and similar to the process used for local applicants.
Can you inherit property in the Philippines if you are a US citizen? ›
Yes, a foreigner may inherit land from their Filipino Spouse
The Philippine laws that apply here are the 1987 Constitution of the Philippines and the 1949 Civil Code inherited from Spain. These cover the Inheritance Rights of a surviving Spouse Philippines. A foreigner can inherit Philippine land if there is no will.
How long can a US citizen stay in the Philippines? ›
If you're a US citizen and want to visit the Philippines, you can stay there for up to 30 days without a visa. But if you plan to stay longer than that, you'll need to get a visa from a Philippine embassy or consulate in the USA before you go.
How much money do I need to move to the Philippines? ›
Cost of living in the Philippines
| Cost in the Philippines³ | Cost in the US³ |
|---|
| Monthly public transport pass | $10.14 | $70 |
| Utilities - monthly (basic) | $100.15 | $188.70 |
| Rent for a 1-bedroom apartment in city center | $324.40 | $1,708.27 |
| Price to purchase 1-bed apartment in city center - per sq.m | $2,616.76 | $4,692.35 |
3 more rowsAug 28, 2023
The cost of living is significantly lower in the Philippines than in the United States. The average cost of living for an individual is 72.4% lower than in the United States. For a family, the average cost of living is 68.9% lower in the Philippines than in the United States.
How much is $1 US worth in the Philippines? ›
1 USD = 58.436002 PHP May 30, 2024 18:57 UTC
The currency converter below is easy to use and the currency rates are updated frequently. This is very much needed given the extreme volatility in global currencies lately.
Everyone will need a visa to move to the Philippines. If you wish to stay for long-term purposes, you will have to apply for long-term visas. Moreover, a few countries can enter the Philippines visa-free but for a short period. If you want to extend your stay, you must have the necessary visa.
Can Americans get home loans in the Philippines? ›
It allows Filipinos and non-Filipinos residing and working in the United States an easy way to obtain a bank financing of residential properties in the Philippines. OPHL is the most convenient and secured home loan with: NO ATTORNEY-IN-FACT. NO REMITTANCE CHARGES.
Can a US citizen open a bank in the Philippines? ›
Any non-resident intending to set up a bank account in the Philippines needs the ACR I-card which is an alien's identification card. Card applications are accepted at the main office of the Immigration Bureau or at any branch throughout the country.
Is wife entitled to husband's inheritance in the Philippines? ›
Under Philippine law, specifically the New Civil Code, the surviving spouse is considered a compulsory heir. In the absence of children, the surviving spouse is entitled to inherit the entire estate of the deceased spouse.
Can a US citizen own a lot in the Philippines? ›
Foreigners are prohibited from owning land in the Philippines, but can legally own a residence. The Philippine Condominium Act allows foreigners to own condo units, as long as 60% of the building is owned by Filipinos. If you want to buy a house, consider a long-term lease agreement with a Filipino landowner.
Who inherits parents' house in the Philippines? ›
As such, the rights to inherit such property primarily fall to the direct descendants, namely, the children of the deceased. However, the surviving spouse also has some inheritance rights, although these are limited in comparison to the rights of legitimate children.
How much land can a dual citizen buy in the Philippines? ›
Former natural-born Filipinos who are now naturalized citizens of another country can buy and register, under their own name, land in the Philippines (but with limitations in land area). However, those who avail of the Dual Citizenship Law in the Philippines can buy as much as any other Filipino citizen.
What is the limit of land ownership in the Philippines? ›
Moreover, every person is entitled to own a maximum area of five hectares, including the land inherited. Again, any area in excess of the 5-hectare limit is subject to compulsory acquisition by the government for distribution to qualified-beneficiaries.
How much land can a balikbayan own in the Philippines? ›
Balikbayan (former Filipinos, who took the citizenship of another country) can own up to 1000 square meters residential land in an urban area and up to 2000 square meters in a rural area.
Can a person own more than 5 hectares of land in the Philippines? ›
However, if either or both of them are landowners in their respective rights (capital and/or paraphernal), they may retain not more than five (5) hectares of their respective landholdings. In no case, however, shall the total retention of such couple exceed ten (10) hectares.
