Due to the great relaxing tropical ambiance brought by the climate in the Philippines to many foreigners, many of them wish to acquire a real estate property in the country. However, acquiring a real estate property in the Philippines is one of the hottest restrictions to many foreigners in the country. Foreigners in the Philippines cannot just simply purchase a house and lot packages in the said country and have the land title be in their names. Unlike in some other countries, land ownership in the Philippines is bounded to Filipino citizens and corporations with at least 60% Filipino interest and to half foreigner and half Filipino or to former Filipinos with some limitations.
However, there are some special cases for foreigners, in some situations, it can be possible for a foreigner to acquire a property in the said country such as a Philippine real estate. Said cases considered are the Land acquisition before the 1935 Constitution took effect and acquisition be a hereditary succession (the foreigner must be a legitimate or natural heir) is considered Furthermore, for foreigners who are married to a Filipino, most commonly they put the property title by the name of their Filipino spouse. In case the Filipino spouses died first before the foreigner, the foreigner may either dispose the property for a reasonable time and collect all the proceeds, turn over the ownership of the property to legal heirs or children or if they have no children, pass ownership to the relatives of the late Filipino spouse.
Forming a Philippine corporation can also be an alternative method for owning a property in the country. However, the corporation must still be at least 60% owned by a Filipino and composed of five incorporators. A foreigner who chose this option should consult a well qualified lawyer.
Condominium units can be owned by a foreigner in the condition that it does not exceed 40% interest of a condominium corporation. It's true, since the land owner on which the condominium building such as residential condominium stands is owned by the corporation and the unit owners become the condominium corporation's stock holders.
In addition, a foreigner or his corporation may also enter a lease agreement with Filipino landowners. Leasehold terms can be for an initial 50 year contract and renewable for 25 years afterward. It is indeed legal to own the house or building established on the leased land.
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