Can a foreigner own land in the Philippines?
Foreigners are prohibited from owning land in the Philippines outright due to restrictions imposed by the 1987 Philippine Constitution, which limits land ownership to Filipino citizens. However, it is still possible for foreigners to buy land in the Philippines despite these legal restrictions and own them indirectly through legal means.
Ways to buy land in the Philippines as a foreigner
Here are some ways foreigners can buy land in the Philippines.
1. Corporation
Foreign nationals can buy land in the Philippines through a corporation. However, the Public Land Act (Commonwealth Act No. 141) reinforces land ownership restrictions by requiring corporations to be at least 60% Filipino-owned.
2. Lease Agreements
Another option for foreigners to buy land in the Philippines is to enter lease agreements. Leasehold properties allow foreigners to acquire rights of land ownership in the Philippines, specifically the right to use for up to 50 years. This offers a viable option for foreign nationals to utilize land in the country without purchasing it.
3. Marry a Filipino
A foreigner married to a Filipino cannot directly own land, but the Filipino spouse can hold the title. The foreigner may inherit the land only as a legal heir if the spouse dies, but they may only be able to use it, not own it outright.
Documents needed when buying a lot in the Philippines
Foreigners wishing to buy land in the Philippines must obtain the necessary documents to register or verify ownership. These are the documents needed when buying a lot in the Philippines, including:
- Contract to Sell: The Contract to Sell is a preliminary agreement in which the seller agrees to remove the property from the market. However, the seller retains possession of the property until the buyer has fully paid the outstanding amount. This document is usually issued when the buyer makes an initial down payment.
- Deed of Absolute Sale: A notarized document that officially confirms you have purchased the property from the seller and establishes you as the new owner.
- Deed of Adjudication with Sale: The Deed of Adjudication with Sale indicates that all remaining heirs have consented to sell the property, safeguarding this agreement against future disputes.
- Certificate of Titles: If you buy land in the Philippines, you will receive a Transfer of Certificate of Title if it was issued post-first title.
- Tax Declaration: Obtain a Tax Declaration from the Assessor’s office in your municipality to confirm that the seller has paid all property taxes
How to find land for sale in the Philippines?
Finding land for sale in the Philippines is relatively easy and can be approached through various methods. One of the most effective ways is to work with a real estate broker or salesperson who can provide access to both public and private land listings.
How much to buy land in the Philippines
The average land price in the Philippines is ₱ 36.09 million ($611,726), and the average price per square meter is ₱ 71,756 ($1,216). Many areas in the Philippines saw positive annual growth in land prices, although some locations experienced a decline. For instance, the average land price in Manila is ₱ 50.18 million ($850,551), with an average price of ₱ 96,678 ($1,639) per square meter. In contrast, the average land price in Cebu is ₱ 7.67 million ($130,007), with an average price of ₱ 12,176 ($206) per square meter.
Valuable insights and practical advice, distilled from years of expertise and real-world experience.
Frequently Asked Questions (FAQs)
How to transfer a land title in the Philippines?
To transfer a land title in the Philippines, the buyer and seller must execute a Deed of Sale, pay the necessary taxes and fees, and process the transfer at the Bureau of Internal Revenue (BIR), Registry of Deeds, and the local Assessor’s Office.
How much is per square meter of land in the Philippines?
The average price of land per square meter in the Philippines is ₱ 71,756 ($1,216).
What are the rights of land ownership for foreigners in the Philippines?
Foreigners in the Philippines cannot own land but can inherit land through a Filipino spouse or lease land for up to 50 years (renewable for another 25 years).
What is the law about land property in the Philippines?
The law about land property in the Philippines is governed by the 1987 Constitution, which restricts land ownership to Filipino citizens and corporations with at least 60% Filipino ownership, while foreigners can only acquire land through inheritance, marriage, or long-term lease.
How to buy a lot in the Philippines?
To buy a lot in the Philippines, you can connect with real estate brokers or salespersons or browse real estate websites to find available lots for sale.
