Owning Property in the Philippines

[Peter Lee]

Hi guys,
I know I am a pain but the question has to be asked.  How do I own property in the Philippines?  I’m guessing that any of us could have at one time, dreamed of retiring there.  I e-mailed the Philippine Embassy and they were very vague on information.  

Philippine Embassy Example:
Relative to your query item 8 :  If a foreigner have to be married to a Philippine national to qualify for a permanent rsidency:  NO.    A foreigner may also apply for a Investor and Retiree Resident in the Philippines (IR2B2 Visas).

First if you just to vist your wife in the Philippines, you can apply for a multiple visa valid for 6 months, the fee is US$60.00 in money order, pay to the Philippine Embassy.

I can’t believe I have to pay $60 to see my Philippine wife !!  Oh well I got lots to learn.
I know that if you stay longer than 6 months there is a tax break here at home.  So how much to stay 6 months and a day?

Does any one know the scoop on what it takes for an Investor and Retiree Resident visa?  What is a permanent residency?  What advantage if any does a Foreigner have being married to a Filipina?

All this is new to me?   I thought you had to be married for a foreigner to own property.  I am very surprised to read that there are other ways to own property other than being married to a Philippine National.  The real-estate, police chief and attorney that I had meetings with in Panglao didn't seem to know much about it either when asked.  That’s par for the course, how they gonna sell property to someone who don’t qualify?  
Has anyone invested or purchased property in the Philippines?  

I was seriously looking at the resort in Panglao.  Records in the city hall should tell if the property has a clear title.  Yes and an attorney that can be trusted would help too.  But I don't have the basic knowledge of how ownership works.  
If the property was in my wife's name and she dies who gets my investment?  Do I get kicked out after her death?  
Very confusing to me so writing to the Philippine embassy didn't clear it up either just showed me how much I didn't know.  
I hear stories of how guys have to go out of the country once a year to renew their visas.  
This is all very confusing and full of rumors and hearsay.  Can anyone clear it up?   I hope I am not off the subject but it can affects future marriage plans.  

Thanks.

[outwest77]

... in response to Owning Property in the Philippines, posted by Peter Lee on Sep 26, 2003

As far as i know you cant own property, you cannot even bring a business to the phils, open it, hire filipinos
and help their economy with the jobs and money you are bringing to the country.............and own your business there, you can be minority owner,

Unless you want to bring a huge business with millions of dollars, then i think somehow you can own that.

Ever wonder why , considering the business ownership rules, property ownership rules, that the phils economy is in the toilet..................

[Nathan]

... in response to Re: Owning Property in the Philippines, posted by outwest77 on Sep 27, 2003


 Quite right. So far as I have been able to see, the economy and the whole country is run by morons, thieves, and provincial rubes. Foreign investment is discouraged and
those who do take the plunge are subject to such an wave of swindlers and frauds that they may feel quite punished.
The Philippines is rated as one of the top 10 or 12 most corrupt countries in the world, and any one who invests any
significant portion of their assets there should have the head examined- in other words, a fool and their money will soon part.
  That said, if one is careful and keeps "under the radar"
and makes sure any real estate dealings or small business ventures are very small targets and represent more of an interesting diversion than real need, one might venture forth.
A good rule of thumb: NEVER invest more in the Philippines than what you can afford to be ripped off.
  By the way- the so called investors visas, well it seems that a lot of those accounts are being ripped off, and in fact when their association leader attempted to investigate, he was thrown in jail.
   So, in spite of everything I say above, I enjoy being there, in fact we intend to spend about half our time there from here on out. We will likely dabble in a small venture there or two. Most filipinos learn to kick back and enjoy life
in spite of all the negatives above, and THAT is the best reason to spend time in the Philippines...the slow tropical
pace.

[Ray]

... in response to Bad investment, posted by Nathan on Sep 27, 2003

"NEVER invest more in the Philippines than what you can afford to be ripped off."

I agree! A foreign-unfriendly government could take over at any time and confiscate anything they wish to and there isn't much you could do about it.

Putting your savings in a Filipino bank is also very stupid IMHO.

Ray

[outwest77]

... in response to Excellent Advice!, posted by Ray on Sep 27, 2003

Why be afraid of a Foreign unfriendly govt

the one they have  NOW is perfectly cabable of incompetence, dishonestY, and also bribery
fueled enough to rip you off just fine,

they dont need the help of some other govt ...........they want the bribes for themselves..........

[Dave H]

... in response to Bad investment, posted by Nathan on Sep 27, 2003

Hi Nathan,

That's the way I'd do it. Too many foreigners want to live and look like millionaires IMHO. Our house is very similar to the surrounding houses in the barangay. We have several very small business ventures with family. I try to keep things slow paced wherever I am (86 degrees here in my hammock - S. FL). I would love to spend half our time in the Philippines also, but can't at this point since my sons are still in school.

Dave H.

[Dave H]

... in response to I Agree!, posted by Dave H on Sep 27, 2003

Since we are not there, the house is being rented. The people are very clean and have maintained and fixed things. We use the rent money for improvements, repairs and taxes.

Dave H.

[Ray]

... in response to Owning Property in the Philippines, posted by Peter Lee on Sep 26, 2003

[This message has been edited by Ray]

Peter,

As far as I know, a foreigner can not purchase property in the Philippines. You are allowed to purchase a condo though. Any property you purchase would have to be legally in your wife’s name and could be passed on to her survivors. You may possibly be able to inherit ownership from her even though you are not a Filipino citizen. Are you planning on outliving your wife???

Without special legal documents, you would be at her mercy because you would have virtually no legal rights to the property and she could sell it off whenever she felt like it. I’ve seen it happen before. So you would have to be very careful not to piss her off :-).

Before you even think about purchasing property, why don’t you sit down with a good Filipino attorney who is knowledgeable in real estate and family law and find out what your legal options are to protect your investment? If you do purchase any property in the Philippines without the guidance of an attorney, then you’re just plain nuts! :-)

Ray

[Humabdos]

... in response to Re: Owning Property in the Philippines, posted by Ray on Sep 27, 2003

If the property is in your filipina wives name you can own. Most of the people I know living there have a long term lease. Investment property may not be where you would want to live. Buying the wife lot near her home town wouldn't be a bad idea then if you croak she has a place near the family.

Hum

[Ray]

... in response to Long term lease , posted by Humabdos on Sep 27, 2003

Hum,

A foreigner can not own land in the Philippines unless it’s inherited. You may be able to purchase land through a corporation if it’s 60% Filipino owned (60% Filipina wife, 40% foreign husband?). If it’s in your Filipina wife’s name, you may be able to get a legal contract that restricts what she can do with it to partially protect yourself.

You’re right about the long-term lease. Foreigners can lease the land (50 years?) and own a house or buildings on the land.

“Buying the wife lot near her home town wouldn't be a bad idea then if you croak she has a place near the family.” Hell, if I croaked now, the wife could probably buy the whole damn town (LOL!).

Here’s an island for sale for a million bucks. Peter probably passed right by it on his way to Palawan:

http://www.world-of-islands.com/Services/Iles/Vente/Puerco/puerco1_en.htm

Ray

[Peter Lee]

... in response to Re: Long term lease , posted by Ray on Sep 27, 2003

Yes I was in Roxas and was invited to go to Coco Loco Island resort.  We could see Puerco Island from the dock and several other Islands behind Coco Loco.  We decided not to go on Coco Loco Island although the name sounded cool.  I didn't go coz it was owned by one person and would seem boring to just sit on the beach by ourselves.  Besides they wouldn't let me take my motorbike on the island.  After trekking that bike halfway round the Philippines to me that was an insult.  The reason these Islands were special was because they had white sandy beaches.  This was a rarity in all the Islands and a treasure when you found a white clean one.  Roxas had some beaches but not too white and not inviting.  I did not like Palawan and its islands, for a place to live and retire.  Storms hit these islands regularly and the rainy season is a real rainy season.  I wouldn't want Roxas to be the main source of gear and supplies.  The town was small but like a watering hole in an oases.  Roxas was also the end of the nice highway from the south.  I touch on this part of the journey in Da Trip report.  We were happy to get on da ferry back to Iloilo.  I wouldn't give em one million peso for that place.   Even in Roxas you feel isolated, you could imagine being on an Island out there.  You might as well be on the moon.   I made up my mind to try to make it back to Puerto Princesa rather than stay in Roxas.  After looking for some places to stay and seeing the unfriendly beaches we decided to head back to the big city.  Well you know that is when we got the flat tire  story.  .  
But Ray this site basically answered most of my questions on ownership, another job well done, thanks.

[Ray]

... in response to Re: Re: Long term lease , posted by Peter Lee on Sep 27, 2003

[This message has been edited by Ray]

You know Peter, for years now I’ve had this crazy idea about owning my own island. Nothing too big but with lots of coconut trees to keep me in tuba and a little white sand beach and a modest nipa hut. I’ve seen several Philippine islands for sale, so they are available, usually by some foreigner who apparently grew out of his fantasy of living on Gilligan’s Island (LOL).

Puerco Island looked like a good spot for someone who wanted a lot of privacy and not too much civilization. If you’re really looking for beautiful white sandy beaches with reasonable property costs, you should keep looking. I’ve seen some absolutely beautiful white sandy beaches with lots of coconut trees and crystal clear water without a tourist in sight. This was in Surigao Del Norte Province. There are literally hundreds of spots that will absolutely take your breath away. My wife’s folks own a beautiful place on a large island with beachfront property, good sandy beach, 2,000 coconut trees, excellent year-round fresh water spring, large fish trap, a fabulous covered private pier, no roads, no traffic, no tricycles, no horns, no electricity, no TV, no Internet, just lots of peace and quiet. It’s in a quiet little cove with crystal clear water and 4 other families (2 relations) live there next to them. Access is by pump boat only unless you want to climb the mountain in back or wade around the point at low tide to visit the other neighbors. I stayed there twice for 3-4 days and I really hated to leave.

If you don’t mind being away from large cities, you should take a look at Siargao Island near Surigao. They have miles and miles of pure white sand beaches. It was only recently discovered as a world-class surfing spot and now they have a big international surfing competition every year. Do a Web search for Siargao, General Luna, or Cloud Nine. The beaches put Boracay to shame and this is the kind of place that just has to become one of the next big Asian resort areas in the near future. The French and Australians are already starting to move in from what I hear but beach-front land is available.

If you find an area like the one on Bohol where you “think” you would like to settle down, then I would recommend renting a house there first. After a year or two, you should know if it’s the right place for you. Like you said, once you buy you’re kind of stuck there. I think it’s wise to try it out first and see what the local people are really like, how the annual storms affect the area, what the local government is like, etc.

Ray

[Humabdos]

... in response to Paradise Lost?, posted by Ray on Sep 28, 2003

Sounds like a nice place Gilligan! I'll have to check it out someday.

The Skipper

[Jeff S]

... in response to Owning Property in the Philippines, posted by Peter Lee on Sep 26, 2003

Bed careful Peter. You have to be out of the country for at least 11 months of the last 12 before you qualify for the $80,000 expat tax deduction from the US government, BUT if your wife is out of the country from more than 6 months of the past 12, she'll lose her permanent residency status and you'll have to reapply for a K3 - kind of a catch 22. There's a discussion on the Latin board about that - a guy who's thinking of moving to Colombia.

- Jeff

[Mita]

... in response to Owning Property in the Philippines, posted by Peter Lee on Sep 26, 2003

Peter,
Being married to a Filipina, you can avail of a 13A visa which is a permanent resident visa.  Here's a link that may help you:  http://www.pcgenla.org/Visacon.htm

If you are travelling to the Philippines with Maricel and she's been away from the country for more than a year, you would be eligible for a 1-year balikbayan visa.  I think it's also mentioned in the link.

Land ownership by a foreigner is restricted in the Philippines.  You could buy land in your wife's name and incorporate to protect your interest I heard it said in another forum my husband and I participate in. You could also draw up a 50-year lease on the property, assuming of course that after 50 years, you won't care who the property ends up with.

An investor visa requires a $50K investment from you - an amount you are required to keep in a Philippine bank for a certain period of time - not really a practical solution especially since you are eligible for a 13A visa.

Mita