Foreigners seem to have been fascinated by the Philippines because of several reasons. The country attracts more than just tourists. It is home to a community of expatriates who enjoy the low cost of living, pristine beaches, beautiful naturescape, tropical climate, and friendly and warm locals in the Philippines, among others.
According to publishing group InternationalLiving.com, which specializes in retiring overseas, estimates that most ex-pats can live comfortably in the Philippines for around $1,525 a month, including food, activities, basic healthcare, and housing costs.
While many ex-pats rent, it may be wiser and more cost-effective to buy a property, particularly if you’re planning to stay in the country for more than a few years. However, foreigners are prohibited from owning land in the Philippines, but they can legally own a residence.
We have listed some options on how a foreigner can legally own a residence in the Philippines.
How can a foreigner own a residence in the Philippines?
Location, location, location
One of the things that you should think about when moving abroad is which part of your destination country you plan to reside and call home. There are a lot of factors to consider before making any decision. Ask yourself - do you want to be close to all the hustle and bustle of the city when living abroad? Or do you want to leave it all behind and live without any hassles?
If you want to be in the center of it all, you may consider major cities like Quezon City, Manila, and Davao City. These cities offer perks such as easy access to restaurants, nightlife, and entertainment. There are also plenty of markets, as well as access to healthcare facilities. But you have to remember, with all of these amenities come a lot of traffic and big crowds.
Perhaps you've had enough of city life, and would rather prefer a more peaceful environment and try something a little less urban. Tagaytay is a popular destination for tourists both domestic and foreign.
Buy a condo
One of the easiest ways to own a residence in the country is by purchasing a condominium, a hybrid type of ownership that falls outside traditional structures. With traditional property, you own the structure and the land on which it sits. But if you buy a condo, you only own the condo unit itself, not the whole property. As specified in the Philippine Condominium Act, foreigners can own condominium units, as long as 60% of the units in the building are owned by Filipinos.
However, you have to remember that there are things that you need to consider if you're going to buy a condo in the Philippines. Just like anywhere else, you will have to consider the condo fees to pay every month, and depending on where you live, you may have to share amenities like the pool and common outdoor spaces.
If you are planning to buy a condo, it is best to do an on-site inspection, check the condo warranty, and a complete walk-through of the property before you purchase to get a look and feel of the community and avoid unnecessary surprises along the way.
Buy a House
As mandated, foreigners can legally own houses and other types of buildings in the country, but they cannot own the land on which it sits. To work around this, you can buy a house but lease the property.
According to the Investor’s Lease Act of the Philippines, a foreign national can enter into a lease agreement with a Filipino landowner for a long-term lease with an initial period of up to 50 years, with a one-time option to renew for 25 years.
If you are thinking about the purchase price, remember that it will depend on where you will buy a property. As expected, the closer you are to a major city, the higher the price.
Before buying a property, consider hiring a local agent who deals exclusively with ex-pats. This person can guide you through the process and help you avoid costly mistakes but keep in mind that you have to pay a fee for the service.
Marry a Filipino
Did you know that if you are married to a Filipino citizen, you can buy property in your spouse’s name? While your name won’t be on the title, it can be stated in the contract to buy the property.
However, if you are legally separated, or your spouse passes away, the land can’t be transferred to you because you are still prohibited from owning land, but you will have a reasonable amount of time to sell the property and collect the proceeds. Otherwise, the property will pass to your spouse’s heirs and/or relatives.
Buy through a company
Corporations can own land in the Philippines, provided Filipino citizens own 60% or more of the company and the rest can be owned by foreign partner/s. You also have to take note that as a foreigner, the largest piece of residential land that you can own, either with your Filipino spouse or through a corporation, is 1,000 square meters of urban land and just under a quarter acre or one hectare or about 2.5 acres of rural land.
Just like anywhere in the world, the price of the property varies in the Philippines, depending on location, size, condition, and features. In most cases, though, foreigners can expect to get a lot more house for their money than they would back home.
Once you have identified the area where you want to settle down, it can be helpful to work with an experienced real estate professional who can help you with various properties, narrow down your choices and provide general guidance throughout the process. Remember also that when purchasing a home overseas, you should conduct the transaction in a way that will protect your property rights.
Vista Residences is the condominium arm of the country’s largest homebuilder, Vista Land & Lifescapes, Inc. that offers ready for occupancy and pre-selling condominium projects in Manila, Makati, Mandaluyong, Quezon City, Ortigas, Baguio, Cebu, and CDO that are strategically located within major cities, in close proximity to premium universities, transit-oriented locations, and developed business districts.
At Vista Residences, unit owners can take advantage of the property’s centrality. The properties of Vista Residences are strategically located near the country’s premium universities and CBDs, making them an attractive investment for both local and foreign investors.
Vista Residences has ready for occupancy condo projects in Manila such as Vista Taft, Vista Heights, Vista GL Taft, 878 Espana, and Crown Tower University Belt. It also has pre-selling projects in the said area which include Vista Recto, Plumeria Heights, Tennyson Heights, Bradbury Heights, Sky Arts Manila, and Kizuna Heights.
Meanwhile, its ready for occupancy projects in Quezon City include Wil Tower, the Symphony Towers, Pine Crest, and Vista 309 Katipunan. It also has pre selling condo projects in the said city such as Hawthorne Heights and Vista Pointe.
Living in Vista Residences enables you to enjoy convenience, where everything is pretty much within walking distance or a few minutes away from the property; comfort because the project features and amenities are designed to deliver comfort at all times, which makes condo living a worthy investment; security that is 24/7 and CCTV monitoring, which makes the residents safe and secure within the property.
In line with Vista Residences’ thrust to offer convenience among its residents, it also features an AllDay Convenience Store and Coffee Project in all its projects.
Vista Residences is part of Vista Land’s roster of vertical housing brands that cater to millennials and young professionals. The other vertical brands include Camella Manors, COHO, and Crown Asia.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.
