Foreigners can invest and own real estate property in the Philippines
The Philippines is just like every other country, it is protective of its domains and jurisdictions. In fact, real estate is a highly regulated industry by the government making it difficult for foreigners to invest in the property market. However, there are some interesting rules that favor foreign nationals to reside, conduct business and acquire a real property in the Philippines.
In 1995, when the Philippines Special Economic Zone, Republic Act 7916 was approved by President Fidel V. Ramos, many foreigners started investing into the Philippine market. This is because the Act reduced the major development requirements and tax incentives for foreign owned companies to conduct business in the country. This consequently has generated employment and fortified economic growth.
The Republic Act 4726 or The Condominium Act of the Philippines since June 18, 1966 on the other hand, allow foreigners to purchase and own a condominium unit in the country. This makes it easy for foreign investors to stay and conduct their business with ease and lesser worry. Additionally, the recent Special Resident Retiree’s Visa (SRRV) approved on March 05, 2011 has further expanded the real estate industry to a more lucrative opportunity in the Philippines. The SSRV is a special resident, non-immigrant visa with multiple entry or indefinite stay privileges for both ailing or healthy foreign national retirees. This type of visa is also the reason why Capitarise Corporation (CapCorp), a business management and consulting company for real estate has conceptualized and designed the 8 Newton Blvd for retirees. It is the first project in the Philippines that issued a retirement visa to foreign buyers in 2011. Together with Megaworld and the Philippine Retirement Authority, they built this retirement condominium in Mactan, Cebu. As a result, CapCorp has sold 700 units to Japanese retirees and investors within 2 weeks.
The Condominium Act which allows foreign nationals to own 40% of a condominium development led to a staggering number of constructed skyrise buildings in Metro Manila. A remarkable estimated 300,000 condos have been built since 2000. The SRRV permits the indefinite stay of foreign retirees from age 35, which has further appealed international property investors. For the past 17 years, many foreigners have invested in pre-selling of condominium units, contributing to the multi-cultured Manila that we know today and the vibrant skyline we have grown to love.
