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  • Guide to Owning Property in the Philippines as a NRF or Dual Citizen

    The law of property determines who owns something, but the market determines how it will be used.”

    – Ronald Coase, British Economist & Noble Laureate

    By Realttorney®
     
    If you’re a Filipino-American, a dual citizen, or a non-resident Filipino (NRF), owning property in the Philippines might feel like coming home – literally and emotionally. But as with anything involving real estate and international ownership, you’ve got to understand the legal and tax rules that come with the territory.
     
    First of all, let’s define: Who is a Non-Resident Filipino or Dual Citizen? Understanding your legal identity is the first crucial step in the process of desiring to buy real estate in the Philippines.
     
    ✅ Dual Citizen
     
    How do you become a dual citizen? Rep. Act No. 9225, known as the “Citizenship Retention and Re-acquisition Act of 2003,” allows natural-born Filipino citizens who have lost their Philippine citizenship because of their naturalization as citizens of a foreign country to be deemed to have re-acquired Philippine citizenship upon taking the oath of allegiance to the Republic specified in the said law.
     
    👉 So, if you are a former natural-born Filipino who has already re-acquired Philippine citizenship, then you retain your U.S. citizenship. As such, in the eyes of the law, you’re now 100% Filipino with all the rights and responsibilities of any other citizen, including ownership of real estate without restrictions.
     
    ✅ Non-Resident Filipino (NRF)
     
    This group includes (1) OFWs; (2) Filipino immigrants who retained Philippine citizenship; and (3) Filipino citizens who live abroad for long periods (but haven’t renounced their citizenship).
     
    👉 The key for this group is that as long as you retain Philippine citizenship, you’re allowed to own land, condominium units, house and lot, and townhouses, etc. – even if you live abroad.
     
    ✅ Former Filipinos
     
    As a side note, former natural-born Filipinos who do not wish to apply for dual citizenship or are not qualified to re-acquire Filipino citizenship according to Rep. Act No. 9225 may still acquire land under the provisions of Batas Pambansa Bilang 185.
     
    Under this law, former natural-born Filipinos can be a transferee of a private land up to one thousand (1,000) square meters, in the case of urban land. But, a former natural-born Filipino may be a transferee of a private land up to an area of one (1) hectare in the case of rural land. The final restriction here is that the private land to be purchased (whether urban or rural land) should be used by the transferee as his residence and not for business purposes.
     
    🏠 What Are Your Property Ownership Rights?
     
    Here’s the good news: if you’re a dual citizen or an NRF, you enjoy full rights to own real estate in the Philippines.
     
    You can legally acquire:
    ✅ Residential lots
    ✅ House-and-lot properties
    ✅ Condominiums
    ✅ Agricultural land
    ✅ Commercial property (with necessary business permits from the LGU)
     
    Just like any Filipino citizen, you can:
     ✅ Buy, sell, or inherit real estate
    ✅ Transfer property to heirs or family
    ✅ Register the title in your name
    ✅ Use the property as rental income, a vacation home, or a retirement residence
     
    📌 Reminder: Foreigners are prohibited from owning land. They may only own condo units or lease land for the long term. Read here if you want to learn more about this topic.
     
    ⚖️ Legal Considerations for Overseas Buyers
     
    Here are some legal factors you must stay on top of as an overseas property owner:
     
    1. Special Power of Attorney (SPA)
     
    Since you’re not physically present in the Philippines, any legal transactions (e.g., signing contracts, submitting documents, paying taxes) will require an SPA authorizing someone in the Philippines to act on your behalf.
     
    ✔️ The SPA must be notarized by the Philippine Consulate in your country.
    ✔️ It should specify exact powers (e.g., to sign, sell, lease, or mortgage property).
    ✔️ Submit this SPA to the Register of Deeds and BIR for proper recognition.
     
    2. Title Registration
     
    Make sure that:
    ✔️ The property is titled under your legal name, and it matches your government ID or Philippine passport.
    ✔️ If the property is inherited or gifted, go through the legal process of estate settlement and register the transfer accordingly.
     
    ⚠️Don’t leave land titles under the names of deceased relatives or informal agreements. This can lead to legal disputes or costly litigation later on.
     
    3. Zoning and Land Use
     
    Some land types (e.g., agricultural, residential, or commercial) have restrictions on what you can build or do with the property.

    ✔️ You may need a conversion certificate if you plan to create a farm tourism business.
    ✔️ Check with the LGU (Local Government Unit) for zoning laws, building permits, and usage rules.
     
    💸 Tax Implications for Dual Citizens and Non-Resident Filipinos
     
    Now, let’s talk about everyone’s favorite topic: taxes. As a property owner in the Philippines, even if you live abroad, you’re still liable for certain taxes.
     
    📌 1. Real Property Tax (RPT)
    ✅Paid annually to the LGU.
    ✅Based on the assessed value of your property.
    ✅Ranges between 1%–2% depending on the classification and assessment level of the property.
     
    💡 Pay before January 31 each year to avoid penalties. Or better yet, you can pay the RPT in advance and get a twenty percent (20%) discount for the incoming full year’s RPT. You can assign this task to a representative in the Philippines.
     
    📌 2. Capital Gains Tax (CGT)
    ✅Applicable when you sell a property, whether you incur an actual gain or not.
    ✅The rate is 6% of the gross selling price or the current schedule of market value (whichever is higher).
    ✅Paid by the seller (but often negotiated).
     
    📍Even if you’re a non-resident, you must file and pay CGT through the Bureau of Internal Revenue (BIR) before title transfer.
     
    📌 3. Documentary Stamp Tax (DST)
    ✅Paid by the buyer at a rate of 1.5%.
    ✅Applies when executing a Deed of Absolute Sale, Donation, or Mortgage Agreement, among other documents.
     
    📌 4. Donor’s Tax
    ✅Applicable when gifting property to another person.
    ✅Taxed at 6% of the current schedule of market value of the donated property.
    ✅Exemptions apply for gifts up to P250,000 in value, annually.
     
    📌 5. Estate Tax
    When the owner passes away, the heirs must pay estate tax before they can legally transfer ownership.
    ✅Rate: 6% of the net estate (after deductions).
    ✅Heirs must file within 1 year from the date of death.
     
    ✔️ Pro Tip: Create an Estate Plan if you own real property here in the Philippines. It will make estate settlement easier for your immediate family later on.
     
    🌐 Do You Need to File Income Taxes in the Philippines?
     
    It depends on whether your property is income-generating.
     
    ✔️ If You Lease or Rent Out Your Property:
    ✅You are considered to be earning income in the Philippines.
    ✅You must register with the BIR and pay:
    ✅Income tax (depending on rental income)
    ✅Value-added tax (VAT) or percentage tax, if applicable
     
    You may hire a Philippine accountant to help you file the necessary returns annually. Failure to register and pay taxes can result in penalties.
     
    ❌ If You Do Not Earn Any Philippine-Sourced Income:
     
    You are not required to file income taxes in the Philippines. But you’re still responsible for property taxes, and you must properly report any sale or transfer of property.
     
    💼 Can You Open a Bank Account or Get a Loan as a Dual Citizen?
     
    Yes. In fact, most banks in the Philippines allow dual citizens and non-resident Filipinos to:
    ✅ Open peso or dollar accounts
    ✅ Apply for housing loans, auto loans, and even investment loans
     
    However, most banks will require:
    ✅ Proof of income (COE or payslips)
    ✅ TIN and government-issued ID
    ✅ Dual citizenship certificate (if applicable)
     
    Some banks have special programs tailored for OFWs and overseas buyers — check out BDO, BPI, Security Bank, or RCBC for their “home loan for foreigners or overseas Filipinos” programs.
     
    ✈️ Key Takeaways
     
    Owning property in the Philippines as a non-resident or dual citizen isn’t just a dream — it’s a well-supported legal right. But to make it stress-free and financially sound, you need to:
     
    ✅ Know your rights under Philippine laws
    ✅ Register everything properly with the Registry of Deeds and BIR
    ✅ Keep up with annual tax obligations
    ✅ Avoid common legal mistakes by hiring licensed professionals
     
    And always — always — leave a clear paper trail for your heirs or representatives, especially if your property is meant to be passed on.
     
    📚 BONUS: Quick Checklist
     
    Here’s your quick reference guide:
     
    ✅ Dual citizenship certificate or proof of Filipino citizenship
    ✅ Valid Philippine Tax Identification Number (TIN)
    ✅ Annual RPT payment receipt
    ✅ SPA (if managing from abroad)
    ✅ Legal ownership documents (TCT/CCT, tax dec, etc.)
    ✅ Draft or notarized Philippine will (if applicable)
    ✅ Hire a PRC-licensed real estate broker and a real estate attorney
    ✅ Consult a CPA, if earning rental income
     
    📞 Need Help with Your Property Taxes or Legal Setup?
     
    If you’re based in the U.S. and need help:
     
    ✅Filing your Philippine taxes
    ✅Drafting a Special Power of Attorney
    ✅Reviewing a Deed of Sale or Title
    ✅Creating an estate plan for your properties – real and personal – in the Philippines
     
    📩 Reach out to a licensed Philippine real estate lawyer or estate planning expert who specializes in overseas Filipino clients.
     
    ——-
     
    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.
     

  • Buying Real Estate in the Philippines While Living Abroad: A Filipino-American’s Step-by-Step Guide

    “Buying real estate today is a complex process, and that is why buyers are obliged to conduct legal due diligence as a first step.”

    – Ernesto C. Perez II, CTEP, REB, Attorney, and PRC-Accredited Speaker

    By Realttorney®

    If you’re a Filipino-American or someone living in the U.S. with roots in the Philippines, chances are you’ve dreamed about owning a piece of land or real estate in your home country. Maybe it’s a future retirement home in the Metro Tagaytay area. Maybe you want to invest in a condo in Bonifacio Global City. Or perhaps, it’s simply about staying connected to your roots by owning something tangible in the place where your story began.

    Whatever your motivation, buying real estate in the Philippines while abroad is very doable – but it does come with some unique challenges. This guide will walk you through everything you need to know: your rights as a Filipino-American buyer, the legalities, the practical steps, and the common pitfalls to avoid.

    This article was inspired by the story of RM, who is Mexican-American and married to a Filipina-American. RM reached out to me to inquire about estate planning. But his story is quite inspiring. He and his wife liquidated most of their assets in California and purchased real estate in San Pedro, Laguna while still in the United States. They manage to build a multi-door apartment structure that they plan to rent out. Of course, this was all done with the able assistance of a trusted individual residing near their property.

    So, you know that RM’s wife bought real estate in the Philippines while in the United States. But make no mistake, it is a complex process that needs your utmost attention and focus. Hence, let’s start with the basics.

    As a Filipino-American, how much you can buy and what type of real estate depends on your citizenship status.

    If you are a dual citizen, you are in the best position to buy. Thanks to Republic Act No. 9225, also known as the Citizenship Retention and Re-acquisition Act of 2003, you can re-acquire your Philippine citizenship while retaining your U.S. citizenship.

    As a dual citizen, you regain the full rights of a Filipino citizen, which means:

    • ✅ You can own land, condos, and build homes without restrictions, except when buying into a gated community.
    • ✅ You can buy and sell property just like any other Filipino.

    To re-acquire citizenship, you must apply through the Philippine Embassy or Consulate in your area. The process typically involves submitting documents like your birth certificate, U.S. passport, and proof of former natural-born citizenship, i.e., your expired Philippine passport.

    👉 Pro Tip: Apply for dual citizenship before buying property. It makes the legal process of purchasing real estate much smoother.

    If You’re a U.S. Citizen with No Dual Citizenship then your options are more limited, but you’re not shut out.

    You can:

    • ✅ Buy a condominium unit, but only in buildings where foreign ownership doesn’t exceed 40%.
    • ❌ You cannot own land, house-and-lot units, or agricultural property.

    You can, however, lease land for up to 50 years (renewable for another 25 years) under certain conditions, especially if the lease is tied to business use. If you want to read about the proposed amendments to the law allowing a lease period from 50 years to 99 years, click here.

    📝 Step-by-Step: How to Buy Property in the Philippines While Abroad

    Now that we’ve cleared up who can buy what, let’s break down the process into 7 simple steps:

    Step 1: Know What You’re Buying

    Are you looking at:

    • A condo in the National Capital Region (composed of 16 cities and 1 municipality) or in other major urban centers in different provinces in the Philippines)?
    • A house and lot in the province?
    • Agricultural land to build a farm or resort?

    Your type of property will determine your ownership options and the paperwork needed. Do a bit of homework first on what aligns with your long-term goals – retirement, income generation, or family legacy.

    Step 2: Do Your Legal Due Diligence

    This is where many overseas buyers run into problems. Before you send money or sign anything, it is required to do the following:

    🔍 Verify the land title if there is one, or the condominium certificate of title (CCT).

    • Ask for a Certified Electronic Copy of the land title or CCT from the Registry of Deeds having jurisdiction over the location of the real estate.
    • Check for encumbrances (loans, liens, or pending disputes).
    • Match the name on the land title with the government-issued ID of the seller.

    🛑 Red flags to watch out for:

    • “Tax Declaration” only [A tax declaration of real estate does not prove ownership, but merely serves as an indicium of possession in the concept of ownership.]
    • Promises of “soon-to-be-titled land” or a “portion of the titled land”.
    • Sellers who ask for earnest money payment with photocopies of ownership documents.

    Step 3: Hire a PRC-Licensed Real Estate Broker and a Real Estate Attorney

    This cannot be stressed enough.

    • A real estate broker (licensed by the Professional Regulation Commission in accordance with Rep. Act No. 9646) will help find properties, negotiate prices, and guide the sales process.
    • A real estate attorney ensures all documents are legal and properly notarized, and helps you navigate special requirements like taxes, estate issues, or buyer representation.

    Never rely solely on relatives or unlicensed agents – even if they mean well. Protect yourself with professionals who are legally accountable.

    Step 4: Prepare Your Documents

    Here’s a checklist of what you’ll need:

    For the Buyer:

    • A photocopy of a Valid ID or passport, with 3 signatures of the buyer.
    • If dual citizen: Dual Citizenship Certificate or Identification Certificate from the Bureau of Immigration.
    • A notarized Special Power of Attorney (SPA) in favor of an attorney-in-fact residing in the Philippines. This SPA should be accompanied by an Apostille Certificate issued by the Secretary of State where the buyer in the United States resides.
    • Set up an bank account where you will remit the funds to purchase the real estate and pay internal revenue taxes, etc.

    For the Property:

    • Certified Electronic Copy of the Land Title or the Condominium Certificate of Title;
    • Certified True Copy of the latest tax declaration and the real property tax receipt of the current year;
    • Certificate of No Improvement, if a vacant lot is being purchased;
    • Updated payment of Homeowners’ Association dues (if purchasing a house and lot in a gated community) or condominium dues (if purchasing a condominium unit);

    If you’re buying remotely and not physically in the Philippines, you’ll need an SPA. This authorizes a trusted person (usually a family member or your licensed REB) to sign documents and act on your behalf.

    📝 The SPA must be:

    • Notarized by a Philippine Consulate (if the Filipino-American is currently residing in a country that has not acceded to the Apostille Convention);
    • Specific in what powers are granted;
    • Accompanied by your valid ID;

    Step 5: Sign the Deed of Absolute Sale

    Once everything checks out, the seller and buyer will execute a Deed of Absolute Sale (DOAS). This document finalizes the transfer of ownership.

    The DOAS must be:

    • Signed by both parties;
    • Notarized by a notary public in the Philippine [Personal appearance of the seller before the notary public is required by the Notarial Act of 2004]; and
    • Registered with the Registry of Deeds, after the payment of the internal revenue taxes with the BIR and transfer tax with the Local Government Unit where the real estate is located.

    Step 6: Pay the Required Taxes and Fees

    The buyer typically shoulders the Documentary Stamp Tax and Transfer Tax, while the seller pays the Capital Gains Tax. However, the payment of these taxes depends on the mutual agreement between seller and buyer. Why? Because some sellers want all taxes to be paid by the buyer. Legally, payment of capital gains tax is the seller’s obligation. Therefore, clarify the payment of taxes and expenses in the contract.

    Here’s a quick breakdown:

    TaxesRateWho Normally Pays
    Capital Gains Tax (for capital assets)6% of selling price or SMVSeller
    Creditable Withholding Tax (for ordinary asset)1.5% to 6% depending on the status of the sellerSeller
    Value Added Tax (for ordinary asset)12% of selling price or Schedule of Market ValueSeller
    Documentary Stamp Tax (for any asset)1.5% of selling price or Schedule of Market ValueBuyer
    Transfer Tax0.5% – 0.75% depending on the class of the LGUBuyer
    Registration Fee to the Registry of Deeds~0.25% of selling priceBuyer

    Step 7: Register the Property Under Your Name – Both Title and Tax Declaration

    Submit the notarized DOAS, certificate authorizing registration (CAR), transfer tax receipt, and required documents to the Registry of Deeds to get the land title or CCT transferred.

    After that, see to it that the tax declaration must also be transferred in the name of the buyer as well. Oftentimes, this last step is forgotten as everything is focused on the transfer of the title and the CCT. A tax declaration is an equally important ownership document. Hence, its transfer to the new owner is also crucial to end the process.

    At the end of the buying process, you should receive the following:

    • A new Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) registered in your name at the Registry of Deeds; and
    • A new Tax Declaration from the local assessor’s office, registered in your name as well.

    🏦 How to Send Money from the U.S. Safely

    Here are some trusted ways Filipino-Americans send money for property purchases:

    • Bank-to-bank remittance (BDO, BPI, Metrobank, RCBC, Security Bank, etc.)
    • Money transfer operators (Remitly, Wise, Xoom)
    • Direct remittance to seller’s bank (ensure due diligence first)

    💡 Always keep official receipts and bank records of all transfers. Avoid sending large amounts in cash or through informal channels.

    ⚠️ Common Mistakes to Avoid

    1. Skipping dual citizenship and rushing into a land purchase.
    • Relying solely on a family member to handle everything without legal oversight.
    • Not checking the TCT or CCT and the seller’s legitimacy.
    • Buying properties without on-ground inspection or proper documentation.
    • Under declaring the selling price to save on taxes (this is illegal and risky).

    💬 Real Talk: Is Buying Property in the Philippines Worth It?

    Of course, Yes – but only if it aligns with your long-term goals. Don’t buy for reason of speculating on the perceived rising prices of real estate in the next few years. Owning real estate in the Philippines gives you:

    • A future home base;
    • Rental income opportunities;
    • Security for aging parents or returning home; and
    • A legacy for your children.

    However, purchasing real estate in the Philippines while in the United States requires careful preparation and planning, conduct of property legal due diligence, and the right legal safeguards. You should conduct your own research in each and every step of the process.

    🧾 Checklist: What You Should Have Before You Buy

    ✅ Dual Citizenship papers (if applicable)

    ✅ PRC-licensed real estate broker and attorney

    ✅ TIN in the Philippines

    ✅ SPA if buying remotely

    ✅ Proof of funds or remittance record

    ✅ Clean title and updated taxes

    ✅ Signed and notarized DOAS

    ✅ Official receipts of all payments

    ✅ Registered title and tax declarations in your name

    🛠 Ready to Start?

    If you’re thinking about buying property in the Philippines from the U.S., don’t rush. Start with research, talk to professionals, and make sure the property matches your purpose—whether it’s for retirement, investment, or simply staying connected to your roots.

    Need help figuring out your next step? You can:

    📩 Contact a licensed Philippine attorney or real estate broker.

    📑 Download our FREE documentary checklist for buying property while abroad.

    📺 Watch our upcoming YouTube episode on this very topic!

    —–

    Atty. Jojo is a real estate attorney, an estate planning attorney, a licensed real estate broker, and a PRC-accredited Lecturer/ Speaker for Training Programs in Real Estate. He is committed to helping new and veteran real estate service practitioners be well-informed of the latest laws, rules, regulations, and information relevant to the real estate service sector.