Legally, foreign nationals may not own more than 40 percent of Philippine land. This means that the only real estate you can legally own 100 percent is a condo unit, provided that other non-Filipino nationals do not collectively own more than 40 percent of the condominium building.
There is a program providing exemption for retirees, and also for investors. But more often than not, these do not apply.
There are several options commonly used to circumvent the restriction. One is to put the property in the name of a friend, partner, or spouse. This is not an option that can be recommended in most cases; very often, in the event of a falling out or divorce, the Filipino national walks away with the property and the real owner is left with nothing.
Another option is to form a corporation. This is a little tedious and time consuming, and the expense is not insignificant (about 20,000 to 30,000 in addition to show money for the capitalization). And you need to have six shareholders (incorporators) who trust you and who are not likely to collude with each other. But it is a rock solid way of controlling land. You cannot own more than 40 percent of the corporation, but you can control it, and by controlling the corporation, you effectively control the land.
Another creative option is a lease agreement. Instead of purchasing the land outright, the buyer enters into a lease agreement with the seller, which stipulates that the buyer (or, technically, lessee) can do what he or she likes with the property. This is a good option as long as you have a good lawyer to ensure that the lease agreement is airtight.
