Can you inherit land in the Philippines if you are a US citizen?

Can US Citizens Inherit Land in the Philippines?

Yes, but with limitations.

Foreigners, including US citizens, can inherit land in the Philippines through succession. However, they cannot own the land indefinitely. To retain ownership, they must establish a local corporation within five years and transfer the property to the corporation. If they fail to do so, the land will be sold to Filipino citizens.

Establishing a Local Corporation

To establish a local corporation, foreigners must:

• Register a business name with the Securities and Exchange Commission (SEC)
• Secure a Certificate of Incorporation from the SEC
• Appoint a resident agent who is a Filipino citizen
• Comply with other legal and regulatory requirements

Transferring the Property to the Corporation

Once the corporation is established, the foreign heir must transfer the inherited land to the corporation. This can be done through a deed of conveyance.

Selling the Property

If the foreign heir does not wish to establish a local corporation, they can sell the inherited land to Filipino citizens. The proceeds from the sale can be remitted to the heir’s home country.

Additional Considerations

• Foreigners may also inherit other types of property in the Philippines, such as buildings, houses, and personal belongings.
• The inheritance process can be complex and time-consuming. It is recommended to seek legal advice from a qualified attorney.
• The Philippine government may impose taxes on inherited property.
• US citizens may also be subject to US estate taxes on inherited property.

Conclusion

While US citizens can inherit land in the Philippines, they must be aware of the limitations and requirements associated with foreign ownership. By establishing a local corporation or selling the property within five years, they can retain ownership and enjoy the benefits of their inheritance.