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<p id="caption-attachment-4858" class="wp-caption-text" style="text-align: center;">Yes, a foreigner can inherit Philippine assets (with some restrictions).</p>
<p class="wp-caption-text" style="text-align: center;">&nbsp;</p>
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<p>If you are a foreign heir to a Philippine land inheritance, this post is particularly for you.</p>
<p>This post answers common questions as to whether you can inherit, how much you can inherit and the process and payments to put the title in another person&rsquo;s name (this is needed when you sell the property).</p>
<p>It also goes through a common real life example of a person who died without a will, but left behind:</p>
<ul>
<li>a family home;</li>
<li>a bank account;</li>
<li>unpaid real estate taxes.</li>
</ul>
<p>A few notes:</p>
<p>Be prepared to work with your co-heirs (otherwise the process becomes considerably more difficult) and to pay taxes due on the estate.</p>
<p>Also, be prepared to go to a number of government offices in person to coordinate. Most things still cannot be done through the phone or the internet.</p>

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<p>Yes, you can inherit land in the Philippines if the person you inherited from died&nbsp;<strong>without a will</strong>.</p>
<p>However, you cannot inherit Philippine land if the person you inherited from died with a will.</p>
<p>The law is very firm on this.</p>
<p>In fact, inheriting intestate (inheriting when there is no will) is the only way that a foreigner can own land in the Philippines.</p>
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<p id="caption-attachment-4860" class="wp-caption-text" style="text-align: center;">A foreigner can inherit land if the deceased had no will.</p>
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<p>A foreigner cannot ordinarily own Philippine land at all, with the exception of former Filipino citizens who can purchase restricted quantities of land.</p>
<p>This post deals specifically with the case of a foreigner who inherited Philippine land from a Filipino when the&nbsp;<strong>deceased Filipino died without a will</strong>.</p>
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<p>You inherit a set portion of an estate when you inherit without a will.</p>
<p>The amount you inherit is set down by Philippine law.</p>
<p>The amount cannot be changed unless the other heirs agree.</p>
<p>Your portion will depend on who else are heirs according to the law.</p>
<p>Usually, an estate is divided among relatives. Spouses and children are prioritized.</p>
<p>If your father and your mother had children, grandparents, parents and siblings do not usually inherit. If your parents had no children, then they stand to inherit.</p>
<p>There is an entire table on this and it is quite detailed.</p>

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<p>Now that you know you are an heir, your number one question is likely how you can transfer the title of these properties to yourself or an interested buyer.</p>
<p>Many new owners will want the title in their name since this ensures that their ownership is not challenged. If the title is in another&rsquo;s name, that person or his heirs can claim it.</p>
<p>You can only do this through a process called &ldquo;<a href="https://lawyerphilippines.org//2018/10/20/practical-guide-extrajudicial-settlement-philippine-land-inheritance/">settling the estate</a>&rdquo;.</p>
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<p id="caption-attachment-4863" class="wp-caption-text" style="text-align: center;">There are 7 steps to settling an estate.</p>
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<p>Settling the estate means paying estate tax to the BIR, any unpaid real estate taxes, and debts, and then agreeing with your co-heirs on the estate details. Only then can you transfer property to another.</p>
<p>It has several steps:</p>
<ul>
<li>Get the death certificate</li>
<li>File BIR 1904</li>
<li>Gather Estate Documents</li>
<li>Reach an Agreement with your Co-Heirs</li>
<li>Execute an Extrajudicial Settlement or applicable document</li>
<li>File BIR 1801</li>
<li>Pay Estate Tax and Get CAR</li>
</ul>
<p>This is a pretty involved process, so you&rsquo;ve really got to commit to spending time and money on it.</p>
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<p id="caption-attachment-4864" class="wp-caption-text" style="text-align: center;">You&rsquo;ll need someone to physically visit all the government offices.</p>
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<p>Some common problems you may face if you are living abroad are:</p>
<ul>
<li>You may need to physically visit Philippine government offices to complete the process</li>
<li>You have to agree with your co-heirs</li>
<li>You have to have the money to pay for the debts and unpaid taxes</li>
<li>You have to have any of the documents</li>
</ul>
<p>You&rsquo;ve really got to work with your co-heirs who are in the Philippines.</p>
<p>They will likely be able to find the documents and visit the government offices. Together, you can also decide how you are going to pay the estate&rsquo;s obligations.</p>
<p>You&rsquo;ve got to pay these obligations so that you can receive the BIR&rsquo;s clearance.</p>
<p>This clearance is called the Certificate Authorizing Registration and will now allow you to sell or transfer the property.</p>
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<p>You will have to pay&nbsp;<strong>before</strong>&nbsp;being able to sell or transfer the property.</p>
<p>Why?</p>
<p>Well, the BIR will not allow you to transfer property to another person without you paying all previous debts or taxes which is called &ldquo;settling the estate&rdquo;. The Registry of Deeds also needs this BIR clearance to transfer to a new owner.</p>
<p>You might be tempted to postpone settling the estate.</p>
<p>Don&rsquo;t!</p>
<p>It will end up costing you and your co-heirs more money.</p>
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<p id="caption-attachment-4866" class="wp-caption-text" style="text-align: center;">Settling an estate can be a long process.</p>
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<p>The BIR only gives you 1 year after a death to settle the estate. Afterwards, it will start to charge you penalties:</p>
<ul>
<li>25% surcharge on the tax due if not paid on time</li>
<li>20% interest rate on the tax due</li>
</ul>
<p>If it goes on long enough, the tax due can be too much to handle and can be more than your inheritance.</p>
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<p>One of the first steps you&rsquo;ll have to accomplish is to figure out what the estate owns and owes.</p>
<p>What the estate owns could be:</p>
<ul>
<li>Family home and other real estate</li>
<li>Stocks and Bonds</li>
<li>Vehicles and other Assets</li>
</ul>
<p>What the estate owes could be:</p>
<ul>
<li>Debts</li>
<li>Unpaid real estate taxes</li>
<li>Other obligations</li>
</ul>
<p>When you calculate the estate, you will need all the documents that show ownership.</p>
<p>At this point, you should also call an accountant or an estate lawyer.</p>
<p>Things can get complicated and they&rsquo;d be able to figure out legal ways to lower your obligations or if foreign tax treaties apply to you.</p>
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<p>A very common scenario is when the only asset of the estate is the family home.</p>
<p>You, your mother and your brother inherited equal shares in your father&rsquo;s estate. Your mother and father&rsquo;s property marriage regime is that of absolute community.</p>
<p>Your father&rsquo;s estate is composed of a family home in Mandaluyong, a bank account and unpaid real estate taxes.</p>
<p>Let&rsquo;s take a look at this case with the hard numbers:</p>
<p><img src="https://haspcms-fcb-lawyer.s3.ap-southeast-1.amazonaws.com/tinyeditor_uploads/JCvK978hSrK6mAxv6vIZQEWeR6g9m16SSEcSmB5k.webp" width="544" height="839"></p>
<p>Now, that&rsquo;s the answer.</p>
<p>But how do you get there?</p>
<p>Below, you&rsquo;ll find the most practical approach to calculating what to pay.</p>
<p>(Hint: Hire an accountant!) 🙂 But joking aside, you really need someone well-versed in tax to be able to help you calculate the amount you will need to pay.</p>
<p>You will most certainly need to get all the documents related to the property and then start accounting what the estate owns and owes.</p>
<p>This will help you figure out exactly how much is needed.</p>
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<p id="caption-attachment-4869" class="wp-caption-text" style="text-align: center;">Professionals are often needed to settle an estate because it can get complicated.</p>
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<p>A good accountant and lawyer is even more important when the estate is complicated.</p>
<p>They might know of tax treaties to help you avoid being taxed in the Philippines and in your country.</p>
<p>They might know of tax exemptions to lower your estate taxes.</p>
<p>The more information you give them, the more they will be able to save you money. It is important that you give them as much documentation as you can.</p>

<p>If you want to sell or transfer property to your name, you will have to get clearance called a Certificate Authorizing Registration from the BIR.</p>
<p>You cannot get this clearance without paying estate taxes and unpaid realty taxes. This is called settling the estate.</p>
<p>Settling the estate with the BIR involves:</p>
<ul>
<li>Agreeing with your co-heirs</li>
<li>Gathering essential documents</li>
<li>Finding the money to pay estate taxes and other obligations.</li>
</ul>
<p>Settling the estate can be complicated and a good accountant and lawyer should be able to advice you on how to best save on estate taxes.</p>
<p>After you settle the estate, the property can then be successfully sold or transferred after registering with the Registry of Deeds.</p>

How a Foreigner can receive his Philippine Land Inheritance (Updated for 2018 TRAIN Law)

How a Foreigner can receive his Philippine Land Inheritance (Updated for 2018 TRAIN Law)