Q. I want to know as Canadian citizen what are my rights/obligations to own property outside of Canada? I was advised to directly name one of the siblings if we want the property be titled to avoid so many expenses in transferring from my grandparents to my mother to us.
That we need a waiver to the effect that we agree for the sibling’s name in the title of property, and we have to give our consent in writing for any transactions that he/she will get into with regards to said property.
My other siblings want me to have the properties but am afraid for the consequences of having it in my name as it will appear that I inherited/buy the property. I am thinking of acquiring dual citizenship but still I need to know what good will it offers me . What about the taxation issue too? Please give me light for this matter before I’ll make t he first step . Thanks and God bless “N”
Ans: Hi there, although you are now a Canadian Citizen, you still have the full right to own real properties in the Philippines, more so where you, inherit such properties by operation of law—-hereditary succession. This is an exception provided by law, where an alien is allowed to own real properties in the Philippines.
Moreover as in your case, and as this corner assumes that you are a former natural-born Filipino citizen, under the existing law, (BP Blg. 185) one is allowed to own not more than 1,000 sq.m. meters in urban area and 10,000 sq.m.(1 hectare) in rural areas, exclusively use for residential purposes only.
Furthermore, under the Retail Trade Act, RA 8762, a former natural-born Filipino citizen is allowed to own for business or other purposes, an urban land of not more than 5,000 sq.m. and three(3) hectares of rural lands.
Now, as a former natural-born Filipino Citizen and if you intend to avail of Dual Citizenship[Citizenship Retention and Re-Acquisition Act of 2003) RA 9925] , then your rights as Filipino Citizen, more practically in the ownership of lands in the Philippines is restored in full . This could be the best route for you to take in the future.
As to the titling of the property and naming it to your siblings and requiring you to sign a waiver to that effect, although this is allowed, this could be tricky. This arrangement could result in adverse complication latter on. Such as for example, you will loss control, if the registered owner will dispose or encumber the property. Moreover, the proposal of your sibling … on the contrary would mean more expenses in the long run in terms of taxes, transfer fees and legal expenses in the titling , partition and the transfer of the said property to the lawful owner.
The best approach ( assuming that both parents are deceased) for you and your siblings to execute an Extrajudicial Settlement and Partition of Estate. In this documents you and your siblings as the surviving heirs will divide the estate according to what you may agree and jointly apply for the titling or land registration of the untitled lots. Such that when the court approves the titling, then the land titles of the partitioned/subdivided lots will be issued under the respective names of the each siblings. This could save you a lot of money in terms of legal expenses and hassles in the future.
As to the taxes( Estate Tax, Documentary tax & transfer tax ) incident to your share of the inheritance, either you or your siblings can split equally the costs or agree amongst yourself, that the taxes, fees and expenses be chargeable to the estate, which is usually, the usual practice.
I suggest that you confer with your lawyer in the Philippines, to prepare the necessary documents and to finally liquidate the settlement of the estate of your parents ASAP. Otherwise, the penalty charges and the interest on unpaid estate taxes, among others will continue to file-up . Bye for now as this corner looks forward that you’ll find the above in order. Thank you for writing and best regards.
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