- Conditions on foreigner or foreign corporations as to operation and ownership of resort or hotel.
Domestic Corporation ( with 60% Filipino equity )
Foreigner or 100% Foreign Corporation
2. YES. A foreigner or a 100% foreign-owned corporation, firm, association, or entity may own up to 100% interests in a hotel or resort in the Philippines, provided that it does not fall within the prohibitions under the 1987 Philippine Constitution and existing laws. NO FOREIGNER shall own a land in the Philippines, however, in case of a partly-foreign ENTITY, which shall be understood as a Domestic Entity ( corporation, association, firms ), they may own a land, provided that such entity is at least 60% Filipino-owned. However, for domestic corporations, there must be an ENDORSEMENT MADE by the Department of Tourism, as a condition to allow them to operate a hotel and/or resort intended for tourism in the Philippines.
3. A foreign person, corporation, firm, or association can invest up to 100% equity of the management of the resort or hotel, provided that it is intended for tourism in the Philippines, NOT TO THE LAND ( Real property ).
4. FOR 100% FOREIGN OWNED CORPORATIONS OR FOREIGNERS:
Pursuant to the Philippine Constitution and existing laws, there must be a lease agreement entered into by the foreigner and the land owner.
GENERAL RULE: (in leasing of lands): Such is effective for 25 years and renewable for another 25 years (Philippine Constitution).
EXCEPTION: Under RA 7652, If such corporation invests for tourism projects, (which includes operations of hotels and resorts) the lease shall be limited to projects with an investment of not less than US$5,000,000.00 (US$5M), 70% of which shall be infused in said project within three (3) years from signing of the lease contract.
FOR DOMESTIC CORPORATIONS with 60% Filipino Ownership: