Investing in the Philippines: Frequently Asked Questions Part 3

What are the protections to investments available to investors?

All investments are entitled to the basic rights and guarantees provided in the Philippine Constitution. Among other rights recognized by the government of the Philippines are the following:

1. Repatriation of Investments

Foreign investors have the right to repatriate the entire proceeds of the liquidation of the investment in the currency in which the investment was originally made at the exchange rate prevailing at the time of repatriation as long as it is registered with the Bangko Sentral ng Pilipinas (BSP).

2. Remittance of Earnings

In the case of foreign investments, investors have the right to remit earnings from the investment in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance.

3. Foreign Loans and Contracts

Foreign Investors have the right to remit, at the exchange rate prevailing at the time of remittance, such sums as may be necessary to meet the payment of the interest and the principal on foreign loans and foreign obligations arising from technological assistance contracts.

4. Freedom from Expropriation

There shall be no expropriation by the government of the property represented by the investments or of the property of enterprises except for public use or in the interest of national welfare and defense and upon payment of just compensation. In such cases, foreign investors or registered enterprises shall have the right to remit sums received as compensation for the expropriated property in the currency in which the investment was originally made and at the exchange rate prevailing at the time of remittance.

Source: Board of Investments Doing Business in the Philippines Brochure

This article does not constitute and is not intended to be legal advice. If you have any question or need any assistance in setting up a business in the Philippines, please feel free to send us an email at roselle.jean@nonatolaw.com.