Basic Property Acquisition and Land Ownership Concepts in the Philippines

As stated in the 1987 Philippine Constitution, the following are entitled to own or acquire land in the Philippines:

1. Filipino citizens; and

2. Corporations or partnerships with at least 60% of the shares owned by Filipinos

Exceptions to the restriction on foreign acquisition of land in the Philippines are the following:

1. Acquisition before the 1935 Constitution;

2. Acquisition through hereditary succession if the foreigner is a legal or natural heir;

3. Purchase of not more than 40% interest in a condominium project;

4. Purchase by a former natural-born Filipino citizen subject to the limitations prescribed by law (natural-born Filipinos who acquired foreign citizenship is entitled to own up to 5,000 sq.m. of residential land, and 1 hectare of agricultural or farm land); and

5. Filipinos who are married to aliens and able to retain their Filipino citizenship (unless by their act or omission they have renounced their Filipino citizenship)

For land ownership as a corporation:

Foreign nationals, expats or corporations may completely own a condominium or townhouse in the Philippines. To take ownership of a private land, residential house and lot, and commercial building and lot, they may set up a domestic corporation in the Philippines.

This means that the corporation owning the land has less than or up to 40% foreign equity and formed natural persons of legal age as incorporators, the majority of which must be Philippine residents.

For owning houses or buildings:

Foreign ownership of a house or building in the Philippines is legal as long as the foreigner or expat does not own the land on which the house was built.

Note: Ownership of land can be different from ownership of the improvement.

For owning condominiums or townhouses:

The Condominium Act of the Philippines (R.A. 4726) expressly allows foreigners to acquire condominium units and shares in condominium corporations up to 40% of the total and outstanding capital stock of a Filipino-owned or controlled condominium corporation.

For foreigners married to a Filipino citizen:

If holding a title as an individual, a typical situation would be that a foreigner married to a Filipino citizen would hold the title in the Filipino spouse’s name. The foreign spouse’s name cannot be on the title but can be on the contract to buy the property. In the event of the death of the Filipino spouse, the foreign spouse is allowed a reasonable amount of time to dispose of the property and collect the proceeds or the property will pass to any Filipino heirs and/or relatives.

For former natural-born Filipino citizens:

Any natural-born Philippine citizen who has lost his/her Philippine citizenship may still own private land in the Philippines. In the case of married couples, the total area that both couples are allowed to purchase should not exceed the maximum area provided by law.

Those who avail of the Dual Citizenship Law in the Philippines can buy as much as any other Filipino citizen.