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Philippine Real Estate Laws

Land Ownership

Non-Filipinos citizens are not allowed to acquire land in the Philippines, except under the following cases:

Acquisition before the 1935 Constitution.

Acquisition through hereditary succession, the alien being a legal heir.

Purchase is not more than forty percent-interest in a condominium project.

Purchase is made by a former natural-born Filipino citizens (a.k.a. "Balikbayans") that:

The maximum limit is 1,000 square meters for residential land and one hectare for agricultural or farm land

The maximum limit is 5,000 square meters for urban land or three hectares for rural land if the land is to be used for business purposes.

In the case of married couples, one or both of them may avail of the privilege. But the total area they may acquire may not exceed the maximum limit.

In the case of a transferee already owning an urban or rural land for business or other purposes, he/she shall still be entitled to be a transferee provided that when added to those already owned by him/her shall not exceed the maximum.

The foreigner is married to a Filipino citizen and the land title is put in the name of the Filipino spouse. For this purpose, the documents like Deed of Sale can contain the name of the foreigner-spouse, except for the title. When the spouse dies, the non-Filipino as the natural heir will become the legal owner of the property.

What is meant by ownership on the basis of hereditary succession?

When the foreigner is married to a Filipino citizen, and the spouse dies, the non-Filipino as the natural heir will become the legal owner of the property. Children, as legal heirs, may also own real property. Every natural child, legitimate or illegitimate can inherit real property even if he or she does not hold Filipino citizenship.
Filipinos who are naturalized as U.S. citizens lose their Filipino citizenship. Despite the loss of citizenship, they remain eligible to acquire real property in the Philippines by hereditary succession. Children born to them in the U.S. are also eligible to inherit real property even if they are U.S. citizens.

Corporate Land Ownership

Corporation with up to a maximum of 40% foreign-owned can own land.

Condominiums, Townhouse, Buildings and House Ownership

The Condominium Act of the Philippines, R.A. 4726, expressly allows foreigners to acquire condominium units and shares in condominium corporations provided that the total controlling interest of foreigners in the condominium project does not exceed 40 percent. (Condominium owners have exclusive rights over the space “encompassed by the walls, ceilings, and floors” of their units but are only co-owners of the common areas, such as the hallways, lobbies, entrances and exits, and parking bays.)
The house or building ownership can be separate from the land ownership. A foreign national and or corporation may enter into a lease agreement with any Filipino landowner for an initial period of up to 50 years, and renewable for another 25 years

Note: This document is for information purposes only. The user assumes all risks for its use. XYBRO Realty assumes no responsibility for such use.

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