Fundamentals Of Property Ownership

Right to own
Acquisition by former natural-born Filipino citizen
Dual Citizens
Foreign Ownership as a Philippine Corporation
Foreign Leasing of Philippine Real Estate Property

RIGHT TO OWN
1. General Rule - Only Filipino Citizens and corporations or partnerships at least 60% of the capital of which
is owned by Filipinos are entitled to acquire land in the Philippines.
2. As exception to the general rule, alien acquisition of real estate in the Philippines is allowed in the
following cases:
a.. Acquisition before the 1935 Constitution;
b.. Acquisition thru hereditary succession. If foreign acquiree is a legal heir;
This simply means that when the non-Filipino is married to a Filipino citizen and the spouse dies, the nonFilipino as the natural heir will become the legal owner of the property. The same is true for the children.
Every natural child (legitimate or illegitimate) can inherit the property of his/her Filipino father/mother even if
he/she does not have any Filipino citizenship.
c.. Purchase of not more than 40% interest in a condominium project;
d.. Purchase by a former natural-born Filipino citizen subject to the limitations prescribed by Law (Batas
Pambansa 185 and R.A. 8179)
3. A Filipino who married an alien retains her Philippine citizenship (unless by her act or ommision, she is
deed to have renounced her Philippine citizenship) and may therefore acquire real estate in the Philippines.
ACQUISITION BY OF DUAL CITIZENS

Former natural-born Filipinos who are now naturalized citizens of another country can
buy and register, under their own name, land in the Philippines but limited in land area
(see below). However, those who avail of the Dual Citizenship Law can buy as much as
any other Filipino citizen.
Under Republic Act 9225 (Dual Citizenship Law of 2003), former Filipinos who became naturalized
citizens of foreign countries are deemed not to have lost their Philippine citizenship, thus enabling
them to enjoy all the rights and privileges of a Filipino.
Steps to Gain Dual Citizenship:
If you are in the Philippines, file a "Petition for Dual Citizenship and Issuance of
Identification Certificate (IC) pursuant to RA 9225 at the Bureau of Immigration (BI) and
for the cancellation of your alien certificate of registration.

Those who are not BI registered and overseas should file the petition at the nearest
embassy or consulate.

Requirements:

Birth certificate authenticated my the National Statistics Office(birth certificate from the
NSO can be requested online and mailed to you)

Accomplish and submit a Petition for Dual Citizenship and Issuance of Identification
Certificate (IC) pursuant to RA 9225 to a Philippine embassy, consulate or the Bureau of
Immigration.

Pay a $50.00 processing fee, schedule and take an "Oath of Allegiance" before a consular
officer.

The Bureau of Immigration in Manila receives the petition from the embassy or consular
office. The BI issues and sends an Identification Certificate of citizenship to the embassy or
consular office.

ACQUISITION BY FORMER NATURAL BORN FILIPINO CITIZEN

If a former Filipino who is now a naturalized citizen of a foreign country does not want to avail of the Dual
Citizen Law, he or she can still acquire land based on BP (Batas Pambansa) 185 & RA (Republic Act) 8179
but limited to the following:
1. Mode of acquisition is not limited to voluntary deeds (such as sale or donation) but includes involuntary
deeds (such as tax sale, foreclosure sale, or execution sale).
2. Maximum area that may be allowed is as follows:
a. For residential purpose - 1,000 square meters of urban land or one (1) hectare of rural land (BP 185,
enacted March 1982)
b. For business or other purpose - 5,000 square meters of urban land or three hectares (3 hectares) of
rural land (RA 8179 amended the Foreign Investment Act of 1991).
"Business or other purpose" refers to the use of the land primarily, directly and actually in the conduct of
business or commercial activities in the broad areas of agriculture, industry and services, including the lease
of land, but excluding the buying or selling thereof."
3. In case of married couple, one or both of them may avail of the privilege, provided that the total
acquisition shall not exceed the maximum area allowed.
4. A transferee of residential land under BP 185 may still avail of the privilege granted under RA 8179.
5. A transferee who already owns urban or rural land for residential purpose, may acquire additional urban
or rural land for residential purpose which, when added to that already owned by him shall not exceed the
maximum area allowed by law.
The same privilege applies to a transferee who already owns urban or rural land for business purposes.
6. A transferee may not acquire more than two urban or two rural lands which should be located in different
cities or municipalities.
7. A transferee who has already acquired urban land for residential purpose shall be disqualified to acquire
rural land for residential purpose and vice versa. The same rule applies to a transferee of land for business
purpose.
Dual Citizens

Dual citizenship means having two citizenships and passports from two different countries. Dual
citizenship allows the citizenship holder full rights of possession of Philippine real property. This is a
new law and it is still unclear as to the procedures involved to implement it. Dual citizenship is now
available for the following:
Former Filipino citizens born in the Philippines , who have immigrated to another country and

obtained citizenship of that country.

Note: For former natural born Filipino Citizen, please visit the Philippine Embassy in your country for more
information or to apply for Dual Citizenship.
Foreign Ownership as a Philippine Corporation

Foreign nationals or corporations may completely own a condominium or townhouse. To take

ownership of a private land, residential house and lot, and commercial building and lot, foreign
nationals or corporations should form a Philippine corporation. The corporation is to be 40% foreignowned (maximum) and 60% Filipino-owned (minimum), and with at least five [5] incorporators.
Upon incorporation, a main bank account should be tied to it. A foreign national may be the sole
person in the bank account, allowing him/her total control over the funds derived from the
corporation and the income or sale of the asset or property.

Foreign Leasing of Philippine Real Estate Property

A foreign national and or corporation may enter into a lease agreement with Filipino landowners 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. www.islandsproperties.com assumes no responsibility for such use. For more information please contact
your Philippine Lawyer or a Licensed Real Estate Broker.