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 non-Filipino 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 Phiippines.

ACQUISITION BY FORMER NATURAL BORN FILIPINO CITIZEN

1. Mode of acquision 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)
b.. For business or other purpose - 5,000 square meters of urban land or three hectares of rural
land.

"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 priviledge 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.