What Kinds of Foreigners Are Allowed To Acquire Lands In The Philippines?

Not all foreigners are prohibited from acquiring lands in the Philippines. The following individuals are some of the exceptions to the general rule:

• Acquisition by inheritance. Those foreign individuals who inherit a piece of land from their Filipino parent/s or their ancestors through a will or by operation of law. This classification also includes foreigner spouses who inherit the property upon the Filipino spouse’s death.
• Acquisition made by former Filipino citizens.Prior to their change of citizenship, lands acquired by them can be lawfully titled in their names thus they maintain this ownership even after the loss of said citizenship. After their naturalization abroad, they are still qualified to own other lands in the Philippines if they retain their Filipino citizenship under the Dual Citizenship Act.
• Acquisition by a former natural-born Filipino citizen under the law amending the Foreign Investments Act. Although those citizens already lost their citizenship, they are still allowed to be transferees of private lands up to a maximum area of 5,000 square meters in urban areas or 3 hectares in rural areas to be used for business or other commercial purposes. Said citizens can only choose between these 2 types with a maximum quantity set at 2 lots located in different cities or municipalities anywhere in the country.

In case of married couples, both of them can avail of the privilege provided the maximum limit is not exceeded. The same rule goes for those transferees who previously acquired either urban or rural lands less than the maximum area set. Any additional acquisition must follow said limit.
These former natural-born citizens are likewise allowed to own residential lands with the same rules as above, except for the difference in the maximum limit. In this instance, citizens can own up to a maximum of 1,000 square meters for urban lands and 1 hectare for rural lands.

• Acquisition by marriage to a Filipino.Foreigners who are married to Filipino citizens have a right to lands acquired by their Filipino spouses during the marriage, subject to their marriage settlements. Note must be taken that the Filipino spouse must retain his/her citizenship for this exception to apply.

• Acquisition made prior to the passage of the 1935 Constitution.The present prohibition on acquisition of both private and public lands by foreigners is not yet in force during said period; thus, the rule cannot be applied retroactively.

 

Indeed, if the foreigner belongs to any of the classifications enumerated above, he or she need not give up the dream of owning a piece of land in Asia’s Pearl of the Orient.