Aliens, as a general rule, are not allowed to own real property in the Philippines. By “aliens”, we don’t mean creatures from outer space, but persons who are citizens of other countries. By “general rule”, we mean that there are certain exceptions, and two of such exceptions are discussed below.
The prohibition on foreigners owning Philippine lands is embodied in no less than the Philippine Constitution. This, in fact, is one of the usual reason cited by those who want to revise or amend the Constitution. The Constitution provides:
“Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain.” (Article XII, Section 7)
It’s clear from this provision that private land may be transferred only to persons or entitles who/which has the capacity “to acquire or hold lands of the public domain.” Those who are qualified to acquire or hold lands of the public domain are as follows:
- Filipino citizens.
- Corporations at least 60% of the capital of which is owned by Filipinos.
In other words, the Constitution explicitly prohibits non-Filipinos from acquiring or holding title to private lands. Among the exceptions are as follows: (1) transfer to an alien by way of legal succession; or (2) if the acquisition was made by a former natural-born citizen. The 1987 Constitution provides that:
“Notwithstanding the provisions of Section 7 of this Article, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law.” (Art. XII, Sec. 8)
The Supreme Court reiterated this general rule in a recent case (Borromeo vs. Descallar, G.R. No. 159310, 24 February 2009). The Court also reiterated the consistent ruling that if land is invalidly transferred to an alien who subsequently becomes a Filipino citizen or transfers it to a Filipino, the flaw in the original transaction is considered cured and the title of the transferee is rendered valid.
There are other exceptions to the prohibition on aliens owning real property in the Philippines, like full ownership by foreigners of condominium units, but this shall be the subject of future discussions.
For this article, let’s have this discussion — should foreigners be allowed to own land in the Philippines? Comments below.
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personally, i feel this portion of the constitution needs to be amended to attract investors here. FDIs contribute a great deal of help to our surplus of laborers.. i think giving foreigners the security of being able to fully own real estate in our country would be mutually beneficial for us and for the latter.
No. They should not be allowed to own land in the Philippines. It’s not the only way to attract foreign investors. Our resources should be preserved for the citizens of the Philippines. Foreign investors are still given the opportunity to own land if they invest in Philippine corporations and corporations wherein 60% of which is owned by Filipinos.
No. Because aside from other ways of attracting investors, this would evoke another “rogue-MILF wrecking havok in Mindanao” thing. Historically, when Islam was introduced by the Arabs in some parts of Mindanao those native Filipinos who embraced Islam sold their lands to the settlers, these settlers were Filipino christians and non-muslims. Right now rogue-moros are claiming by force the same land they sold before, their reason is that the land belongs to the Bangsamoro people and that it is their ancestral land, are we going to invoke the same kind of reasoning or may be thinking like the rogue-moros did?.
Another, is that the land area of the Philippines is too small for our increasing population, how much more giving it to foreign ownership. How about the issues on CARP? we hardly share it to our Filipino brothers.
I have an issue here but its not foreign owning a land but an apartment in a high rise building. My partner and I bought a condo unit 3 years ago and when we bought it we clearly stated that his wife must have nothing to do with the ownership of the property but when we got the Title it was a joint ownership by my partner and his wife. We are now planning to buy bigger unit to be solely registered in his name, however, to do this we have to put single in the contract of sale. He has record already in the BIR as married and now about to register a property in his name as Single.
Does BIR required supporting documents e.i. divorce documents if he has to change his status in Philippine as Single? (he is not yet divorce just separated for almost 15 years)
What are the consequences that we may face if found later on by BIR that he still married and put single without supporting documents?
Thanks.
No. Allowing foreigners to acquire lands in the Philippines will drive the price of land higher. This will make it more difficult for most Filipinos to acquire their own.
If we allow aliens to own properties/real properties here in philippines… it’s like allowing america or other countries to own the whole philippines. It’s a big NO.