Who is allowed to own property in the Philippines?

Property Ownership in the Philippines: Rights and Restrictions

The concept of property ownership is a fundamental aspect of any legal system. In the Philippines, the right to acquire and own property is governed by a set of laws and regulations that determine who is eligible for property ownership and the limitations associated with it.

Citizenship and Legal Entities

In the Philippines, the right to own property is primarily reserved for Filipino citizens. This means that only individuals who possess Filipino citizenship are legally entitled to own land and other real estate properties within the country.

Additionally, companies or corporations incorporated in the Philippines that have Filipino shareholders holding at least 60% of the shares are also granted the right to own property. This provision ensures that foreign ownership of land remains limited, safeguarding the interests of Filipino citizens.

Foreign Ownership Restrictions

While foreign nationals are generally prohibited from owning land in the Philippines, they are permitted to acquire certain types of real estate properties. These include:

• Condominiums: Foreigners may purchase and own units in condominiums located within buildings that meet specific criteria, such as having at least 60% Filipino ownership.
• Commercial buildings: Non-citizens may acquire and own commercial buildings, including office spaces, retail shops, and warehouses.
• Long-term land leases: Foreigners may enter into long-term leases for land, typically for a period of 50 years renewable for another 25 years. This allows them to use the land for various purposes, such as agricultural or industrial development.

Limitations on Foreign Ownership

It is important to note that the acquisition of real estate properties by foreigners is subject to certain restrictions and conditions. These include:

• Limited purchase price: There is a limit on the aggregate land area that a foreign corporation or individual may own. This limit is currently set at 1,227 hectares.
• Acquisition through a Philippine corporation: Foreigners seeking to acquire land or commercial buildings must do so through a Philippine corporation with Filipino ownership of at least 60%.
• Restrictions on agricultural land: Foreign ownership of agricultural land is prohibited under the Philippine Constitution. However, foreigners may engage in agricultural activities through lease agreements.

Conclusion

The Philippines’ property ownership laws strike a balance between protecting the rights of Filipino citizens and allowing foreign investment in the real estate sector. Filipino citizens and companies with majority Filipino ownership have the primary right to land ownership, while foreigners are permitted to acquire certain types of properties with specific limitations and conditions. These laws ensure the preservation of national interests while also fostering economic growth and development through foreign investment.