Exceptions
1. Acquisition by hereditary succession being the legal heir.
2. Acquisition of not more than 40% interest in a condominium project pursuant to R.A. 4726;
3. Former natural born citizen of the Philippines who became a citizen of another country but is now returning to the Philippines to reside permanently, subject to limitations;
4. Filipina who marries a foreigner but retains her Philippine citizenship can acquire and own land;
Notes: Former natural born citizen can re-acquire citizenship. Just be the citizen again.
5. PD 713 (May 27, 1975) Allows Americans who were formerly Filipino citizens, Americans who became permanent residents of the Philippines and Americans who have resided in the Philippines continuously for at least 20 years and are in good faith had acquired private residential lands for
family dwelling purposes in the Philippines prior to July 3, 1974 to continue holding such lands and transfer ownership over the same to qualified persons or entities.
family dwelling purposes in the Philippines prior to July 3, 1974 to continue holding such lands and transfer ownership over the same to qualified persons or entities.
The same right is hereby granted to those citizens of the United States who become permanent residents of the Philippines and who acquired private residential lands in the Philippines of not more than five thousand (5,000) square meters for a family dwelling.
First of all, land and the building on it is a separate issue. Foreigners can own the building but not the land. Technically, it still can be regarded as a long term lease which you can sell. So, wanna buy a 2~3 story commercial/residential building?
In general, only Filipino citizens and Domestic Corporations/Partnerships where Filipino citizens own at least 60% of the Authorized capital stocks can own land.
It simply means that foreigners cannot own land. Legally, foreigners cannot take managerial position of domestic company even though they can be board members.
Actually, it's not easy even for Filipino to buy a land. There could be too many issues related to the land. They should verify again and again if the land title is really clean. TT
For foreign individuals, it's legally impossible to own a piece of land. For them, it's usually for residential purpose or small business.
1. Using Filipino wife or husband. The Foreigner invests money to acquire lands but register them under the spouse name. In some cases, they even secure "Special Power of Attorney" which authorize the foreign spouse the sole right of selling the property as a secondary protection. Put aside the legality, I heard several cases ended up with big dispute between the spouses or their relatives because of the land. Please read Part II of this article where SC acknowledged nothing.
2. Just buy property with CCT, Condominium Certificate of Title. There are some properties which doesn't looks like normal condominium (the tall building) but still under CCT. There are many websites and even the developers advertising that you can own it but it doesn't really mean you can own the land, in my opinion. It just make you feel you own it basically because you can sell it.
3. Long Term Lease might be a most feasible way. You should put a clause which can protect your land control rights like "no sell out without consent", "lease renewable conditions", "sub-lease possibility", "transfer of your lease right to another".
4. All other ways will violate the anti-dummy law. You may heard from some professionals that there are ways you can protect but
For foreign companies, there might be several ways of protecting their investment, not really land ownership.
1. Domestic Company
Partner with the land owner(s) and set up a 60-40 domestic company and then make the company owns the land where the facilities like factories are located. In this case, you have at least 40% voting rights as well as 40% economical interest. This may prevent those unusual situation like abrupt increasing lease rate or sudden termination of the lease especially when renew.
2. Long Term Lease
This method is used especially when they set up a company inside special economic zone (SEZ). Foreigners like SEZ not just because of the fiscal incentives but also because it's less risky in terms of various potential risks. Even if it's not SEZ, those who needs big land like agricultural business may consider this way. It varies but it can be up to 50 years with an option to renew for another 25 years.
3. Look for reliable local business partner
It may not fit for all business sectors but it's very common approach especially if it's related with government projects or even trading. You may contact Board of Investment (BOI). In this case, you are not really intend to own a piece of land.
1. Using Filipino wife or husband. The Foreigner invests money to acquire lands but register them under the spouse name. In some cases, they even secure "Special Power of Attorney" which authorize the foreign spouse the sole right of selling the property as a secondary protection. Put aside the legality, I heard several cases ended up with big dispute between the spouses or their relatives because of the land. Please read Part II of this article where SC acknowledged nothing.
2. Just buy property with CCT, Condominium Certificate of Title. There are some properties which doesn't looks like normal condominium (the tall building) but still under CCT. There are many websites and even the developers advertising that you can own it but it doesn't really mean you can own the land, in my opinion. It just make you feel you own it basically because you can sell it.
3. Long Term Lease might be a most feasible way. You should put a clause which can protect your land control rights like "no sell out without consent", "lease renewable conditions", "sub-lease possibility", "transfer of your lease right to another".
4. All other ways will violate the anti-dummy law. You may heard from some professionals that there are ways you can protect but
For foreign companies, there might be several ways of protecting their investment, not really land ownership.
1. Domestic Company
Partner with the land owner(s) and set up a 60-40 domestic company and then make the company owns the land where the facilities like factories are located. In this case, you have at least 40% voting rights as well as 40% economical interest. This may prevent those unusual situation like abrupt increasing lease rate or sudden termination of the lease especially when renew.
2. Long Term Lease
This method is used especially when they set up a company inside special economic zone (SEZ). Foreigners like SEZ not just because of the fiscal incentives but also because it's less risky in terms of various potential risks. Even if it's not SEZ, those who needs big land like agricultural business may consider this way. It varies but it can be up to 50 years with an option to renew for another 25 years.
3. Look for reliable local business partner
It may not fit for all business sectors but it's very common approach especially if it's related with government projects or even trading. You may contact Board of Investment (BOI). In this case, you are not really intend to own a piece of land.