Foreign Ownership of Real Property in the Philippines

Question:

What is the reason why foreigners can't acquire real property in the Philippines?

Answer:

Constitutional Limitations:

The 1987 Philippine Constitution restricts land ownership to Filipino citizens and corporations that are at least 60% Filipino-owned. This policy is deeply rooted in the country's history, legal traditions, and socioeconomic considerations.

Socioeconomic Concerns:

One of the primary reasons is to protect local interests and prioritize Filipino citizens in the utilization of the nation's natural resources. Land is a finite resource in the Philippines, and unrestricted foreign ownership could lead to imbalances in land distribution, potentially driving up prices and making it less accessible for average Filipino citizens.

National Security:

Another reason pertains to national security. Limiting land ownership to Filipinos ensures that the country's lands are not concentrated in the hands of foreign entities, which could pose a threat to national sovereignty.

Exceptions to the Rule:

While foreigners cannot own land, they can own condominium units, as long as foreign ownership in a single condominium building does not exceed 40%. They can also lease land for up to 50 years, renewable for another 25 years.

Summary:

Foreigners are generally not allowed to own real property in the Philippines due to constitutional limitations rooted in socioeconomic concerns and national security. Exceptions are in place for types of property like condominium units, and long-term leases are also possible.

Note: This article is intended for informational purposes and should not be considered as legal advice. Consult with a qualified attorney for advice specific to your situation.