Property Ownership Options for Foreigners Married to Filipinos

Property Ownership Options for Foreigners Married to Filipinos

Q: I am a foreign national married to a Filipina, and we have acquired property in the Philippines. Given that foreigners are restricted from owning land in the Philippines, what are my legal options to secure my rights over the property?

A: The Philippine Constitution and the Public Land Act restrict land ownership to Filipino citizens and certain entities like corporations wherein at least 60% of the capital is owned by Filipinos. However, there are legal strategies that can be used to secure your rights over the property. Below, we explore some of your legal options:

1. Ownership through Your Filipino Spouse:

   The most straightforward approach is to purchase and register the land under the name of your Filipino spouse, as done in your case. This means that the ownership rights will primarily be vested with your spouse.

2. Long-term Lease:

   As a foreigner, while you cannot own land, you can enter into a lease agreement with a landowner for an initial period of up to 25 years, renewable for another 25 years. However, since the property is already purchased, this might not be the most feasible option for you at present.

3. Condominium Units:

   The Condominium Act of the Philippines allows foreigners to own condominium units, as long as 60% of the condominium corporation is owned by Filipinos. If you are interested in this type of investment in the future, this could be a viable option.

4. Usufruct:

   Although outright ownership is not possible, you can negotiate a usufruct agreement with your spouse. Under this arrangement, you don't own the land but have the right to use it and benefit from it for a period up to your lifetime.

5. Drafting a Last Will and Testament:

   To secure the future of the property for your child, you and your spouse can draft wills specifying the distribution of your assets, including the property, upon your demises.

6. Pre-nuptial Agreement:

   Even though the land is purchased through your wife, you can enter into a prenuptial agreement to delineate the economic boundaries of your marital partnership, which can include provisions regarding the administration and management of this property.

Seeking Legal Advice

Given the complexity of property laws in the Philippines, it is prudent to consult with a Philippine-based lawyer to fully understand your legal options and implications, and to secure your rights over the property through the most appropriate legal avenue tailored to your circumstance. They might further guide you on how best to structure the ownership and management of this property to secure your and your child's interests.