Can Former Filipinos Buy Land in the Philippines?

In this blog, let us discuss whether or not a former Filipino citizen or a dual citizen can buy real property (residential lot, house-and-lot, and condo unit) in the Philippines.

We've already discussed this topic in "Can a Foreigner Own Property in the Philippines?" but in this blog let us specifically discuss land ownership by former Filipino citizens who are now naturalized citizen in other country and by Filipinos who availed of the Dual Citizenship law (RA 9225).

WHO ARE THE FILIPINO CITIZENS

Section 1, Article IV of the 1987 Philippine Constitution identified who are the Filipino citizens:

1. Those who are citizens of the Philippines at the time of the adoption of this Constitution;

2. Those whose fathers or mothers are citizens of the Philippines;

3. Those born before January 17, 1973, of Filipino mothers, who elect Philippine citizenship upon reaching the age of majority; and

4. Those who are naturalized in accordance of law.

A person can acquire Filipino citizenship either by (1) birth or (2) by naturalization. By birth, there are two modes, namely:

1. Jus soli or citizenship based on the place of birth, and

2. Jus sanguinis or citizenship based on the nationality of one's parent/s).

Among the rights of the Filipino citizen is the right of ownership of land. The 1987 Philippine Constitution states that only Filipino citizens and corporations or partnerships with least 60% of the shares are owned by Filipinos are entitled to own land in the Philippines. However, foreigners may buy condominiums and buildings, and enter into a land lease contract for as long as 25 years and subject for renewal. For in-depth discussion, please read our discussion on land ownership by foreigners.

FORMER FILIPINO CITIZENS

The 1987 Constitution defines natural-born Filipinos as follows:

1. Persons who, at the time of his/her birth, have at least one Filipino parent

2. Persons born to a Filipino mother before January 17, 1973, who elected Philippine citizenship upon reaching the age of majority (21 years old)

Former Filipino citizens are Natural Born Filipinos who have acquired foreign citizenship. Usually, they are immigrants who are now naturalized citizens of a foreign nation and they do not avail the Dual Citizen law. It means that they do not need to renounce their foreign citizenship. The former Filipino citizens can still own land in the Philippines. However, there are limitations in the acquisition and ownership of land as prescribed by PB 185 and RA 8179. We will discuss these two laws below

LAND OWNERSHIP UNDER PB 185

BATAS PAMBANSA 185 is an act to implement Section 15 of Article XIV of the 1987 Constitution, that deals with the question of a natural-born citizen of the Philippines who has lost his Philippine citizenship to own land for residential use.

Land Ownership limits:

1. Up to a maximum area of 1,000 square meters of urban land, or

2. Up to a maximum area of 1 hectare of rural land,

Purpose: Residential Use Only

LAND OWNERSHIP UNDER RA 1879

Under REPUBLIC ACT 8179, amended RA 7042 or Foreign Investment Act, the former natural born Filipinos can own more than 1,000 sqm (in urban area) and 1 hectare (in rural area) if the purpose is for investment. Section 10 of RA 7042 as amended by RA 8179 states:

Section 10. Other rights of natural born citizen pursuant to the provisions of article xii, section 8 of the constitution

Any natural born citizen who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws may be a transferee of a private land up to a maximum area of five thousand (5,000) square meters in the case of urban land or three (3) hectares in the case of rural land to be used by him for business or other purposes. In the case of married couples, one of them may avail of the privilege herein granted: Provided, That if both shall avail of the same, the total area acquired shall not exceed the maximum herein fixed. (Emphasis added)

Land ownership limits under RA 7042:

1. Up to a maximum area of 5,000 square meters of urban land, or

2. Up to a maximum area of 3 hectare of rural land,

Purposes: Investment use only

FILIPINOS WITH DUAL CITIZENSHIP

Under REPUBLIC ACT 9225 or the Citizenship Retention and Reacquisition Act, natural-born Filipinos are allowed to retain or reacquire their Filipino citizenship if they have been naturalized in other countries. Thus, they are called Dual Citizen.

Whereas the former natural-born Filipinos have limits in the land ownership, the Dual Citizen Filipinos have no limits in land ownership. They enjoy all rights and privileges enjoyed by Filipino citizens, including land ownership. However, when they decide to run for public office, they must renounce their foreign citizenship.

As a bonus, let us discuss the eligibility requirements for Dual Citizenship law.

Dual citizenship under RA 9225 is reserved for former natural-born Filipinos.

If you were born outside of the Philippines, but your parents were Filipino citizens at the time of your birth, then you are already a dual citizen by birth. See our discussion above on Jus sanguinis. In this case, you need not apply for dual citizenship under RA 9225.

The above discussion is for educational purposes only. Consult your lawyer for your specific case. If you have some questions, please feel free to ask us. If you are planning to buy a residential lot, house-and-lot, or condo unit, contact us at 0920-207-5035 or email us at cebuhousefinder@yahoo.com for FREE assistance.