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Real Estate Transactions (FAQ’s)
No. Under Article XII, Section 7 of the Philippine Constitution, foreign nationals are strictly prohibited from owning private land. Land ownership is reserved exclusively for Filipino citizens and corporations that are at least 60% Filipino-owned.
Yes. This is the most straightforward route to property ownership. Under the Condominium Act of the Philippines (RA 4726), foreigners can hold a Condominium Certificate of Title (CCT) in their own name, provided that total foreign ownership in that specific condominium corporation/building does not exceed 40%.
Yes. Legally, the structure is treated separately from the land. A foreigner can completely own a house, villa, or commercial building in their own name, but they must secure the rights to the underlying land through a legal lease agreement (as noted above).
Yes. While the Philippine Constitution strictly prohibits foreign nationals from owning private land, it does not bar them from leasing it. Foreign individuals, tourists, and expats have a well-established legal right to enter into lease agreements with Filipino landowners to use land for residential, commercial, or recreational purposes.
The land title will be registered solely under the Filipino spouse’s name.
Legal Warning: In the event of a separation or divorce, the foreign spouse cannot claim ownership of the land. Furthermore, using a “Nominee Agreement” or a local dummy to bypass the constitution and buy land is a severe criminal offense under the Anti-Dummy Law, penalizing both parties with massive fines and potential imprisonment.
If you are an individual foreigner leasing a plot of land simply to build a personal home or rent a villa, your lease is governed by Presidential Decree No. 471. Under this law, standard residential leases to foreigners are limited to a maximum of 25 years, which can be renewed for another 25 years upon mutual agreement between you and the landlord.
Under Republic Act No. 12252 (The Amended Investors’ Lease Act), qualified foreign investors can lease private land for a single, consolidated term of up to 99 years. This milestone law replaced the old 50+25 year system, giving businesses nearly a century of absolute tenure stability without relying on discretionary renewals.
The 99-year lease is strictly purpose-driven and investment-tied. To qualify, the foreign entity or individual must register an approved investment under the Foreign Investments Act, CREATE Act, or CREATE MORE Act, or through an Investment Promotion Agency (like PEZA or BOI). Eligible sectors include:
*Industrial estates, factories, and commercial land developments.
*Agro-industrial enterprises and environmental conservation.
*Tourism developments: Restricted to priority projects with a minimum investment threshold of USD 5,000,000, 70% of which must be infused within three years of signing the lease.