Aliens, whether individuals or corporations, are absolutely not allowed to acquire public or private lands in the Philippines. No less than the 1987 Philippine Constitution proscribes ownership of these lands by aliens as provided in Sections 7, Article XII thereof.

"Save in cases of hereditary succession, no private lands shall be transferred or conveyed except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain."


 What is the purpose of the prohibition?

The primary purpose of this constitutional provision is the conservation of the national patrimony. Under section 1 of Article XIII of the Constitution, “natural resources, with the exception of public agricultural land, shall not be alienated,” and with respect to public agricultural lands, their alienation is limited to Filipino citizens. But this constitutional purpose conserving agricultural resources in the hands of Filipino citizens may easily be defeated by the Filipino citizens themselves who may alienate their agricultural lands in favor of aliens. It is partly to prevent this result that section 5 is included in Article XIII, and it reads as follows:

“Sec. 5. Save in cases of hereditary succession, no private agricultural land will be transferred or assigned except to individuals, corporations, or associations qualified to acquire or hold lands of the public domain in the Philippines.”

This constitutional provision closes the only remaining avenue through which agricultural resources may leak into aliens’ hands. It would certainly be futile to prohibit the alienation of public agricultural lands to aliens if, after all, they may be freely so alienated upon their becoming private agricultural lands in the hands of Filipino citizens. (Muller vs. Muller, G.R. No.149615, August 29, 2006 citing Krivenko v. Register of Deeds, 79 Phil. 461, 473, 476, 1947)


Does the term “private agricultural lands” exclude residential lands from the prohibition?

If the term “private agricultural lands” is to be construed as not including residential lots or lands not strictly agricultural, the result would be that “aliens may freely acquire and possess not only residential lots and houses for themselves but entire subdivisions, and whole towns and cities,” and that “they may validly buy and hold in their names lands of any area for building homes, factories, industrial plants, fisheries, hatcheries, schools, health and vacation resorts, markets, golf courses, playgrounds, airfields, and a host of other uses and purposes that are not, in appellant’s words, strictly agricultural.” That this is obnoxious to the conservative spirit of the Constitution is beyond question. (Muller vs. Muller, ibid)


What are the instances when a foreigner can acquire real estate properties in the Philippines?

As exceptions to the general rule, aliens or foreigners acquisition and ownership of real estate in the Philippines is allowed in the following cases:

  1. Acquisition before the 1935 Constitution;
  2. Acquisition through hereditary succession if the foreigner is a legal or natural heir;
  3. Purchase by aliens or foreigners of not more than 40% of the units or interests in a condominium project; and
  4. Purchase by former natural born Filipino citizens, subject to the requirements or limitations prescribed by law (Batas Pambansa 185 and R.A. 8179)

Alternatively, foreign nationals and foreign companies may lease land in the Philippines. The lease terms, however, are regulated by law.