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The 2013 Foreign Investors’ Guide to Real Estate Transactions in the Philippines 

March, 2013 - Emmanuel C. Paras, John Paul V. de Leon

A complex system of laws, rules and regulations apply to real estate and real estate transactions in the Philippines. Key prohibitions on the ownership and disposition of lands are found in our organic law (i.e. the 1987 Philippine Constitution) while incentives and other regulatory mechanisms for the sale, purchase, lease and ownership of different types of real estate are scattered in various statutes and regulations. Local governments also regulate the ownership and disposition of real estate through various locality specific ordinances.

The legal complexity coupled with the absence of a unified system of laws and regulations that  govern real estate transactions in the Philippines have made navigating the real estate landscape difficult and challenging. Admittedly, the difficulties and challenges are even more pronounced where foreign nationals and/or foreign companies are involved in the deal.

Owning Lands in the Philippines

The ownership of private lands in the Philippines is reserved to Philippine citizens and corporations that are considered Philippine nationals. The reservation to Philippine citizens and Philippine nationals of the right to own private lands is enshrined in the 1987 Philippine Constitution. Corollary, foreign nationals and foreign companies are prohibited from owning private lands in the Philippines and, the willful violation of these prohibitions is, in some instances, considered a criminal offense punishable by fines and imprisonment.