Re: Acquisition of Lands by Aliens

GENERAL RULE: Aliens are not qualified to own lands

Constitutional Basis: Art. XII, Section 7 - 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.

EXCEPTIONS:

1. Art. XII, Sec. 7 of the 1987 Constitution: Hereditary Succession

2. P.D. 713 (American Parity Rights – May 27, 1975): The Law allowing Americans who were formerly
Filipino Citizens, Americans who became Permanent Residents of the Philippines, and Americans who
have resided in the Philippines continuously for at least twenty years and who in good faith had acquired
private residential lands for family dwelling purposes in the Philipppines prior to July 3, 1974, to continue
holding such lands and transfer ownership over the same to qualified persons or entities

3. B.P. 185 - An Act to Implement Sec. 15 of Art. XIV of the Constitution and for Other Purposes (March
16, 1982): Any natural-born citizen of the Philippines 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 one thousand square meters, in the case of urban land, or one hectare in the case of
rural land, to be used by him as his residence.
4. R.A. 8179 – An Act to Further Liberalize Foreign Investments, Amending for the Purpose R.A. No.
7042 (Foreign Investments Act), and for other purposes
SEC. 5. The Foreign Investment Act is further amended by inserting a new section designated as Section
10 to read as follows:

SEC. 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 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
are acquired shall not exceed the maximum herein fixed.

In case the transferee already owns urban or rural land for business or other purposes, he shall be
entitled to be a transferee of additional urban or rural land for business or other purposes which when
added to those already owned by him shall not exceed the maximum areas herein authorized.

A transferee under this Act may acquire not more than two (2) lots which should be situated in
different municipalities or cities anywhere in the Philippines: Provided, That the Total land area
thereof shall not exceed five thousand (5,000) square meters in the case of urban land or three (3)
hectares in the case of rural land for use by him for business or other purposes. A transferee who has
already acquired urban land shall be disqualified form acquiring rural land and vice versa.
5. R.A. No. 9225 – Citizenship Retention and Re-acquisition Act of 2003 (Aug. 29, 2003)

Those who retain or re-acquire Philippine citizenship under this Act shall enjoy full civil and political rights.
..

6. P.D. No. 471 (May 24, 1974) – Fixing a Maximum Period for the Duration of Leases of Private Lands
to Aliens

Section 1. The maximum period allowable for the duration of leases of private lands to aliens or alien-
owned corporations, associations, or entities not qualified to acquire private lands in the Philippines shall
be twenty-five years, renewable for another period of twenty-five years upon mutual agreement of both
lessor and lessee.