REPUBLIC ACT NO.

4726 June 18, 1966

AN ACT TO DEFINE CONDOMINIUM, ESTABLISH REQUIREMENTS FOR ITS

CREATION, AND GOVERN ITS INCIDENTS.

Section 1. The short title of this Act shall be "The Condominium Act".

Sec. 2. A condominium is an interest in real property consisting of separate interest in a

unit in a residential, industrial or commercial building and an undivided interest in
common, directly or indirectly, in the land on which it is located and in other common
areas of the building. A condominium may include, in addition, a separate interest in
other portions of such real property. Title to the common areas, including the land, or
the appurtenant interests in such areas, may be held by a corporation specially formed
for the purpose (hereinafter known as the "condominium corporation") in which the
holders of separate interest shall automatically be members or shareholders, to the
exclusion of others, in proportion to the appurtenant interest of their respective units in
the common areas.

The real right in condominium may be ownership or any other interest in real property
recognized by law, on property in the Civil Code and other pertinent laws.

Section 3. As used in this Act, unless the context otherwise requires:

(a) "Condominium" means a condominium as defined in the next preceding section.

(b) "Unit" means a part of the condominium project intended for any type of independent
use or ownership, including one or more rooms or spaces located in one or more floors
(or part or parts of floors) in a building or buildings and such accessories as may be
appended thereto.

(c) "Project" means the entire parcel of real property divided or to be divided in
condominiums, including all structures thereon,

(d) "Common areas" means the entire project excepting all units separately granted or
held or reserved.

(e) "To divide" real property means to divide the ownership thereof or other interest
therein by conveying one or more condominiums therein but less than the whole
thereof.

Sec. 4. The provisions of this Act shall apply to property divided or to be divided into
condominiums only if there shall be recorded in the Register of Deeds of the province or
city in which the property lies and duly annotated in the corresponding certificate of title
of the land, if the latter had been patented or registered under either the Land
Registration or Cadastral Acts, an enabling or master deed which shall contain, among
others, the following:
(a) Description of the land on which the building or buildings and improvements are or
are to be located;

(b) Description of the building or buildings, stating the number of stories and basements,
the number of units and their accessories, if any;

(c) Description of the common areas and facilities;

(d) A statement of the exact nature of the interest acquired or to be acquired by the
purchaser in the separate units and in the common areas of the condominium project.
Where title to or the appurtenant interests in the common areas is or is to be held by a
condominium corporation, a statement to this effect shall be included;

(e) Statement of the purposes for which the building or buildings and each of the units
are intended or restricted as to use;

(f) A certificate of the registered owner of the property, if he is other than those
executing the master deed, as well as of all registered holders of any lien or
encumbrance on the property, that they consent to the registration of the deed;

(g) The following plans shall be appended to the deed as integral parts thereof:

(1) A survey plan of the land included in the project, unless a survey plan of the same
property had previously bee filed in said office;

(2) A diagrammatic floor plan of the building or buildings in the project, in sufficient detail
to identify each unit, its relative location and approximate dimensions;

(h) Any reasonable restriction not contrary to law, morals or public policy regarding the
right of any condominium owner to alienate or dispose of his condominium.

The enabling or master deed may be amended or revoked upon registration of an

instrument executed by the registered owner or owners of the property and consented
to by all registered holders of any lien or encumbrance on the land or building or portion
thereof. The term "registered owner" shall include the registered owners of
condominiums in the project. Until registration of a revocation, the provisions of this Act
shall continue to apply to such property.

Sec. 5. Any transfer or conveyance of a unit or an apartment, office or store or other

space therein, shall include the transfer or conveyance of the undivided interests in the
common areas or, in a proper case, the membership or shareholdings in the
condominium corporation: Provided, however, That where the common areas in the
condominium project are owned by the owners of separate units as co-owners thereof,
no condominium unit therein shall be conveyed or transferred to persons other than
Filipino citizens, or corporations at least sixty percent of the capital stock of which
belong to Filipino citizens, except in cases of hereditary succession. Where the common
areas in a condominium project are held by a corporation, no transfer or conveyance of
a unit shall be valid if the concomitant transfer of the appurtenant membership or
stockholding in the corporation will cause the alien interest in such corporation to
exceed the limits imposed by existing laws.

Sec. 6. Unless otherwise expressly provided in the enabling or master deed or the
declaration of restrictions, the incidents of a condominium grant are as follows:

(a) The boundary of the unit granted are the interior surfaces of the perimeter walls,
floors, ceilings, windows and doors thereof. The following are not part of the unit bearing
walls, columns, floors, roofs, foundations and other common structural elements of the
building; lobbies, stairways, hallways, and other areas of common use, elevator
equipment and shafts, central heating, central refrigeration and central air-conditioning
equipment, reservoirs, tanks, pumps and other central services and facilities, pipes,
ducts, flues, chutes, conduits, wires and other utility installations, wherever located,
except the outlets thereof when located within the unit.

(b) There shall pass with the unit, as an appurtenance thereof, an exclusive easement
for the use of the air space encompassed by the boundaries of the unit as it exists at
any particular time and as the unit may lawfully be altered or reconstructed from time to
time. Such easement shall be automatically terminated in any air space upon
destruction of the unit as to render it untenantable.

(c) Unless otherwise, provided, the common areas are held in common by the holders
of units, in equal shares, one for each unit.

(d) A non-exclusive easement for ingress, egress and support through the common
areas is appurtenant to each unit and the common areas are subject to such
easements.

(e) Each condominium owner shall have the exclusive right to paint, repaint, tile, wax,
paper or otherwise refinish and decorate the inner surfaces of the walls, ceilings, floors,
windows and doors bounding his own unit.

(f) Each condominium owner shall have the exclusive right to mortgage, pledge or
encumber his condominium and to have the same appraised independently of the other
condominiums but any obligation incurred by such condominium owner is personal to
him.

(g) Each condominium owner has also the absolute right to sell or dispose of his
condominium unless the master deed contains a requirement that the property be first
offered to the condominium owners within a reasonable period of time before the same
is offered to outside parties;

Sec. 7. Except as provided in the following section, the common areas shall remain
undivided, and there shall be no judicial partition thereof.
Sec. 8. Where several persons own condominiums in a condominium project, an action
may be brought by one or more such persons for partition thereof by sale of the entire
project, as if the owners of all of the condominiums in such project were co-owners of
the entire project in the same proportion as their interests in the common
areas: Provided, however, That a partition shall be made only upon a showing:

(a) That three years after damage or destruction to the project which renders material
part thereof unit for its use prior thereto, the project has not been rebuilt or repaired
substantially to its state prior to its damage or destruction, or

(b) That damage or destruction to the project has rendered one-half or more of the units
therein untenantable and that condominium owners holding in aggregate more than
thirty percent interest in the common areas are opposed to repair or restoration of the
project; or

(c) That the project has been in existence in excess of fifty years, that it is obsolete and
uneconomic, and that condominium owners holding in aggregate more than fifty percent
interest in the common areas are opposed to repair or restoration or remodeling or
modernizing of the project; or

(d) That the project or a material part thereof has been condemned or expropriated and
that the project is no longer viable, or that the condominium owners holding in
aggregate more than seventy percent interest in the common areas are opposed to
continuation of the condominium regime after expropriation or condemnation of a
material portion thereof; or

(e) That the conditions for such partition by sale set forth in the declaration of
restrictions, duly registered in accordance with the terms of this Act, have been met.

Section 9. The owner of a project shall, prior to the conveyance of any condominium
therein, register a declaration of restrictions relating to such project, which restrictions
shall constitute a lien upon each condominium in the project, and shall insure to and
bind all condominium owners in the project. Such liens, unless otherwise provided, may
be enforced by any condominium owner in the project or by the management body of
such project. The Register of Deeds shall enter and annotate the declaration of
restrictions upon the certificate of title covering the land included within the project, if the
land is patented or registered under the Land Registration or Cadastral Acts.

The declaration of restrictions shall provide for the management of the project by
anyone of the following management bodies: a condominium corporation, an
association of the condominium owners, a board of governors elected by condominium
owners, or a management agent elected by the owners or by the board named in the
declaration. It shall also provide for voting majorities quorums, notices, meeting date,
and other rules governing such body or bodies.

Such declaration of restrictions, among other things, may also provide:

(a) As to any such management body;

(1) For the powers thereof, including power to enforce the provisions of the declarations
of restrictions;

(2) For maintenance of insurance policies, insuring condominium owners against loss
by fire, casualty, liability, workmen's compensation and other insurable risks, and for
bonding of the members of any management body;

(3) Provisions for maintenance, utility, gardening and other services benefiting the
common areas, for the employment of personnel necessary for the operation of the
building, and legal, accounting and other professional and technical services;

(4) For purchase of materials, supplies and the like needed by the common areas;

(5) For payment of taxes and special assessments which would be a lien upon the
entire project or common areas, and for discharge of any lien or encumbrance levied
against the entire project or the common areas;

(6) For reconstruction of any portion or portions of any damage to or destruction of the
project;

(7) The manner for delegation of its powers;

(8) For entry by its officers and agents into any unit when necessary in connection with
the maintenance or construction for which such body is responsible;

(9) For a power of attorney to the management body to sell the entire project for the
benefit of all of the owners thereof when partition of the project may be authorized under
Sec. 8 of this Act, which said power shall be binding upon all of the condominium
owners regardless of whether they assume the obligations of the restrictions or not.

(b) The manner and procedure for amending such restrictions: Provided, That the vote
of not less than a majority in interest of the owners is obtained.

(c) For independent audit of the accounts of the management body;

(d) For reasonable assessments to meet authorized expenditures, each condominium

unit to be assessed separately for its share of such expenses in proportion (unless
otherwise provided) to its owners fractional interest in any common areas;

(e) For the subordination of the liens securing such assessments to other liens either
generally or specifically described;

(f) For conditions, other than those provided for in Sections eight and thirteen of this Act,
upon which partition of the project and dissolution of the condominium corporation may
be made. Such right to partition or dissolution may be conditioned upon failure of the
condominium owners to rebuild within a certain period or upon specified inadequacy of
insurance proceeds, or upon specified percentage of damage to the building, or upon a
decision of an arbitrator, or upon any other reasonable condition.

Sec. 10. Whenever the common areas in a condominium project are held by a
condominium corporation, such corporation shall constitute the management body of
the project. The corporate purposes of such a corporation shall be limited to the holding
of the common areas, either in ownership or any other interest in real property
recognized by law, to the management of the project, and to such other purposes as
may be necessary, incidental or convenient to the accomplishment of said purposes.
The articles of incorporation or by-laws of the corporation shall not contain any provision
contrary to or inconsistent with the provisions of this Act, the enabling or master deed,
or the declaration of restrictions of the project. Membership in a condominium
corporation, regardless of whether it is a stock or non-stock corporation, shall not be
transferable separately from the condominium unit of which it is an appurtenance. When
a member or stockholder ceases to own a unit in the project in which the condominium
corporation owns or holds the common areas, he shall automatically cease to be a
member or stockholder of the condominium corporation.

Sec. 11. The term of a condominium corporation shall be co-terminus with the duration
of the condominium project, the provisions of the Corporation Law to the contrary
notwithstanding.

Sec. 12. In case of involuntary dissolution of a condominium corporation for any of the
causes provided by law, the common areas owned or held by the corporation shall, by
way of liquidation, be transferred pro-indiviso and in proportion to their interest in the
corporation to the members or stockholders thereof, subject to the superior rights of the
corporation creditors. Such transfer or conveyance shall be deemed to be a full
liquidation of the interest of such members or stockholders in the corporation. After such
transfer or conveyance, the provisions of this Act governing undivided co-ownership of,
or undivided interest in, the common areas in condominium projects shall fully apply.

Sec. 13. Until the enabling or the master deed of the project in which the condominium
corporation owns or holds the common area is revoked, the corporation shall not be
voluntarily dissolved through an action for dissolution under Rule 104 of the Rules of
Court except upon a showing:

(a) That three years after damage or destruction to the project in which the corporation
owns or holds the common areas, which damage or destruction renders a material part
thereof unfit for its use prior thereto, the project has not been rebuilt or repaired
substantially to its state prior to its damage or destruction; or

(b) That damage or destruction to the project has rendered one-half or more of the units
therein untenantable and that more than thirty percent of the members of the
corporation, if non-stock, or the shareholders representing more than thirty percent of
the capital stock entitled to vote, if a stock corporation, are opposed to the repair or
reconstruction of the project, or

(c) That the project has been in existence in excess of fifty years, that it is obsolete and
uneconomical, and that more than fifty percent of the members of the corporation, if
non-stock, or the stockholders representing more than fifty percent of the capital stock
entitled to vote, if a stock corporation, are opposed to the repair or restoration or
remodeling or modernizing of the project; or

(d) That the project or a material part thereof has been condemned or expropriated and
that the project is no longer viable, or that the members holding in aggregate more than
seventy percent interest in the corporation, if non-stock, or the stockholders
representing more than seventy percent of the capital stock entitled to vote, if a stock
corporation, are opposed to the continuation of the condominium regime after
expropriation or condemnation of a material portion thereof; or

(e) That the conditions for such a dissolution set forth in the declaration of restrictions of
the project in which the corporation owns of holds the common areas, have been met.

Sec. 14. The condominium corporation may also be dissolved by the affirmative vote of
all the stockholders or members thereof at a general or special meeting duly called for
the purpose: Provided, That all the requirements of Sec. sixty-two of the Corporation
Law are complied with.

Sec. 15. Unless otherwise provided for in the declaration of restrictions upon voluntary
dissolution of a condominium corporation in accordance with the provisions of Sections
thirteen and fourteen of this Act, the corporation shall be deemed to hold a power of
attorney from all the members or stockholders to sell and dispose of their separate
interests in the project and liquidation of the corporation shall be effected by a sale of
the entire project as if the corporation owned the whole thereof, subject to the rights of
the corporate and of individual condominium creditors.

Sec. 16. A condominium corporation shall not, during its existence, sell, exchange,
lease or otherwise dispose of the common areas owned or held by it in the
condominium project unless authorized by the affirmative vote of all the stockholders or
members.

Sec. 17. Any provision of the Corporation Law to the contrary notwithstanding, the by-
laws of a condominium corporation shall provide that a stockholder or member shall not
be entitled to demand payment of his shares or interest in those cases where such right
is granted under the Corporation Law unless he consents to sell his separate interest in
the project to the corporation or to any purchaser of the corporation's choice who shall
also buy from the corporation the dissenting member or stockholder's interest. In case
of disagreement as to price, the procedure set forth in the appropriate provision of the
Corporation Law for valuation of shares shall be followed. The corporation shall have
two years within which to pay for the shares or furnish a purchaser of its choice from the
time of award. All expenses incurred in the liquidation of the interest of the dissenting
member or stockholder shall be borne by him.

Sec. 18. Upon registration of an instrument conveying a condominium, the Register of

Deeds shall, upon payment of the proper fees, enter and annotate the conveyance on
the certificate of title covering the land included within the project and the transferee
shall be entitled to the issuance of a "condominium owner's" copy of the pertinent
portion of such certificate of title. Said "condominium owner's" copy need not reproduce
the ownership status or series of transactions in force or annotated with respect to other
condominiums in the project. A copy of the description of the land, a brief description of
the condominium conveyed, name and personal circumstances of the condominium
owner would be sufficient for purposes of the "condominium owner's" copy of the
certificate of title. No conveyance of condominiums or part thereof, subsequent to the
original conveyance thereof from the owner of the project, shall be registered unless
accompanied by a certificate of the management body of the project that such
conveyance is in accordance with the provisions of the declaration of restrictions of
such project.

In cases of condominium projects registered under the provisions of the Spanish

Mortgage Law or Act 3344, as amended, the registration of the deed of conveyance of a
condominium shall be sufficient if the Register of Deeds shall keep the original or signed
copy thereof, together with the certificate of the management body of the project, and
return a copy of the deed of conveyance to the condominium owner duly acknowledge
and stamped by the Register of Deeds in the same manner as in the case of registration
of conveyances of real property under said laws.

Sec. 19. Where the enabling or master deed provides that the land included within a
condominium project are to be owned in common by the condominium owners therein,
the Register of Deeds may, at the request of all the condominium owners and upon
surrender of all their "condominium owner's" copies, cancel the certificates of title of the
property and issue a new one in the name of said condominium owners as pro-indiviso
co-owners thereof.

Sec. 20. An assessment upon any condominium made in accordance with a duly
registered declaration of restrictions shall be an obligation of the owner thereof at the
time the assessment is made. The amount of any such assessment plus any other
charges thereon, such as interest, costs (including attorney's fees) and penalties, as
such may be provided for in the declaration of restrictions, shall be and become a lien
upon the condominium assessed when the management body causes a notice of
assessment to be registered with the Register of Deeds of the city or province where
such condominium project is located. The notice shall state the amount of such
assessment and such other charges thereon a may be authorized by the declaration of
restrictions, a description of the condominium, unit against which same has been
assessed, and the name of the registered owner thereof. Such notice shall be signed by
an authorized representative of the management body or as otherwise provided in the
declaration of restrictions. Upon payment of said assessment and charges or other
satisfaction thereof, the management body shall cause to be registered a release of the
lien.

Such lien shall be superior to all other liens registered subsequent to the registration of
said notice of assessment except real property tax liens and except that the declaration
of restrictions may provide for the subordination thereof to any other liens and
encumbrances.

Such liens may be enforced in the same manner provided for by law for the judicial or
extra-judicial foreclosure of mortgages of real property. Unless otherwise provided for in
the declaration of restrictions, the management body shall have power to bid at
foreclosure sale. The condominium owner shall have the same right of redemption as in
cases of judicial or extra-judicial foreclosure of mortgages.

Sec. 21. No labor performed or services or materials furnished with the consent of or at
the request of a condominium owner or his agent or his contractor or subcontractor,
shall be the basis of a lien against the condominium of any other condominium owner,
unless such other owners have expressly consented to or requested the performance of
such labor or furnishing of such materials or services. Such express consent shall be
deemed to have been given by the owner of any condominium in the case of
emergency repairs of his condominium unit. Labor performed or services or materials
furnished for the common areas, if duly authorized by the management body provided
for in a declaration of restrictions governing the property, shall be deemed to be
performed or furnished with the express consent of each condominium owner. The
owner of any condominium may remove his condominium from a lien against two or
more condominiums or any part thereof by payment to the holder of the lien of the
fraction of the total sum secured by such lien which is attributable to his condominium
unit.

Sec. 22. Unless otherwise provided for by the declaration of restrictions, the
management body, provided for herein, may acquire and hold, for the benefit of the
condominium owners, tangible and intangible personal property and may dispose of the
same by sale or otherwise; and the beneficial interest in such personal property shall be
owned by the condominium owners in the same proportion as their respective interests
in the common areas. A transfer of a condominium shall transfer to the transferee
ownership of the transferor's beneficial interest in such personal property.

Sec. 23. Where, in an action for partition of a condominium project or for the dissolution
of condominium corporation on the ground that the project or a material part thereof has
been condemned or expropriated, the Court finds that the conditions provided for in this
Act or in the declaration of restrictions have not been met, the Court may decree a
reorganization of the project, declaring which portion or portions of the project shall
continue as a condominium project, the owners thereof, and the respective rights of said
remaining owners and the just compensation, if any, that a condominium owner may be
entitled to due to deprivation of his property. Upon receipt of a copy of the decree, the
Register of Deeds shall enter and annotate the same on the pertinent certificate of title.
Sec. 24. Any deed, declaration or plan for a condominium project shall be liberally
construed to facilitate the operation of the project, and its provisions shall be presumed
to be independent and severable.

Section 25. Whenever real property has been divided into condominiums, each
condominium separately owned shall be separately assessed, for purposes of real
property taxation and other tax purposes to the owners thereof and the tax on each
such condominium shall constitute a lien solely thereon.

Sec. 26. All Acts or parts of Acts in conflict or inconsistent with this Act are hereby
amended insofar as condominium and its incidents are concerned.

Sec. 27. This Act shall take effect upon its approval.

Approved: June 18, 1966

Philippines Land Ownership and Acquisition

In general, only Filipino citizens and corporations or partnerships with least 60% of the shares are owned by Filipinos are entitled to own or
acquire land in the Philippines. Foreigners or non-Philippine nationals may however purchase condominiums, buildings, and enter into a long
term land lease.

K&C assists foreigners, non-Philippine nationals, Filipinos, OFW, Balikbayans and corporations purchasing and acquiring real property in the
Philippines and can provide relevant information on Philippine laws and regulations regarding property purchase and acquisition, review
general contracts, asset protection contracts, deeds of sale, taxes and handle entire estate planning. In addition, K&C can introduce you to
local real estate brokers to assist you in finding the property you are looking for in the Philippines.

Foreign Ownership of Land in the Philippines

Ownership of land in the Philippines is highly-regulated with land ownership reserved for persons or entities considered Philippine nationals
or Filipino citizens. For this purpose, a corporation owned 60% by Filipino citizens is treated as a Philippine national. Foreigners interested in
acquiring land or real property through aggressive ownership structures must consider the provisions of the Philippines' Anti-Dummy Law to
determine how to proceed. A major restriction in the law is the restriction on the number of alien members on the Board of Directors of a
landholding company which is limited to 40% alien participation. Another concern is the possible forfeiture of the property if the provisions of
the law is breached.

Exceptions to the restriction on foreigners acquisition of land in the Philippines are the following:

 Acquisition before the 1935 constitution

 Acquisition through hereditary succession if the foreigner is a legal or natural heir

 Purchase of not more than 40% interest in a condominium project

 Purchase by a former natural-born Filipino citizen subject to the limitations prescribed by law. (natural born Filipinos who acquired
foreign citizenship is entitled to own up to 1,000 sq.m. of residential land, and 1 hectare of agricultural or farm land)

 Filipinos who are married to aliens who retain their Filipino citizenship, unless by their act or omission they have renounced their
Filipino citizenship
Foreigner Ownership as a Philippine Corporation

Foreign nationals or corporations may completely own a condominium or townhouse in the Philippines. To take ownership of a private land,
residential house and lot, and commercial building and lot foreigners may set up a Philippine corporation in the Philippines. This means that
the corporation owning the land has less than or up to 40% foreign equity and it is formed by 5-15 natural persons of legal age as
incorporators, majority of whom are Philippine residents.

Foreigners Leasing Of Philippine Real Estate Property

Leasing land in the Philippines on a long term basis is an option for foreigners or foreign corporations with more than 40 percent foreign
equity. Under the Investor's Lease Act of the Philippines a foreign national and or corporation may enter into a lease agreement with Filipino
landowners for an initial period of up to 50 years renewable once for an additional 25 years.

Foreigners owning Houses in the Philippines

Foreigners owning a house or building in the Philippines is legal as long as the foreigner does not own the land on which the house is build.

Foreigners owning Condominiums & Townhouses in the Philippines

The Condominium Act of the Philippines, R.A. 4726, expressly allows foreigners to acquire condominium units and shares in condominium
corporations up to not more than 40% of the total and outstanding capital stock of a Filipino owned or controlled condominium corporation.
However, there are a very few single-detached homes or Townhouses in the Philippines with condominium titles. Most condominiums are
high rise buildings.

Foreigners Married to a Filipino Citizen

If holding a title as an individual, a typical situation would be that a foreigner married to a Filipino citizen would hold title in the Filipino
spouse's name. The foreign spouse's name cannot be on the Title but can be on the contract to buy the property. In the event of death of the
Filipino spouse, the foreign spouse is allowed a reasonable amount of time to dispose of the property and collect the proceeds or the
property will pass to any Filipino heirs and or relatives.

Former Natural-born Philippine Citizen now Naturalized American Citizen

Any natural-born Philippine citizen who has lost his Philippine citizenship may still own private land in the Philippines up to a maximum area
of 5,000 square meters in the case of rural land. In the case of married couples, the total area that both couples are allowed to purchase
should not exceed the maximum area mentioned above.

Filipinos & Former Filipino Citizens (Balikbayans) & OFW

Former natural-born Filipinos who are now naturalized citizens of another country can buy and register, under their own name, land in the
Philippines but limited in land area. However, those who avail of the Dual Citizenship Law in the Philippines can buy as much as any other
Filipino citizen. Under Republic Act 9225 (Philippines Dual Citizenship Law of 2003), former Filipinos who became naturalized citizens of
foreign countries are deemed not to have lost their Philippine citizenship, thus enabling them to enjoy all the rights and privileges of a Filipino
regarding land ownership in the Philippines.

Steps to Gain Dual Citizenship:

  If you are in the Philippines, file a "Petition for Dual Citizenship and Issuance of Identification Certificate (IC) pursuant to RA 9225”
at the Bureau of Immigration (BI) and for the cancellation of your alien certificate of registration.
 Those who are not BI registered and overseas should file the petition at the nearest embassy or consulate.

Requirements:

 Birth certificate authenticated my the Philippines National Statistics Office (NSO)

 Accomplish and submit a “Petition for Dual Citizenship and Issuance of Identification Certificate (IC) pursuant to RA 9225” to a
Philippine embassy, consulate or the Bureau of Immigration

 Pay a $50.00 processing fee, schedule and take an "Oath of Allegiance" before a consular officer

 The Bureau of Immigration in Manila receives the petition from the embassy or consular office. The BI issues and sends an
Identification Certificate of citizenship to the embassy or consular office.

If a former Filipino who is now a naturalized citizen of a foreign country does not want to avail of the Dual Citizen Law in the Philippines, he or
she can still acquire land based on BP (Batas Pambansa) 185 & RA (Republic Act) 8179 but limited to the following:

For Residential Use

(BP 185 - enacted in March 1982):

 Up to 1,000 square meters of residential land

 Up to one (1) hectare of agricultural of farm land

For Business/Commercial Use (RA 8179 - amended the Foreign Investment act of 1991):

 Up to 5,000 square meters of urban land

 Up to three (3) hectares of rural land

Real Estate Transaction Costs in the Philippines

Purchases from Individuals:

 Philippines Capital gains tax - 6% of actual sale price. This is paid by the seller but in some cases it might be expected that the
buyer pays. This percentage could differ if the property assessed is being used by a business or is a title- owned by a corporation,
in this case the percentage is 7.5%
 Philippines Document stamp tax - 1.5% of the actual sale price. This is paid by wither the buyer or the seller upon agreement.
Normally however, it is the buyer who shoulders the cost.

 Philippines Transfer tax - 0.5% of the actual sale price

 Philippines Registration fee - 0.25% of the actual sale price

Purchases from Developers:

 Philippines Capital gains tax - 10% of actual sale price. This value might be expressed as part of the sale price
 Philippines Document stamp tax - 1.5% of the actual sale price

 Philippines Transfer tax - 0.5% of the actual sale price

 Philippines Registration fee - 0.25% of the actual sale price

Presidential Decree No. 715

 MALACAÑANG
Manila
PRESIDENTIAL DECREE No. 715 May 28, 1975

AMENDING COMMONWEALTH ACT NO. 108, AS AMENDED, OTHERWISE KNOWN AS “THE ANTI-DUMMY LAW”
WHEREAS, there have been conflicting interpretations as to whether Section 2-A of Commonwealth Act No. 108, as amended, otherwise
known as the Anti-Dummy Law, allows aliens to become members of the board of directors or governing body of corporations or associations
engaging in partially nationalized activities;
WHEREAS, it is fair and equitable and in line with the constitutional policy expressed in Article XIV, Section 5 of the Constitution, that foreign
investors be allowed limited representation in the governing board or body of corporations or associations in proportion to their allowable
participation in the equity of the said entities;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do
hereby order and decree:
Section 1. Section 2-A of Commonwealth Act No. 108, as amended, is hereby further amended to read as follows:
“Section 2-A. Any person, corporation, or association, which, having in its name or under its control, a right, franchise, privilege, property or
business, the exercise or enjoyment of which is expressly reserved by the Constitution or the laws to citizens of the Philippines or of any
other specific country, or to corporations or associations at least sixty per centum of the capital of which is owned by such citizens, permits or
allows the use, exploitation or enjoyment thereof by a person, corporation or association not possessing the requisites prescribed by the
Constitution or the laws of the Philippines; or leases, or in any other way, transfers or conveys said right, franchise, privilege, property or
business to a person, corporation or association not otherwise qualified under the Constitution, or the provisions of the existing laws; or in
any manner permits or allows any person, not possessing the qualifications required by the Constitution, or existing laws to acquire, use,
exploit or enjoy a right, franchise, privilege, property or business, the exercise and enjoyment of which are expressly reserved by the
Constitution or existing laws to citizens of the Philippines or of any other specific country, to intervene in the management, operation,
administration or control thereof, whether as an officer, employee or laborer therein with or without remuneration except technical personnel
whose employment may be specifically authorized by the Secretary of Justice, and any person who knowingly aids, assists, or abets in the
planning, consummation or perpetration of any of the acts herein above enumerated shall be punished by imprisonment for not less than five
nor more than fifteen years and by a fine of not less than the value of the right, franchise or privilege enjoyed or acquired in violation of the
provisions hereof but in no case less than five thousand pesos: Provided, however, that the president, managers or persons in violating the
provisions of this section shall be criminally liable in lieu thereof: Provided, further, That any person, corporation or association shall, in
addition to the penalty imposed herein, forfeit such right, franchise, privilege and the property provisions of this Act; and Provided, finally,
That the election of aliens as members of the board of directors or governing body of corporations or associations engaging in partially
nationalized activities shall be allowed in proportion to their allowable participation or share in the capital of such entities.
Section 2. This Decree shall take effect immediately.
DONE in the City of Manila, this 28th day of May, in the year of Our Lord, nineteen hundred and seventy

Republic Act No. 8179

AN ACT TO FURTHER LIBERALIZE FOREIGN INVESTMENTS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7042, AND FOR
OTHER PURPOSES
SECTION 1. Section 3, paragraph (a), of Republic Act No. 7042, otherwise known as the “Foreign Investments Act of 1991″, is hereby
amended to read as follows:
“Section 3. Definitions. – As used in this Act:
[a] the term “Philippine national” shall mean a citizen of the Philippines, or a domestic partnershipor association wholly owned
by citizens of the Philippines; or a corporation organized under the laws of the Philippines of which at least sixty percent [60%]
of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines; or a corporation organized
abroad and registered as doing business in the Philippines under the Corporation Code of which one hundred percent [100%]
of the capital stock outstanding and entitled to vote is wholly owned by Filipinos or a trustee of funds for pension or other
employee retirement or separation benefits, where the trustee is a Philippine national and at least sixty percent [60%] of the
fund will accrue to the benefit of Philippine nationals: Provided, That where a corporation and its non-Filipino stockholders own
stocks in a Securities and Exchange Commission [SEC] registered enterprise, at least sixty percent [60%] of the capital stock
outstanding and entitled to vote of each of both corporations must be owned and held by citizens of the Philippines, in order that
the corporation shall be considered a Philippine national.”
SEC. 2. Sec. 7 of Republic Act No. 7042 is hereby amended to read as follows:
“Sec. 7. Foreign investments in domestic market enterprises. – Non-Philippine nationals may own up to one hundred percent [100%] of
domestic market enterprises unless foreign ownership therein is prohibited or limited by the Constitution and existing laws or the Foreign
Investment Negative List under Section 8 hereof.”
SEC. 3. Section 8 of the Foreign Investments Act of 1991 is hereby amended to read as follows:
“Sec. 8. List of investment areas reserved to Philippine nationals [Foreign Investment Negative List]. – The Foreign Investment Negative List
shall have two [2] component lists: A and B:
[a] List A shall enumerate the areas of activities reserved to Philippine nationals by mandate of the Constitution and specific
laws.
[b] List B shall contain the areas of activities and enterprises regulated pursuant to law:
1. which are defense-related activities, requiring prior clearance and authorization from the Department of National Defense
[DND] to engage in such activity, such as the manufacture, repair, storage and/or distribution of firearms, ammunition, lethal
weapons, military ordnance, explosives, pyrotechnics and similar materials; unless such manufacturing or repair activity is
specifically authorized, with a substantial export component, to a non-Philippine national by the Secretary of National
Defense; or
2. which have implications on public health and morals, such as the manufacture and distribution of dangerous drugs; all
forms of gambling; nightclubs, bars, beer houses, dance halls, sauna and steam bathhouses and massage clinics.

“Small and medium-sized domestic market enterprises with paid-in equity capital less than the equivalent of Two hundred
thousand US dollars [US$200,000.00], are reserved to Philippine nationals: Provided, That if [1] they involve advance
technology as determined by the Department of Science and Technology, or [2] they employ at least fifty [50] direct employees,
then a minimum paid-in capital of One hundred thousand US dollars (US$100,000.00) shall be allowed to non-Philippine
nationals.
“Amendments to List B may be made upon recommendation of the Secretary of National Defense, or the Secretary of Health, or
the Secretary of Education, Culture and Sports, endorsed by the NEDA, or upon recommendation motu proprio, of NEDA,
approved by the President, and promulgated by a Presidential Proclamation.
“The transitory Foreign Investment Negative List established in Section 15 hereof shall be replaced at the end of the transitory
period by the First Regular Negative Lists to be formulated and recommended by NEDA following the process and criteria
provided in Sections 8 and 9 of this Act. The First Regular Negative List shall be published not later than sixty [60] days before
the end of the transitory period. Subsequent Foreign Investment Negative List shall become effective fifteen [15] days after
publication in a newspaper of general circulation in the Philippines: Provided, however, That each Foreign Investment Negative
List shall be prospective in operation and shall in no way affect foreign investments existing on the date of its publication.
“Amendments to List B after promulgation and publication of the First Regular Foreign Investment Negative List at the end of
the transitory period shall not be made more often than once very two [2] years.”
SEC. 4. Section 9 of the Foreign Investments Act of 1991 is hereby amended to read as follows:
“SEC. 9. Investment rights of former natural-born Filipinos. – For purposes of this Act, former natural-born citizens of the Philippines shall
have the same investment rights of Philippine citizens in Cooperatives underRepublic Act No. 6938, Rural Banks under Republic Act No.
7353, Thrift Banks and Private Development Banks under Republic Act No. 7906, and Financing Companies under Republic Act No. 5980.
These rights shall not extend to activities reserved by the Constitution including [1] the exercise of profession; [2] in defense-related activities
under Section 8 (b) hereof, unless specifically authorized by the Secretary of National Defense; and [3] activities covered by Republic Act No.
1180 [Retail Trade Act], Republic Act No. 5487 [Security Agency Act],Republic Act No. 7076 [Small Scale Mining Act], Republic Act No.
3018, as amended [Rice and Corn Industry Act], and P.D. 449 [Cockpits Operation and Management]“.
SEC. 5. The Foreign Investments 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 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.

“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.”
SEC. 6. The National Economic and Development Authority, in consultation with the Board of Investments, theDepartment of Trade and
Industry and Securities and Exchange Commission, shall prepare and issue the necessary primer and other information campaign materials
regarding the Foreign Investments Act and the amendments introduced thereto, with copies of said materials furnished all the Philippine
embassies, consulates and other diplomatic offices abroad and disseminated to Filipino nationals, former natural-born Filipino citizens, and
foreign investors, within sixty [60] days after the effectivity hereof.
SEC. 7. The NEDA is hereby directed to make the necessary amendments to the implementing rules and regulations of Republic Act No.
7042 in order to reflect the changes embodied in the Act.
SEC. 8. Sections 9 and 10 of Republic Act No. 7042 and all references thereto in said law are hereby repealed or modified accordingly. All
other laws, rules and regulation and/or parts thereof inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SEC. 9. If any part or section of this Act is declared unconstitutional for any reason whatsoever, such declaration shall not in any way affect
the other parts or sections of this Act.
SEC. 10. This Act shall take effect fifteen [15] days after publication in two [2] newspapers of general circulation in the Philippines.
Approved: March 28, 1996
_____________
Republic Act No. 7042 was amended by Republic Act No. 8179 which was approved on March 28, 1996. The date of effectivity thereof was
on April 15, 1996.
Republic Act No. 8179

Foreign Ownership of Land in the Philippines

P OS TE D BY AD MI N ON SUN DA Y, J ANUA RY 11 TH , 20 09
Real Estate Ownership in the Philippines
Philippines real estate law does not allow outright ownership of real property by foreign nationals. Filipinos and former Filipino citizens
andPhilippine majority owned corporations (Take note of the Anti Dummy Law) are permitted to own land, buildings, condominiums and
townhouses.
Foreign nationals may buy condominiums units in Philippine condos (shares in condominium corporations) as long as not more than 40% of
the units in a project are acquired by foreigners (Republic Act No. 4726, otherwise known as the Condominium Act).
Exceptions to the 40% Foreign Ownership of Philippine Real Property
 Land Aquired before the 1935 constitution
 Acquisition through hereditary succession if the foreigner is a legal or natural heir
 Foreigners who acquired Philippine property when they used to be Filipino citizens, will maintain ownership of those
properties even after their change of citizenship.
 Former natural-born Filipino citizen subject to the limitations prescribed by Law (Batas Pambansa 185 and R.A. 8179)
1 – For residential purpose – 1,000 square meters of urban land or one (1) hectare of rural land (BP 185)
2 – Cannot own both urban and rural land. Choose one type only.
3 – Previous ownership (when still a Filipino citizen) of residential urban or rural land will lower the 1,000 sq meter and 1
hectare limits above.
4 – Can own a maximum of two (2) lots only.
5 – Those lots must be in different cities or municipalities in the Philippines.
6 – A transferee of residential land acquired under Batas Pambansa Blg. 185 may still avail of the privileges granted under R.A.
7042 as amended by R.A. 8179.
For business or other commercial purpose – 5,000 square meters of urban land or three hectares of rural land. Section 5 of
Rule XII states: “the land should be primarily, directly and actually used in the performance or conduct of the owner's business
or commercial activities in the broad areas of agriculture, industry and services including the lease of land but excluding the
buying or selling thereof.”
- Ownership (when still a Filipino citizen) of urban or rural land used for business purposes will lower the 5,000 square meter
and 3 hectare limits.
 - Ownership of only one type of land is allowed either urban or rural not both.
- Ownership is restricted to 2 lots. Each lot must be in a different municipality.

Ownership Of Houses or Buildings by Foreigners in the Philippines

Foreigners my own buildings or houses in the Philippines legally; as long as they do not own the land on which it is built.
Foreign individuals, corporations or associations may lease land for a period of 25 years renewable for another 25 years. (P. D. No 471,
Fixing a Maximum Period for the Duration of Leases or Private Lands to Aliens)
Companies or individuals investing in the Philippines may receive government permission to lease land for up to 50 years renewable for
another 25 years. (Republic Act No. 7652, otherwise know as the Investors’ Lease Act)