Conventus Law (CL): How are the current regulations governing foreign ownership of real estate in the Philippines, and have they been changed or developed recently?
SyCipLaw: The 1987 Constitution of the Philippines (“Philippine Constitution”) provides that the exploration, development, and utilization of natural resources, including lands of the public domain, may only be undertaken by Filipino citizens or by corporations whose capital is at least 60% owned by Filipino citizens. Likewise, the Philippine Constitution limits the ownership of private lands only to those who are qualified to acquire and hold lands of the public domain and, thus, is subject to the same 60% nationality restriction.
The Philippines has an Anti-Dummy Law which gives teeth to the nationality restrictions imposed under the Philippine Constitution and statutes by penalizing the following: (a) the use of a Filipino’s name or citizenship for the purpose of evading such constitutional or legal provision requiring Philippine citizenship as a requisite for the enjoyment of a right, franchise or privilege, (b) the false simulation of the existence of the minimum capital as owned by Filipino citizens for the purpose of evading a constitutional or legal provision requiring a minimum nationality requirement for the exercise or enjoyment of a right, franchise or privilege, and (c) foreign intervention in the management, operation, administration or control of a corporation engaged in a partially nationalized activity, whether as an officer, employee or laborer therein with or without remuneration, except that: (i) technical personnel may be employed when specifically authorized by the Secretary of the Department of Justice, and (ii) aliens may be elected as directors in proportion to their allowable participation in the capital of the corporation.
Continue reading here.
Originally published by Conventus Law