Are you a former Philippine citizen desiring to own real property in the Philippines yet not keen on acquiring dual citizenship? If so, you may still acquire local real estate pursuant to Section 8, Article XII of the Constitution which says “[a] natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law. “
First of all, we will not discuss Section 7 Article XII of the Consitution which allows the transfer or conveyance of private lands to aliens in cases of hereditary succession. We will discuss how an alien and natural-born citizen of the Philippines who has lost his Philippine citizenship may purchase Philippine real estate
Republic Act 8179
Sec. 10 of R.A. 8179[1] provides the limitations, mentioned by said Section 8 Article XII, by first defining the term “transferee” as “[a]ny natural-born citizen who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine Laws” and then limiting the area that may be transferred to them as follows:
a) private land up to a maximum area of 5,000 square meters in the case of urban land, or
b) private land up to a maximum area of 3 hectares in the case of rural land.
Either land may be used for “business or other purposes”.
If you and your spouse are eligible to be transferees, one of you may avail of this privilege. But if both of you prefer to be transferees, the total area you both acquire should not exceed the maximum fixed for a single transferee (i.e., 5,000 square meters in the case of urban land or 3 hectares in the case of rural land).
And if you already own urban or rural land – less than the fixed maximum areas - you are still entitled to be a transferee of additional urban or rural land which when added to those you already own shall not exceed said fixed maximum areas.
You may acquire not more than 2 lots which should be situated in different municipalities or cities but, again, the total land area thereof should not exceed the maximum areas fixed. This provision seems to mean that if you want to own more than 1 lot, you cannot own more than 2 and the other lot must be in a different municipality or city.
A transferee who has already acquired urban land is disqualified from acquiring rural land and vice versa. We take this to mean that the transferee has not yet disposed of the previously acquired land; otherwise, it seems the transferee can start from scratch.
Remember, the law speaks only of a transferee. If you already own more than 5,000 square meters of urban land or 3 hectares of rural land (prior to the existence of RA 8179), no one will take any property away from you but you cannot be a transferee of any more property since you already own more than the fixed maximum area.
We note that there are several internet sites (even a Philippine embassy site) which consider BP 185 valid alongside RA 8179. BP 185 limits the transferees to own “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”. [emphasis supplied]
Since RA 8179 allows transferees to own land for “business or other purposes”, we opine that RA 8179 has superseded BP 185 by allowing transferees to own 5,000 square meters of urban land or 3 hectares of rural land areas for residence as well.
In fact, in the case of Matthews vs. Taylor (2009)[3] - where the Supreme Court acted upon “the validity of an Agreement of Lease of a parcel of land entered into by a Filipino wife without the consent of her British husband” - the Supreme Court cited that the “instances when aliens may be allowed to acquire private lands in the Philippines are:
a) By hereditary succession (Section 7, Article XII, Philippine Constitution).
b) A natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private lands, subject to limitations provided by law (Section 8, Article XII, Philippine Constitution). Republic Act No. 8179 now allows a former natural-born Filipino citizen to acquire up to 5,000 square meters of urban land and 3 hectares or rural land, and he may now use the land not only for residential purposes, but even for business or other purposes.
c) Americans who may have acquired title to private lands during the effectivity of the Parity Agreement shall hold valid title thereto as against private persons (Section 11, Article XVII, 1973 Constitution).”
In said case, the Supreme Court clearly no longer sees BP 185’s 1,000 limit for urban land and 1 hectare limit for rural land as still applicable.
We have found no provision prohibiting ownership of lands for mixed uses so it seems the transferee may be able to purchase lands, say, one for business and the other for residence (keeping in mind the limitations in area and location).
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