Overview

In Philippine law, the big dividing line is land versus a building/unit:

Land (including subdivision lots): as a general rule, foreigners cannot own it.
Condominium units: foreigners may own, but only within strict ownership-cap limits.
Houses/buildings: foreigners may own the structure, but not the land under it—so the arrangement must be legally structured (typically through a lease of the land, or purchase of a condominium-type property rather than a “house-and-lot” lot title).

“Subdivision” does not change the constitutional rule. Most subdivision offerings are “house-and-lot” packages where the buyer ultimately owns a titled lot (TCT). That is the part foreigners generally cannot acquire.

This article explains the rules, the legal exceptions, and the practical ways foreigners lawfully obtain residential property interests in Philippine subdivisions.

1) The Constitutional Rule: Land Ownership Is Reserved to Filipinos

The Philippine Constitution restricts the ownership of lands of the public domain and, as implemented through law and jurisprudence, also strictly limits private land ownership to:

Filipino citizens, and
Corporations/associations that are at least 60% Filipino-owned (often called the “60/40 rule”).

Foreign nationals (non-Filipinos) are generally disqualified from owning land, including:

Subdivision lots
Agricultural land
Residential titled lots
Vacant land, even if inside an exclusive village

Effect in practice: If a property in a subdivision will be titled as a lot under a Transfer Certificate of Title (TCT) in the buyer’s name, a foreigner generally cannot be the registered owner.

2) “Houses” vs “House-and-Lot” in Subdivisions

A) Most subdivision “houses” are legally inseparable from the land for purchase purposes

In common real estate practice, when people say “buy a house in a subdivision,” they usually mean buy the house and the lot. Legally, the sale transfers:

the land title (TCT), and
the improvements/building on it.

Because the land title must transfer, a foreign buyer typically cannot buy a subdivision house-and-lot.

B) A foreigner can own a building, but not the land—if properly structured

Philippine law recognizes that a building/improvement can be owned separately from the land in certain arrangements (for example, where the builder is not the landowner, or where the building is treated as separate property by agreement and registration where applicable).

But in a typical subdivision, the house sits on a privately titled lot. So the lawful structures that foreigners use are usually:

Lease the land (long-term lease) and own the house (or pay for the house construction), or
Buy a condominium-type property (including some “horizontal condominiums” / townhouse condo projects) where ownership is of a unit (CCT) rather than a lot (TCT).

3) Condominium Exception: Foreigners May Own Condo Units (Within Limits)

Foreign ownership of condominium units is allowed—but capped.

A) The 40% foreign ownership limit

Foreigners may own condominium units as long as:

Filipinos own at least 60% of the condominium project’s total ownership interests (often measured by unit count, floor area, or “interest in common areas,” depending on the project’s structure and documentation).

If the project has reached its foreign limit, a foreign buyer may be unable to register the purchase.

B) Why this matters in subdivisions

Some developments that look like “subdivisions” function legally as condominiums, such as:

Condominium townhouses
Cluster housing registered as a condominium project
Mixed-use estates with condo residential components

Key document clue:

CCT (Condominium Certificate of Title) → foreign purchase may be possible (subject to the cap).
TCT (Transfer Certificate of Title) → it’s land; foreign purchase generally prohibited.

4) Buying Through a Philippine Corporation: Possible, But Not a “Foreign Ownership” Workaround

A corporation may own land only if it is at least 60% Filipino-owned.

What a foreigner can do

A foreigner can own up to 40% of a landholding corporation’s equity, and the corporation (if qualified as Filipino) can own land.

The real-world risks and limits

This route is not a magic solution for a foreigner who wants “control” of land:

If the foreigner tries to use Filipino “nominees” while retaining real beneficial ownership/control, that can trigger the Anti-Dummy Law and related invalidation/penalties.
Control provisions that effectively give foreigners control of a landholding corporation can be legally risky.
Banking, title, and compliance checks may scrutinize nationality compliance.

Bottom line: A properly structured corporation can hold land, but it must be genuinely Filipino-controlled consistent with the 60/40 rule—not a paper arrangement.

5) Marriage to a Filipino: What Foreign Spouses Can and Cannot Do

Marriage does not automatically grant a foreigner the right to own Philippine land.

A) Can land be titled in both spouses’ names?

As a general rule, a foreign spouse should not be registered as co-owner of Philippine land. Many practitioners treat placing a foreign spouse on the land title as constitutionally problematic.

B) Common lawful approach

The Filipino spouse is the registered owner of the land (title in Filipino spouse’s name).
The couple may document financial contributions separately to manage expectations and reimbursement rights.

C) What about property regimes (community property / conjugal partnership)?

Philippine family property regimes can complicate how property is characterized between spouses, but constitutional land restrictions still apply. Even if money comes from the foreign spouse, that does not convert into lawful land ownership.

D) If the Filipino spouse dies, can the foreign spouse inherit?

The Constitution contains an exception allowing foreigners to acquire land by hereditary succession. In practice, a foreign spouse may inherit land as an heir. However, inheritance planning and estate settlement are fact-specific (legitimes, wills, intestate succession, compulsory heirs), and the implementation should be handled carefully.

6) Former Natural-Born Filipinos: A Major Exception (With Area Limits)

Foreigners who were formerly natural-born Filipino citizens may acquire private land subject to statutory limits (commonly applied through special laws allowing limited acquisition for residential purposes).

Typical limits referenced in practice:

Up to 1,000 square meters of urban land, or
Up to 5,000 square meters of rural land, and/or limited numbers of lots depending on the statute and circumstances.

This exception is highly relevant for:

Former Filipinos who naturalized abroad
Dual citizens (who reacquire Philippine citizenship—once Filipino citizenship is legally reacquired, they’re no longer “foreigners” for land ownership purposes)

Important: The availability and mechanics depend on the person’s exact citizenship status (former natural-born, dual citizen, etc.) and compliance requirements.

7) Long-Term Leasing: The Most Common Legal Path for Foreigners Who Want a “House in a Subdivision”

If the goal is to live in a subdivision and control a homesite, a long-term lease is often the cleanest lawful structure.

A) Private lease under general law

Leases can be structured long-term (subject to legal limits and enforceability). This may allow a foreigner to:

lease a residential lot,
build or buy a house (improvements),
register the lease (and sometimes a mortgage/encumbrance) to protect the lessee’s rights.

B) Investor’s lease framework

There is also a special law framework commonly used for foreign investors and foreign-owned entities that permits longer lease terms for investment purposes (often cited as 50 years renewable for 25 years, subject to conditions). This is used more for commercial/investment structures, but it can appear in higher-end residential arrangements depending on the facts.

C) What you actually “own” in a lease setup

You do not own the land.
You may own the house/improvements, depending on contract structure.
Your primary right is possession and use for the lease term, plus rights defined in the contract (renewals, transferability, reimbursement for improvements, etc.).

D) Key clauses foreigners should focus on

Term and renewal options
Registration of the lease with the Registry of Deeds (stronger protection)
Right to build / ownership of improvements
Sale/transfer of leasehold rights
Default, eviction, and dispute resolution
Property tax allocations and association dues
Exit plan at end of term (sell improvements, remove improvements, reimbursement)

8) “Nominee” Arrangements and Other Dangerous Myths

A very common mistake is believing that foreigners can “own land” through informal workarounds. Many of these are illegal or legally fragile.

High-risk / commonly problematic schemes

Buying in a Filipino friend’s name with side agreements that the foreigner is the “real owner”
Simulated sales, “trust agreements,” or secret declarations of beneficial ownership
Undocumented arrangements relying only on personal trust
Loans disguised as sales that effectively transfer beneficial ownership to the foreigner
Corporate layering where foreigners control landholding entities beyond legal limits

Why it’s dangerous

The arrangement may be void or unenforceable.
It can expose parties to liability under nationality restriction enforcement frameworks (including anti-dummy enforcement concepts).
It can become a disaster upon breakups, death, disputes, or resale—when the paper owner has full legal power.

9) Subdivision-Specific Realities: HOA Rules, Developer Policies, and Title Types

Even where foreign ownership is legally possible (e.g., condominiums), subdivision and development rules can matter.

A) Homeowners’ associations and village rules

HOAs can impose:

architectural restrictions,
lease/occupancy rules,
construction permits,
visitor and security requirements,
dues and special assessments.

These do not change constitutional ownership rules, but they affect day-to-day enjoyment and feasibility.

B) Developer screening and nationality compliance

Developers often enforce:

nationality checks,
condominium foreign-cap monitoring,
documentary requirements for registration.

C) Always verify the title type early

Before paying a reservation fee or signing:

Ask for the title type (TCT vs CCT).
Confirm whether it’s freehold land (private land) or something else.
Confirm if the development is a condominium project (even if it looks like a “subdivision”).

10) Practical “What Can I Buy?” Scenarios

Scenario 1: “I want to buy a house-and-lot in an exclusive village.”

Typical answer: Not in your name if you’re a foreign citizen. Legal alternatives: long-term lease + house ownership; spouse (Filipino) ownership; corporate route only if properly Filipino-owned; or buy in a condominium-type project instead.

Scenario 2: “I want a townhouse in a gated community.”

It depends on the title:

If it’s condominium townhouse (CCT): possibly yes, subject to the 40% foreign cap.
If it’s lot-titled townhouse (TCT): generally no.

Scenario 3: “I’m married to a Filipina/Filipino—can we put it in both our names?”

Usually not advisable for land. Title is typically placed in the Filipino spouse’s name; structure contributions contractually if needed.

Scenario 4: “I used to be Filipino but became a foreign citizen.”

You may be able to buy limited land under the former natural-born Filipino exception (and/or reacquire Philippine citizenship if eligible).

Scenario 5: “I just want a safe investment I can resell.”

Condominium units are often the simplest foreign-eligible ownership interest, but:

watch the foreign-cap limit,
check rental rules and HOA restrictions,
do title and developer due diligence.

11) Due Diligence Checklist (Foreigner-Focused)

Before signing or paying significant money:

Confirm nationality eligibility route
- Condo (CCT) within cap?
- Former natural-born Filipino exception?
- Leasehold structure?
Check the title
- Authenticity, encumbrances, annotations, correct owner name
- For condos: confirm the project’s compliance and foreign ownership headroom
Developer and project compliance
- Licenses to sell / registration (important for preselling)
- Turnover and completion track record
HOA and subdivision rules
- Leasing rules, construction rules, transfer fees, dues
Tax and costs
- Transfer taxes, registration fees, documentary stamp taxes
- Ongoing real property taxes, association dues, utilities
Contract protections
- Clear refund terms, milestones (for preselling)
- Remedies for delay or defects
- Dispute resolution and governing law/venue

12) Key Takeaways

Foreigners generally cannot own land, including subdivision lots titled under a TCT.
Foreigners can own condominium units (CCT) up to the 40% foreign ownership cap for the project.
Foreigners who want a “house in a subdivision” typically use:
- long-term lease (land lease + house/improvements ownership), or
- purchase in a condominium-type residential development.
Marriage to a Filipino does not automatically grant land ownership rights to the foreign spouse.
Former natural-born Filipinos have a meaningful exception, but limited by land area and statutory conditions.
“Nominee” setups are legally risky and can collapse when disputes arise.

This article is for general information in the Philippine context and is not legal advice. For any planned purchase, have a Philippine real estate lawyer review the title, project documents, and contracts before you pay or sign—especially when foreign nationality restrictions are involved.