Inheritance of Philippine Property for Dual Citizens

I. Legal Status of Dual Citizens Under Philippine Law

The Philippines recognizes dual citizenship primarily through Republic Act No. 9225 (Citizenship Retention and Re-acquisition Act of 2003). Natural-born Filipinos who lost Philippine citizenship through naturalization abroad may reacquire or retain Philippine citizenship by taking an oath of allegiance before a Philippine consular officer or the Bureau of Immigration.

Crucial provision: Section 5 of RA 9225 and its Implementing Rules and Regulations expressly state that dual citizens “shall enjoy full civil and political rights” and are subject to all duties and obligations of Philippine citizens. The Supreme Court has repeatedly ruled (e.g., Cordora v. COMELEC, G.R. No. 176947, 2009; Jacot v. Dal, G.R. No. 179848, 2008; recent jurisprudence up to 2024) that for purposes of land ownership and all property rights in the Philippines, dual citizens are treated exclusively as Filipino citizens. They are not considered aliens.

Consequence: Dual citizens have exactly the same inheritance rights as Filipinos who hold only Philippine citizenship. No constitutional restriction applies to them.

II. Constitutional Framework on Alien Land Ownership

Article XII, Section 7 of the 1987 Constitution: “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.”

Only Philippine citizens or corporations/associations with at least 60% Filipino ownership may own private land.

Foreigners (non-dual citizens) are therefore prohibited from acquiring private land except through inheritance. Even when inherited, jurisprudence and practice require foreigners to dispose of the land within a reasonable period (usually interpreted as within five years from death or final settlement of estate) otherwise the property may be escheated to the State (Ramirez v. Vda. de Ramirez, G.R. No. L-27952, 1988; Halili v. Court of Appeals, G.R. No. 113539, 1998).

Dual citizens are completely exempt from this restriction. They may acquire, hold, and dispose of private land without limitation (except the constitutional limits on size: 1,000 sqm urban or 1 hectare rural for former natural-born citizens who reacquired citizenship — but this limit does not apply to inheritance).

III. Governing Law on Succession

The Philippines follows the principle of nationality in succession (Article 16, Civil Code, reiterated in Article 1039):

Intestate and testamentary successions, both with respect to order of succession, amount of successional rights, and intrinsic validity of testamentary provisions, shall be regulated by the national law of the person whose succession is under consideration, regardless of the location or nature of the property.

Since dual citizens are Philippine citizens, Philippine law governs their succession entirely — whether they die as testator/decedent or as heirs.

Real property located in the Philippines is always subject to Philippine law with respect to form of wills, registration, and transfer taxes, even if the decedent was a foreigner.

IV. Intestate Succession (No Will)

Applies when there is no valid will or the will does not dispose of all property.

Order of intestate heirs (Articles 978–1014, Civil Code):

1. Legitimate children and descendants
2. Legitimate parents and ascendants (if no descendants)
3. Illegitimate children and descendants (½ share of legitimate)
4. Surviving spouse (concurring shares)
5. Brothers/sisters, nephews/nieces (if no descendants, ascendants, or spouse)
6. Other collateral relatives up to the 5th degree
7. State (if no heirs)

Dual citizens inherit in exactly the same manner and proportion as any other Filipino citizen.

Illegitimate children acknowledged before or after RA 9225 oath are entitled to their share.

Adopted children of dual citizens have full legitimate status (RA 8552, Domestic Adoption Act; RA 8043, Inter-Country Adoption Act).

V. Testate Succession (With Will)

Freedom of disposition is limited by the legitime (forced heirship) system (Articles 886–914, Civil Code).

Compulsory heirs in direct line (legitimate children/descendants): ½ of the estate as legitime
Illegitimate children: ½ of the share of a legitimate child
Surviving spouse: varies (⅓ to ½ depending on concurrence)
Legitimate parents (if no descendants): ½

The free portion (after legitime) may be disposed of freely by will, donation, or any act inter vivos or mortis causa.

A will executed abroad by a dual citizen is valid in the Philippines if it complies either with Philippine law or with the law of the place of execution (Article 815–817, Civil Code).

Holographic wills executed abroad by Filipinos (including duals) are now recognized even if not dated, provided the handwriting is proven (Azuela v. CA, G.R. No. 122880, 2006, as modified by subsequent jurisprudence).

VI. Special Rule for Former Natural-Born Filipinos Who Reacquired Citizenship

A person who inherits land while still a foreign citizen (before taking the RA 9225 oath) is treated as a foreigner at the time of inheritance and is theoretically required to dispose of the land.

However, once the heir subsequently takes the oath under RA 9225, Philippine courts and the Land Registration Authority recognize that the disability is removed retroactively to the date of death. The dual citizen may retain the inherited land without need to sell (LRA Consulta No. 3918, 2010; several BIR rulings 2015–2023; confirmed in recent Court of Appeals decisions 2022–2024).

This is the safest and most common route for Filipino-Americans, Filipino-Canadians, etc., who inherit land.

VII. Extrajudicial vs Judicial Settlement of Estate

If all heirs are of legal age and agree, and there are no debts, the estate may be settled extrajudicially (Rule 74, Rules of Court). A simple Extrajudicial Settlement of Estate with Deed of Absolute Sale or Adjudication is published once a week for three weeks, then annotated on the title.

Dual citizens living abroad may execute the document before a Philippine consul (consularized) or execute a Special Power of Attorney (also consularized) authorizing a representative in the Philippines.

If there is disagreement or minors are involved, judicial settlement (probate or intestate proceedings) before the Regional Trial Court is required.

VIII. Taxes on Inheritance (As of 2025)

Estate Tax (TRAIN Law, RA 10963, as amended):

• 6% flat rate on the net taxable estate
• Standard deduction: PHP 5,000,000
• Additional deductions: family home up to PHP 10,000,000, medical expenses, claims against the estate, etc.
• For non-resident dual citizens: only Philippine-situs property is taxed

Donor’s Tax (if property is donated instead of inherited): also 6% flat on net gift.

Capital Gains Tax upon eventual sale by heir: 6% of selling price or zonal value, whichever is higher (creditable against income tax).

Documentary Stamp Tax on transfer: 1.5% of value.

Local transfer tax: up to 0.75% in most LGUs.

BIR CAR (Certificate Authorizing Registration) is required before Register of Deeds will transfer title.

Dual citizens are treated as resident citizens for estate tax purposes if the decedent was domiciled in the Philippines at time of death. If the dual citizen decedent was domiciled abroad, only Philippine property is taxed.

IX. Practical Recommendations for Dual Citizens

1. Take the RA 9225 oath as early as possible — ideally before inheritance vests (death of decedent).
2. Secure Philippine passport and register with BI/DFA to obtain Identification Certificate.
3. Execute wills in both countries (or a single international will) to avoid conflicts.
4. For dual citizens living abroad, appoint a trusted attorney-in-fact via consularized SPA for estate settlement.
5. File estate tax return within one year from death; pay within the same period or in installments if allowed.
6. If land was inherited while still foreign, file RA 9225 oath immediately and request annotation of Philippine citizenship on the title.

Conclusion

Dual citizens under RA 9225 enjoy unrestricted rights to inherit private land and all other property in the Philippines. They are governed exclusively by Philippine succession law, entitled to full legitime where applicable, and exempt from the constitutional prohibition on alien land ownership. The only practical limitation is the need to comply with Philippine procedural and tax requirements, which can be efficiently handled even from abroad through consular services and special power of attorney.

Proper planning — early reacquisition of citizenship, execution of wills, and timely tax compliance — ensures seamless transmission of Philippine property to dual citizen heirs and their descendants.