Property Ownership Restrictions for Foreigners Married to Filipinos in the Philippines

Updated for general legal principles under the 1987 Constitution, the Family Code, key statutes (e.g., Condominium Act and Investor’s Lease Act), and settled jurisprudential themes. This is informational and not a substitute for specific legal advice.

1) The Constitutional Baseline

Absolute rule on land: Only Filipino citizens and corporations at least 60% Filipino-owned may own land in the Philippines. A foreign national—even if married to a Filipino—cannot be a landowner.

1987 Constitution, Art. XII, Sec. 7: Private lands may be transferred or conveyed only to individuals or entities qualified to own land (i.e., Filipino citizens or 60% Filipino-owned corporations), save in cases of hereditary succession (see §8).
Scope: The ban covers all classes of land (residential, agricultural, commercial, industrial, and forest lands that have been reclassified as alienable and disposable).

Practical meaning for mixed-nationality marriages: Marriage does not create an exception. A foreign spouse cannot hold legal title to land, nor acquire a vested equitable interest that would defeat the constitutional policy.

2) What a Foreign Spouse Can Own

Buildings and Improvements (but not the land): A foreigner may own the house or other improvements erected on land titled to the Filipino spouse (or to a qualified third party), provided ownership of the building is documented (e.g., a separate deed of sale for the structure, annotation on title, tax declarations).
Condominium Units (subject to the 40% cap): Under the Condominium Act, foreigners may own condominium units so long as foreign ownership in the condominium corporation does not exceed 40%. The land remains owned by the condo corporation/association; unit owners hold an interest therein through their membership/shareholding.
Shares in Land-Owning Corporations: A foreigner may own up to 40% of a corporation that owns land. Control, management, and beneficial ownership must align with the nationality split; arrangements that give foreigners effective control beyond their equity stake risk violating the Anti-Dummy Law (see §10).
Long-Term Lease Rights: Foreigners may lease private lands. Under the Investor’s Lease Act (R.A. 7652), leases up to 50 years, renewable for 25 are permitted for investment purposes (often mirrored in residential practice through long-term civil code leases). Lease rights are registrable and can be coupled with rights to construct and own improvements.
Usufruct or Real Rights Short of Ownership: A foreign spouse may hold a usufruct, use, or lease right over land titled to the Filipino spouse, with the right annotated on the title to protect against third parties.

3) Buying Real Property When One Spouse Is a Foreigner

Title must be in the Filipino spouse’s name. Deeds should clearly state the buyer’s Filipino citizenship and marital status (e.g., “Juan Dela Cruz, Filipino, married to Jane Smith, British national”), to make explicit that the land is exclusively owned by the Filipino spouse despite the marriage property regime (see §5).

Foreign funds used to purchase land do not create land ownership. Even if the foreign spouse supplies the purchase money, they cannot acquire legal or beneficial ownership of the land. Courts have consistently refused to enforce “resulting trusts” that would place land ownership in a foreigner, as that would undermine the constitutional ban. The usual practical remedies are limited to equitable reimbursement (money claims), not ownership.

Document the split between land and improvements. If the foreign spouse is funding construction:

Enter a construction agreement stating the foreign spouse owns the building,
Annotate the building ownership or the right to remove improvements on the land title, and
Keep permits, receipts, and tax declarations in the name of the building owner.

4) Condominiums: The 40% Ceiling, Counting Rules, and Pitfalls

Project-level cap: The entire condominium project may not exceed 40% foreign ownership based on shares/memberships tied to units. Developers and registrars typically track the rolling foreign/Filipino ratio.
Parking slots and accessory units usually follow the nationality of the main unit.
Turnover risk: If foreign participation would breach 40% at registration/turnover, the sale to a foreign buyer may not be registrable; developers sometimes impose allocation controls or waiting lists for foreigners.
Developer mortgages: If a foreclosure would temporarily push foreign ownership over 40%, practice is to re-balance ownership before final conveyance.

5) Marriage Property Regimes vs. the Constitutional Ban

Default regime: For marriages celebrated in the Philippines without a valid prenuptial agreement, the Absolute Community of Property (ACP) applies; for earlier marriages under the Civil Code or where stipulated, it may be Conjugal Partnership of Gains (CPG).

Constitutional override: Regardless of ACP or CPG, land cannot form part of the foreign spouse’s share. In a mixed marriage:

Land acquired during the marriage is treated as the exclusive property of the Filipino spouse to comply with the Constitution.
The foreign spouse cannot claim a co-ownership interest in the land through the marital property regime.

But improvements are different: Buildings or improvements (separable from the land) can be owned by the foreign spouse and may be part of the community or separate property depending on the regime and documentation.

Sales and donations between spouses:

Sales: As a rule, sales between spouses are restricted under the Civil Code (subject to narrow exceptions). A purported sale of land by a Filipino spouse to the foreign spouse is void both under civil rules and the Constitution.
Donations between spouses during marriage: Generally void, except for moderate gifts on occasions of family rejoicing (Family Code). In any case, a donation of land to a foreign spouse is constitutionally prohibited.

6) Practical Structuring Options for Mixed-Nationality Couples

Land in Filipino spouse’s name; building owned by foreign spouse
- Use separate instruments: deed of sale for land (Filipino spouse), construction/deed of assignment for the building (foreigner).
- Annotate building ownership and any right to remove improvements upon lease expiry, separation, or death.
Long-Term Land Lease + Ownership of House
- The Filipino spouse (or another Filipino owner) leases the land to the foreign spouse (or to a 100% foreign-owned company for investment scenarios).
- The foreign spouse owns the house; lease stipulates rights, rent, term (50+25 where applicable), and registration with the Registry of Deeds.
Condominium Acquisition
- Confirm foreign quota availability and governance documents (Master Deed, By-Laws).
- Ensure association shares transfer aligns with the 40% cap.
60/40 Corporation (if business-oriented)
- If land is needed for a legitimate business, use a Philippine corporation that is at least 60% Filipino-owned.
- Observe Anti-Dummy Law: foreigners cannot exercise control or hold certain management roles beyond their equity rights, and side agreements granting de facto control are illegal.

7) Former Filipinos and Dual Citizens (Frequently Relevant in Mixed Marriages)

Natural-born Filipinos who lost citizenship may acquire limited areas of land for residential or business use under special laws; if they reacquire Philippine citizenship (e.g., under the Citizenship Retention and Reacquisition Act), they return to full capacity to own land.
Foreign spouses of former Filipinos do not independently acquire the right to own land; title must still be in the name of the qualified Filipino (or reacquired dual citizen). Property relations (e.g., ACP/CPG) cannot be used to vest land ownership in the foreign spouse.

8) Inheritance by a Foreign Spouse (“Hereditary Succession”)

Constitutional carve-out: A foreigner may acquire private land by hereditary succession. Key points:

Intestate succession (by operation of law): Clearly allowed. If the Filipino spouse dies without a will, the foreigner can inherit land as a legal heir (subject to estate proceedings and taxes).
Testamentary succession (by will): Practice and commentary diverge. To avoid using wills to circumvent the ban, the safer, conservative position treats the carve-out as pointing primarily to intestate succession. In testamentary scenarios, registrars and courts scrutinize whether the devise is really a circumvention.
Holding after inheritance: Once validly inherited, the foreigner may hold title. However, disposing or conveying later must still respect nationality rules for the next transferee.
Estate tax and legitimes: Nationality is irrelevant to estate tax and compulsory heirs’ legitimes; what matters is compliance with succession law and tax payment before transfer/registration.

9) Registrations, Annotations, and Due Diligence

Nationality declarations: Deeds and titles typically recite the parties’ nationalities and marital status; registries may require IDs, passports, or affidavits to confirm Filipino citizenship of the transferee of land.
Marital property annotations: Where helpful, annotate that land is exclusive property of the Filipino spouse to comply with the Constitution.
Improvements: Record tax declarations for buildings in the correct owner’s name; if the foreign spouse owns the house, annotate ownership or removal rights on the land title.
Leases/usufructs: Register these real rights to bind third persons.
Condo checks: Verify the project’s current foreign ownership percentage before purchase.

10) The Anti-Dummy Law (ADL)

Purpose: Prevent circumvention of nationality restrictions by using dummies (Filipino titleholders who hold land or corporate shares for the benefit of foreigners).
Prohibited acts: Granting foreigners control, benefits, or management prerogatives beyond what the law allows; side agreements (e.g., voting proxies, secret options, beneficial ownership arrangements) that defeat the 60/40 rule or the land ban.
Penalties: Criminal liability (including imprisonment and fines) for both the foreigner and the Filipino dummy; corporations can be penalized; offending arrangements can be void.

11) Divorce/Annulment, Separation, and Death: Effects on Property

Separation or nullity does not validate past violations. If a foreigner illegally acquired land, subsequent marital changes do not cure the defect.
Claims of reimbursement: In marital dissolution, a foreign spouse may pursue money claims (e.g., for improvements funded), but not land ownership.
Death of the Filipino spouse: The foreign spouse may inherit land by hereditary succession (see §8). Estate proceedings and tax clearances are prerequisites for title transfer.

12) Tax Considerations

Documentary Stamp Tax (DST), Capital Gains/CGT or Creditable Withholding Tax (CWT), Transfer Taxes: Apply to land and condo transfers per standard rules (nationality is irrelevant to the tax incidence).
Estate and Donor’s Taxes:
- Donations between spouses during marriage are generally void; donor’s tax typically becomes a non-issue only because the donation itself is invalid and, for land, also unconstitutional.
- Inheritance triggers estate tax before transfer/registration to heirs (including foreign heirs).

13) Common Mistakes to Avoid

Putting land in the foreign spouse’s name (void) or relying on a “side letter” that says the Filipino spouse holds land “in trust” for the foreigner (unenforceable; may implicate ADL).
Assuming the marital property regime creates a co-ownership in land for the foreigner (it doesn’t).
Ignoring the 40% condo cap or buying the last foreign-quota unit without written confirmation from the developer/association.
Failing to register leases/usufructs or building ownership—leaving the foreign spouse unprotected against third parties.
Using sham corporations to hold land while giving foreigners de facto control (ADL risk).

14) Sensible, Compliant Pathways

For a family home:
- Title the land to the Filipino spouse;
- If the foreign spouse funds the house, document and annotate ownership/removal rights; or
- Consider a long-term land lease to the foreign spouse plus house ownership.
For urban living:
- Buy a condominium unit, confirming room under the 40% foreign quota.
For business use:
- Form a 60/40 Philippine corporation with genuine Filipino control; ensure ADL compliance in governance and operations.
For estate planning:
- Understand the intestate inheritance carve-out; plan around legitimes and taxes; avoid structures that look like dummy arrangements.

15) Quick FAQ

Can a foreigner married to a Filipino be on the land title? No. The land title must be solely in the Filipino’s name (or in a qualified 60/40 corporation’s name).
Can the foreign spouse co-own the house sitting on the Filipino spouse’s land? Yes, the house (as an improvement) can be owned by the foreign spouse; document and annotate.
Can the foreign spouse inherit land? Yes, by hereditary succession—most clearly via intestate succession. Wills require caution to avoid circumvention concerns.
Can we use a corporation so we both “control” the land? A corporation can own land only if ≥60% Filipino-owned and Filipinos exercise genuine control. Sham arrangements breach the Anti-Dummy Law.
What if we divorce abroad? Marital status changes do not validate prior invalid land acquisitions; property claims remain constrained by the constitutional ban. Recognition of a foreign divorce has separate family-law requirements.

Final Note

Because small factual differences (e.g., where and when the marriage occurred, citizenship changes, prenups, how payments flowed, and how documents were drafted and registered) can change outcomes, consult Philippine counsel before committing to a structure or signing any documents.