The foreign ownership framework for Philippine real property is rooted in the 1987 Constitution — but the practical interpretation, enforcement, and supplementary regulations continue to evolve. For investors tracking this space, here is the current state of play in 2026.
The Constitutional Baseline (Unchanged)
Article XII, Section 7 of the 1987 Philippine Constitution remains the foundational restriction: foreign nationals and foreign-majority entities cannot own private land in the Philippines. This constitutional provision has not changed, and no legislative amendment has passed that would alter this fundamental restriction.
What this means in practice:
- Foreigners cannot hold a Transfer Certificate of Title (TCT) for land in their own name
- This applies regardless of how long the foreigner has lived in the Philippines
- Married to a Filipino? The Filipino spouse can own land, but the foreign spouse cannot co-own
- No amount of investment or SRRV visa status changes land ownership rights
What IS Permitted for Foreign Nationals
Condominium unit ownership (CCT)
Foreign nationals can own condo units with a CCT in their name. Total foreign ownership per project capped at 40% (RA 4726).
Long-term land lease (50+25 years)
Under RA 7652, foreigners can lease private land for 50 years (initial) + 25 years (renewal). Structure ownership is fully permitted.
Corporate structure (60% Filipino equity)
A Philippine domestic corporation can own land if at least 60% of equity is held by Filipino nationals. Foreign shareholders: maximum 40%.
Inheritance by foreign nationals
A foreigner can inherit Philippine land through a Filipino spouse, but cannot transfer or subdivide the inherited land during their lifetime.
2026 Regulatory Developments to Watch
Charter Change (Cha-cha) and foreign land ownership liberalisation
Proposals to amend the Constitution to allow limited foreign land ownership have been discussed in Congress for several sessions. As of Q1 2026, no amendment has passed. The constitutional amendment process requires a supermajority in both chambers and a plebiscite — making significant near-term changes unlikely but worth monitoring.
Increased Foreign Investment Board streamlining
The Marcos administration implemented several Investment Promotion Agency reforms, reducing bureaucratic friction for foreign investors. This affects the corporate registration process but does not change underlying land ownership restrictions.
Condominium Act foreign quota enforcement
The HLURB/DHSUD has been more actively enforcing the 40% foreign ownership cap, with several projects receiving warnings for inadequate tracking. Buyers should request certified ownership certificates from developers.
Understand Your Ownership Options