Land Ownership By Filipinos Overseas

Dual Citizenship Law

SECTION 1. Title. - This Act shall be known as the "Foreign Investments Act of 1991."

SEC. 2. Declaration of Policy. - It is the policy of the State to attract, promote and welcome productive investments from foreign individuals , partnerships, corporations, and governments, including their political subdivisions, in activities which significantly contribute to national industrialization and socio-economic development to the extent that foreign investment is allowed in such activity by the Constitution and relevant laws. Foreign investments shall be encouraged in the enterprises that significantly expand livelihood and employment opportunities for Filipinos; enhance economic value of farm products; promote the welfare of Filipino consumers; expand the scope, quality and volume of exports and their access to foreign markets; and/or transfer relevant technologies in agriculture, industry and support services. Foreign investments shall be welcome as a supplement to Filipino capital and technology in those enterprises serving mainly the domestic market.

As a general rule, there are no restrictions on extent of foreign ownership of export enterprises. In domestic market enterprises, foreigners can invest as much as one hundred percent [100%] equity except in areas included in the negative list. Foreign-owned firms catering mainly to the domestic market shall be encouraged to undertake measures that will gradually increase Filipino participation in their businesses by taking in Filipino partners, electing Filipinos to the board of directors, implementing transfer of technology to Filipinos, generating more employment for the economy and enhancing skills of Filipino workers.

SEC. 3. Definitions. - As used in this Act:
a. The term "Philippine national" shall mean a citizen of the Philippines; of a domestic partnership or association wholly owned by citizens of the Philippines; or a corporation organized under the laws of the Philippines of which at least sixty percent (60%) of the capital stock outstanding and entitled to vote is owned and held by citizens of the Philippines; or a corporation organized abroad and registered as doing business in the Philippines under the Corporation Code of which one hundred percent (100%) of the capital stock outstanding and entitled to vote is wholly owned by Filipinos or a trustee of funds for pension or other employee retirement or separation benefits, where the trustee is a Philippine national and at least sixty percent (60%) of the fund will accrue to the benefit of Philippine nationals: Provided, That where a corporation and its non-Filipino stockholders own stocks in a Securities and Exchange Commission (SEC) registered enterprise, at least sixty percent (60%) of the capital stock outstanding and entitled to vote of each of both corporations must be owned and held by citizens of the Philippines and at least sixty percent (60%) of the members of the Board of Directors of each of both corporations must be citizens of the Philippines, in order that the corporation, shall be considered a "Philippine national." [as amended by Republic Act No. 8179]

b. The term "investment" shall mean equity participation in any enterprise organized or existing under the laws of the Philippines;

b. The term "foreign investment" shall mean an equity investment made by non-Philippine national in the form of foreign exchange and/or other assets actually transferred to the Philippines and duly registered with the Central Bank which shall assess and appraise the value of such assets other than foreign exchange;

c. The phrase "doing business" shall include soliciting orders, service contracts, opening offices, whether called "liaison" offices or branches; appointing representatives or distributors domiciled in the Philippines or who in any calendar year stay in the country for a period or periods totaling one hundred eighty [180] days or more; participating in the management, supervision or control of any domestic business, firm, entity or corporation in the Philippines; and any other act or acts that imply a continuity of commercial dealings or arrangements and contemplate to that extent the performance of acts or works, or the exercise of some of the functions normally incident to, and in progressive prosecution of commercial gain or of the purpose and object of the business organization: Provided, however, That the phrase "doing business" shall not be deemed to include mere investment as a shareholder by a foreign entity in domestic corporations duly registered to do business, and/or the exercise of rights as such investor; nor having a nominee director or officer to represent its interests in such corporation; nor appointing a representative or distributor domiciled in the Philippines which transacts business in its own name and for its own account;

e. The term "export enterprise" shall mean an enterprise wherein a manufacturer, processor or service enterprise exports sixty percent (60%) or more of its output, or wherein a trader purchases products domestically and exports sixty per cent (60%) or more of such purchases;
the term "domestic market enterprise" shall mean an enterprise which produces goods for sale, or renders services to the domestic market entirely or if exporting a portion of its output fails to consistency export at least sixty percent (60%) thereof; and

f. The term "Foreign Investments Negative List" or "Negative List" shall mean a list of areas of economic activity whose foreign ownership is limited to a maximum of forty percent (40%) of the equity capital of the enterprises engaged therein.

SEC. 4. [i]Scope. - This Act shall not apply to banking and other financial institutions which are governed and regulated by the General Banking Act and other laws under the supervision of the Central Bank.

SEC. 5. Registration of Investments of Non-Philippine Nationals. - Without need of prior approval, a non-Philippine national, as that term is defined in Section 3 [a], and not otherwise disqualified by law may, upon registration with the Securities and Exchange Commission [SEC], or with the Bureau of Trade Regulation and Consumer Protection [BTRCP] of the Department of Trade and Industry in the case of single proprietorships, do business as defined in Section 3 [d] of this Act or invest in a domestic enterprise up to one hundred percent (100%) of its capital, unless participation of non-Philippine nationals in the enterprise is prohibited or limited to a smaller percentage by existing law and/or under the provisions of this Act. The SEC or BTRCP, as the case may be, shall not impose any limitations on the extent of foreign ownership in an enterprise additional to those provided in this Act: Provided, however, That any enterprise seeking to avail of incentives under the Omnibus Investment Code of 1987 must apply for registration with the Board of Investments [BOI], which shall process such application for registration in accordance with the criteria for evaluation prescribed in said Code: Provided, finally, That a non-Philippine national intending to engage in the same line of business as an existing joint venture, in which he or his majority shareholder is a substantial partner, must disclose the fact and the names and addresses of the partners in the existing joint venture in his application for registration with the SEC. During the transitory period as provided in Section 15 hereof, SEC shall disallow registration of the applying non-Philippine national if the existing joint venture enterprise, particularly the Filipino partners therein, can reasonably prove they are capable to make the investment needed for the domestic market activities to be undertaken by the competing applicant. Upon effectivity of this Act, SEC shall effect registration of any enterprise applying under this Act within fifteen [15] days upon submission of completed requirements.

SEC. 6. Foreign Investments in Export Enterprises. - Foreign investment in export enterprises whose products and services do not fall within Lists A and B of the Foreign Investment Negative List provided under Section 8 hereof is allowed up to one hundred percent [100%] ownership.
Export enterprises which are non-Philippine nationals shall register with BOI and submit the reports that may be required to ensure continuing compliance of the export enterprise with its export requirement. BOI shall advise SEC or BTRCP, as the case may be, of any export enterprise that fails to meet the export ratio requirement. The SEC or BTRCP shall thereupon order the non-complying export enterprise to reduce its sales to the domestic market to not more than forty percent [40%] of its total production; failure to comply with such SEC or BTRCP order, without justifiable reason, shall subject the enterprise to cancellation of SEC or BTRCP registration, and/or the penalties provided in Section 14 hereof.

SEC. 7. Foreign Investments in Domestic Market Enterprises. - Non-Philippine nationals may own up to one hundred percent [100%] of domestic market enterprises unless foreign ownership therein is prohibited or limited by the Constitution and existing law or the Foreign Investment Negative List under Section 8 hereof. [as amended by Republic Act No. 8179]

SEC. 8. List of Investment Areas Reserved to Philippine Nationals [Foreign Investment Negative List]. - The Foreign Investment Negative List shall have two [2] component lists: A and B:

a. List A shall enumerate the areas of activities reserved to Philippine nationals by mandate of the Constitution and specific laws.

b. List B shall contain the areas of activities and enterprises regulated pursuant to law:
1. which are defense-related activities, requiring prior clearance and authorization from the Department of National Defense [DND] to engage in such activity, such as the manufacture, repair, storage and/or distribution of firearms, ammunition, lethal weapons, military ordnance, explosives, pyrotechnics and similar materials; unless such manufacturing or repair activity is specifically authorized, with a substantial export component, to a non-Philippine national by the Secretary of National Defense; or
2. which have implications on public health and morals, such as the manufacture and distribution of dangerous drugs; all forms of gambling; nightclubs, bars, beer houses, dance halls, sauna and steam bathhouses and massage clinics.

Small and medium-sized domestic market enterprises with paid-in equity capital less than the equivalent of Two hundred thousand US dollars [US$200,000.00], are reserved to Philippine nationals: Provided, That if: [1] they involve advanced technology as determined by the Department of Science and Technology; or [2] they employ at least fifty [50] direct employees, then a minimum paid-in capital of One hundred thousand US dollars [US$100,000.00] shall be allowed to non-Philippine nationals.

Amendments to List B may be made upon recommendation of the Secretary of National Defense or the Secretary of Health, or the Secretary of Education, Culture and Sports, endorsed by NEDA, approved by the President, and promulgated by a Presidential Proclamation.
The Transitory Foreign Investment Negative List established in Section 15 hereof shall be replaced at the end of the transitory period by the first Regular Negative List to be formulated and recommended by NEDA, following the process and criteria provided in Sections 8 and 9 of this Act. The first Regular Negative Lists shall be published not later than sixty [60] days before the end of the transitory period provided in said section, and shall become immediately effective at the end of the transitory period. Subsequent Foreign Investment Negative Lists shall become effective fifteen [15] days after publication in a newspaper of general circulation in the Philippines: Provided, however, That each Foreign Investment Negative List shall be prospective in operation and shall in no way affect foreign investment existing on the date of its publication.
Amendments to List B after promulgation and publication of the first Regular Foreign Investment Negative List at the end of the transitory period shall not be made more often than once every two [2] years. [as amended by Republic Act No. 8179]

SEC. 9. Investment Rights of Former Natural-Born Filipinos. - For purposes of this Act, former natural born citizens of the Philippines shall have the same investment rights of a Philippine citizen in Cooperatives under Republic Act No. 6938, Rural Banks under Republic Act. No. 7353, Thrift Banks and Private Development Banks under Republic Act No. 7906, and Financing Companies under Republic Act No. 5980. These rights shall not extend to activities reserved by the Constitution, including [1] the exercise of profession: [2] in defense-related activities under Section 8 [b] hereof, unless specifically authorized by the Secretary of National Defense: and, [3] activities covered by Republic Act No. 1180 [Retail Trade Act]. Republic Act No. 5187 [Security Agency Act], Republic Act No. 7076 [Small Scale Mining Act], Republic Act No. 3018. as amended [Rice and Corn Industry Act], and P.D. No. 449 [Cockpits Operation and Management]. [as amended by Republic Act No. 8179]

SEC. 10. Other Rights of Natural-Born Citizen Pursuant to the Provisions of Article XII, Section 8 of the Constitution. - Any natural-born citizen who has lost his Philippine citizenship and who has the legal capacity to enter into a contract under Philippine laws may be a transferee of a private land up to a maximum area of five thousand [5,000] square meters in the case of urban land or three [3] hectares in the case of rural land to be used by him for business or other purposes. In the case of married couples, one of them may avail of the privilege herein granted: Provided, That if both shall avail of the same, the total area acquired shall not exceed the maximum herein fixed.

In case the transferee already owns urban or rural land for business or other purposes, he shall still be entitled to be a transferee of additional urban or rural land for business or other purposes which when added to those already owned by him shall not exceed the maximum areas herein authorized.

A transferee under this Act may acquire not more than two [2] lots which should be situated in different municipalities or cities anywhere in the Philippines: Provided, That the total land area thereof shall not exceed five thousand [5,000] square meters in the case of urban land or three [3] hectares in the case of rural land for use by him for business or other purposes. A transferee who has already acquired urban land shall be disqualified from acquiring rural land and vice versa. [as amended by Republic Act No. 8179]

SEC. 11. Compliance with Environmental Standards. - All industrial enterprises regardless of nationality shall comply with existing rules and regulations to protect and conserve the environment and meet applicable environmental standards.

SEC. 12. Consistent Government Action. - No agency, instrumentality or political subdivision of the Government shall take any action in conflict with or which will nullify the provisions of this Act, or any certificate or authority granted hereunder.

SEC. 13. Implementing Rules and Regulations. - NEDA, in consultation with BOI, SEC and other government agencies concerned, shall issue the rules and regulations to implement this Act within one hundred and twenty [120] days after its effectivity. A copy of such rules and regulations shall be furnished the Congress of the Republic of the Philippines.

SEC. 14. Administrative Sanctions. - A person who violates any provision of this Act or of the terms and conditions of registration or of the rules and regulations issued pursuant thereto, or aids or abets in any manner any violation shall be subject to a fine not exceeding One hundred thousand pesos [P100,000].

If the offense is committed by a juridical entity, it shall be subject to a fine in an amount not exceeding 1/2 of 1% of total paid-in capital but not more than Five million pesos [P5,000,000]. The president and/or officials responsible therefor shall also be subject to a fine not exceeding Two hundred thousand pesos [P200,000].

In addition to the foregoing, any person, firm or juridical entity involved shall be subject to forfeiture of all benefits granted under this Act.

SEC shall have the power to impose administrative sanctions as provided herein for any violation of this Act or its implementing rules and regulations.

SEC. 15. Transitory Provisions. - Prior to the effectivity of the implementing rules and regulations of this Act, the provisions of Book II of Executive Order No. 226 and its implementing rules and regulations shall remain in force.
During the initial transitory period of thirty-six [36] months after issuance of the Rules and Regulations to implement this Act, the Transitory Foreign Investment Negative List shall consist of the following:

A. List A:
1. All areas of investment in which foreign ownership is limited by mandate of the Constitution and specific laws.
B. List B:
1. Manufacture, repair storage and/or distribution of firearms, ammunition, lethal weapons, military ordnance, explosives, pyrotechnics and similar materials required by law to be licensed by and under the continuing regulation of the Department of National Defense; unless such manufacturing or repair activity is specifically authorized, with substantial export component, to a non-Philippine national by the Secretary of National defense;
2. Manufacture and distribution of dangerous drugs; all forms of gambling; nightclubs, bars, beer houses, dance halls; sauna and steam bathhouses, massage clinics and other like activities regulated by law because of risks they may pose to public health and morals;
3. Small and medium-sized domestic market enterprises with paid-in equity capital less than the equivalent of Two hundred thousand US dollars [US$200,000.00], are reserved to Philippine nationals: Provided, That if: [1] they involve advanced technology as determined by the Department of Science and Technology, or [2] they employ at least fifty [50] direct employees, then a minimum paid-in capital of One hundred thousand US dollars [US$100,000.00] shall be allowed to non-Philippine nationals.

SEC. 16. Repealing Clause. - Articles forty-four [44] to fifty-six [56] of Book II of Executive Order No. 226 are hereby repealed.
All other laws or parts of laws inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

SEC. 17. Separability Clause. - If any part or section of this Act is declared unconstitutional for any reason whatsoever, such declaration shall not in any way affect the other parts or sections of this Act.

SEC. 18. Effectivity. - This Act shall take effect fifteen [15] days after approval and publication in two [2] newspapers of general circulation in the Philippines.

Approved,
(Sgd.) RAMON V. MITRA	(Sgd.) JOVITO R. SALONGA
Speaker of the House of Representatives	President of the Senate

This bill, which is consolidation of Senate Bill No. 1678 and House Bill No. 32496, was finally passed by the Senate and the House of Representatives on June 6, 1991.

Approved: June 13, 1991
(Sgd.) CORAZON C. AQUINO
President of the Philippines

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Section 1. In implementation of Section fifteen of Article XIV of the Constitution, a natural-born citizen of the Philippines who has lost his Philippine citizenship may be a transferee of private land, for use by him as his residence, subject to the provisions of this Act.

Section 2. In the case of married couples, one of them may avail of the privilege herein granted; provided, that if both shall avail of the same, the total area acquired shall not exceed the maximum herein fixed. In case the transferee already owns urban or rural lands for residential purposes, he shall still be entitled to be a transferee of additional urban or rural lands for residential purposes which, when added to those already owned by him, shall not exceed the maximum areas herein authorized.

Section 3. A transferee under this Act may acquire not more than two lots which should be situated in different municipalities or cities anywhere in the Philippines; provided, that the total area thereof shall not exceed one thousand square meters in the case of urban lands or one hectare in the case of rural lands for use by him as urban land shall be disqualified from acquiring rural land, and vice versa.

Section 4. As used in this Act:

(a) A natural-born citizen is one who is a citizen of the Philippines from birth without having to perform any act to acquire or perfect his Philippine citizenship.

(b) Urban areas shall include:

1. In their entirety, all municipal jurisdictions which, whether designated as chartered cities, provincial capitals or not, have a population density of at least 1,000 persons per square kilometer;
2. Poblaciones or central districts of municipalities and cities which have a population density of at least 500 persons per square kilometer;
3. Poblaciones or central districts (not included in 1 and 2) regardless of population size which have the following:
   
   
   • Street pattern, i.e., network of streets in either at parallel or right angle orientation;
   • At least six establishments (commercial, manufacturing, recreational and/or personal services); and
   • At least three of the following:
     
     
     1. A town hall, church or chapel with religious services at least once a month;
     2. A public plaza, park or cemetery;
     3. A market place or building where trading activities are carried on at least once a week; and
     4. A public building like a school, hospital, puericulture and health center or library.
   
   
4. Barangays having at least 1,000 inhabitants which meet the conditions set forth in sub-paragraph (3) of paragraph (b) above, and in which the occupation of the inhabitants is predominantly other than farming or fishing.
   
   
5. All other areas of the Philippines which do not meet the conditions in the preceding definition of urban areas shall be considered as rural areas.

Section 5. Transfer as a mode of acquisition of private land under this Act refers to either voluntary or involuntary sale, devise or donation. Involuntary sales shall include sales on tax delinquency, foreclosures and executions of judgment.

Section 6. In addition to the requirements provided for in other laws for the registration of titles to lands, no private land shall be transferred under this Act, unless the transferee shall submit to the register of deeds of the province or city where the property is located a sworn statement showing the date and place of his birth; the names and addresses of his parents, of his spouse and children, if any; the area, the location and the mode of acquisition of his land-holdings in the Philippines, if any; his intention to reside permanently in the Philippines; the date he lost his Philippine citizenship and the country of which he is presently a citizen; and such other information as may be required in Section 8 of this Act.

Section 7. The transferee shall not use the lands acquired under this Act for any purpose other than for his residence. Violations of this Section, any misrepresentation in the sworn statement required under Section 6 hereof, any acquisition through fraudulent means or failure to reside permanently in the land acquired within two years from the acquisition thereof, except when such failure is caused by force majeure, shall, in addition to any liability under the Revised Penal Code and deportation in appropriate cases, be penalized by forfeiture of such lands and their improvements to the National Government. For this purpose the Solicitor General or his representative shall institute escheat proceedings.

Any transferee liable under this Section shall moreover be forever barred from further availing of the privilege granted under this Act.

Section 8. The Minister of Justice shall issue such rules and regulations as may be necessary to carry out the provisions of this Act. Such rules and regulations shall take effect fifteen days following its publication in a newspaper of general circulation in the Philippines.

Section 9. This Act shall take effect upon its approval.

Approved: March 16, 1982

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LAND OWNERSHIP BY FILIPINOS OVERSEAS

Article XII Section 8 of the Philippine Constitution provides that a
natural-born citizen of the Philippines who has lost his/her Philippine
citizenship may be a transferee of private lands subject to limitations
provided by law.

The law on land ownership by Filipinos overseas are contained in Batas
Pambansa Blg. 185, which was enacted in March 1982 and Republic Act
8179, which amended the Foreign Investment Act of 1991. Batas Pambansa
No. 185 stipulates guidelines on land ownership by former Filipinos
for purposes of establishment of residence, while Section 10 of RA 8179
specifies entitlements and conditions for land acquisition for investment
purposes.

Transferee

The acquisition or transfer of private land refers to either voluntary
or involuntary sales, devise or donation. Involuntary sale includes
sales on tax delinquency, foreclosures, and executions of judgment.

Qualifications of Former
Filipinos

Both laws define former Filipinos as citizens of the Philippines from
birth without having to perform any act to acquire or perfect their
Philippine citizenship, who lost said Philippine citizenship, and who
have the legal capacity to enter into a contract under Philippine laws.

Provisions on Land Ownership

The following are the provisions of BP 185 and RA 7042, as amended,
pertinent to land ownership by Filipinos overseas:

Particulars	Provisions under PB 185	Provisions under RA 7042 As amended by RA 8179
Size/Area of Coverage	maximum of 1,000 sq. meters for urban land maximum of one (1) hectare for rural land	maximum of 5,000 sq. meters for urban land maximum of three (3) hectares for rural land
Land Acquisition for both spouses	either of the spouses may avail of the privilege in case both spouses wish to acquire lands for this purpose, the total area acquired should not exceed the maximum allowed	either of the spouses may avail of the privilege in case both spouses wish to acquire lands for this purpose, the total area acquired should not exceed the maximum allowed
Additional Land Acquisition	In case he/she already owns urban or rural lands for residential purposes, he/she may acquire additional urban or rural lands, which when added to those he/she presently owns, shall not exceed the authorized maximum area	In case he/she already owns urban or rural lands for residential purposes, he/she may acquire additional urban or rural lands, which when added to those he/she presently owns, shall not exceed the authorized maximum area
Limits to Acquisition of Land	A person may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines provided that the total area of these lots do not exceed 1,000 sq. meters for urban land or one (1) hectare for rural land for use as residence.	A person may acquire not more than two (2) lots which should be situated in different municipalities or cities anywhere in the Philippines provided that the total area of these lots do not exceed 5,000 sq. meters for urban land or three (3) hectares for rural land for business purposes. An individual who has already acquired urban land shall be disqualified from acquiring rural land and vice versa. Under Section 4 of Rule XII of the Implementing Rules and Regulations of RA 7042 as amended by RA 8179, a transferee who has already acquired urban land shall be disqualified from acquiring rural land and vice versa. However, if the transferee has disposed of his/her urban land, he/she may still acquire rural land vice versa, provided that this will be used for business. A transferee of residential land acquired under Batas Pambansa Blg. 185 may still avail of the privilege granted under this law.
Use of Land	The acquired land should not be used for any purpose other than for residence.	Section 5 of Rule XII specifically states that "the land should be actually, primarily, directly, and actually used in the performance or conduct of the owner's business or commercial activities in the broad areas of agriculture, industry and services including the lease land, but excluding the buying and selling thereof".
Special Requirement	In addition to the requirements provided for in other laws for the registration of titles to lands, the transferee should submit to the Register of Deeds of the province or city where the property is located a sworn statement stating the following : date and place of birth names and address of his/her parents, spouse, and children, if any area, location, and mode of acquisition of landholdings in the Philippines, if any his/her intention to reside permanently in the Philippines date he/she lost his/her Philippine citizenship and the country of which he/she is presently a citizen	In addition to the usual registration requirements pertinent to the conveyance of real estate, the transfer contemplated shall not be recorded unless the transferee submits to the Registry of Deeds of the province or city where the land is situated, the following : certification of business registration issued by the Bureau of Trade Regulation and Consumer Protection of the DTI sworn statement stating Batas Pambansa Blg. 185 certification from assessor of municipality or province where the property is situated that the subject land for transfer is an urban or rural area If an agricultural land is acquired. A certification from the Department of Agrarian Reform that the land is a retained area of the transferor and an affidavit of the transferee attesting that his/her total landholding inclusive of the land to be acquired does not exceed the 5 hectare limit provided under R.A. 6657, is required.
Violations and Penalties	Violations through: misrepresentation in the sworn statement acquisition of land through fraudulent means failure to reside permanently in the land acquired within two (2) years from its acquisition, except when such failure is caused by force majeure shall be penalized by the following: liability to prosecution under the applicable provisions of the Revised Penal Code and subject to deportation in appropriate cases forfeiture of such lands and their improvements to the National Government through escheat proceedings by the Representative of the Solicitor General permanent disqualification from availment of the privilege under this Act

Requirements for Land Registration or Original Certificate of Title (Judicial Titling)

The application for land registration
should be filed in triplicate with the clerk of the Regional Trial Court
of the province/city where the property is located. The following documents
should be attached to the application:

1. Original plan on
   tracing cloth duly approved by the Director of Lands or Regional Land
   Director, or in lieu thereof, a true copy of the same on a tracing of
   cloth properly attested and certified by said Office or the official
   authorized to make such certification, together with two (2) print copies
   thereof
2. Technical description,
   three (3) copies
3. Surveyor's certificate,
   three (3) copies
4. Certificate of the
   assessed value of the property issued by the provincial treasurer, in
   quadruplicate

Requirements for Land Transfer or Transfer Certificate of Title

The following documents are required for the filing of land transfer:

1. Copies of the Deed
   of Absolute Sale
2. Latest real estate
   tax payments
3. Latest tax declaration
   of the property
4. Certificate from
   the Bureau of Internal Revenue that the capital gains tax and documentary
   stamps have been paid
5. Transfer tax
6. Receipt of payment
   of the transfer and registration fees

For more information on land ownership by Filipinos overseas,
please contact:

Land Registration Authority, Law Division
LRA Building, East Avenue cor. NIA Road
Diliman, Quezon City
Tel. Nos. (632) 920-1026/36
Telefax No. (632) 921-1368

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Dual Citizenship Law 

Dual Citizenship:

Implementing Rules and Regulations for R.A. 9225

Memorandum Circular No. AFF-04-01

Rules Governing Philippine Citizenship under Republic Act (RA) No. 9225 and Administrative Order (A.O.) No. 91, Series of 2004

WHEREAS, R.A. No. 9225 declares that natural-born citizens of the Philippines who become citizens of another country shall be deemed not to have lost their Philippine citizenship under conditions therein;

WHEREAS, A.O. No. 91, Section 2 authorizes the BI to promulgate and issue rules and regulations to implement R.A. No. 9225;

WHEREFORE, by authority of A.O. No. 91, Section 2 in relation to Commonwealth Act No. 613, Section 3, as amended, the following rules are hereby adopted to carry out the provisions of R.A. No. 9225.

Section 1. Coverage. - These rules shall apply to former natural-born citizens of the Philippines, as defined. By Philippine law and jurisprudence, who have lost their Philippine citizenship by reason of their naturalization as citizens of a foreign country.

Section 2. Former natural-born Philippine citizen already in the Philippines and BI-requested alien - A former natural-born citizen of the Philippines who is already in the Philippines and registered in the BI shall file a petition under oath to the Commissioner of Immigration for the cancellation of Alien Certificate of Registration (ACR) and issuance of an Identification Certificate (IC), as the case may be, under R.A. No. 9225.

Section 3. Former natural-born Philippine citizen who is abroad but a BI-registered alien - a former natural-born citizen of the Philippines who is abroad but is a BI-registered alien shall file a petition under oath to the nearest Philippine Foreign Post for evaluation. Thereafter, it shall forward the entire records to the Commission of Immigration for the cancellation of Alien Certificate Registration (ACR) and issuance of an IC under R.A. No. 9225.

Section 4. Former natural-born Philippine citizen already in the Philippines and not a BI-registered alien - A former natural-born citizen of the Philippines who is already in the Philippines but has not registered with the BI within sixty (60) days from date of his arrival shall file a petition under oath to the Commissioner of Immigration for the issuance of an IC under R.A. No. 9225.

Section 5. Former natural-born Philippine citizen who is abroad and not a BI-registered alien - A former natural-born of the Philippines who is abroad and is not a BI-registered alien shall file a petition under oath to the nearest Philippine Foreign Post for the issuance of an IC under R.A. 9225.

Section 6. Forwarding address. Photographs. - In all petitions under Section 2 to 5 hereof, the applicant must indicate his or her latest forwarding address. Three (3) recent 2"x2" photographs of the applicant (front, left side, and right side views over white background) shall be attached to the petition.

Section 7. Fees. - Each applicant under these Rules shall pay a one-time fee for the processing of the application and issuance of the corresponding IC.

Applicants already in the Philippines shall attach the official receipt for the amount of P2,500.00 as proof of payment of processing fee. Applicants who are abroad shall attach the official receipt for the amount of US$50 or its equivalent in foreign currency acceptable to the Philippine Foreign Post concerned.

Section 8. Proof as natural-born citizen of the Philippines. - A former natural-born citizen of the Philippines who was born in the Philippines, shall submit the NSO-authenticated copy of his or her birth certificate.

On the other hand, a former natural-born citizen of the Philippines, who was born abroad, shall submit the original copy of the Report of Birth issued by the Philippine Foreign Post and in applicable cases, the Birth Certificate issued by competent foreign authorities.

These documents shall be sufficient to establish that the applicant is a natural-born citizen of the Philippines for purposes of these Rules.

Section 9. Submission of the Oath of Allegiance - Applicants under these Rules shall also sign and attach an Oath of Allegiance to the Republic of the Philippines as follows:

I (name of applicant) solemnly swear (or affirm) that I will support and defend the Constitution of the Republic of the Philippines and obey the laws and local orders promulgated by the duly constituted authorities of the Philippines, and I hereby declare that I recognize and accept the supreme authority of the Philippines and will maintain true faith and allegiance thereto, and that I impose this obligation upon myself voluntarily without mental reservation or purpose of evasion.

Section 10. Strict compliance. Effect of non-compliance. - All petitions must strictly comply with the preceding requirements prior to filing at the Office of the Commissioner or at the nearest Philippine Foreign Post, as the case may be. After the filing of the petition, the same shall be assigned to an evaluating officer who shall evaluate the petition without further proceedings.

In the case of petitions that do not comply with the requirements, the applicant shall be notified to submit the required documents within thirty (30) days from receipt thereof. Otherwise, the petition shall not be favorably acted upon by the Bureau of Immigration or by the Philippine Foreign Post.

If after the evaluation, the documents submitted fail to establish that the applicant is a natural-born citizen of the Philippines, the applicant shall be notified of such fact in writing by the Commissioner of Immigration or by the Philippine Foreign Post.

Section 11. Approval Procedures. - If the petition is found to be sufficient in form and in substance, the evaluating officer shall submit the findings and recommendation to the Commissioner of Immigration or Consul-General, as the case may be, within five (5) days from date of assignment.

For applications filed under Section 2 and 4 of these Rules, the Commissioner of Immigration shall issue, within five (5) days from receipt thereof, an Order of Approval indicating that the petition complies with the provisions of R.A. No. 9225 and its IRR, and further direct the Chief of Alien Registration Division (ARD) to cancel the subject ACR and/or to issue the corresponding IC to the applicant.

Each cancelled ACR shall, however, be attached to the Order of Approval to form part of the records of the applicant.

For applications filed under Section 3 and 5 of these Rules, the Consul-General shall issue, within five (5) days from receipt thereof, the Order of Approval indicating that the petition complies with the provisions of R.A. No. 9225 and its IRR. He shall then transmit copies of the Order of Approval, Oath of Allegiance, including the authenticated Record of Birth or Birth Certificate to the BI. Immediately upon receipt thereof, the BI shall issue the corresponding IC to the applicant and forward the same to the Philippine Foreign Post concerned. If the applicant is a BI-registered alien, the BI shall also cancel the subject ACR.

Section 12. Conferment of Philippine citizenship. Conditions - Subject to full compliance with these Rules, the Oath of Allegiance shall be the final act that confers Philippine citizenship.

In case the applicant is abroad, only the Consul General or a duly commissioned foreign service officer of the Philippine Foreign Post concerned shall administer the Oath of Allegiance.

The Oath of Allegiance shall thereafter be registered in accordance with the provisions of the Civil Registry laws.

Section 13. Repository of Records - The BI Records Section shall maintain the integrity of all documents filed under these Rules. It shall send official copies of the Order of Approval and Oath of Allegiance to the NSO.

Section 14. Copies for the Applicant. Identification Certificate. Correction of errors. - The applicant shall be provided with an official copies of the Order of Approval and the Oath of Allegiance. Further, all IC's issued under these Rules shall indicate Philippine citizenship under R.A. No. 9225 and A.O. No. 91, s. 2004. Any clerical error or errors in the entries of the IC may be corrected, upon written request to and approval by the Commissioner of Immigration. The NSO shall be promptly provided with a copy of the corrected IC.

Section 15. Confidentiality of Records. - Any application, document of information given before the Bureau of Immigration or any Philippine Foreign Post shall not be divulged in any manner to any person or entity without the express written consent of the person to whom such application, record of information belongs.

Section 16. Other beneficiaries of R.A. No. 9225. - This memorandum circular shall equally apply to the unmarried child, whether legitimate, illegitimate or adopted, below eighteen (18) years of age, of those who re-acquire Philippine citizenship upon the effectivity of R.A. No. 9225.

Section 17. Exemption from administrative review. Limitations. - The conferment of Philippine citizenship under these Rules shall no longer be subject to the affirmation by the Secretary of Justice pursuant to DOJ Policy Directive of 7 September 1970 and Opinion No. 108, s. 1996.

However, Philippine citizenship under these Rules may be revoked by competent authority upon a substantive finding of fraud, misrepresentation or concealment on the part of the applicant.

Section 18. Effectivity. - This memorandum circular takes fifteen (15) days after its publication in two (2) newspaper of general Circulation.

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Special Resident Retiree's Visa (SRRV)

The Philippines actively promotes itself as a retirement destination and has actually created as special class of Visa called a Special Resident Retiree’s Visa (SRRV) to encourage people to retire to the Philippines.

SPECIAL RESIDENT RETIREE

The Special Resident Retiree's Visa (SRRV) entitles the holder to multiple-entry privileges with the right to permanent residence in the Philippines. The SRRV is issued by the Bureau of Immigration of the Republic of the Philippines in connection with the Philippine Retirement Authority's Retirement Program for the foreigners and former Filipinos.

APPLICANT ELIGIBILITY

All foreign nationals except those classified as RESTRICTED by the Department of Foreign Affairs (DFA) who are physically healthy and with no derogatory record and who are at least 35 years old and over, may join the Program.

AGE / DEPOSIT REQUIREMENTS

All foreign nationals below 50 and at least 35 years of age are required to deposit the amount of US$75,000.00 with any PRA shortlisted bank. Those aged 50 and above are required to deposit US$50,000.00. Former Filipinos are required to deposit US$1,500.00. The deposit amount of US$50,000.00 shall be required from an applicant who is at least 35 years of age and belongs to any of the following:

Retired military personnel of governments recognized by the Philippines; or 

Former members of foreign diplomatic corps who have served for at least three (3) years in their respective posts; or 

Retired officers and employees of international organizations such as the United Nations and its affiliate agencies, the World Health Organization, World Bank, International Labor Organization and other similar organizations.

FAMILY ELIGIBILITY

A retiree can bring with him, without any additional deposit, his spouse and a child who is unmarried and below 21 years old or, if the spouse is not joining, two (2) children, provided they are legitimate or legally adopted. Additional children with the same qualifications may also be allowed to join the principal retiree under the program provided there is an additional deposit of US$15,000.00 per child. The US$15,000.00 deposit is, however, subject to the same terms as the principal deposit.

Dependents/children will continue to be members of the program and retain their SRRV even after reaching the age of 21 for so long as the required/additional deposit of the principal retiree is maintained in the bank under the PRA account or the investment has not been transferred to other countries and still subsists in the Philippines.

THE DOLLAR DEPOSIT

The requisite dollar deposit can be opened in the name of the principal retiree under an "and/or" account with the spouse who is also a bonafide member of the PRA Program. This also applies to an applicant/retiree who is legally married to a Filipino citizen.

The deposit earns interest in the same currency at minimum LIBOR/SIBOR rate payable in Philippine pesos only. The interest is withdrawable even without PRA clearance. After six (6) months from the time it was opened in any of the PRA short listed banks as a retiree account, the deposit can be converted into active investments subject to prior clearance from PRA.

If the resident retiree decides to terminate his membership in the program, the deposit (including interest) can be withdrawn provided that the resident retiree has notified the PRA in writing, accomplished the EXIT Interview Form, submitted the Original Passport for the cancellation of the SRRV and his PRA I.D. Card and has paid all taxes and duties due on his importations (if any), through the Program.

Under PRA rules, should the resident retiree suffer an untimely demise, the surviving spouse who is a holder of SRRV has the option to become the principal retiree using the original principal dollar deposit as his/her qualifying deposit. If he/she chooses not to, the law on succession shall apply.

DOCUMENTARY REQUIREMENT

A prospective member should submit the following documentation to the PRA:

1. Accomplished Philippine Retirement Authority (PRA) Application form.
2. Valid passport
3. Department of Foreign Affairs (DFA) Medical Examination Form #11 accomplished by a licensed physician from the applicant place of origin, duly authenticated by the Philippine Embassy Consulate or PRA Medical Certificate (RSSC Form #002) accomplished by a licensed physician in the Philippines.
4. Certification by a PRA shortlisted bank of the requisite deposit amount of US$1,500.00, US$50,000 or US$75,000.00 whichever is applicable.
5. Police Clearance issued abroad and duly authenticated by the Philippine Embassy/Consulate, or National Bureau of Investigation (NBI) in the Philippines.
6. Photographs, 1x1 and 2x2, six (6) pieces each.
7. If the spouse is joining the applicant, original copy of Marriage Contract if the applicant's marriage was solemnized in the Philippines or original copy of Marriage Certificate duly authenticated by the Philippine Embassy/Consulate nearest to the applicant's residence abroad if the marriage was contracted abroad.
8. If dependent/s is/are joining the applicant, original copy of Birth Certificate/s of dependent/s born in the Philippines or Birth Certificate/s or Household Register duly authenticated by the Philippine Embassy/Consulate nearest the applicant's residence abroad.
9. Payment of a total of US$2,000.00 (for 35 to 49 years of age) of US$1,500.00 (for 50 years and above) as service and processing fees and US$1,500.00 for former and overseas Filipinos.

ADDITIONAL FEES

1. The amount of Php 7,600 charged by the Bureau of Immigration for change-of-admission status of the principal applicant into a special resident retiree is included in the US$1,500.00 or US$2,000.00 service/processing fee but the additional fee of 7,600.00 for the spouse and for each dependent shall be for the account of the applicant. Likewise, the amount of Php 500.00 is charged as express lane fee for every endorsement to the Bureau of Immigration. US$15.00 per year is charged for every PRA ID card of each applicant, spouse and dependent effective August 16, 2001.
2. Service fee of US $100.00 for each dependent (spouse and children) effective April 1, 2001.
3. If the visa is issued by the Philippine Embassy/Consulate abroad, the applicant and his spouse and dependents shall pay the corresponding visa fees.
4. The Retiree pays the visitorial fee of one percent (1.0%) per annum of the Philippine Peso equivalent of the requisite dollar deposit converted into actual investment effective September 15, 2001.

BENEFITS

A resident retiree or holder of the SRRV is accorded the following benefits: 

1. Permanent, non-immigrant status with multiple entry privileges through the SRRV.
2. Exemption from customs duties and taxes for one time importation of personal effects, appliances, and household furniture worth US$7,000.00 which should not be of commercial quantity and must be availed of within 90 days upon issuance of SRR Visa.
3. Exemption from exit clearance and re-entry permits.
4. Exemption from payment of travel tax provided the retiree has not stayed in the Philippines for more than one (1) year from date of his last entry into the country.
5. Conversion of the requisite dollar deposit into active investments, including purchase of condominium units.
6. Interest on the foreign currency deposit is withdrawable anytime and payable to retirees in Philippine pesos. 
7. Foreign currency time deposit can be converted into Philippine peso deposit after the issuance of SRRVisa with interest subject to 20% withholding tax.
8. Pensions and annuities remitted to the Philippines are tax-free.
9. Guaranteed repatriation of the requisite deposit including invested profits, capital gains and dividends accrued from investments upon compliance with rules and regulations of Bangko Sentral.
10. Exemption from securing the Student's Visa/Special Study Permit. 

INVESTMENT OPTIONS AND TERMS

Resident retirees may avail of the following investment opportunities:

1. Purchase of a condominium unit.
2. Formation of a new corporation and registration with the Securities and Exchange Commission.
3. Purchase of share of stocks in existing corporations registered with the Securities and Exchange Commission, but not those traded in the Stock Exchange.
4. Lease of a parcel of land or house and lot.
5. Construction of a residential unit on leased parcel of land.
6. For former natural born Filipinos, purchase of a lot not exceeding 5,000 square meters in urban areas or three (3) hectares in agricultural areas, for business and other purposes.
7. Purchase of proprietary/membership shares in golf clubs.

The above investments cannot be sold, transferred or encumbered without clearance from PRA.

BENEFITS AND OBLIGATIONS

Foreign nationals are not allowed by the Constitution of the Republic of the Philippines to acquire land except through hereditary succession. However, under existing investment policies and subject to foreign equity restrictions foreigners are allowed to invest in corporations registered with the Securities and Exchange Commission and which may own real property.

In case of sale or liquidation of the retiree's investment, he has the option to (1) re-deposit in his name and or his spouse under the PRA account, the proceeds of the sale either in Peso or in foreign currency, or (2) re-invest the same in another allowable investment outlet.

A retiree is given ninety (90) days from the issuance of his SRRV to avail of tax-free importation of US $7,000.00 worth of personal effects/household goods. The period may be extended for another sixty (60) days upon the request of the retiree through the PRA or The Department of Finance. He may dispose of his personal effects/household goods within three (3) years from the importation. The taxes due must be paid if he decides to dispose of his personal effects/household goods within three (3) years.

Should he decide to terminate his PRA membership within three (3) years following the entry of his personal effects/household goods, he is also required to pay the necessary taxes and duties. However, he may opt to ship back the items to his country of origin to be exempted from paying the taxes and duties.

OTHER OBLIGATIONS OF THE RETIREE

To give the Authority a written notice of any change of information supplied in the application form (e.g. status, name and/or address) within sixty (60) days from such change.

To give the Authority a written sixty (60) days notice of termination of his participation in the program. 

To pay the Authority, by way of visitorial fee, the amount equivalent to one percent (1.0%) of the total amount in Philippine peso equivalent of the foreign currency deposit converted into investment, to be paid in advance for 3 years on the date of withdrawal/conversion of deposit into investment.

To notify the Authority in writing prior to his foreign travel by filling up and submitting a Retiree's Departure Form.

Upon expiry of the one (1) year validity period, surrender the I.D. Card for a replacement of a new one. 

To comply with the rules and regulations of the Authority.

APPLICATION / ENROLLMENT

A retiree may apply for enrollment at:

PHILIPPINE RETIREMENT AUTHORITY
29/F Citibank Tower, 8741 Paseo de Roxas
Makati City, 1200 Philippines

PROCESS OF SRRV ISSUANCE BY PHILIPPINE EMBASSY/CONSULATE

1. Applicant/Marketer submits documents to Philippine Embassy/Consulate.
2. Applicant/Marketer notifies PRA of application/documents submitted to Embassy/Consulate:

• PRA Application form duly accomplished
• Photocopy of Passport page showing Date of Birth
• Medical and Police clearance from place of origin valid for six (6) months, duly authenticated by the Philippine Embassy.
• Certification of the Dollar Time Deposit by any of PRA's short listed bank.
• Photographs
• Marriage Certificate if the spouse is joining
• Birth Certificate if a dependent child is joining.
• Payment of service/processing fee to PRA

3. Embassy/Consulate endorses application/documents to the Depratment of Foreign Affairs (Manila) who in turn endorses the same to PRA for evaluation and processing.
4. PRA reviews documents. If complete, forwards recommendation to DFA Manila for subsequent transmittal to Embassy/Consulate.
5. Embassy/Consulate abroad issues a single-entry SRRV to applicant.
6. Applicant enters Philippines with a single-entry SRRV.
7. Upon arrival in Manila, applicant goes to PRA office for the stamping of the multiple-entry SRRV on the passport by the Bureau of Immigration.

PROCESS OF SRRV ISSUANCE BY THE BUREAU OF IMMIGRATION - MANILA

1. Applicant/Marketer remits deposit requirement to a shortlisted bank in Manila.
2. Bank credits funds to special time deposit account in the name of the applicant.
3. Shortlisted bank sends PRA certification under oath of inward remittance of applicant's deposit.
4. Applicant/Marketer secures Medical and Police Clearance from place of origin duly authenticated by the Philippine Embassy/Consulate. If Medical or Police Clearance are not secured from place of origin, PRA assists applicant to secure the same in Manila in three (3) working days.
5. Applicant enters the Philippines as tourist.
6. Applicant/Marketer submits all documents to PRA in Manila:

• PRA Application
• Medical Clearance
• Police or National Bureau of Investigation (NBI) Clearance
• Certification by bank of the deposit
• Photographs
• Marriage Certificate if the spouse is joining
• Birth Certificate if a dependent/child is joining
• Payment of application fee  

7. PRA evaluates and, if complete, endorses the application to the Bureau of Immigration (BI) for the issuance of SRRV.
8. Applicant is issued SRRV by BI within five (5) working days upon completion/submission of all requirements.

REMITTANCE OF DEPOSIT

1. The procedure in remitting your US$1,500.00, US$50,000.00 or US$75,000.00 deposit to any of our short listed banks is as follows:
2. Go to the nearest major international or commercial bank within your locality.
3. Inquire if that bank handles "Telegraphic Fund Transfer" to banks in the Philippines.
4. Give the following instructions to that bank (normally a form is provided for this purpose):

To ______________________________________
             (Name of Remitting International Bank)
Pay To _________________________________________
          (Name of Depository Bank in the Philippines)
the amount of US 50,000.00/US 75,000.00 to set up an FCDU time deposit account in the name of

Mr. /Mrs._______________________________________
                    (Name of Retiree)
under the (PRA) retirement program. Upon receipt of the remittances, please telephone/advise PRA immediately.

_____________________________
     (Signature of Retiree)

5. SAMPLE ABOVE
6. Retain a copy of the above Telegraphic Transfer instructions.

SHORTLISTED BANKS  

1.    BANK OF COMMERCE

2.    CHINATRUST (PHILS.) COMMERCIAL BANK

3.    EQUITABLE PCI BANK

4.    METROPOLITAN BANK AND TRUST COMPANY

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