Recently, the Philippine government has significantly stepped up its crackdown on foreigners who buy land through identity fraud, with cases against Chinese nationals in particular attracting widespread attention.
Media outlets such as the Philippine Daily Inquirer and the Manila Bulletin have reported on how the government is cracking down on those who buy land through forged identity documents.
This series of news has made many investors nervous and have inquired: will the land I bought be confiscated?
As we all know, under the Philippine Constitution, foreigners are not allowed to own land outright. The rationale behind this legal provision is to protect the country's land resources and to ensure the interests of its citizens.
However, many investors bypass this provision through some “unconventional” means, although some owners may have gained some financial benefits through these means, but in fact, these ways are still quite risky.
We have also heard that some bosses purchase land through Filipino friends or intermediaries, or use the names of local people or companies that have not been investigated, but they are often cheated and the intermediaries and Filipinos run away together, and the parties concerned suffer huge losses, and many of them can't even get back their land and capital!
Today we break it down in detail with you:
Q1.What are the risks of illegal land ownership?
Q2.And how can we reasonably own land?
What are the possible risks of being found in illegal possession of land?
1. **Allegations of identity fraud**:
The consequences of using false identity documents are very serious. If discovered, the person concerned will face legal action and, in serious cases, a prison sentence. In its present grim form, the law takes such fraud seriously.
2. **LAND FORFEITURE**:
Under Philippine law, the government has the right to repossess illegally purchased land.
3. **Fines and Evictions**:
Aside from land confiscation, the person concerned may face hefty fines and may even be forced to leave the country.
4. **Impact on Future Investments**:
In the event of a bad record, the person's future investments and life in the Philippines will be affected in the long run.
How exactly should foreigners legally own land in the Philippines?
1. **Long-term lease**:
Foreigners can legally lease land for a long period of time. Although this method only holds the land through a lease and does not own it, it ensures you a long-term, stable right to use the land under the legal framework. By agreeing on rights and obligations through a clear lease contract, it is not only highly flexible but also relatively low in legal risks, making it a safe and reliable option that can effectively protect your interests.
2. **Incorporation in the Philippines**:
Foreigners can incorporate in the Philippines and your company can legally own the land as long as you ensure that at least 60% of the shares are held by Filipino citizens. In this way, you can not only legally own the land, but also conduct related business and expand your investment channels.
To ensure the security of your investment, it is advisable to consult FEILONG LEGAL for legally sound land planning advice before entering into any land transaction.