Q. I am now a Canadian citizen. I intend to retire in two (2) years in my home town province in the Philippines. I’m planning to develop and use the Canadian hydro-phonic agriculture technology to the three(3) hectares of land that I’ve asked my brother to buy for me earlier . Based on my research, this farming technology has a very promising business and profit potentials.
However, lately somebody told me that I may have a problem in pursuing this business because as a former Filipino citizen, I am only allowed to own a maximum of one(1) hectare in case of rural land and one(1,000) thousand square meters in case of urban land.
Assuming this to be true , I figured out that with a one hectare land , using the hydro-phonic technology, it might not be financially feasible for the project to proceed. Through your column, I wish to seek your opinion as regards the Philippine laws concerning my future business plans in my home town province. Thanks. Oscar
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ANS. The information that you gathered as regards the limitation of land ownership of one (1) hectare to former natural born Filipino citizen, is only applicable to owning land for residential purposes only pursuant to Batas Pambansa Blg. 185, under the following terms and conditions:
1. That the transferee of this land should have been a former natural-born Filipino citizen. Implying therefore that naturalized Filipino citizen, who have lost their Filipino citizen cannot qualify to this privilege.
2. That the aggregate ownership of the land that may be owned by the concerned transferee does not exceed the 1,000- square meter and one-hectare for Urban and Rural lands, respectively.
3. That the ownership of this land, whether Urban or Rural, should be for residential purposes only.
However, there is a special law which is applicable to your business plan. This statute allows a former natural born Filipino citizen to own land to a maximum of 5,000 sq.meters of urban land and a maximum of three (3) hectares for rural land for business purposes, pursuant to RA 7042 as amended by RA 8179.
Under Section
5 of Rule XII implementing RA 7042 , it provides that the parcels of land
Should be 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.
Thus, for as long as your intended business does not involved in the buy and sell of real properties in
the Philippines, you are therefore qualified to own such parcels of land as prescribed
above and more particularly in the kind and nature of business you intend to have
in the Philippines. Looking forward you’ll find the above in order. Thank for writing.