This is another place where terminology can create confusion. “Freehold” is not the principal statutory category used in the Philippine Constitution in the same way it is in some common-law jurisdictions.
Philippine law principally speaks of ownership, private lands, lease, leasehold rights, etc.
So when someone says: “99-year freehold in the Philippines”, that phrase should immediately raise a red flag.
A better description would be: 99-year leasehold, if the investor does not own the underlying land.
“Freehold” implies an ownership interest that is not limited to a fixed lease term.
#There are some exceptions to foreign land ownership
The rule against foreign ownership isn’t absolute.
Former natural-born Filipinos
Article XII, Section 8 allows a natural-born Filipino who lost Philippine citizenship to become a transferee of private land subject to statutory limitations.
For residential purposes, BP 185 provides the statutory framework and limits acquisition to specified areas.
There are also statutory rules governing former natural-born Filipinos acquiring land for business purposes.
Hereditary succession
Article XII, Section 7 expressly recognizes an exception for hereditary succession.
Condominium ownership
Foreigners can also acquire condominium units, subject to the 40% foreign-ownership ceiling applicable to the condominium project under the Condominium Act.
RA 4726 provides that transfers cannot cause foreign ownership in the condominium corporation to exceed limits imposed by law.
That is why a foreigner can legally own a condominium unit in the Philippines even though he generally cannot buy a house-and-lot in his own name.
Since RA 12252, qualified foreign investors can lease private land for an aggregate period of up to 99 years, subject to investment, registration, land-use and other conditions.
Is there a 99-year land freehold system?
A 99-year lease is still leasehold. It does not turn the foreign investor into the landowner.