In my opinion, it depends on how big your website is and how much translation is involved.
Parsing XML would take some more time than just including a php file with the defines but, that won't be a deal breaker.
I'd find it easier in terms of maintenance to use XML, that would allow you to even create nodes based on page names or other attributes to sort their content
<page name="homepage">
<tag name="tittle">Titulo</tag>
..
..
</page>
<page name="products">
<tag name="product-title">Producto</tag>
..
..
</page>
You may also want to take a look at PHP's internationalization guide in case you need a bit more than just multiple language support http://php.net/manual/en/book.intl.php