Philippines Tax Authority

World Bank Philippines page

Foreign ownership of Philippines property is most commonly via purchase of condominiums in central locations within CBD areas, as ownership of land is prohibited in the Philippines. Below are details related to foreign ownership of Philippines property along with the services offered by Healy Consultants:

Foreign ownership of Philippines property can occur under the following circumstances:

i) The foreign investor has a Filipino spouse through which they buy the property

ii) The foreign investor purchases a condominium unit, as long as not more than 40% of the building foreign owned.

iii) The foreigner holds a Special Retirement/Investment Visa

iv) Via forming a company. When buying Philippines property via a company, a minimum of five shareholders are required, and the Filipino shareholding must be at least a 60%.

Under the Special Retirement/Investment Visa, a foreign ownership of Philippines property is allowed provided the individual meets the following criteria:

i) is at least 35 years old

ii) injects a minimum of US$50,000 into a Filipino bank. This sum can be withdrawn after six months, but must be used for investment purposes in the Philippines, such as for buying property.

iii) pay a processing fee of US$1,500

Healy Consultants assists clients obtain a Special Retirement/Investment Visa, if required.

Foreign ownership of Philippines property tends to be more prevalent in major residential projects built by large, reputable property developers (for example, Robinson's Land Corporation) as these developments minimize the risk of legal problems. Healy Consultants recommends buying Philippines real estate which is backed by well established developers, especially for projects sold 'off-plan'.

To ensure the legal matters associated with foreign ownership of Philippines property are correctly undertaken, Healy Consultants appoints and supervises a local lawyer. An experienced lawyer in the market helps to avoid any issues that can occur, for example, as a result of different local language.

Healy Consultants offers comprehensive professional advice and management services to assist clients with their objective of foreign ownership of Philippines property. Guidance is provided across the residential property market and commercial property market. Our firm develops options based on the needs of the client which can be related to budget, property location, size and facilities of the property, proximity to schools and more.

Foreign ownership of Philippines property requires payment of taxes. Healy Consultants provides professional tax and accounting advice to investors in order to efficiently meet the tax requirements associated with foreign investment in the Philippines. Taxes include a documentary tax of 1.5%, a transfer tax of 0.5%, 10% Value Added Tax (VAT), income tax on rent of 5.13%, along with other fees.

For more information on foreign ownership of Philippines property, call our Singapore office at (+65) 67350120 or contact us at email@healyconsultants.com

Back to Philippines Real Estate page.