Philippines Tax Authority

World Bank Philippines page

Healy Consultants independently assists clients effectively and efficiently manage all legal, accounting, finance and tax matters relating to Philippines property investment, including residential and commercial property in the primary and secondary market. Key factors of interest for international investors choosing Philippines property investment include:

1.

Philippines property investment is challenging for foreigners because of restrictive foreign investment regulations. Furthermore, as a third-world economy with an underdeveloped infrastructure and high crime rates, the Philippines is a less attractive location in which to live for some foreign investors. To highlight this, no Filipino city is ranked highly in Mercer Human Resource Consulting's 2007 Quality of Living Survey.

That said, since 2004 the Philippines is experiencing strong economic growth, stimulating demand for luxury property as local wealth increases and foreign professionals relocate to work in the Philippines. Furthermore, Philippines property investment is attractive because of low property prices, especially compared to other Asian cities such Hong Kong and Singapore.

Foreigners are restricted by law to buying units in luxury condominium developments, and this is the most popular route for Philippines property investment. However, foreigners are also eligible to buy Philippines property if they hold a Special Retirement/Investment Visa.

4.

Philippines property investment is supported by only a limited range of financing options with high interest rates. Most foreign investors pay developers a 30% lump sum up front, followed by large cash installments for five years or less.

Although Philippines property investment is excellent value, high transaction costs and taxes deter some foreign buyers. For example, total costs of property purchase average 20% of the property value, including Capital Gains Tax of 6%, the real estate agent's fee of between 3% and 5%, 12% value added tax (VAT) on the purchase price of the property, 1.5% stamp duty, 0.5% in transfer fees and a title registration fee.

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For more information on the Philippines property market and transacted prices, visit our Philippines property market page.

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