For Expatriates or SRRV Retirees there is the possible desire to purchase property or make investments in property. The current laws in the Philippines mandate that only Philippine citizens can own land. Foreigners can own Condominiums, they can own improvements made to land such as the building erected on land, but not the title to the land itself. Our professional counsel can advise you on all the options and possible solutions available to you.
People's civil circumstances are very varied and we will not attempt to detail all the different scenarios here. However, we do caution foreigners – (SRRV Retirees or those married to Filipinos) wishing to reside in the Philippines and acquire a homestead, that whilst it is tempting to listen to locals or related parties, professional advice is always wise money spent and can avoid problems whose resolution may be tedious, expensive, or in the end even impossible to resolve equitably.
When entering into a purchase agreement one needs to know what are the fees and commercial norms in the Philippines, as often the case Vendors may apply hidden of unfair fees conveniently buried in the 'small print' with the purchaser hastened by enthusiasm and or sales pressure from pushy Agents to execute. Engaging FIDCO ensures there is always time to do it right.
Below are the typical costs associated with a purchase:
The SELLER pays for the:
- Capital Gains Tax equivalent to 6% of the selling price on the Deed of Sale or the zonal value, whichever is higher. (Withholding Tax if the seller is a corporation)
- Unpaid real estate taxes due (if any).
- Agent / Broker's commission.
The BUYER pays for the cost of Registration:
- Documentary Stamp Tax - 1.5% of the selling price or zonal value or fair market value, whichever is higher.
- Transfer Tax - 0.75% of the selling price, or zonal value or fair market value, whichever is higher.
- Registration Fee - 0.25% of the selling price, or zonal value or fair market value, whichever is higher.
If you are thinking of purchasing a property let us advise you, and if you are proceeding to purchase undertake our professional conveyancing service.