2020 Philippine Real Estate/Property Investment

real estate philippines1
real estate philippines1

Philippine Real Estate/Property Investment


The Philippines, a country with almost all the desirable facilities one can ask for like the beauty of the scenarios, the flora and the fauna, it’s climate, beaches, just to name a few, attracts not just tourists but also typically a large amount of ex-pats.

Investing in real estate in Philippines is a great chance and opportunity one can have to generate profit, have their home of their dreams and because real estate is a long term investment which could last a lifetime and on the other hand the values of property keeps rising.

Following is the guide for real estate investment in Philippines:

Real Estate investing is all about owning a property through which one can earn a profit. So the real question now arises is that how an individual can buy a property in Philippines?

There are a variety of steps involved when it comes to the process of buying property as because it mostly depends on the type of property being purchased. It is not as complicated as one might think. The duration for getting all the things done is usually one month or so.

The following legal steps are to be taken:

  1. One of the important steps that need to be taken into consideration is that the buyer needs to make sure if the title of the landowner is original. There are types of situation that people run into where it is most likely that the property was never in the name of the seller, in that case one needs to stop going any further and start to find another one which needs to be a real owner. And once the buyer is successful in finding a seller according to his requirements, the deal is to be made and a price is to be fixed.
  • The second step that needs to be done by the buyer is to carefully read the deed of absolute sales created by a lawyer and sign the deed in front of a notary public. Notaries are needed to set their own fees. In the deed of the sale, it is needed to be mentioned that the buyer or the seller is fully responsible for the capital gains tax and documentary stamp tax.
  • The capital gains tax and documentary stamp tax are required to be paid to the Bureau of Internal Revenue and after that, once, the CAR (Certificate of Authorizing Registration) and TCL (Tax Clearance) certificates are obtained, it needs to be submitted to the office of the city’s assessor.
  • The buyer is required to pay the real estate tax and transfer fee at the city treasurer’s office once the CAR and TCL is under their hand.
  • Now once the above mentioned steps are completed, The Registry of deeds will ask for requirements that the buyer needs to fulfil. After that, the Registry of Deeds will cancel the ownership of the seller on the property and handovers a new ownership to the buyer.
  • And it is done. The buyer is required to visit the Assessor’s office for the final step which is to request for the tax declaration and hence, the new title of ownership is finally and legally awarded to the buyer.

While there comes a difference in owning property for the Filipinos and the Foreigners. The following states what a foreigner might have to know when he/she desires to buy or purchase property in terms of land:

For Foreigners: Though they are restricted or prohibited from owning land in Philippines, they have the option of owning a residence legally. They also have the option of buying a condominium. According to the Philippine Condominium Act, foreigners can own the condo units, but only if 60% of the unit is owned by Filipinos.

 Foreigners can buy a house or condo but not the land beneath it. According to the location, the costs/prices vary. The highest price will be if it is located near the major city. They are also given the option of dealing into long-term lease on land, with rights of use. If they buy or purchase land through a company or a corporation, 60% of the ownership rights should be of the Filipino citizens, the other 40% can be owned by them, whereas it has to be made sure that the company or the corporation must have the required permission to buy or sell, or to deal as an intermediary in the transaction of the real estate.

If a foreigner marries a Filipino citizen, they can have the chance of owning property but in the name of their spouse. They are still not applicable and are prohibited from transferring the land to them even if they have legally separated from their spouse. The property will be transferred to the relatives if the spouse passes away.

No matter in which way real estate investment is made, the area permitted to foreigners is 1000 sq/m and 2.5 acres of land in urban and rural areas respectively.

For better knowledge and information, in order to buy or purchase a property is to contact a real estate agent which can provide you with the information that can prove to be of great help.


  • For registration fees, 1% of the actual sale price is required to be submitted by the buyer.
  • For Documentary and Stamp Tax, 1.50% of the sale price is to be submitted by the buyer.
  • For Local Transfer Tax, 0.50%- 0.75% is needed to be submitted by the buyer.
  • The amount of Notary Fees is 1% – 2% which is required to be submitted by the buyer.
  • The seller needs to pay 6% for the Capital Gains Tax and 3%-5% for the Real Estate Broker Fee.

Lastly, below is a list of few cities that is said to be the best for Real Estate Investments in Philippines:

  1. Quezon City.
  2. Baguio City.
  3. Tagaytay City.
  4. Makati City.
  5. Davao City.
  6. Cebu City.
  7. Angeles City.
  8. Muntinlupa City.

Back To Top