Philippines (PH)
The Philippines is a Southeast Asian archipelago of 7,641 islands, the third-largest English-speaking country in the world, and one of the most welcoming destinations for expats.
Buying Property in Philippines
The full buying process, transaction costs, mortgage, and legal requirements.
Foreign nationals cannot own land in the Philippines under the Philippine Constitution (Article XII, Section 7). However, foreigners may own condominium units provided foreign ownership across the building does not exceed 40% of the total floor area (PD 957 / RA 4726 Condominium Act). The 40% cap applies at the project level — if a building has reached its limit, new foreign purchases cannot be registered even with a signed contract. Long-term land lease of up to 99 years is the primary alternative for foreigners wanting house-and-lot living, following Republic Act 12252 (signed September 2025, in force 19 September 2025), which amended RA 7652 (Investor's Lease Act) to replace the previous 50-year initial + 25-year renewal structure with a single term of up to 99 years for registered foreign investors. Philippine real estate is regulated by DHSUD (Department of Human Settlements and Urban Development) and brokers must be PRC-licensed.
Rent vs. Buy
Most expats rent rather than buy in the Philippines. Renting is flexible, avoids foreign ownership legal complexities, and is affordable at ₱25,000–₱150,000/month for expat-standard BGC and Makati condos. Buying a condo unit makes sense for long-term residents (5+ years), SRRV holders, or those married to Filipino citizens. Property appreciation in BGC and Makati has been strong (8–15% per annum pre-COVID, stabilising post-2023). Key risk: foreigners cannot own land, and the 40% foreign cap in condo buildings means resale liquidity is restricted to a smaller buyer pool. The new 99-year lease law (RA 12252, 2025) makes long-term house-and-lot arrangements more viable for foreign investors with BOI-registered projects, but it remains a leasehold — not ownership — structure.
Buying Process — Step by Step
Verify title and check encumbrances
3–7 daysRequest TCT (Transfer Certificate of Title) or CCT (Condominium Certificate of Title) from seller. Verify authenticity at the Register of Deeds (RD) of the province/city. Check for liens, mortgages, adverse claims, or lis pendens. Confirm the building's current foreign ownership percentage is below 40% via the condo management office.
Conduct due diligence and check developer accreditation
1–2 weeksHire a PRC-licensed real estate broker or Philippine lawyer. Verify: real property tax (RPT) is current (city/municipal treasurer); no pending court cases; DHSUD developer accreditation for pre-selling units. Check for unpaid condominium association dues. For pre-selling: verify developer financial standing and project completion guarantees.
Execute Deed of Absolute Sale
1–3 daysSign the Deed of Absolute Sale (DOAS) — must be notarised by a Philippine notary public. Pay the reservation fee (₱10,000–₱100,000) upon agreeing terms. Bring passport and ACR I-Card. The notary retains the original; buyer and seller each receive certified copies.
Pay taxes and government fees
5–30 daysBuyer pays: DST (Documentary Stamp Tax) at 1.5% of selling price or BIR zonal value (whichever is higher) within 5 days of notarisation; Transfer Tax at 0.5–0.75% paid to the city/municipal treasurer. Seller pays: Capital Gains Tax (CGT) at 6% of gross selling price or zonal value (whichever is higher) paid to BIR within 30 days of sale. Note: CGT is technically the seller's obligation but buyers sometimes contractually absorb it.
Register transfer at Register of Deeds
2–8 weeksSubmit to RD: notarised DOAS, BIR CAR (Certificate Authorising Registration — issued after CGT payment), DST and Transfer Tax payment receipts, latest RPT clearance, and the owner's duplicate TCT/CCT from the seller. The RD cancels the seller's title and issues a new TCT/CCT in the buyer's name.
Transfer real property tax declaration
1–2 weeksSubmit new TCT/CCT copy to the City/Municipal Assessor's Office to transfer the Tax Declaration to buyer's name. Required for annual RPT billing and future resale transactions.
Transaction Costs
| Cost Item | Amount | Notes |
|---|---|---|
| Documentary Stamp Tax (DST) | 1.5% of selling price or BIR zonal value (whichever is higher) | Paid by buyer at BIR within 5 days of notarisation |
| Transfer Tax | 0.5%–0.75% of selling price | Paid by buyer at city/municipal treasurer |
| Capital Gains Tax (CGT) | 6% of gross selling price or zonal value (whichever is higher) | Legally the seller's obligation; sometimes contractually transferred to buyer |
| Register of Deeds registration fee | ~0.25% of selling price | Per LRA schedule of fees |
| Notarisation of Deed of Absolute Sale | ₱5,000–₱20,000 | Usually split between buyer and seller |
| Broker commission | 3%–5% of selling price | Typically paid by seller; negotiable |
| Lawyer fee (optional but recommended) | ₱20,000–₱80,000 | Not mandatory but strongly recommended for foreigners |
| Condo association dues (ongoing) | ₱5,000–₱30,000/month | Monthly maintenance fee; paid regardless of occupancy |
The Notary — Mandatory for All Purchases
Notarisation of the Deed of Absolute Sale is mandatory in the Philippines and is performed by a commissioned notary public (an attorney with notarial commission). The notary verifies the identities of the parties, ensures the document is signed voluntarily, and affixes their official seal. The notarised DOAS is an essential document for all subsequent registration steps. Without notarisation, the sale is not legally binding against third parties and cannot be registered at the Register of Deeds.
Mortgage
Mortgage financing in the Philippines is available through banks (BPI, BDO, RCBC, Metrobank, UnionBank) at interest rates of 5.99%–9.50% per annum for loan terms of 5–25 years. Pag-IBIG Fund housing loans offer the lowest rates (5.375%–10.5% for up to 30 years) but require 24 months of contributions. Developer in-house financing for pre-selling condos: typically 5–30% down, balance over 1–5 years at 12–18% p.a. (higher rates but easier qualification).
20%–30% of purchase price for bank financing; 10%–30% for Pag-IBIG; 5–30% for developer in-house financing
Foreign nationals on tourist visas are generally not eligible for Philippine bank mortgages. Foreigners with a valid AEP and stable Philippine employment income may qualify at BPI, BDO, or RCBC. SRRV holders: some banks accept SRRV as proof of residency for mortgage eligibility. Pag-IBIG housing loans are available to AEP holders with 24 months of contributions (up to ₱6,500,000 at government rates).
Land Registry
Title transfers are registered at the Register of Deeds (RD) — a government office under the Land Registration Authority (LRA) — in the city or municipality where the property is located. After submission of all required documents and fees, the RD cancels the seller's title and issues a new TCT (Transfer Certificate of Title) or CCT (Condominium Certificate of Title) in the buyer's name. The new title is the definitive proof of ownership. Processing: 2–8 weeks depending on the RD's backlog.
Taxes
Capital Gains Tax (CGT): 6% on the higher of gross selling price or BIR zonal value (paid by seller). Documentary Stamp Tax (DST): 1.5% on the higher of selling price or zonal value (paid by buyer). Transfer Tax: 0.5%–0.75% depending on the LGU (paid by buyer). Annual Real Property Tax (RPT): 1%–2% of assessed value (paid annually by the owner). No annual wealth tax. No VAT on residential property (VAT applies to commercial real estate and developer sales of residential units above the VAT threshold).
New Build vs. Existing Property
Pre-selling (off-plan) condominiums: lower price but higher risk. Verify DHSUD accreditation and developer track record. Turnover delays of 1–5 years beyond promised date are common. RFO (Ready for Occupancy) units: higher price but immediate occupancy, title may already be available. Secondary market (resale): negotiate directly with unit owner; verify no back dues, mortgage liens, or title defects. Established buildings in BGC and Makati have the most reliable title histories.
Selling Property
Foreigners selling a Philippine condo unit: same 6% CGT applies. Capital gains on Philippine real property are taxed in the Philippines regardless of the seller's nationality. No Philippine capital gains tax exemption for principal residence applies to non-citizens. Proceeds from sale can be repatriated to the seller's home country (BFRE — Bangko Sentral registration may be required for funds sourced from foreign currency deposits). Engage a CPA and real estate lawyer for the sale process.
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