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Buyers Guide

who

Who can buy property in the Philippines?


Those entitled to own property as fully-fledged Philippine citizens

  • Philippine citizens who are residents of the Philippines
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  • Philippine citizens who are residents of another country or working overseas who maintain their Philippine citizenship

  • Philippine dual citizens

    Natural-born Philippine dual citizens (Those born with a Philippine and foreign citizenship as a result of the concurrent application of the laws of the Philippines and a foreign country which consider one a citizen of each country, e.g., those born to a Filipino and foreign parent).

    Natural-born Philippine citizens who subsequently acquire foreign citizenship involuntarily (i.e., without undergoing foreign naturalization, e.g., marrying a foreign national whose country automatically considers the Philippine spouse its own citizen) and who have not renounced their Philippine citizenship by any act or omission.

    Natural-born Philippine citizens who voluntarily opted to acquire foreign citizenship but eventually chose to reacquire their natural-born Philippine citizenship status under the Philippine Citizenship Reacquisition Act of 2003 (Republic Act No. 9225), regardless of whether or not they have renounced their previous foreign citizenship.

    There are no area limits on the ownership by Philippine citizens of non-agricultural private land. Private agricultural land acquisition must not exceed a combined total of 5 hectares (50,000 square meters).

  • Philippine corporations whose capital stock is 60% Filipino-owned

    There are no area limits on the ownership by Philippine corporations of non-agricultural private land. Philippine corporations may lease, but not own, public agricultural land not exceeding 1,000 hectares for two 25-year periods and own private agricultural land not exceeding a combined total of 5 hectares (50,000 square meters).


Those entitled to own property under limited conditions

  • Natural-born Philippine citizens who voluntarily opted to acquire foreign citizenship through naturalization, thereby renouncing their Philippine citizenship, and who do not choose to reacquire Philippine citizenship

    Unlike Philippine citizens, former Philippine citizens who are natural-born Filipinos* are only entitled to own either 5,000 square meters of urban land or 3 hectares (30,000 square meters) of rural land in the Philippines for business or other purposes. The land that may be acquired shall not be more than two parcels situated in different municipalities or cities anywhere in the Philippines and shall not exceed the stated area limitations. Anyone who has Already acquired urban land is disqualified from further acquiring rural land and vice versa. In the case of a married couple, the total land area that they are allowed to purchase cannot exceed the above-stated limitations.

  • Foreign citizens and corporations

    Foreign citizens and corporations may acquire and own condominium units where the common area is owned by a condominium corporation, 60% of which is Filipino-owned. They cannot directly acquire and own land in the Philippines except through intestate hereditary succession, i.e., inheritance by operation of Philippine laws on intestate succession and not by testate (through a will or testament) succession. They may, however, indirectly own land by subscribing to a Philippine corporation the capital stock of which is 60% Filipino-owned. They may also lease private land for a maximum of two 25-year periods.

    Foreign citizens and corporations investing in the Philippines may lease private land for a 50-year period extendible for another 25 years.

A natural-born Philippine citizen is one who does not have to do anything to acquire Philippine citizenship, in contrast to a naturalized Philippine citizen who has to go through a naturalization process to acquire Philippine citizenship.

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Legal and Documentary Requirements


What documents or requirements do I need to purchase a property, secure finance and/or finalize a purchase.

The required document varies depending on the type of property you purchase and the sellers requirements. The following are some of the documents required to acquire a property on the website:

  • Register with Global Pinoy Properties (simple online form)
  • Register with e-propertytrading.com to buy any property available online(verification information)
  • Reservation agreement form for non- auction properties and memorial plots (online form duly authorized with accurate details)
  • 1% reservation deposit (doesn't apply to auction properties) plus 10% exchange payment or as specified by the seller
  • Buyer Information Sheet
  • Housing and Land Use Regulatory Board Form (HLURB)
  • Association Letter
  • Life Form
  • 1904 if TIN Number (if required)
  • Additional Supplemental Agreement (If required)
  • Bank Financing / Pag–ibig documents
  • Credit Approval
  • SPA (Special Power of Attorney)
  • Signed computation sheet
After your reservation, there will be additional documents required by the seller to complete a finance application or your purchase. 

Requirements for non- natural born Filipinos are as follows:

  • Same as above plus-
  • Photocopy of valid ID (preferably passport), containing spelling that is the same as Final Reservation Agreement and TIN validation
  • Tax identification number validation (E-TIN or 1904/1903), containing spelling that is the same as the Final Reservation Agreement and passport/ID
  • Photocopy of marriage contract (if applicable)
  • SEC registration certificate, articles of incorporation and by laws(if purchasing in a corporation)
If paying Cash or you have secured finance supplied elsewhere (ie not the seller), you requirements are as follows:
  • Some of the above plus
  • Copy of Credit Approval or bank statement confirming cash balance for purchase or deposit
  • 1% reservation deposit (doesn't apply to auction properties) plus 10% exchange payment or what ever payment is agreed upon by the seller
  • Balance of purchase price within 30 days, unless varied by the seller.

What is a Contract to Sell (CTS), Deed of Sale (DOS), Transfer Certificate of Title (TCT), Condominium Owner's Copy of Certificate of Title (CCT), and a Tax Declaration?

  • A Contract to Sell (CTS) is a contract document executed by both the seller and buyer where the seller promises and binds himself to sell to the buyer a certain property upon the occurrence of several conditions to be fulfilled by the buyer or both the seller and the buyer, the non-fulfillment of which releases both from their respective obligations under the terms of the contract. A contract to sell usually provides that title to and ownership of the property is not transferred to the buyer until full payment of the contract price.

  • A Deed of Sale (DOS) Upon fulfillment of the sale-contract conditions, which is usually the full payment of the contract price, a DOS is executed by the seller unconditionally transferring to the buyer title to and ownership of the property which is usually specifically described in terms of technical descriptions as contained in the existing certificate of title to the property. A DOS is an absolute conveyance of title of ownership from the seller to the buyer, without reservations or conditions, and is primarily executed by the seller and accepted by the buyer. The DOS might also contain certain restrictions on the use of the property by the owner as contained in a subdivision mother title or declaration of restrictions previously recorded in the original or existing transfer certificate of title. In the case of condominium units, it is accompanied by a certificate of the management body of the condominium project that such conveyance or sale is in accordance with the provisions of the declaration of restrictions of such project.


  • A Transfer of Certificate of Title (TCT) is an instrument issued by the Registrar of Deeds for the city or province where the land is located declaring the absolute ownership of a certain real property technically described therein. The TCT is prepared and executed by said Registrar and delivered to the buyer of the property as the new owner upon submission by the buyer of the DOS and payment of corresponding fees and taxes. It is an indefeasible and conclusive proof of absolute title to ownership of the property not only between the seller and the buyer but also between the buyer and the rest of the world. However, the TCT may also contain certain restrictions on the exercise of ownership rights passed on from the previous TCT or mother title or liens and other forms of encumbrances.
  • A Condominium Owner’s Copy of Certificate of Title (CCT) is an instrument issued by the Registrar of Deeds for the city or province where the condominium project is located containing a brief description of the land, the condominium conveyed, and name and personal circumstances of the condominium owner. It is issued upon registration of the DO S conveying the condominium unit, payment of the proper fees, and annotation of the conveyance on the certificate of title covering the land included within the subdivision project. It is proof of title to and ownership of the condominium unit described therein.

  • A Tax Declaration is a city or municipal receipt containing description of land where the real estate tax of which has been paid under the name of the payor who may or may not have title to or ownership of the land being declared. It is a mere proof of possession of the land by the payor and not of ownership. It is not a title or certificate of ownership.

Are there any additional expenses or fees due to be paid when I purchase a property in the Philippines?

In addition to the purchase price, you need to pay the taxes due on the sale and other registration fees. Upon transfer of condominium unit, townhouse or residential house to you, you may be charged association or condominium dues by the homeowner's association or condominium corporation, typically based on the area of your property.

What are the applicable taxes and fees that I have to pay?

Value-added Tax

Except for sale of residential lots with gross selling price below P1,500,000, or of residential dwellings with gross selling price below P2,500,000, the sale of real property will include a value added tax (VAT) at the rate of 12% of the purchase price, zonal value of market value under the Tax Declaration of the property, whichever is higher, payable on each sale of real property to the BIR.

Documentary Stamp Tax

Documentary Stamp Tax at the rate of 1.5% of the purchase price, zonal values, or the market values under the Tax Declaration of the property, whichever is higher, is payable to the BIR within ten (10) days after the close of the month when the DOS is signed and notarized.

Local Transfer Tax

Local transfer tax is imposed by the local government unit where the property is located generally at the rate of 0.5% of the purchase price, zonal value, or TD value of the property, whichever is higher.

Registration fees are payable to the Register of Deeds where the property is located at the rate of P8,796.00 for the first P1.7million plus P90.00 for every P20, 000.00 or fraction thereof in excess of P1.7 million.

How much is a typical Association Fee?

Association fees are not standardized but are typically based on the area of your property. We recommend that you check the cost with the individual sellers.
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Completion

Download purchase computation calculations.

What are purchase computation calculations?

A computation sheet is a guide to computing the cost of a purchase. A typical computation sheet will indicate the property’s list price, any discount if applicable, the resulting net selling price, plus Value-Added Tax, and other charges. A breakdown of the other charges is given.

Download online reservation form (only to be used for non-auction properties or memorial plots)

Submit required documents (download a list of required documents)

If you make full payment the seller sends a Deed of Sale (DOS) for your authorization.

  • You return the signed DOS to the seller.
  • The Seller returns the notarized DOS to you.
  • The seller finalizes title transfer, with target release at 30 days from the date of notarization.

The sellers sends a Contract For Sale for your authorization

Post Sale

Post Purchase FAQ

How quickly can I take possession of my Philippines property?

You can take physical possession of your house, lot, or condominium once the following steps have been completed:

  • Acceptance Form has been signed (unless the property is otherwise deemed accepted).
  • All required documents pertinent to the sale of the property (i.e. Contract to Sell, Deed of Sale, corporate papers, etc.) have been signed and submitted.
  • All amounts due under the Contract, including reimbursement for advance payment of service fees for the utility connections, have been paid. 

Who should I contact for the final hand over of the property in the Philippines?

Contact the seller of your property.

 

 

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Disclaimer
This website is designed for the information of readers. While every effort has been made to ensure accuracy, information contained in this website may not be comprehensive and updated, and recipients should not act upon it without seeking professional help. The information contained in this website are merely guidelines, and therefore requires confirmation from and validation by Global Pinoy Properties.

 

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