Who Can Own a Land or Real Estate Property in the Philippines?

The general rule is that Filipino citizens and Corporations or Partnership at least 60% Philippine owned are entitled to acquire land in the Philippines.

 AN EXCEPTION TO THIS RULE:

* FOREIGN NATIONALS OR CORPORATIONS MAY COMPLETELY OWN A CONDOMINIUM OR TOWNHOUSE.

To take ownership of private land, residential house and lot, and commercial building and lot, foreign nationals or corporations must form a Philippine Corporation. The Corporation is to be 40% foreign-owned (maximum ) and 60% Filipino owned (minimum) and with at least five (5) incorporators. Upon incorporation, the primary bank account should be tied up to the Corporation. A foreign national may be the only person in the bank account, allowing him/her total control over the funds derived from the Corporation and the income or sale of the asset or property.

* WHERE A FORMER NATURAL BORN FILIPINO WHO BECAME A CITIZEN OF ANOTHER COUNTRY. Balikbayan, a former natural Born Filipino Citizen and now a citizen of another country, is entitled to own for residential purposes, not more than 1,000 square meters for urban land and not more than one (1) hectare of agricultural or farmland.

*A FILIPINA WHO MARRIES AN ALIEN RETAINS HER PHILIPPINE CITIZENSHIP ( to avoid being stateless) unless by her own act or omission. She is deemed to have renounced her Filipino citizenship, may acquire and own private lands in the Philippines.

* NEW DUAL CITIZENSHIP  LAWS about PROPERTY OWNERSHIP.
Dual Citizenship just got approved. Dual Citizenship means having two Citizenship and passport from two different countries. Inquire for more updates regarding the procedure in the implementation of this new Law.

For your Real Estate Investment in Cebu, Philippines,

BE SAFE. Consult only with Licensed Cebu Real Estate Broker.

Ma. Corazon "COCO" dela Fuente

PRC Reg. No. 006953

Mobile: 09177965825

Website: https://www.cebubai.com

Taxes and Fees in Real Estate Purchase in the Philippines

Please be guided on the following Taxes and Fees when buying a Real Estate Properties:

A. Buying Property from a Real Estate Developer

The Following Taxes and Fees are included in the Purchase Price of a Residential Property.

1. 12% Value Added Tax (VAT) -

   Exempted from 12% VAT 

   Residential Lot Only – Price does not exceed P1,919,500

   House & Lot -             Price does not exceed P3,199,200

2. Documentary Stamp Tax - 1.5% of the total selling price

3. Transfer Fee - 1/2 of 1% of the total selling price

4. Registration Fee - approximately 1/2 of 1% of the total selling price 

B. Buying Property from Individual Owners

1. Capital Gains Tax (CGT) - 6% of the total selling price or Zonal Value is higher. This tax is usually for the account of the seller, but some owner's price is net of tax, meaning the CGT is for the buyer's account.

2. Documentary Stamp Tax - 1.5% of the total selling price or Zonal Value whichever is higher. Like the CGT, this tax is usually for the seller's account unless otherwise agreed upon by both parties.

3. Transfer Tax - - 1/2 of 1% of the total selling price

4. Registration Fee – approximately 1/2 of 1% of the total selling price

C. Buying Property from a Corporation

1. Creditable Withholding Tax (CWT) - 6% of the total selling price. This tax is usually for the account of the seller, but some owner's price is net of tax, meaning the CGT is for the buyer's account.

2. 12% Value Added Tax - 12% of the purchase price is added on. ( not applicable if the property is not used in the trade or business).

3. Documentary Stamp Tax - 1.5% of the total selling price. Like the CGT, this tax is usually for the seller's account unless otherwise agreed upon by both parties.

4. Transfer Tax -- 1/2 of 1% of the total selling price

5. Registration Fee - approximately 1/2 of 1% of the total selling price

For all your Real Estate Investment in Cebu...

BE SAFE CONSULT ONLY WITH LICENSED REAL ESTATE BROKER.

Ma. Corazon "Coco" dela Fuente

PRC Reg.No. 006953

Mobile No: 09177965825

https://www.cebubai.com