Property tax in the Philippines
See what the Philippines's tax rules do to your property portfolio.
What Freeholt models for property, income and retirement in the Philippines, and what it does not.
Free to start. No card. Rules reviewed 22 August 2026.
Modelled here
- Tax on rental income
- Capital gains on a sale
- Duty on purchase
- Annual property or land tax
PHP · Rates as at 22 August 2026 · Estimates, not advice
Residents pay progressive rates to 35% on net rent; non resident aliens not doing business pay a flat 25% on GROSS. Sales pay a 6% FINAL tax on the higher of price or zonal value. Even at a loss. Estate tax is 6%.
How rental income is taxed in the Philippines
For a resident owner: Progressive rates from 15% to 35%, stacked on other income in this country. The top rate of 35% applies above ₱8,000,000. For an owner living abroad and renting this out: Tax is withheld at source at 25% of the gross rent, before any costs.
Interest and losses
Mortgage interest is deductible against the rent. A rental loss brings no relief: it cannot reduce other income, and it does not carry forward.
Capital gains on a sale
The sale is taxed at 6% of the SALE PRICE, not of the gain, so it is owed even on a sale at a loss.
Annual property tax while holding
About 2% a year, charged not on the market price but on the official assessed value, which is typically nearer 20% of it. Enter the assessed value on the property and the estimate sharpens.
What it costs to buy
About 2.25% of the price on purchase. Documentary stamp 1.5% + local transfer 0.5 to 0.75%. Foreigners cannot own land (constitutional); condos up to 40% of a project.
Can a foreign buyer purchase here?
Foreign buyers are limited by a quota on each building. Foreigners cannot own land (constitutional 60/40 rule). Condo units are fine up to 40% of a project; qualifying investor land leases now run up to 99 years (RA 12252, Sept 2025).
Residents of the Philippines with property abroad
The Philippines taxes rent from property abroad under the same rules as rent in the Philippines, with a credit for tax paid where the property is. The 6% final tax on the price covers property in the Philippines only. A gain abroad is ordinary income, with half of it counted once the property was held more than 12 months. The main home exemption covers homes in the Philippines only, so it does not reach a home abroad. The Philippines taxes income from abroad only for resident citizens, and Freeholt's figures assume a resident citizen. Special regimes for people who have just moved to a country are not included in Freeholt's figures.
How Freeholt models the Philippines
Every rate above is priced from Freeholt's own table for the Philippines and runs through the whole projection: rental income, a modelled sale and the annual holding costs all use the same figures. They cannot be edited yet, so a position that differs from the defaults has to be read with that in mind. The estimate assumes an individual owner rather than a company or trust, and where a rule is not modelled it is listed below rather than quietly priced at zero.
What running this property costs
In the Philippines this covers real property tax (1 to 2% of assessed value, ~20% of market), condo dues, insurance and ~10% management.
How borrowing works here
Local rates are high (~7 to 9%); foreign buyers usually pay cash or use developer financing.
What actually happened here
This country's own record, one year at a time. Nothing on this page is borrowed from another country. Move across a chart to read a year.
What Freeholt models here
- ModelledTax on rental income
- Resident and non resident rates, with interest and losses treated under the local rule.
- ModelledCapital gains on a sale
- Priced in the year of the sale under the rules of that year.
- ModelledDuty on purchase
- One off, on the way in, at the scale in force.
- ModelledAnnual property or land tax
- Charged every year the property is held.
- Not yetIncome tax beyond the rent
- Not modelled for this country yet.
- Not yetDividends, interest and share sales
- Not modelled for this country yet.
- Not yetRetirement savings
- Not modelled for this country yet.
- Not yetInheritance and what happens on death
- Not modelled for this country yet.
What Freeholt does not model here
- Inheritance and estate tax
- Treaty relief between this country and the owner's country of residence
Coverage deepens country by country. Every figure is an estimate, not advice.
Compare with another country
Each page is built from the same table the app runs on, so the figures line up side by side.
Compare the Philippines with another country — rent, gains, annual tax and duty, side by side.
Questions people ask
- Does Freeholt model Philippines property tax?
- Yes. Rental income tax, capital gains on a sale, duty on purchase and annual property or land tax are priced from Freeholt's own rate table for the Philippines. The rates are not editable yet, so one that differs in a particular case cannot be overridden. Every figure is an estimate, not advice.
- How is rental income from the Philippines taxed if I live somewhere else?
- Tax is withheld at source at 25% of the gross rent, before any costs. Tax may also be due in the country of residence, with credit for what was paid here. Estimates only, not advice.
- What are the Philippines figures as at?
- The rate table for the Philippines was last reviewed on 22 August 2026. Freeholt date stamps every country rather than implying all of them were checked on the same day. Estimates only, not advice.
Model a property in the Philippines alongside everything else you own: see the year your portfolio starts paying you back.