Country guide
Buying property in Philippines as a foreigner
Rules last checked 30 October 2026 · 11 official sources · Education, not financial, tax, legal or immigration advice.
The Philippines does not let a foreign buyer own private land except by inheritance, and a foreign buyer may own a condominium unit within the foreign ownership limit of the Condominium Act, which the Supreme Court describes as 40 percent.
What are you doing with Philippines?
Returns after tax, what is withheld, and the way out.
A province in the Philippines may charge a transfer tax of not more than 0.5 percent of the price or fair market value, paid by the seller. Details
Real property tax in the Philippines is set locally, up to 1 percent of assessed value in a province and up to 2 percent in a city or Metropolitan Manila municipality, plus a Special Education Fund levy of up to 1 percent. Details
Questions people in this position often miss
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I borrow locally?Not confirmed yet
Lending to a buyer living abroad is limited in many countries and the loan to value limit can be lower.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Whether a purchase gives a right to live there, and what living there costs in tax.
The Philippines lets a holder of the Special Resident Retiree's Visa convert the visa deposit into a condominium unit priced at USD 50,000 or more, or at the amount of the deposit if higher. Details
The Philippines does not let a foreign buyer own private land except by inheritance, and a foreign buyer may own a condominium unit within the foreign ownership limit of the Condominium Act, which the Supreme Court describes as 40 percent. Details
A province in the Philippines may charge a transfer tax of not more than 0.5 percent of the price or fair market value, paid by the seller. Details
Real property tax in the Philippines is set locally, up to 1 percent of assessed value in a province and up to 2 percent in a city or Metropolitan Manila municipality, plus a Special Education Fund levy of up to 1 percent. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
The Philippines lets a holder of the Special Resident Retiree's Visa convert the visa deposit into a condominium unit priced at USD 50,000 or more, or at the amount of the deposit if higher.
- What happens if I die, or the family inherits?Answered below
Revenue Regulations 12 of 2018 states that the net estate of every decedent, resident or non resident, is subject to estate tax at 6 percent, and that for a non resident alien only property situated in the Philippines is counted.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Part year stays, the yearly bill, and what the family inherits.
The Philippines does not let a foreign buyer own private land except by inheritance, and a foreign buyer may own a condominium unit within the foreign ownership limit of the Condominium Act, which the Supreme Court describes as 40 percent. Details
Real property tax in the Philippines is set locally, up to 1 percent of assessed value in a province and up to 2 percent in a city or Metropolitan Manila municipality, plus a Special Education Fund levy of up to 1 percent. Details
The Philippines lets a holder of the Special Resident Retiree's Visa convert the visa deposit into a condominium unit priced at USD 50,000 or more, or at the amount of the deposit if higher. Details
A province in the Philippines may charge a transfer tax of not more than 0.5 percent of the price or fair market value, paid by the seller. Details
Questions people in this position often miss
- Does buying give me the right to live there?Answered below
The Philippines lets a holder of the Special Resident Retiree's Visa convert the visa deposit into a condominium unit priced at USD 50,000 or more, or at the amount of the deposit if higher.
- What happens if I die, or the family inherits?Answered below
Revenue Regulations 12 of 2018 states that the net estate of every decedent, resident or non resident, is subject to estate tax at 6 percent, and that for a non resident alien only property situated in the Philippines is counted.
- What is owed every year, even if the home sits empty?Answered below
Real property tax in the Philippines is set locally, up to 1 percent of assessed value in a province and up to 2 percent in a city or Metropolitan Manila municipality, plus a Special Education Fund levy of up to 1 percent.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- Can I move the money out of my own country?Depends on your country
Some countries cap or review money sent abroad to buy a home, and banks ask where the money came from.
What is owed each year, on rent and on a sale, and what the heirs face.
Real property tax in the Philippines is set locally, up to 1 percent of assessed value in a province and up to 2 percent in a city or Metropolitan Manila municipality, plus a Special Education Fund levy of up to 1 percent. Details
A province in the Philippines may charge a transfer tax of not more than 0.5 percent of the price or fair market value, paid by the seller. Details
Questions people in this position often miss
- What do I report at home?Depends on your country
Foreign property, foreign accounts and foreign rent can each carry a form in the owner's own country.
- Will I be taxed twice?Depends on your country
The country of the property and the country where the owner lives can each tax the same rent or gain.
- What happens if I die, or the family inherits?Answered below
Revenue Regulations 12 of 2018 states that the net estate of every decedent, resident or non resident, is subject to estate tax at 6 percent, and that for a non resident alien only property situated in the Philippines is counted.
- What happens when I sell?Answered below
The Philippines applies a final capital gains tax of 6 percent on the higher of the selling price or the zonal or assessor's value, and the buyer withholds it and the return is due within 30 days of the sale.
- What is changing soon?Not confirmed yet
Bans, tax schedules and visa routes carry end dates, and a purchase often takes months to complete.
Who may buy
Choose a nationality to see the rules that apply to it.
Every rule, for every buyer
| Buyer | Property | Reading | Conditions |
|---|---|---|---|
| Everyone else | private land (including land under a house) | Not allowed |
|
| Everyone else | private land acquired by hereditary succession | Conditions apply | A foreign national may acquire private land by hereditary succession under Section 7 of Article XII of the 1987 Constitution. The Supreme Court lists hereditary succession as the first instance in which an alien may acquire private land. |
| Everyone else | condominium unit | Conditions apply |
|
| Everyone else | private land (buyer is a former natural born Filipino citizen) | Conditions apply |
|
| Everyone else | leasehold of private land | Conditions apply |
|
What it costs to buy
Local transfer tax on sale or transfer of real property (Local Government Code, section 135)
- Rate
- A province may impose a tax on the sale, donation, barter or other transfer of ownership of real property at a rate of not more than 50 percent of 1 percent (0.5 percent) of the total consideration or of the fair market value, whichever is higher.
- The Register of Deeds requires evidence of payment before registering a deed.
- The seller, donor or transferor is to pay it within 60 days of the date of the deed.
Documentary stamp tax on a sale of real property
- Rate
PHP 15 for every PHP 1,000, or fraction of it, of the consideration or fair market value, which is 1.5 percent (Section 196 of the National Internal Revenue Code).
What an owner pays each year
Basic real property tax (Local Government Code, section 233)
- Rate
A province sets a uniform rate not exceeding 1 percent of the assessed value of real property. A city or a municipality within Metropolitan Manila sets a uniform rate not exceeding 2 percent of the assessed value.
Additional levy for the Special Education Fund (Local Government Code, section 235)
- Rate
A province, city or Metropolitan Manila municipality may levy an annual tax of 1 percent of the assessed value of real property in addition to the basic real property tax.
Additional ad valorem tax on idle lands (Local Government Code, section 236)
- Rate
A province, city or Metropolitan Manila municipality may levy an annual tax on idle lands at a rate not exceeding 5 percent of the assessed value, in addition to the basic real property tax. The test for idle land was not read.
Key numbers (3)
| Ceiling of the basic real property tax in a province | 1% |
|---|---|
| Ceiling of the basic real property tax in a city or Metropolitan Manila municipality | 2% |
| Additional Special Education Fund levy on assessed value | 1% |
What if I own it and let it out?
Tax on the rent
Enter a yearly rent to see the tax on it.
A planning figure under the rules shown, not advice. Rates set by councils, reliefs, treaties and the owner's own circumstances can change it, and income tax on rent is usually settled on a return.
Rent from the property
Tax on rent
- Owner living elsewhere
Under section 25(B) of the Tax Code, as summarised in the Bureau of Internal Revenue digest of Revenue Regulations 21 of 2025, rents received by a non resident alien not engaged in trade or business in the Philippines are taxed at 25 percent (or the tax treaty rate on royalties). The digest does not set out a separate rate for a non resident alien engaged in trade or business in this table.
- Filing
The return, the withholding mechanism and the filing dates for rent paid to a non resident owner could not be confirmed from an official source yet.
Key numbers (1)
| Tax on rents received by a non resident alien not engaged in trade or business | 25% |
|---|
Selling
Tax on a sale
- Owner living elsewhere
- A final tax of 6 percent applies to the gain presumed to be realised on the sale of real property in the Philippines classified as a capital asset, based on the higher of the gross selling price or the fair market value set under section 6(E) of the Tax Code (the zonal value or the assessor's schedule value).
- The Bureau of Internal Revenue states the return covers sellers who are natural or juridical persons, whether resident or non resident.
- Revenue Regulations 30 of 2003 states the same 6 percent rate for a non resident alien, whether or not engaged in trade or business.
- Withholding on the sale
According to the Bureau of Internal Revenue guidelines to Form 1706, the buyer withholds the 6 percent from the seller and deducts it from the agreed price. The return is filed and paid within 30 days following the sale.
- Exemptions
The same guidelines refer to an exemption for the sale of a principal residence, with the tax deposited in escrow while the exemption is claimed. The conditions of that exemption were not confirmed and it is not stated here as available to a non resident.
Key numbers (1)
| Final capital gains tax on sale of real property classified as a capital asset | 6% |
|---|
What if I sell?
Gain (sale price less purchase price)PHP 100,000
Tax on the sale
- Final tax of 6 percent on the salePHP 30,000Charged on the higher of the gross selling price and the fair market value set by the tax authority. Final tax on the gain presumed to be realised on the sale of real property classified as a capital asset. The buyer withholds it and the return is filed within 30 days of the sale. An exemption for a principal residence was not confirmed for a non resident, and the fair market value is not entered here.
Total under the rules shownPHP 30,000
A planning figure under the rules shown, not advice. Costs of buying and selling, improvements, reliefs for a home lived in, treaties and the owner's own circumstances can change it, and tax on a gain is usually settled on a return.
Inheritance and gifts
Inheritance and gift tax
- Summary
- Revenue Regulations 12 of 2018 states that the net estate of every decedent, resident or non resident, is subject to estate tax at 6 percent, and that for a non resident alien only property situated in the Philippines is counted.
- It states that donor's tax for each calendar year is 6 percent of total gifts above PHP 250,000 made in that year.
- These regulations date from 2018 and a later amendment was not checked.
Key numbers (3)
| Estate tax on the net estate of a resident or non resident decedent | 6% |
|---|---|
| Donor's tax on total gifts above the annual exemption | 6% |
| Annual exempt amount of gifts for donor's tax | PHP 250,000 |
From your country
The country of the property is only half of it. The country where you live can limit the money you send, tax the same rent and gain again, and ask for forms of its own.
Choose where you live to see what your own country does when you buy in Philippines.
Residence through property
Special Resident Retiree's Visa (SRRV), conversion of the visa deposit into a condominium unit
- Threshold
- The Philippine Retirement Authority lets a holder of the SRRV Classic convert the visa deposit into a condominium unit titled in the retiree's name when the deed of sale shows a price of at least USD 50,000 or the amount of the visa deposit.
- Conversion of the deposit into an existing unit is allowed only 30 days after the visa is issued.
- The title carries an annotation that any sale, transfer or encumbrance needs the Authority's approval.
- The unit is for residential use by the retiree and family.
- The deposit amounts and other qualifying conditions of the visa itself were not confirmed.
- Status
open
Special Resident Retiree's Visa (SRRV)
- Threshold
Retiree visa for a deposit with a Philippine bank: for the Classic non pensioner track USD 50,000 at ages 40 to 49 and USD 30,000 from 50, and for pensioners USD 25,000 at ages 40 to 49 (Philippine Retirement Authority, revised September 2025). The deposit may be converted into a condominium unit; buying property is not itself a residence right.
- Status
open
- Check
Check it is still current. Based on the Philippine Retirement Authority processing rules dated 1 September 2025.
Key numbers (1)
| Minimum sale price shown in the deed for converting an SRRV deposit into a condominium unit | USD 50,000 |
|---|
The usual steps, in order
- A buyer of a condominium unit receives a Condominium Certificate of Title, and the land stays with the condominium corporation (Supreme Court description).
- A transfer of real property is documented in a deed, and the Register of Deeds requires evidence that the local transfer tax has been paid before registering it (Local Government Code, section 135).
- The capital gains return is filed and paid within 30 days following the sale, with the buyer withholding the 6 percent from the seller (Bureau of Internal Revenue guidelines).
- The local transfer tax is paid by the seller within 60 days of the date of the deed (Local Government Code, section 135).
Questions people ask
What if a foreigner wants to own land in the Philippines?
The Supreme Court states that aliens are disqualified from acquiring private lands under Section 7 of Article XII of the 1987 Constitution, save by hereditary succession. A natural born Filipino who has lost citizenship may acquire limited areas under Republic Act 8179.
What if a foreigner wants to buy a condominium unit?
The Condominium Act allows it within a foreign ownership limit. The Supreme Court describes the limit as 40 percent of the outstanding capital stock of the condominium corporation, and the land stays owned by that corporation.
How is the sale of real property taxed?
A final capital gains tax of 6 percent applies on the higher of the selling price or the zonal or assessor's value. The Bureau of Internal Revenue guidelines say the buyer withholds it and the return is due within 30 days.
How long can a foreign investor lease private land?
Republic Act 12252 allows an aggregate lease period of up to 99 years for a foreign investor with an approved and registered investment, with the lease registered at the Registry of Deeds.
What is still open
These points could not be confirmed from an official source yet, so they are not stated as rules.
- The land ownership bar and the condominium rule were read in the Supreme Court's decisions that quote the 1987 Constitution and the Condominium Act, because the Official Gazette, the Department of Foreign Affairs pages and some other government sites blocked or could not be reached. The 13th Regular Foreign Investment Negative List (Executive Order 113 of 13 April 2026) replaced the 12th, but its list of entries could not be read, so the current treatment of private land and condominium units in that list is not confirmed.
- Whether the Condominium Act has been amended since the decisions read could not be confirmed.
- The documentary stamp tax rate on a sale of real property, registration fees, notary fees and value added tax on new homes could not be confirmed from an official source yet.
- The capital gains rate and withholding rules were read from Bureau of Internal Revenue documents dated 2003 to 2018 and a 2025 digest of other rates. Whether a later law changed them was not confirmed.
- The conditions of the principal residence exemption from capital gains tax, and whether it is open to a non resident seller, could not be confirmed.
- The rental income return, filing dates and withholding mechanism for a non resident owner, and whether renting out a home counts as engaging in trade or business, could not be confirmed.
- Mortgage lending to foreign buyers, loan to value limits, bank account opening and central bank rules on remitting funds could not be confirmed.
- The content of Presidential Decree 471 on lease of land to foreign individuals, and the date Republic Act 12252 took effect, could not be confirmed.
- The deposit amounts and other conditions of the Special Resident Retiree's Visa, and any investor visa tied to property, could not be confirmed.
- Real property tax rates actually applied in each locality, the idle land test and any difference for an owner living abroad could not be confirmed.
- Whether owning a condominium unit or land by a foreign buyer is subject to registration or reporting duties could not be confirmed.
Sources
See what this does to your own numbers
Add a property in Philippines next to everything else you own, and see the income and net worth that follow after tax, year by year.
Free to start. No card. Rules checked 30 October 2026.
This is education, not financial, tax, legal or immigration advice. Rules change and depend on the buyer's own facts. Advice from a licensed professional in the country concerned is what settles a particular purchase.