Lee Phillips
There are many things people should take into consideration when buying property in the Philippines.
Even though often the property available is spectacular, there are a range of rules, regulations and implications to take into account.
The Maximal Land Area Limit
The maximum area of land that can be allocated for residential purposes is 1000 square metres, or 1 hectare of land (if the land is rural).
Even though this does enable people to acquire a significant spatial area of land it is worth remembering this limitation.
Rules about Foreign Residents Owning Land
It is not possible for foreign residents to “own” land, however it is possible for foreign members of society to own high rise apartments or condominium units (on the provision that the proportion of the local population doesn’t exceed 40%), however different rules apply if the resident happens to be married to a Filipino resident & the property is owned through their name, this is an area where you could seriously benefit from expert advice from an experienced estate agent.
Rules about Corporations Owning Property In The Philippines
This is only possible if the corporation is at least 60% owned due to existing regulations currently active.
Are There Exceptions To These Rules?
There are some key exceptions you should know about when purchasing Filipino property or land
A foreigner may still own property that is inherited by a Filipino
A foreigner may also acquire property under the 1935 constitution
Other Things To Think About:
When considering purchasing property in the Philippines it is important to work with a reputable company like loansolutions.ph to avoid the many potential pitfalls and issues that may arise when purchasing property in this part of the world.
Working with a reputable organization can help ensure that the property you purchase is legally valid & official, dealing with a real estate company that is not licensed is prohibited under the Real Estate Service Act, so it is absolutely essential.
Legalities On Purchasing Filipino Property
There is a legal process when it comes to purchasing property, here is a basic outline of the steps involved.
Usually, property can be purchased by a straightforward arrangement, however in certain circumstances it can become tedious without professional help.
After choosing the property to buy as well as inspecting the premises and documents, the buyer usually signs what is known as a “Deed of Sale” which is a legally binding notarized document.
When buying a condominium – there will likely be a down-payment required (usually something in the region of anywhere between 10-30%), and the CCT (Condominium Certificate Of Title) is generally transferred only when 100% of the balance of the fees for the property is paid in full.
Different rules apply to holders of special retirees’ visas known as the Special Resident Retiree’s Visa (SRRV) with benefits such as exemption from travel taxes and multiple-entry privileges.
Buying Land In The Philippines
This is often a different proposition altogether & can be a cumbersome process. This again is a situation where it is likely you would wish to seek out professional advice & counsel.
The Department of Environment and Natural Resources and the Bureau of Lands & a number of other organizations have jurisdiction over the purchase of land & there is a laborious process involved with such an undertaking.
The system of land purchase & registration can make for a laborious process that can nonetheless be made easier with the expertise of expert facilitators.
Real Estate Agents’ Fees?
Typically the fees of an estate agent are in the region of 3-5% however some organizations may offer additional services that increase these rates. Another service commonly provided by estate agencies are the arrangement of loans and mortgages to help finance the process of purchase of the properties in addition to providing important information.
Do You Pay Capital Gains Tax On Filipino Properties?
Generally capital gains’ taxes are levied at the rate of 6% of the gross value of the sale of the property, this tax functions much the same as it does in other countries and is considered an “asset tax”.
Properties not used for business or other-than-residential purposes are considered capital assets meaning they will in fact be subject to capital gains taxation once a property is sold.
