Frequently Asked Questions of Filipino Real Estate Immigrants

Frequently Asked Questions of Filipino Real Estate Immigrants

Can foreigners buy real estate in the Philippines?

A: Yes, the basic requirements are only passports, and some developers require cheque books. For foreign buyers without identity requirements, tourists can buy houses.

Is it a permanent property right?

A: Compared with the 70 year property rights in China, Philippine real estate is a permanent property right. Foreigners and Filipinos can enjoy permanent ownership without discrimination.

Is there a limit on the number of foreigners buying real estate?What are the restrictions?

A: Yes, foreigners cannot have 40% of the shares in the same project.

What kind of real estate can foreigners buy in the Philippines? Can they buy villas?

A: According to local laws, foreigners can only buy apartments, not land and villas. Some Filipino developers have gone through the formalities of turning villa projects into apartment buildings, which means that they have property certificates as well as apartment buildings, but no land deeds. This situation is also limited to 40% of foreigners. However, the advantage is that all owners jointly own the land occupied by all public facilities including the project.

Is there a fair share?

Answer: There is no shared area. The purchased area is the actual used area. This advantage is obvious, that is, the Philippines' 80 square meters is only equivalent to the domestic 100 square meters.

What are the ways for foreigners to own Philippine land?

A: Foreigners can own land in three ways. The first way is to buy the shares of the country club; The second way is to purchase Philippine land through a company. Both of these methods indirectly hold Philippine land. The third way is to marry Filipinos, which is the way to directly own land.

Is the repatriation of foreign investment income to the Philippines restricted?

A: According to the Constitution of the Philippines, all investors and enterprises are granted the following basic rights and guarantees:

The right to withdraw the investment: the foreign investor has the right to remit the investment liquidation income and the currency used in the initial investment at the instant exchange rate;

The right to repatriate income: Foreign investors have the right to convert investment income into the currency used for initial investment at the instant exchange rate.

What are the types of land occupied by apartments?

A: There are two categories: Leasehold (land is leased) and Freehold (permanent ownership).

What is the relationship between the apartment owner and the land occupied by the apartment project?

A: If the freehold apartment owners jointly own the land occupied by the apartment project.

Can foreigners rent land in the Philippines?

A: Yes. The maximum term of a lease is 50 years, and the lease can be renewed for another 25 years after the expiration.

Can agricultural land be converted to commercial land? How?

A: Yes. The land in the Philippines is private, and the conversion of agricultural land to commercial land needs to be reported to the government for approval. The conversion cost is not very high, and the rate is related to the city and land conditions. For example, the conversion cost of some beach resorts is about 20 yuan per square meter.

What are the restrictions on foreigners selling apartments? Are there any restrictions in Canada and other places.

A: No. Like Filipinos. The Philippines has no laws restricting purchase and resale.

Is it safe for foreigners to invest in Philippine assets?

A: Since the founding of the Philippines, there has been almost no case of confiscation of personal property, whether for Filipinos or foreigners. Philippine law fully protects personal property.

How does the Philippines protect personal property?

A: The Constitution of the Philippines provides for the protection of legal property owned by individuals. No one deprives personal property and other private property for any reason.

Philippine real estate potential?

A: Philippine real estate has been appreciating steadily. In recent years, the Philippine economy has been developing well. In the last three years, there has been an increase of at least 15-20% every year. Philippine real estate, worth holding for a long time. Whether it is self occupancy, renting is a good choice to maintain and increase the value.

At the same time, the Philippines is close to China. Therefore, managing this asset is relatively easy and inexpensive.

Does the Philippine business shop have investment value?

A: We need to be cautious when investing in the business of the Philippines. Good shops are generally held by developers for a long time and rarely sold to the outside world. The investment value of ordinary shops is not high. The Philippines is hot, few people will go shopping in the hot sun, and most people are willing to go shopping in large shopping malls for leisure. Basically, few developers in the Philippines will sell shops.

How about the rental income of the apartment?

A: Housing in Manila is in short supply and the rental rate of return is very high. The rental to sales ratio of apartments in Manila is about 8%. Few are less than 5%, and some are even as high as 12%.

Does the Philippines need decoration when buying a house?

A: The vast majority of Philippine properties are hardbound or simply decorated, that is, kitchen cabinets, range hoods, and faucets; Ceiling and floor; The washbasin, sewer, toilet and shower of the toilet are all delivered by the developer. If there is no personal requirement for new decoration, you can buy furniture and appliances to move in.

What supporting facilities and services does the property generally provide?

A: Most new buildings are equipped with indoor or outdoor swimming pools, gyms, children's activity rooms, reception halls, multi-function halls and sauna showers. Some buildings even have video game rooms, movie screening rooms, yoga rooms, billiards tables, spa, libraries, servants to clean regularly and other services. All properties are free for owners to use (some multi-function halls need to pay for use), which is why property management fees in the Philippines are expensive. Most buildings have 24-hour engineers on duty to provide you with minor maintenance problems in the unit, such as toilet blockage, water pipe rupture, bulb replacement, etc.

How much is the property fee?

A: The property cost of each community is different. The cheaper one may be 6-7 yuan per square meter per month, and the more expensive one may be 15-18 yuan per square meter. It depends on the number of supporting facilities and units. If the property fee of some buildings is paid in advance for one year, you can enjoy a preferential policy of 10% or one month free of charge. It is suggested that foreign buyers can pay once a year, so as to avoid the situation of being punished for forgetting.

How about the security of the Philippine apartment building?

A: Apartment buildings in the Philippines have a large number of security guards, and the management is relatively strict in terms of convenient access. Each owner must register the personal information of the occupant, the personal information of the driver and the nanny at home and the certificate of no crime. The owner's commonly used vehicles shall also be registered and applied for special stickers for free access. If there are visitors, they can only be released by the security guard through wired telephone and the owner's proper visitor identity.

What is the investment value of office buildings?

A: Office buildings are very popular in the Philippines. The vacancy rate of office buildings in several central business districts in Manila has been below 3% for a long time. The rent to sales ratio is about 6%, and the lease term is generally more than three years. There are very few office buildings for sale, most of which are rented but not sold. Ayala, the largest developer in the Philippines, has an office building pre-sale project in cbd, stiles corporate center. Please click the link to learn more.

Is school district housing worth investing in the Philippines?

A: The system of middle school entering university is different from that in China. High quality middle schools are private schools. Most children in the Philippines who can afford to go to private schools have full-time drivers to pick them up. "School selection" has little to do with the Philippines. However, the school district housing around several good universities in the Philippines has a certain investment value, and most of them do not provide student apartments.

How do foreigners purchase houses and pay in installments?

A: Most of the first-hand buildings in the Philippines are temporary houses. Generally, installment payment is implemented for 3-5 years. The deposit can be paid in cash or by credit card or UnionPay card. For the remaining installment payment, there are three ways of installment payment. The first way is to fill in different dates and amounts with your own check from a local bank in the Philippines and hand it to the developer, who will go to the bank to cash it when it is due. Second, sign an agreement with the developer, and the developer will regularly deduct money from your bank of deposit. Third, regular remittance from overseas banks to developers is not commonly used and the cost of remittance is high.

How can foreigners remit money to their bank accounts in the Philippines?

A: When you remit US dollars to your peso account in the Philippines, it will automatically be transferred to your peso account at the exchange rate at that time.

How to open a bank account?

A: Filipino law requires you to go to the bank in person with 2 valid certificates. Passport and SRRV available. At present, the anti money laundering policy of banks is strict, and most large banks require foreigners with residence status to open bank accounts.

What are the special provisions on sales tax for foreigners?

A: No. Like Filipinos.

What taxes should customers pay when buying a house?

A: 0.75% of the total contract price of transfer fee;

Stamp duty, 1.5% of the total contract price

Property tax, from 20000 to 50000 pesos per year for single room to five rooms

Registration fee, small amount

Is the house delivery and ownership transfer at the same time?

A: The owner will obtain the permanent property right certificate, pay the house first, and transfer the ownership, with a difference of about 90 working days

Do you want to buy insurance and Closing Fee?

A: None

Is it necessary to pay tax for leasing?

A: If you want to file a tax return, you need to pay tax.
Ordinary individuals rent their houses, and few people file tax returns. According to the current situation, the landlord does not pay taxes. When large international companies rent high-end apartments for senior executives, they often need official invoices. In this case, you need to file and pay taxes. Individual lease contracts generally do not require formal invoices.

What is the cost of living in the Philippines?

A: Generally speaking, it is lower than that of the first tier cities in China. However, the rent is high, the electricity charge is high, and the communication cost is slightly higher than that in China. If you want to hire a Filipino servant, you should pay 600 yuan per month, including food and housing. More than 1000 yuan for drivers.

Milk and food are of reliable quality and can be eaten at ease.

In addition, the manufacturing industry in the Philippines is not very developed. There are many goods imported from abroad, and the quality is relatively good.