Whether you are a foreigner looking to invest in property here in the Philippines or simply selling your home to a foreigner, it is essential to be aware of the specific guidelines and regulations. Buying or selling property can be tricky, so it’s always best to be as informed as possible. This blog post will go over some of the most important things you need to know when dealing with foreigners and real estate in the Philippines. So whether you’re just starting or are already knee-deep in the process, read on for helpful tips!
Buying property in the Philippines as a foreigner is not that difficult. It’s pretty straightforward. The process is slightly different than buying a property in your home country, but it’s nothing to worry about. You need to meet a few requirements, but other than that, the process is quite simple. Here’s a brief overview of what you need to do:
1. Owning a piece of property in the Philippines as a foreigner is possible, but there are a few hoops you’ll need to jump through first. In addition to the standard requirements of a valid passport and an Alien Certificate of Registration card, you’ll need to secure a Special Resident Retiree’s Visa, which you can get from the Philippine Embassy or Consulate. But there are cases wherein application for SRRV is needed.
2. There are different types of property ownership available to foreigners here in the Philippines
A. Buying A Property Outright
This gives the foreigner full ownership of the property, and they can do whatever they like with it. The full ownership is applicable for condo buying, with 60% ownership of the total units to be owned by Filipinos and 40% allocated for foreign buyers.
B. Leasing A Property
This gives the foreigner the right to live in the property for a set period, but they don’t own it. This can be a good option for people who want to live in a property for a short period. This is also applicable to those who don’t want the responsibility of owning a property outright.
C. Joint Ownership
This can be an excellent option for buying a property because it allows foreigners to pool their resources and make a larger down payment. It also means that each owner has a vested interest in keeping the property in good condition. – joint ownership with a Filipino
Under this arrangement, the tenant and the landlord hold undivided interests in the property. The tenant has the exclusive right to use and enjoy the property. On the other hand, the landlord has the right to receive rent and evict the tenant if necessary. This arrangement is used when two or more people want to purchase a property but does not want to be held jointly liable for its mortgage or other expenses. If one of the owners dies, the interest in the property passes to their beneficiaries rather than being dissolved.
E. Buy A Property Through A Registered Corporation
Foreigners can buy a property through a registered corporation in the Philippines. Foreigner needs to own at least 60% of the stocks in the corporation. Once the corporation is registered, foreigners will be able to buy property in the Philippines without any legal restrictions.
Each option has its benefits and drawbacks, so it’s essential to research the different options before choosing one.
3. When foreigners buy a property in the Philippines, there are a few things they need to know about taxes and other legal requirements. First and foremost, all buyers must pay a transfer tax of three percent of the purchase price. Additionally, all buyers must obtain a registration certificate from the Registry of Deeds and an appraisal from the Bureau of Internal Revenue. These documents will ensure that the property is legally yours and that you’re paying the correct taxes. Lastly, foreigners buying a property in the Philippines must also receive a special investor’s resident visa from the Bureau of Immigration. While these requirements may seem daunting, they are pretty straightforward to comply with. So long as you have the help of a qualified real estate attorney, buying a property in the Philippines can be a smooth and straightforward process.
5. As a foreigner looking to buy a property in a new country, it can be challenging to find a reputable real estate agent who can help you through the process. There are a few things to consider when choosing an agent, such as their experience in the field, ability to communicate with you, and market knowledge. An excellent place to start your search is by asking friends or family if they have any recommendations. You can also look online for reviews of local agents. Once you’ve narrowed down your options, meet with each agent to get a sense of their personality and whether or not you feel comfortable working with them. With a little effort, you should be able to find an agent who is a good fit for you and your needs
6. But before you get too comfortable in your dream home, let’s talk about how to negotiate a fair price. Being a foreigner, you might not be familiar with the market value of properties. This is where haggling comes in handy – it’s an essential skill when buying a property. Don’t be afraid to lowball the seller.
In most cases, they’ll counter with a higher price. It’s all part of the negotiation process. The important thing is to stay calm and be reasonable. There’s no need to get emotional about it. Once you’ve agreed on a price, you can finally start enjoying your new home!
And that’s it! Once you have all the necessary paperwork in order, you’re ready to move into your new home in the Philippines. Congratulations on finally buying a property! You’ve waited so long.
So, before you go ahead and purchase that dream property in the Philippines, make sure to heed our guidelines. Doing a bit of homework now could save you a lot of money and hassle. If you’re looking for more information on Philippine real estate or want to browse some properties, head over to our website – we have everything you need to get started!