Complete Guide: Buying Property in the Philippines as a Singaporean

Buying property in the Philippines can be rewarding, but the rules differ significantly from Singapore. Here’s a step-by-step breakdown covering what you can own, how financing works, and the procedures for both resale and new-launch (pre-selling) projects.

What Singaporeans Can and Cannot Own in the Philippines

• Land 
  Foreigners, including Singaporeans, cannot own land directly in the Philippines. Land ownership is reserved for Filipino citizens or corporations that are at least 60% Filipino-owned.
• Condominiums 
  Foreigners can own condominium units, but the total foreign ownership in a condominium project cannot exceed 40% of the entire development. This is the most straightforward route for Singaporeans.
• Houses or Townhouses 
  You can own the building itself but not the land. The common approach is to lease the land under a long-term lease agreement (up to 50 years, renewable for another 25 years) or set up a corporation with majority Filipino ownership.
• Pre-selling Projects 
  Developers must have a government-issued License to Sell before they can market pre-selling units. Always verify this before committing funds.
• Singapore Regulations to Note
  • CPF savings cannot be used for overseas property purchases. Only cash or financing is allowed.
  • HDB owners must complete their Minimum Occupation Period (MOP) before buying any local or overseas private residential property.

Taxes and Fees to Expect

• Seller-side (commonly):
  • Capital Gains Tax (CGT): 6% of the selling price or the government’s zonal value (whichever is higher). Payable within 30 days of signing the notarised sale deed.
• Buyer-side (commonly):
  • Documentary Stamp Tax (DST): 1.5% of the higher of the contract price or zonal value.
  • Local Transfer Tax: Up to 0.75% in cities or 0.5% in provinces.
  • Registration Fees: Payable to the Registry of Deeds; rates are based on a sliding scale.
  • Value Added Tax (VAT): 12% applies if buying from a VAT-registered seller and the unit exceeds the VAT-exempt threshold.
  • Annual Property Tax: Known as Real Property Tax, typically 1% in provinces and 2% in cities, based on the assessed value.

Financing Options for Singaporeans

1. Cash Purchase 
   The simplest method, using personal savings or funds transferred from Singapore.
2. Philippine Bank Loans 
   Some local banks lend to foreigners, but requirements usually include proof of residency (Alien Certificate of Registration) or local income. Loan-to-value ratios are lower than in Singapore, and loan tenors are shorter.
3. Developer Financing 
   Developers often provide in-house financing, especially for pre-selling projects. This usually covers the down-payment or “equity” portion, but interest rates are higher, and terms are shorter.

Documents and IDs Required

• Valid passport
• Philippine Tax Identification Number (TIN) – mandatory for property transfers and tax filings
• Alien Certificate of Registration (if residing long-term or applying for a bank loan)

Step-by-Step: Buying a Resale Property (Completed Condo or House)

Phase 1 – Planning (1–3 weeks)

1. Decide whether to buy a condo, house (on leased land), or invest via a corporation.
2. Ensure the condo still has foreigner quota (less than 40% sold to foreigners).
3. Check financing options: cash, Philippine bank loan, or remittance arrangements.
4. Engage a licensed real estate broker and a local lawyer for due diligence.
5. Apply for a TIN if you don’t have one.

Phase 2 – Due Diligence (1–3 weeks) 
6. Verify the property’s title with the Registry of Deeds to confirm ownership and that it is free of liens or encumbrances. 
7. Check Real Property Tax records to ensure there are no arrears. 
8. Request clearance from the condominium association (if applicable).

Phase 3 – Completion (4–12 weeks) 
9. Sign an Offer to Purchase or Letter of Intent, often with earnest money. 
10. Execute a notarised Deed of Absolute Sale (DOAS). This starts the tax deadlines. 
11. Seller pays the Capital Gains Tax; Buyer pays the Documentary Stamp Tax and Transfer Tax. 
12. Obtain a Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue. 
13. Pay Local Transfer Tax to the city or municipal treasurer. 
14. Register the property at the Registry of Deeds; the title (CCT/TCT) will be issued in the buyer’s name. 
15. Update the Tax Declaration at the local Assessor’s Office.

Step-by-Step: Buying a New Launch / Pre-Selling Condo

Phase A – Before Reservation

1. Confirm the developer has a License to Sell.
2. Check foreign ownership quota.
3. Review financing plans, including equity instalments and possible bank loan for balance at turnover.

Phase B – Reservation to Contract 
4. Sign a Reservation Agreement and pay the reservation fee. 
5. Submit identification documents and Buyer’s Information Sheet. 
6. Sign the Contract to Sell (CTS), which outlines payment schedule and obligations.

Phase C – Turnover & Title Transfer 
7. Complete unit inspection and punch list upon turnover. 
8. Arrange for bank take-out loan (if financing). 
9. Execute Deed of Absolute Sale and pay applicable taxes (DST, VAT if applicable). 
10. The Registry of Deeds issues a Condominium Certificate of Title (CCT) in your name.

Timeline Tips

• Notarising the Deed of Sale triggers the countdown for tax deadlines (30 days for seller’s CGT, 5th day of following month for buyer’s DST).
• Allow at least 2–3 months for the title transfer to be completed.
• If overseas, you can appoint someone in the Philippines to act on your behalf using a notarised and apostilled Special Power of Attorney (SPA).

Common Pitfalls to Avoid

1. Paying for a pre-selling property before verifying the developer’s License to Sell.
2. Buying a condo project that has already exceeded the 40% foreign ownership cap.
3. Assuming CPF funds can be used (they cannot).
4. Breaching HDB MOP rules by purchasing overseas too early.
5. Underestimating taxes, always calculate based on the higher of contract price or government-assessed value.

Scenario 1: Buying a Resale Condominium in Manila

Profile:

• Mr. Tan, a 42-year-old Singapore Citizen, owns a fully paid HDB flat (MOP completed).
• He wants to diversify by buying a completed condo unit in Makati, Manila.

Steps:

1. Mr. Tan chooses a 50 sqm resale condo worth PHP 8,000,000.
2. He hires a licensed Philippine real estate broker to check the title at the Registry of Deeds.
3. A notarised Deed of Absolute Sale is signed.
4. Seller pays the 6% Capital Gains Tax; Mr. Tan pays:
   • Documentary Stamp Tax (1.5%) = PHP 120,000
   • Local Transfer Tax (0.75%) = PHP 60,000
   • Registration Fees = approx. PHP 30,000
5. Title transfer begins; new Condominium Certificate of Title (CCT) issued in his name within 2–3 months.

Outcome:

• Mr. Tan fully owns a condo unit in Makati.
• He pays annual Real Property Tax (~1–2% of assessed value) and monthly condo dues.

Scenario 2: Buying a Pre-Selling Condo (New Launch) in Cebu

Profile:

• Ms. Lim, a 35-year-old Singaporean PR in Singapore, wants to buy a pre-selling condo in Cebu as a long-term investment.

Steps:

1. She identifies a developer project with available foreign quota (<40% sold to foreigners).
2. Pays PHP 50,000 reservation fee and signs the Reservation Agreement.
3. Submits passport, TIN, and Buyer’s Information Sheet.
4. Signs the Contract to Sell (CTS), agreeing to pay 20% equity in instalments over 36 months.
5. On turnover, she applies for a Philippine bank loan for the remaining 80%.
6. At unit turnover, the developer issues the Deed of Absolute Sale, taxes are paid, and the Registry of Deeds transfers the title to her name.

Costs Paid:

• Documentary Stamp Tax = 1.5% of contract price
• Local Transfer Tax = 0.75%
• Registration Fees
• VAT (if unit exceeds VAT exemption threshold)

Outcome:

• Ms. Lim locks in a unit at pre-launch price and enjoys appreciation before turnover.
• Developer financing allows her to spread out the equity payments.

Scenario 3: Family Investment via Parents Selling HDB

Profile:

• Mr. and Mrs. Wong (Singaporeans, both 55) have completed their MOP and sold their HDB flat.
• They want to help their son, who works in Manila, secure a property near his office.

Steps:

1. Proceeds from HDB sale are remitted to the Philippines via bank transfer.
2. They purchase a PHP 12,000,000 two-bedroom condo in Bonifacio Global City under their joint names.
3. To comply with foreign ownership, they confirm the condo project has not exceeded the 40% foreigner quota.
4. They sign a notarised Deed of Sale and pay the following:
   • Documentary Stamp Tax (1.5%) = PHP 180,000
   • Local Transfer Tax (0.75%) = PHP 90,000
   • Registration Fee ≈ PHP 40,000
5. Seller pays 6% Capital Gains Tax.
6. Within 3 months, a new title is issued under Mr. and Mrs. Wong’s names.

Outcome:

• The Wong family owns a prime investment property in BGC.
• Their son can live in the unit or rent it out.
• They enjoy diversification outside Singapore’s property market.

Frequently Asked Questions (FAQ)

Buying Property in the Philippines as a Singaporean

1. Can Singaporeans buy land in the Philippines?

No. Foreigners, including Singaporeans, cannot own land directly. Land ownership is restricted to Filipino citizens or corporations with at least 60% Filipino ownership.

2. What type of property can a Singaporean buy in the Philippines?

The most straightforward option is a condominium unit, provided that foreigners do not own more than 40% of the total project. Houses can also be purchased, but only the building can be owned, not the land.

3. Can I buy a landed house in the Philippines?

You can own the house but not the land. To do so, you may lease the land for up to 50 years (renewable for another 25 years) or set up a Philippine company with at least 60% Filipino ownership.

4. Can Singaporeans invest in pre-selling or new-launch condominiums?

Yes, but only if the project has a valid License to Sell issued by the housing authority. Always confirm this before making payments.

5. Can CPF savings be used to buy a property in the Philippines?

No. CPF funds cannot be used for overseas property purchases. You must use cash or financing options.

6. Can HDB owners in Singapore buy property in the Philippines?

Yes, but only after completing the Minimum Occupation Period (MOP) of their HDB flat. During the MOP, you cannot buy private property locally or overseas.

7. What are the main taxes when buying property in the Philippines?

Buyers typically pay:

• Documentary Stamp Tax (DST): 1.5%
• Local Transfer Tax: Up to 0.75% in cities, 0.5% in provinces
• Registration Fees (sliding scale)
• VAT (if applicable)

Sellers usually pay the 6% Capital Gains Tax.

8. How is the tax amount calculated?

Taxes are based on the higher of the contract price in the Deed of Sale or the government’s zonal/assessed value of the property.

9. What is the timeline for paying taxes?

• Seller: Capital Gains Tax must be paid within 30 days of the notarised Deed of Sale.
• Buyer: Documentary Stamp Tax must be paid by the 5th day of the following month after notarisation.

10. Can Singaporeans get a property loan in the Philippines?

Yes, but only a few Philippine banks lend to foreigners. Requirements often include an Alien Certificate of Registration (ACR I-Card), proof of local income, or permanent residency.

11. What is developer or in-house financing?

Developers often offer in-house financing for pre-selling projects. This usually covers the down-payment or equity instalments but comes with higher interest rates and shorter terms compared to bank loans.

12. What currency is used for property transactions?

All property transactions are in Philippine Pesos (PHP). Foreign buyers will need to remit funds and comply with foreign exchange and anti-money laundering regulations.

13. Do I need a Philippine Tax Identification Number (TIN)?

Yes. A TIN is mandatory for all property buyers and sellers because it is required for tax payments and title transfer.

14. What is a Deed of Absolute Sale (DOAS)?

It is the final contract of sale, notarised to legally transfer ownership. Once notarised, tax deadlines are triggered, and the property registration process begins.

15. How long does it take to get the property title in my name?

On average, 2 to 3 months from notarisation, as the Bureau of Internal Revenue, local government, and Registry of Deeds need to process the transfer.

16. What ongoing costs should I expect after buying?

• Real Property Tax (RPT): Annually, typically 1–2% of assessed value
• Condominium dues or homeowner’s association fees
• Utilities and maintenance costs

17. Can I buy property in the Philippines through a company?

Yes. Foreigners can own property via a corporation, but the company must be at least 60% Filipino-owned to hold land. This option is more complex and usually used for larger investments.

18. What documents do I need to buy property?

• Valid passport
• Tax Identification Number (TIN)
• Alien Certificate of Registration (if applying for local financing)
• Proof of remittance or funds (for compliance checks)

19. Can I appoint someone in the Philippines to act on my behalf?

Yes. You can issue a Special Power of Attorney (SPA). If executed in Singapore, it must be notarised and apostilled to be valid in the Philippines.

20. What are the most common mistakes Singaporeans make when buying in the Philippines?

• Paying for pre-selling projects without confirming the developer’s License to Sell
• Forgetting the 40% foreign ownership limit in condos
• Assuming CPF can be used
• Breaching HDB MOP rules
• Underestimating taxes and transaction costs

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