Owning a property is one of an individual's most significant accomplishments. It not only gives you a physical asset to your name but also provides security and stability for you and your family.
It's no secret that the Philippines is a beautiful country with endless opportunities for leisure and relaxation. In recent years, the Philippines has seen a sharp increase in foreign buyers interested in purchasing property, especially condos. However, buying real estate in the Philippines can be a bit more complicated for foreigners. So the question begs: Can a foreigner buy real estate in the Philippines? The answer may surprise you.
Keep reading to discover and unveil everything you need about condo living for foreigners in the Philippines!
What To Know Before Buying a Condo or Real Estate as a Foreigner In The Philippines
Buying a condo is one of the great ways to invest in property in the Philippines. But can a foreigner buy a condo here? The answer is yes! There are a few things and requirements for purchasing a condo in the Philippines. First, you need to know and do this to make it happen, but foreigners can own property in the Philippines.
Get a Special Resident Retirement Visa (SRRV)
The first thing you need to do is get a Special Resident Retirement Visa (SRRV). This visa is available through the Bureau of Immigration. It lets foreigners live in the Philippines for as long as they'd like, provided they meet specific requirements for buying a condo in the Philippines.
To qualify for an SRRV, you must be at least 35 years old and have a retirement fund of at least $50,000 to bring into the country. Once you have your SRRV, you're ready to start looking for a condo!
Find a Real Estate Agent
The next step is to look for a trustworthy and reputable real estate agent to help you find the perfect condo. Make sure to do your assignment by researching and only work with an agent who has experience assisting foreigners in buying property in the Philippines. They will be able to guide you through the rest of the process and answer any questions you may have along the way.
Choose the Right Condo
This fun part is finding your dream condo! When condominiums were first introduced in the Philippines back in the 1970s, they were intended for upper-middle class families who wanted to live in luxurious, high-rise buildings with all of the amenities. But nowadays, there are condominiums available to fit any budget and lifestyle. Whether you want the best luxurious penthouse or a more modest studio unit, you're sure to find something that suits your needs.
Good thing Vista Residences is the leading developer of high-rise condominiums in the Philippines. With many years of experience in the industry, Vista Residences has established itself as a trusted name among both locals and foreigners. When choosing the right condo, Vista Residences offers a wide range of amenities that will meet your needs. From spacious units to top-notch security, Vista Residences has everything you need to enjoy a comfortable and convenient lifestyle.
Complete the Sale
Once you've found the perfect condo, it's time to complete the sale. Buying property in the Philippines is similar to what you would experience in most other countries. You'll need to sign a sales contract, provide proof of payment, and register the deed of sale with the local registry of deeds office. And that's it! Once everything has been finalized, you'll be the proud owner of a condo in one of Southeast Asia's most beautiful countries.
What Are The Restrictions to Foreigners When It Comes to Owning Property In The Philippines?
Under the law on selling real property in the Philippines, foreigners are not allowed to own land directly. This restriction extends to all types of land, including agricultural, commercial, and residential. However, foreigners are allowed to own condominium units and apartments as long as the total area owned by all foreign investors in the project does not exceed 40%.
How Can Foreigners Buy Condominium Units In The Philippines?
The process of buying a condo unit in the Philippines is relatively straightforward. First, identify the project you want to invest in and confirm that foreign ownership is allowed. Once you have found an eligible project, fill out the required forms and submit them to the developer or their representative. The investor will also be required to pay a minimum reservation fee of Php 20,000 pesos in Vista Residences.
Once the reservation has been processed, the investor will be given a sales contract to sign. This contract will outline your purchase terms, including the unit's price, turnover date, and other important details. Once you have signed the contract, you must pay a down payment equivalent to 20% of the unit's price. The remaining balance can be paid in-house, in cash, or through bank financing.
It is important to note that all payments made during your purchase must be made in Philippine Pesos. If the investor is planning to pay in cash, you must convert your foreign currency into Pesos before making any payments. However, they will handle the conversion for you if you take a Philippine bank's home or real estate loan.
What Are The Taxes And Fees Associated That The Foreigner Has To Pay in Buying A Condominium Unit In The Philippines?
The first tax you will need to pay is the documentary stamp tax (DST). This tax is based on the value or price in the sales contract and is typically paid at 0.5% of this value. You must also pay value-added tax (VAT) on your purchase. VAT is levied at 12% of your unit's selling price or appraised value, whichever is higher. Finally, if your unit is located in a condo building less than ten years old, the investor will also be required to pay capital gains tax (CGT). CGT is levied at 6% of either the selling price or appraised value of your unit and is payable upon completion of your purchase.
Buying real estate in the Philippines can be a bit more complicated for foreigners due to restrictions on land ownership. However, these restrictions do not apply to condominium units and apartments! Foreigners can own up to 40% of any project if they follow the above procedures.
So what are you waiting for? Start searching for your perfect condo today!
Vista Residences is the perfect place to search for your dream condo if you're a foreigner. With various years of experience in the industry, Vista Residences has the knowledge and expertise to help you find the perfect condo property built for anyone's needs. Vista Residences also offers a wide range of services to make your search hassle-free, including assistance with requirements for buying a condo in the Philippines, paperwork, and financing. So if you're looking for the perfect condo, start your search with Vista Residences today. You won't be disappointed.
For more information on Vista Residences, email [email protected], follow @VistaResidencesOfficial on Facebook, Twitter, Instagram, and YouTube, or call the Marketing Office at 0999 886 4262 / 0917 582 5167.