As the epidemic fades and the economy gradually improves, the real estate situation in the Philippines is gradually recovering. Many friends have decided to own their own houses. Many novice investors have also taken a fancy to the high return on investment in Philippine real estate. So what should you pay attention to before buying a house? Today’s guide You understand it once!
About property rights
There are two types of property rights in the Philippines:
CCT (Condominium Certificate of Title): Land property rights are divided, such as apartment buildings.
TCT (Transfer Certificate of Title): The land holding is 100% owned, such as a single-family house (foreigners cannot hold it)
Foreigners can buy houses in the Philippines and have permanent property rights, but land cannot be purchased. Foreigners cannot own land in the Philippines. They can only buy apartments and villas can only be rented.
Another point is that even the apartments foreigners can buy are subject to quantity restrictions: in a building, the area of the property held by foreigners cannot exceed 40% of the total area. Otherwise, they can only have rental property rights and cannot obtain a real estate certificate. .
Many friends don't understand this concept. For example, if there are 100 units in a building, there can only be 40 foreign households at most.
However, given the current level of control in the Philippines, many buildings do not strictly comply with this regulation. It is recommended that friends do their homework and pay attention to the building's restrictions before purchasing real estate.
ps. A company registered in the Philippines as a whole can own land ownership in the Philippines. Interested parties can contact us for consultation.
related taxes
Here we divide it into four states to introduce:
When purchasing a first-hand new home from a developer, you need to pay:
Local Transfer Tax
Registration Fee
Documentary Stamp Tax
Value Added Tax
If you resell the house before delivery, you need to pay:
Capital Gains Tax
Documentary Stamp Tax
If you resell the house after delivery, you will have to pay:
Capital Gains Tax,
Documentary Stamp Tax,
Miscellaneous fees (documentation fees, registration fees, transfer fees)
To own or rent out, you need to pay:
Real Property Tax
avoid risk
Purchasing a house from a developer is basically a fixed process, there is no room for negotiation, and the contract content will not be changed in any way according to the customer's needs.
However, the situation of second-hand houses is much more complicated. Not only the content of the contract needs to be negotiated by both parties, but the qualifications of the seller should also be reviewed before purchasing. At the same time, the content of the documents should also be carefully checked during the transaction, and the original real estate certificate should be obtained in a timely manner after signing.
Here, Fa Xiaowu recommends consulting a lawyer about the contract situation before signing the transaction contract, and asking a lawyer to accompany you when signing the contract, because this kind of contract usually has many terms and details, and some friends may ignore the review and sign directly. , which may bury potential risks.
Feilong Law Firm can provide you with one-stop legal services. We strongly recommend that you consult a lawyer for professional advice before purchasing a house.
Avoid possible risks and add protection to your assets