|
Location & Geography:
Located in South-East Asia, The Philippines is an archipelago positioned between the Philippine Sea and the South China Sea, east of Vietnam.
The Philippine archipelago is made up of 7,107 islands.
Official Languages & Local Dialects:
The Philippines has two official languages – Filipino (based on Tagalog) and English. According to Ethnologue there are 171 languages while and in 2000 the population census
showed the four principal languages spoken were Tagalog (22m), Cebuano (20m), Ilokano (7.7m), and Ilonggo (7m).
Population:
It's estimated to be nearly 90 million in 2006.
Currency
Peso is the national currency. Appreviation = PHP
1 EUR = 65.16 PHP
1 USD = 47.07 PHP
1 GBP = 95.67 PHP
1 AUD = 39.32 PHP
1 JPY = 0.412 PHP
1 KRW = 0.050 PHP
1 CNY = 06.26 PHP
Above are the exchanges rates for 12th September 2007. For updated currency exchange rates click on www.ex.com
Economy
In 2004, the Philippines were ranked 24th largest economy in the world by GDP. Food processing, textiles and garments,
and electronics and automobile parts are the major industries generally concentrated in the urban areas around Manila. Mining also has great potential in the Philippines.
Recent natural gas finds off the islands of Palawan add to the country's substantial geothermal, hydro, and coal energy reserves.
Quick Economic Statistics
GDP/PPP (2005 est.): $451.3 billion; per capita $5,100.
Real growth rate: 4.6%.
Inflation: 7.9%.
Unemployment: 12.2%.
The Property Market
According to the NSBC (http://www.nscb.gov.ph/) The Philippine real estate industry continued to perform strongly with a significant rise of 17.1 percent in Gross Value Added in 2006.
It was the highest annual growth achieved since 1967.
G.V.A. Growth Rates
2006 17.1%
2005 15.4%
2004 16.1%
The real estate industry was driven by increased renting and leasing operations as a result of the opening of upscale giant super malls and commercial and shopping centres.
The growth was further boosted by the strong production and sales of residential developments in subdivisions and high-rise condominium projects fuelled by the significant contributions of the remittances of Overseas Filipino Workers (OFWs) and Filipino Immigrants. Likewise, the growth of Business Process Outsourcing (BPO) sector continued to boost sales and occupancy of
office spaces, especially in the leading commercial business districts in the country.
Religion
Roman Catholic 81%
Islam 5%
Evangelical 3%
Iglesia ni Kristo 2%
Aglipayan 2%
Other Christians 5%
Tourism
Philippine tourism flourished in the 1970’s up until 1980 but in the mid 1980’s the growth of the Philippines tourism started slowing down.
The average length of stay by tourists was down from 12.6 days in 1988 to 8.9 days in 1997. This growth was slower compared to other countries in Southeast Asia.
However, by the early 1990’s tourism numbers were recovering strongly. 1.2 million Tourists visited the Philippines in 1992 it was a record high in the number of tourist visits since 1989.
In the year 2000, the income the Philippine earned via tourism had totalled to 2.1 billion USD. Most of the foreign tourists came from the United States, Japan, South Korea, and Hong Kong and smaller numbers of tourists also came from Taiwan, Australia, Great Britain, Canada, and Singapore. The government of the Philippines has since then spent considerable resources in marketing the Philippine as a real choice for Tourists. http://www.wowphilippines.ph/
Climate:
March - May: Hot & Dry
June - October: Rainy Season
November - February: Cool
Average Temperatures range from 78F/25C - 90F/32C
Humidity is a 77% Average
Where to Buy Real Estate in the Philippines
Cebu is probably one of the best known tourist destinations in the Philippines. Located in the Cebu province in the Visayas region in Southern Philippines, its famous for its topography and history.
Bohol is famous for its white sand beaches, nature reserves and of course the Chocolate Hills. You’ll also find the endangered & smallest of the primate species the Tarsiers here. http://www.bohol.ph/article26.html)
Palawan has breathtaking beaches and is fast becoming a popular place in Philippines to buy property. http://www.palawan.com/.
Boracay Island, a popular little island with amazing white sand beaches. http://www.boracay.com/index.php http://www.boracayinfo.com/
Tagaytay; this area is known for it’s volcanoes and it's very popular area for foreigners to purchase real estate in. http://www.filipinianatagaytay.ph/default.html
Property Laws
Only Filipino Citizens & corporations/partnerships that are 60% owned by Filipinos can acquire land.
Non Filipino spouses will inherit property ownership in the event of their Filipino wife/husband deceasing.
Children are also legal heirs in the event of a mother or father (who is Filipino) becoming deceased. The law does not require the child to be a Filipino citizenship in order to acquire property.
Filipinos who have dual citizenships may also purchase property and land. Former natural-born Filipino citizens are subject to limitations.
Natural born Filipinos who acquired foreign citizenship are allowed to own up to 1,000 square metres of residential land and 1 hectare of agricultural or farm land.
Foreign nationals may completely own condominiums or townhouses. A foreign national could up to 40% of an interest in a condominium project if they so desired.
Ownership of houses or buildings by foreign nationals is legal as long as the foreigner does not own the land on which the houses or buildings is built.
Renting
Foreigners or foreign corporations can lease land on a long term contract for an initial 50 year period and renewable every 25 years.
A foreigner can rent a lot and at the same time legally own the house on the rented land.
Condominiums
Foreigners are legally allowed to acquire condominium units and shares in condominium corporations up to but not more than 40 % of the total and outstanding capital stock of a Filipino owned or controlled Condominium Corporation according to The Condominium Act of the Philippines. Foreigners can own a house & lot in the Philippines provided the property has a condominium title.
Taxes & Registration
The following taxes and costs are the normal expenses that buyers and sellers incur respectively when transferring the real property title known as the Transfer Certificate of Title (TCT).
The Seller should pay:
1. Capital Gains Tax (6% of the contract price)
2. All other unpaid taxes due
2. Agent/Brokers fee
The Buyer must pay:
1. Documentary Stamp Tax
This is normally 1.5% of the contract price, or zoned value or fair market value, whichever is higher.
2. Transfer Tax
0.5% of the contract price, or zoned value or fair market value, whichever is higher.
3. Registration Fee
0.25% of the contract price, or zoned value or fair market value, whichever is higher.
Remember, the "Deed of Sale" is the certificate showing legal transfer of property ownership. The Deed of Sale should then be taken to the Registry of Deeds for official recording.
Never purchase a property with the proper Title & a Deed of Sale. If it is not possible to get the Deed of Sale if a tax declaration may be your last choice.
Additionally your Agent / Broker will usually do the registration process without any additional payments.
Transfer of Certificate of Title (TCT)
The following Documents needed for the transfer of the TCT;
1. Copies of the Deed of Absolute Sale
2. Latest tax declaration of the property
3. Certificate from the Bureau of Internal Revenue that the capital gains tax and documentary stamps have been paid
4. Transfer tax - receipt of payment of the transfer and registration fees
Buyers’ Documentation
The following documents are required for the purchase of Real Estate in the Philippines.
For Individuals;
1. Photocopy of residence certificate or passport.
2. Taxpayer’s Identification Number (TIN).
3. Photocopy of valid ID with picture & signature of buyer(s).
4. 2 Original proofs of billing. (Must be same address as that appearing on the signed Reservation Application).
5. For married individuals, a photocopy of marriage certificate.
Remember married individuals both need to submit requirements 1, 2, & 3 as above.
For Corporate Accounts;
1. Photocopy of By-Laws of the Company.
2. Photocopy of Articles of Incorporation of the Company.
3. Notarized Board Resolution of the Company or Secretary’s Certificate stating the following:
The date and place of the board meeting
That a quorum (minimum number of members necessary were present for deliberation) was present in approving the board resolution
That the board authorized the purchase of the property
The designated signatory for the sale documents
The designated playing representatives for corporate golf shares
4. Residence Certificate of the Company and appointed representative(s).
5. Taxpayer’s Identification Number (TIN) of the Company and appointed representative(s).
6. 2 Original proofs of billing of the corporation (not the representative).
For Balikbayans (Returnees);
1. Photocopy of passport.
2. Photocopy of valid ID with picture & signature of buyer(s).
3. 2 Original proofs of billing. (Must be the same address as that appearing on the signed Reservation Application.)
4. For married individuals, photocopy of marriage certificate.
5. Affidavit as required by law and is necessary for registration of the lot in his/her name.
Affidavit should indicate that buyer was a natural-born Filipino who has lost said citizenship or otherwise has reacquired the same.
Remember married individuals both need to submit requirements 1, 2, & 3 as above.
For Capital or Paraphernal Properties;
1. Same requirements as that of individual buyer.
2. Affidavit from non-buying spouse confirming that the funds used by the purchasing spouse are indeed his/her exclusive funds.
The non-buying spouse is still required to sign the sale documents.
Getting Around Philippines
In the Philippines there are many kinds of transportations such as trains, buses, and taxis. We also have transport modes unique to the Philippines like Philippine jeepneys, tricycads (tricycle), and Philippine multicabs.
Sea and air transport are now more popular than ever with new airports opening with direct international flights. The Philippines continues to spend heavily on building up its infrastructure.
Healthcare
If you are just planning on visiting Philippines for a game of golf a couple of times a year, then it’s probably best to speak to your local private health insurer at home.
A multiple trip annual health cover package would probably make the most sense. However, if you are planning on moving to the Philippines to live, then maybe one of the following
two healthcare companies might be the right option for you.
Blue Cross Philippines www.bluecross.com.ph
PhilHealth www.philhealth.gov.ph
Education
The education system in Philippine is quite similar to the American model with children entering the public school system at around the age of four.
1. Nursery
2. Kindergarten
3. Primary
4. Secondary
5. Tertiary
There are also a range of international school available throughout the Philippines including American, Chinese, British and Japanese international schools.
The majority of expats generally send their children to private schools or international schools ranging in price from $500 up to $12000 per annum.
Private schooling in much more affordable in the Philippines than in other countries and there is something to suit everyone’s budget.
If you have links or information you feel may be of benefit to our visitors please email us at info@filipinoproperty.com
|
