A Foreign Buyer's Tax Guide to Owning a Condo in the Philippines (2026)

Owning a condominium in the Philippines as a foreigner comes with a clear set of taxes at three stages: when you buy, while you hold, and when you sell. The transaction taxes on a typical resale add up to roughly 3 to 5 percent of the price spread across buyer and seller, plus modest annual costs. Here is each one, who normally pays it, and how it changes if you buy new from a developer.

When you buy

On a resale unit, the costs are split by custom but are negotiable in the contract.

Documentary stamp tax (DST), 1.5 percent. Charged on the higher of the selling price or the property's fair market or zonal value. By convention the buyer pays it.

Local transfer tax, about 0.5 to 0.75 percent. Paid to the city or municipality, on the higher of selling price or zonal value. Usually the buyer's cost.

Registration fee, roughly 0.25 to 0.5 percent. Paid to the Register of Deeds on a sliding scale to register the transfer and issue the new title. Buyer's cost.

Capital gains tax, 6 percent (seller). On a resale where the unit is a capital asset, the seller pays 6 percent of the higher of the selling price or zonal/fair market value. It is a tax on the gross figure, not on profit. Although it is the seller's tax by law, the split can be negotiated, so confirm who bears it in your contract.

Buying new from a developer. If you buy a brand-new unit from a VAT-registered developer, the dynamics differ. The developer pays its own income taxes on the sale rather than the 6 percent capital gains tax, and VAT at 12 percent may apply to units priced above the current statutory threshold. Ask whether the quoted price is VAT-inclusive, and you will still typically pay DST, transfer tax, and registration.

While you own it

Real property tax (RPT), annual. Assessed on the property's assessed value, at 2 percent in Metro Manila and 1 percent in the provinces, plus an additional 1 percent special education fund levy. RPT must be kept current; arrears accrue penalties and can block a future sale. Many owners pay annually in the first quarter to capture available discounts.

Condominium association dues. Not a tax, but a recurring cost set by the condominium corporation for building upkeep, security, and amenities. Budget for it alongside RPT.

When you rent it out

Income tax on rental income. Rent you collect is taxable. A non-resident foreign individual is generally taxed on Philippine-sourced rental income, and the applicable rate and withholding depend on your residency status, so the after-tax yield is lower than the gross figure marketed by sellers. Get specific advice on your situation, because resident and non-resident treatment differ.

When you sell

Capital gains tax, 6 percent. When you later sell a unit you held as an investment (a capital asset), you pay 6 percent of the higher of the selling price or zonal value. Again, this is on the gross, so you owe it even if you sell at little or no gain.

Documentary stamp tax applies on the sale document, and the buyer will handle their transfer and registration costs as you did when buying.

Modeling the total

A practical rule of thumb: on a resale purchase, expect the buyer side (DST, transfer tax, registration) to total roughly 2.5 to 3 percent, with the 6 percent capital gains tax sitting on the seller unless negotiated otherwise. Hold costs are the annual RPT (1 to 2 percent of assessed value, which is typically well below market value) plus association dues. On exit, plan for the 6 percent capital gains tax on the gross. If you buy new, swap the resale tax dynamics for possible 12 percent VAT and the developer's own tax handling.

Rates, thresholds, and the VAT exemption ceiling change with tax reform, and zonal values are set by the Bureau of Internal Revenue per location, so confirm current figures with a Philippine tax professional before you transact. This is general information, not tax advice. And because every one of these taxes is calculated on the value of the unit you are buying, verifying the developer's delivery record first protects that underlying value; platforms like Bektu compile that history so you can check it before committing.