May 16, 2026Philippines

Complete Property Buying Process in the Philippines for Foreigners Step by Step

Buying a condominium in the Philippines as a foreigner involves a defined sequence of legal steps, government filings, and tax payments. The process is not complicated, but it is sequential. Missing a step or filing in the wrong order creates delays that can stretch from weeks to months.

This guide covers every step from initial reservation to holding your Condominium Certificate of Title.

Step 1: Reservation Agreement

The buying process begins with a Reservation Agreement. This is a short document (typically 1 to 3 pages) where the buyer pays a reservation fee to hold a specific unit. Reservation fees for Philippine condos typically range from PHP 20,000 to PHP 50,000 for mid-market units, and PHP 50,000 to PHP 200,000 for premium developments.

The Reservation Agreement is not the Contract to Sell. It secures the unit for a limited period (usually 30 days) while the buyer completes due diligence and the developer prepares the Contract to Sell.

Documents required from the foreign buyer at this stage: Valid passport (the primary identification document for foreigners in all Philippine real estate transactions). Proof of billing address (foreign address is acceptable). For some developers, proof of income or financial capacity.

At this stage, confirm with the developer that the building has not reached the 40% foreign ownership cap under RA 4726.

Step 2: Contract to Sell (CTS)

Within 30 days of the reservation, the developer issues the Contract to Sell. The CTS is the binding legal agreement that governs the purchase. It specifies the unit details, total contract price, payment schedule, turnover date, penalties for late payment, and developer obligations.

Under PD 957, the CTS must be registered with the Department of Human Settlements and Urban Development (DHSUD). This registration protects the buyer in case the developer fails to deliver.

Key CTS provisions foreign buyers should review carefully: The exact unit number and floor area (measured in square meters, not square feet). The payment schedule, including any escalation clauses. The projected turnover date and penalties for developer delay. The developer's obligations for completing common areas and amenities. Provisions for cancellation and refund.

Have a Philippine-licensed attorney review the CTS before signing. Attorney fees for CTS review typically range from PHP 10,000 to PHP 30,000.

Step 3: Payment Period

For pre-selling units, the payment period typically runs 3 to 5 years. Payment structures vary by developer but generally follow this pattern: a down payment of 10% to 30% of the total contract price, payable in monthly installments over 12 to 60 months; and the balance (70% to 90%) due at turnover through cash payment, bank financing, or developer in-house financing.

Foreign buyers paying from overseas accounts should ensure remittances are properly documented. The Bangko Sentral ng Pilipinas (BSP) requires inward remittance documentation for amounts above USD 10,000. Proper documentation at this stage is critical for two reasons: it establishes the legitimate source of funds for anti-money laundering compliance, and it facilitates future repatriation of funds if the property is sold.

Make all payments through the developer's official bank accounts. Request official receipts for every payment. Never pay through individual sales agents.

Step 4: Unit Turnover and Inspection

When construction is complete, the developer issues a Notice of Turnover (also called Notice of Unit Acceptance or Delivery). The buyer has a limited window (typically 7 to 30 days) to inspect the unit and submit a punch list of defects.

The punch list inspection is critical. Document every defect with photos and written descriptions. Common issues include paint defects, tile alignment problems, plumbing leaks, electrical issues, and deviations from the approved floor plan.

Under PD 957, the developer is obligated to remedy construction defects. Submit the punch list in writing to the developer's customer service department and retain a copy with acknowledgment of receipt.

Once the buyer accepts the unit (or after the developer remedies punch list items), the buyer signs the Unit Acceptance Form.

Step 5: Deed of Absolute Sale (DOAS)

After full payment and unit acceptance, the developer executes the Deed of Absolute Sale. The DOAS is the legal document that transfers ownership from the developer to the buyer. It must be notarized by a Philippine notary public.

The DOAS contains the complete terms of the sale, including the final contract price, payment confirmation, unit description, and any warranties. For foreign buyers, the DOAS should include a statement confirming that the buyer is a foreign national purchasing a condominium unit within the 40% foreign ownership limit.

Notarization fees for the DOAS are regulated and typically amount to 1% to 2% of the contract price, with a cap specified by the Supreme Court's schedule of notarial fees.

Step 6: Capital Gains Tax and Documentary Stamp Tax

Before the title can be transferred, two national taxes must be paid to the Bureau of Internal Revenue (BIR).

Capital Gains Tax (CGT): For primary sales from developer to buyer, the CGT is typically 6% of the selling price or the zonal value (whichever is higher). In most developer transactions, the CGT is built into the contract price and paid by the developer. Confirm this in the CTS.

Documentary Stamp Tax (DST): The DST is 1.5% of the selling price or the zonal value (whichever is higher), payable under Section 196 of the National Internal Revenue Code. The DST is typically split between buyer and seller or borne by the buyer, depending on the developer's terms.

Both taxes must be paid within 30 days of the execution of the DOAS. Late payment incurs surcharges and interest.

Step 7: BIR Certificate Authorizing Registration (CAR)

After paying the CGT and DST, the next step is obtaining the Certificate Authorizing Registration (CAR) from the BIR. The CAR is the BIR's clearance that all taxes related to the property transfer have been paid.

Documents required for the CAR application: Notarized Deed of Absolute Sale (original and copies). Tax payment receipts for CGT and DST. Developer's Certificate of Registration with the BIR. Buyer's Tax Identification Number (TIN). For foreign buyers without a Philippine TIN, one must be obtained from the BIR Revenue District Office (RDO) with jurisdiction over the property location.

Processing time for the CAR varies by RDO but typically takes 5 to 15 working days. Some RDOs in Metro Manila have implemented electronic filing systems that reduce processing time.

Step 8: Transfer Tax

After obtaining the CAR, the buyer pays the Transfer Tax to the local government unit (city or municipality) where the property is located. The Transfer Tax rate varies by LGU but is typically 0.5% to 0.75% of the selling price or zonal value (whichever is higher).

The Transfer Tax is paid at the City Treasurer's Office. Required documents include the CAR, notarized DOAS, and tax payment receipts.

Step 9: Registration at the Registry of Deeds

With the CAR and Transfer Tax receipt in hand, the buyer registers the transfer at the Registry of Deeds. This is the step where the Condominium Certificate of Title (CCT) is issued in the buyer's name.

Documents required for registration: Notarized Deed of Absolute Sale (original). BIR CAR (original). Transfer Tax receipt. Documentary Stamp Tax receipt. Owner's copy of the developer's CCT (the developer surrenders this). Updated real property tax clearance.

Registration fees at the Registry of Deeds are based on a sliding scale tied to the property value, typically ranging from PHP 5,000 to PHP 30,000 for condo units.

Processing time for CCT issuance varies significantly by Registry of Deeds. Metro Manila registries typically take 2 to 8 weeks. Provincial registries may take longer.

Step 10: Tax Declaration Transfer

After the CCT is issued, the buyer must update the Tax Declaration at the City or Municipal Assessor's Office. The Tax Declaration is the local government's record of property ownership and is used to compute annual real property taxes.

Required documents: New CCT (photocopy). Notarized DOAS. Previous Tax Declaration (obtainable from the Assessor's Office). Transfer Tax receipt.

Once the Tax Declaration is updated, the property is fully registered in the buyer's name for both national (Registry of Deeds) and local (Assessor's Office) purposes.

Total Transaction Costs

Foreign buyers should budget for the following costs on top of the unit purchase price: Capital Gains Tax (6%, usually included in contract price for developer sales). Documentary Stamp Tax (1.5%). Transfer Tax (0.5% to 0.75%). Registration fees (approximately 0.25% to 0.5%). Notarial fees (1% to 2%). Attorney fees for CTS and DOAS review (PHP 20,000 to PHP 60,000). Association dues (payable monthly after turnover, typically PHP 60 to PHP 120 per square meter per month).

Total closing costs for a foreign buyer, excluding the unit price itself, typically run 3% to 5% of the property value. Bektu provides detailed cost calculators for Philippine property transactions that factor in current tax rates and fee schedules.

Timeline Summary

From reservation to holding the CCT, the entire process for a pre-selling unit takes 4 to 7 years: 3 to 5 years for the construction and payment period, plus 6 to 18 months for turnover, DOAS execution, tax payments, and title transfer. For ready-for-occupancy units, the process from reservation to CCT typically takes 6 to 12 months.

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