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Capital ManilaLargest City Quezon CityOfficial languages Filipino,English2020 Population estimate 109,048,269

GDP (PPP) 2020 estimate• Total $1.110 trillion• Per capita $10,094 (2019))

GDP (nominal) 2020 estimate• Total $383 billion• Per capita $3,484 (2019))

PHILIPPINES : General Information COUNTRY OVERVIEW

Republika ng Pilipinas (Filipino); Republic of the Philippines(English)

Officially the Republic of the Philippines (Filipino: Republika ng Pilipinas), consists ofabout 7,641 islands that are categorized broadly under three main geographicaldivisions from north to south: Luzon, Visayas, and Mindanao.

Economic dynamism is rooted in:• Strong consumer demand• Sound economic fundamentals• A vibrant labor market• Competitive workforce• Robust remittances

Buoyant Industries:• Business Process Outsourcing• Real Estate• Finance and Insurance industries.

Why Manila Has the Edge in the Asian Region

1. The Philippines’ geographical position easily makes it a gateway to Asia, giving Manila the competitive edge over other cities in the region.

2. The Philippine economy has been one of the fastest-growing in Asia, and Manila is reaping the benefits.

3. As a real 21st century city, Manila provides a cosmopolitan environment.

4. While first-class living options can be found in the metropolis, Manila has maintained a relatively low cost of living.

5. The cost of doing business here is lower compared to other locations that offer modern office spaces and top-of-the-line solutions.

6. Manila is an abundant talent source since it’s home to the country’s top-performing universities and most prominent schools.

7. The country can develop Asia’s main techno center like India’s Bangalore.

8. The Philippines has developed a stronger affinity to Western culture compared to other Asian countries.

https://www.philstar.com/lifestyle/modern-living/2018/10/08/1856611/uniquely-relaxed-yet-cosmopolitan-lifestyle-filinvest-cityhttps://pinoypulse.com/2020/01/24/2nd-fastest-in-asia-ph-economy-grows-6-4-in-q4-2019/https://www.worldatlas.com/articles/the-four-regions-of-asia.htmlhttps://sprout.ph/blog/8-reasons-why-manila-has-the-edge/

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THE TOP REASONS TO INVEST IN THE PHILIPPINES

Top Reasons to Invest in the Philippines

Continuous Infrastructure Projects through - Build Build Build ProgramBuild! (BBB) Program is the centerpiece program of the Duterte administration that aims to usher the “Golden Age of Infrastructure” in the Philippines. This program has listed 100 Infrastructure Flagship Projects nationwide. 1

Top Reasons to Invest in the Philippines

Diverse Property Types and Competitive Rates2

Top Reasons to Invest in the Philippines

Historical Capital Appreciation

Rental Yield in PH compared to Asia

Top Reasons to Invest in the Philippines

Top Reasons to Invest in the Philippines Influx of International Gaming, Technology, KPO & BPO Companies

expanding in and outside of Metro Manila

Makati Central Business District

Bonifacio Global City (BGC

Filinvest Corporate CityOrtigas CenterTriangle Park Quezon City Central Business District

Eastwood City

3

1. Cebu City•Population: 980,070 (2020)•Growth rate: 6.2%-6.4%%•Selling points: Tourism, international airport andseaport, BPO industry

2. Davao City•Population: 1,825,450 (2020)•Growth rate: 8.6% (2018)•Selling points: Efficient government, regional growthcenter3. Cagayan de Oro•Population:753,138 (2020)•Growth rate: 7.2% (2018)•Selling points: Fresh produce, BPO industry, tourism

4. Bacolod•Population:613,437 (2020)•Growth rate: 6.1% (2018)•Selling points: Tourism, BPO industry

5. Iloilo City•Population: 471,789 (2020)•Growth rate: 6.1% (2018)•Selling points: Tourism, high studentpopulation, BPO industry

6. Angeles, Pampanga•Population: 519 227 (2020)•Growth rate: 7.1% (2018)•Selling points: Infrastructure, international airport

7. Baguio•Population:407,215 (2020)•Growth rate: 7.3% (2018)•Selling points: Tourism, high student population

8. Santa Rosa, Laguna•Population: 284,670 (2010)•Growth rate: 7.3% (2018)•Selling points: Infrastructure, BPO industry,proximity to Metro Manila

Top Reasons to Invest in the Philippines

Presence of World-Class Tourism Destinations

Bonifcacio High Street

Pasay El Nido, Palawan

Bohol

Boracay, Aklan

Mactan, Cebu

Greenbelt, Makati

4

Top Reasons to Invest in the Philippines

Filipinos are Friendly &Hospitable and Converses wellin English

5

Investing in FLI Properties (Forecast)

175 projects nationwide

Resort Inspired Developments

Fortune Hill

Guidelines in Buying Ph Properties

How to buy property in the Philippines?

Legal steps for transfer of titles for lands and apartments1.A deal between buyer and seller is made regarding sale of the property.

2.Lawyer creates and notarizes a Deed of Absolute Sale (SoAS)

3.Parties obtain a Land Tax Declaration from the BIR and submits it to the office of the city’s Assessor

4.Real estate tax will be paid by the buyer at the City Treasurer’s office.

5.City Assessor’s office determines the property’s market value.

6.Buyer will pay transfer taxes to Assessor’s office.

7.The Documentary Stamp and Capital Gains tax are paid at the BIR’s office.

8.The Registry of Deeds will now cancel the ownership of the seller on the property and awards a new one to the buyer.

9.Buyer gets copies of the new title and visits the Assessor’s office to request for tax declaration.

10.Condos that have 60% owned by locals can be acquired by foreigners, land ownership is limited for foreigners

11..Loan financing is limited only to resident foreigners and local buyers.

Amount of Payment Real Property Tax = 2% x Assessed Value of the Property

Frequency of Payment Quarterly

Exemption

• Real property owned by the Republic of the Philippines• Charitable institutions, churches, clergy houses or convents, mosques, non-profit or

religious cemeteries (basically all that’s used for religious, charitable, or educational purposes)

• Machinery and equipment used by local water districts• Machinery and equipment used for pollution control and environmental protection

Other Types of Taxes

Selling and renting out:• Capital Gains Tax• Rental Income TaxBuying:• Documentary Stamp Tax• Registration Fee• Transfer Tax

Real Estate Taxes in the Philippines

Fees & Charges Amount Paid By

Registration Fee 1% Buyer

Documentary Stamp Tax 1.50% Buyer

Local Transfer Tax 0.50% to 0.75% Buyer

Notary Fee 1% to 2% Buyer

Capital Gains Tax 6% Seller

Real Estate Broker Fee 3% to 5% Seller

Notes:• Notary fee is negotiable• Local transfer tax: Metro Manila (0.75%), Provinces (0.5%)• Documentary Stamp Tax: Based on selling price or fair market value (whichever is higher)• Capital Gains Tax: Transaction tax incurred during sale or transfer or properties identified as capital assets. Value (6%) is

based on selling price or fair market value (whichever is higher)

Transaction Fees and Charges related to purchase of property in the Philippines

Rules of Ownership

Can a Foreigner Own Land in the Philippines?Foreigners or expats interested in acquiring land or real property through aggressive ownership structures must consider the provisions of the Philippines’ Anti-Dummy Law to determine how to proceed. A major restriction in the law is the restriction on the number of foreign members on the Board of Directors of a landholding company (which is limited to 40% foreign participation). Another concern is the possible forfeiture of the property if the provisions of the law is breached.

Are there any exceptions to the restriction on foreign land acquisition? Yes, there are. The list of exceptions to the restriction are as follows:

• Acquisition before the 1935 Constitution• Acquisition through hereditary succession if the foreigner is a legal or natural heir• Purchase of not more than 40% interest in a condominium project• Purchase by a former natural-born Filipino citizen subject to the limitations prescribed by law (natural-

born Filipinos who acquired foreign citizenship is entitled to own up to 5,000 sq.m. of residential land, and 1 hectare of agricultural or farm land).

• Filipinos who are married to aliens and able to retain their Filipino citizenship (unless by their act or omission they have renounced their Filipino citizenship)

Rules of Ownership

Can a Corporation Own Land in the Philippines?Foreign nationals, expats or corporations may completely own a condominium or townhouse in thePhilippines. To take ownership of a private land, residential house and lot, and commercial building and lot,they may set up a domestic corporation in the Philippines. This means that the corporation owning the landhas less than or up to 40% foreign equity and is formed by 5-15 natural persons of legal age as incorporators,the majority of which must be Philippine residents.

Can a Foreigner Lease Real Estate Property in the Philippines?Leasing land in the Philippines on a long-term basis is an option for foreigners, expats or foreign corporationswith more than 40% foreign equity. Under the Investors’ Lease Act of the Philippines, they may enter into alease agreement with Filipino landowners for an initial period of up to 50 years renewable once for anadditional 25 years.

Can a Foreigner Own Residential Houses or Buildings in the Philippines?Foreign ownership of a residential house or building in the Philippines is legal as long as the foreigner orexpat does not own the land on which the house was built.

Rules of Ownership

Can a Foreigner Own Condominiums or Townhouses in the Philippines?The Condominium Act of the Philippines (RA 4726) expressly allows foreigners to acquire condominium unitsand shares in condominium corporations up to 40% of the total and outstanding capital stock of a Filipino-owned or controlled condominium corporation.However, there are a very few single-detached homes or townhouses in the Philippines with condominium titles.Most condominiums are high-rise buildings.

Can a Foreigner Married to a Filipino Citizen Hold a Land Title in the Philippines?If holding a title as an individual, a typical situation would be that a foreigner married to a Filipino citizen wouldhold title in the Filipino spouse’s name. The foreign spouse’s name cannot be on the Title but can be on thecontract to buy the property. In the event of the death of the Filipino spouse, the foreign spouse is allowed areasonable amount of time to dispose of the property and collect the proceeds or the property will pass to anyFilipino heirs and/or relatives.

Can a Former Natural-Born Filipino Citizen own Private Land in the Philippines?Any natural-born Philippine citizen who has lost their Philippine citizenship may still own private land in thePhilippines (up to a maximum area of 5,000 square meters in the case of rural land). In the case of marriedcouples, the total area that both couples are allowed to purchase should not exceed the maximum areamentioned above.

Rules of Ownership

Can a Former Filipino Citizen or OFW Buy and Register Properties Under Their Name?

Former natural-born Filipinos who are now naturalized citizens of another country can buy and register, undertheir own name, land in the Philippines (but with limitations in land area).

However, those who avail of the Dual Citizenship Law in the Philippines can buy as much as any otherFilipino citizen.

Under the Dual Citizenship Law of 2003 (RA 9225), former Filipinos who became naturalized citizens offoreign countries are deemed not to have lost their Philippine citizenship, thus enabling them to enjoy all therights and privileges of a Filipino citizen regarding land ownership in the Philippines.

Documentary Requirements for OFW (move - how to buy)

UNDER AGENCY DIRECT HIRE

1. Completed and signed application form 1. Any two income documents are required:• Consularized Special Power of Attorney is needed if

with attorney in fact• Mortgage Redemption Insurance (MRI) Application

Form• Relevant collateral documents

2. Clear copy of one valid ID (photo-bearing government issued of borrower/spouse/co-borrower/signatories of the loans

3. Any one of the following income documents:• Certificate of Employment with compensation

(issued within the last 6 months) Latest Crew Contract (for seafarer/seaman)

• Latest Employment Contract (for land-based OFW)• Allotment Slip• Latest 3 months pay slip or bank statement for past 3

months

Documentary Requirements for Foreign Borrowers

FOREIGNERS ISSUED WITH WORKING OR RESIDENT VISA FOREIGNERS ISSUED WITH FILIPINO TIES

1. Copy of VISA and Passport 1. Copy of VISA and Passport

2. Must be working or residing in the Philippines under Alien Social Integration Act RA 7919 2. Marriage Certificate

3. Alien Certificate of Registration Identity Card 3. Proof of Filipino Citizenship

4. Alien Employment Permit 4. Filipino spouse should be the Principal Borrower

5. Consularized Special Power of Attorney 5. Consularized Special Power of Attorney

Disclaimer

None of the market data information and any related projections expressed in this package are the opinions of KW Philippines, but belong to market research sources as referenced. Projections are inherently subject to substantial and numerous uncertainties and subject to a wide variety of significant business, economic and other future market factors. Assumptions used by the referenced sources underlying any projections may potentially be inaccurate in any presented material.Historical property prices and rent data included in the preceding summary examples by City are not developed by KW Philippines and such data, related historical yield and capital gain information is qualified in its entirety by reference to the more complete source data as noted. The historical yield and capital gain estimates are presented solely for the purpose of providing insight into an example market and for establishing a benchmark for relative evaluation between such cities. Such examples may not be complete, and each prospective investor should carefully evaluate actual property information and related specific data, before deciding whether to make an investment.

https://scad.gov.ph/build-build-build/

https://tradingeconomics.com/philippines/interest-rate

https://www.international.gc.ca/cil-cai/country_insights-apercus_pays/ci-ic_ph.aspx?lang=eng#:~:text=Filipinos%20are%20a%20very%20hospitable,Tagalog%2C%20is%20the%20national%20language.

https://asiasociety.org/philippines/philippines-deemed-one-worlds-friendliest-countries

https://manilarecruitment.com/manila-recruitment-articles-advice/why-investors-take-advantage-cebu-growing-economy-how/http://rsso11.psa.gov.ph/grdphttp://nro6.neda.gov.ph/western-visayas-economy-grew-by-6-1-percent-in-2018/https://worldpopulationreview.com/world-cities/iloilo-city-populationhttps://pia.gov.ph/news/articles/1021318https://psa.gov.ph/regional-accounts/grdp/data-and-chartshttps://kittelsoncarpo.com/property-ownership/#:~:text=In%20general%2C%20only%20Filipino%20citizens,a%20long%2Dterm%20land%20lease.

https://en.wikipedia.org/wiki/Philippines

https://www.worldbank.org/en/country/philippines/overview#1

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