Renting out property in the Philippines: landlord guide

Costs of buying

• Buyers usually pay documentary stamp tax (1.5% of the price or zonal value, whichever is higher), the local transfer tax (about 0.5–0.75%) and registration fees (about 0.25%).
• The seller usually pays capital gains tax of 6% of the higher of the price or zonal value.
• Real property tax (amilyar) is charged every year on the assessed value: up to 1% in provinces and 2% in Metro Manila, plus 1% for the Special Education Fund.

Buying as a foreigner

• Foreigners cannot own land, but they can own condominium units as long as foreign ownership in the project stays within 40%.
• Houses and land can be leased long term instead, for up to 50 years renewable once for 25 years under the Investors' Lease Act.
• Bring the purchase money in through a bank and keep the bank's certificate, so that the money (and later the sale proceeds) can be sent back out.

Official guidance: Bureau of Internal Revenue · Land Registration Authority

How rental income is taxed

• Residents and foreigners doing business in the Philippines are taxed on rent at graduated rates up to 35%, filing an annual return (BIR Form 1701) by 15 April and quarterly returns during the year.
• Non-resident foreigners not doing business in the Philippines pay a final 25% on the gross rent.
• Tenants that are businesses withhold 5% of the rent and give you a certificate, which counts toward your tax.

Expenses claimable against rental income

• Either your actual expenses with receipts (association dues, real property tax, repairs, insurance, depreciation, loan interest), or the optional standard deduction of 40% of the gross rent without receipts.
• Non-residents taxed at the final 25% on gross rent cannot claim expenses.

Tenancy rules and customs

• The usual terms are two months' deposit and one month in advance.
• Under the Rent Control Act, extended to the end of 2026, homes renting for up to ₱10,000 a month in Metro Manila and highly urbanised cities (₱5,000 elsewhere) can only have their rent raised once a year, within a cap set by the government (2.3% for 2025).
• Contracts for more than one year are commonly notarised.

Key dates

• By 31 January (or quarterly): Real property tax, often with a discount for paying the year in advance
• 15 April: Annual income tax return (BIR Form 1701)
• 15 May, 15 August, 15 November: Quarterly income tax returns (Form 1701Q)

Questions landlords ask

What is a good rental yield in the Philippines?

Gross yields on Metro Manila condos are commonly around 4–6%; association dues and empty months reduce the net figure. Check a specific unit in the rental yield calculator for the Philippines.

Can foreigners buy property in the Philippines?

Foreigners can own condominium units within the 40% foreign limit for each project, but not land. Houses and land can be leased for up to 50 years, renewable once for 25 years.

How is rental income taxed for a non-resident foreigner in the Philippines?

A non-resident foreigner not doing business in the Philippines pays a final 25% on the gross rent, with no expenses claimable. Residents and those doing business pay graduated rates on net income.

Does rent control apply to my unit in the Philippines?

Only if the rent is up to ₱10,000 a month in Metro Manila and highly urbanised cities, or ₱5,000 elsewhere. Those units can have one increase a year within the government's cap.

Official sources

• Bureau of Internal Revenue
• Department of Human Settlements and Urban Development (rent control)
• Land Registration Authority