Tax and Property Rights for Dual Citizens in the Philippines: What Expats Should Know
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Practical guide on taxes and property rights for dual citizens living abroad.
Contents
About This Guide
This guide is based on current procedures and requirements. For the most accurate and up-to-date information, always refer to official sources
References & Further Reading
For the most accurate and up-to-date information, always refer to official sources:
Short, practical guide for dual citizens (or those planning to re-acquire Philippine citizenship) on taxes and owning property in the Philippines.
Quick facts
- Re-acquiring Philippine citizenship (RA 9225) lets natural-born Filipinos hold full citizen rights - including land ownership.
- Tax obligations depend on your tax residency, not citizenship alone: resident citizens are taxed on worldwide income; nonresident citizens are taxed on Philippine-sourced income.
- Property purchases still require the usual taxes and registration steps (capital gains tax on seller, transfer taxes, documentary stamp tax, registration with LRA, and local real property tax).
Who this applies to
- Natural-born Filipinos who regained or retained Philippine citizenship under RA 9225.
- Expats living abroad who want to buy property in the Philippines or are already receiving income from Philippine sources.
What to know about taxes
- Tax residency matters:
- Resident citizen: taxed on worldwide income.
- Nonresident citizen: taxed only on income sourced in the Philippines.
- Residency is determined by facts (where you live and your intention to stay), not merely by your passport.
- Common taxes you'll meet when owning or transferring property:
- Capital Gains Tax on sale of real property (BIR): typically 6% of the gross selling price or fair market value, whichever is higher.
- Documentary Stamp Tax (DST): fixed % applied to documents of transfer.
- Transfer Tax (local government): varies by LGU.
- Registration fees (LRA) and notarial fees.
- Real Property Tax (annual, local).
- Estate tax if you inherit property (rates apply per BIR rules).
Practical steps - buying property as a dual citizen
- Confirm your citizenship status:
- Obtain your Certificate of Re-Acquisition/Retention of Philippine Citizenship (CRRC) from CFO and a Philippine passport (DFA).
- Get a Tax Identification Number (TIN) or confirm your existing TIN with BIR.
- Do due diligence on property title (LRA) and secure a copy of Transfer Certificate of Title (TCT) or Condominium TCT/Certificate of Title.
- Prepare documents for transfer:
- Deed of Absolute Sale, seller's documents, clearance for taxes (capital gains, DST), TINs, IDs (Philippine passport, CRRC).
- Pay required taxes (seller usually pays capital gains tax; buyer usually pays transfer tax and registration fees-confirm in the contract).
- Register transfer at the Registry of Deeds (LRA) and update tax records with the local treasurer for real property tax.
Checklist of requirements (buying/transferring property)
- Certificate of Re-Acquisition/Retention of Philippine Citizenship (CRRC) or other proof of citizenship
- Valid Philippine passport or government-issued ID
- Tax Identification Number (TIN)
- Deed of Sale / Contract of Sale
- Transfer Certificate of Title (TCT) or Condominium Certificate of Title
- Latest Real Property Tax receipts
- Capital Gains Tax / DST receipts (if applicable)
- Transfer tax / registration fee receipts
- Valid government IDs of seller and buyer
- Proof of payment of local transfer taxes (LGU)
Filing and compliance tips
- Register with the BIR if you'll receive Philippine-sourced income (rent, salaries, business income) and file annual returns as required.
- If you live abroad but receive Philippine income, keep records of Philippine-source receipts to determine taxable items.
- For property sales, ensure capital gains tax and documentary stamp tax are properly paid before registration-LRA requires tax clearances/receipts.
- If inheriting property, check BIR estate tax requirements and deadlines.
Common pitfalls to avoid
- Assuming dual citizenship automatically changes your tax residency-residency is separate and must be evaluated.
- Not obtaining or presenting CRRC when registering property-could cause delays at Registry of Deeds.
- Skipping local tax checks: transfer tax rates and procedures vary by city/municipality.
When to get professional help
- Complex cases: rental income abroad vs. in PH, business income, or estate planning.
- Large property transactions - hire a Philippine lawyer or notary and coordinate with a certified public accountant (CPA) familiar with cross-border tax issues.
- For up-to-date rates and forms, consult BIR, CFO, LRA, and DFA websites or the nearest Philippine embassy/consulate.
Useful links: CFO (dual citizenship), Official Gazette (RA 9225), BIR (tax rules), LRA (title registration), DFA (passport services).
Be proactive: get your CRRC, confirm tax residency status with a tax professional, and register property correctly to avoid delays and extra costs.
