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| On this page we attempt to answer your questions about local investments. If you have a question you would like posted, just send it to: invest@la-union-investments.com.ph |
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A: In short - property prices have skyrocketed. For example, five years ago a property just north of San Fernando sold for 500 pesos a square meter. Last year the same property sold for 3,500 pesos. Back to Top Q: Does this mean that property prices are now overpriced? A: Not necessarily. If anything, demand for property is increasing. A couple of years ago San Fernando became a city and this, along with a sound infrastructure, has helped boost demand in the region. Back to Top Q: How much is the Sales Tax on property sales? A: This tax is called Capital Gains Tax and applies whether or not the seller has sold for a profit. It is currently 7% of the declared selling price. Back to Top Q: Who pays this tax? A: The seller is responsible for payment, but it is common practice for the buyer and seller to reach a compromise. Back to Top Q: I will be investing foreign currency. Just how strong is the Philippine peso? A: That's a bit like asking "How long is a piece of string?" There are no guarantees in any investment, including foreign currencies. For the past few years, however, the peso has remained within about 5% of 40 pesos to the US dollar. This is much more stable, for example, than the Australian dollar that has devalued over 15% during the last 15 months. UPdate: during the Estrada crisis the peso blew out to over 50 to the US dollar but seems to have stabilized now at about 48. Back to Top Q: What restrictions are there on foreign property ownership? A: Apart from condominiums, a foreigner may not own property in his own name. You have two options: you can put the land in a trusted Filipino's name, or put it in a company name. Back to Top Q: How do I set up a company? A: We can introduce you to a qualified professional who will handle all your business and taxation needs. He can set up your company, register it with the SEC, prepare contracts, deeps of sale and transfer of titles, advise on taxes payable, and obtain all necessary permits. In addition he will act on your behalf when dealing with Government departments. Back to Top Q: I am planning to buy a condominium. What laws apply? A: Condominiums are relatively new to the Philippines. The main law that governs them is The Republic Act 4726 as modified by Presidential Decree No. 957. Our professional accountant can advise you further. Back to Top Q: What accommodation is available in La Union? A: There is plenty of reasonable accommodation available. Rents range from about P3,500 for a bed-sitter to P5,000 to P10,000 per month for a furnished three or four bedroom house. Back to Top |
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Q:
What about visa
requirements and resident visas? A: Most foreigners may enter the Philippines without a visa and are granted a stay of 21 days. This can be extended. Alternatively, while still abroad, you can apply for a multiple re-entry visa (9A) valid for 59 days. This is also extendable. Residency and investment visas are available. There is a regional immigration office in San Fernando that can process all visas, including change of status. Back to Top |
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