Philippines

Research notes

Philippines — family-office tax dossier

Last reviewed: 2026-10-15 Tax year: 2026 Reviewer: research agent (Claude), unreviewed by a tax adviser

Summary

The Philippines taxes foreigners, resident or not, only on Philippine-source income, so foreign dividends and gains on foreign securities are untaxed. Philippine dividends bear a 10% final tax, and listed Philippine shares a 0.1% tax on the sale price. Estate tax is a flat 6% above PHP 5 million, and for a resident alien it reaches the worldwide estate. Gifts above PHP 250,000 a year bear 6% donor's tax. There is no wealth tax. Residence is available through the Special Resident Retiree's Visa and other visas.

US citizens: US citizens pay US tax on worldwide income; Philippine tax on their foreign income is nil. The 6% Philippine estate tax on a resident alien's worldwide estate is creditable against US estate tax only within foreign-tax-credit limits (no estate tax treaty).

Residence and eligibility

Aliens: 'resident alien' if living in the Philippines with no definite intention as to length of stay; aliens staying more than 180 days in a calendar year are at least non-resident aliens engaged in trade or business. Both are taxed on Philippine-source income only.

• Special Resident Retiree's Visa (SRRV) and other permanent visas (EU, US, OTHER): SRRV for applicants aged 50+ with a deposit (amount varies by option and age; not verified); quota immigrant and treaty-based permanent visas exist.

Capital gains

Resident alien (standard)

Aliens, whether resident or not, are taxed only on Philippine-source income, so a foreign family's gains on foreign securities and foreign property are not taxed. Philippine-source gains: shares listed and traded on a stock exchange bear a stock transaction tax of 0.1% of the gross selling price (cut from 0.6% by the Capital Markets Efficiency Promotion Act, effective 2025); unlisted shares 15% of net gain; Philippine real property 6% of the higher of gross price and fair market value.

• Exemptions and thresholds: Foreign-source gains of aliens: outside the tax net.
• Important exceptions, statute references and announced changes: PwC's individual pages still show the 0.6% stock transaction tax; PwC's corporate 'Other taxes' page shows the 0.1% rate after the 2025 reform, which is used here. Philippine citizens who are resident are taxed on worldwide income (not relevant to EU/US/OTHER citizens).
• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 15% (0.15); listed domestic 0.2% (0.002); listed foreign 0% (0.0); private business sale 15% (0.15); local real estate 12% (0.12); foreign real estate 0% (0.0).
• How derived: Proceeds-based taxes converted to a rate on the gain assuming the gain is half the proceeds: listed shares 0.1% of proceeds -> 0.2%; Philippine real property 6% of gross price -> 12%. Unlisted Philippine shares 15% of net gain. Foreign assets 0 (aliens taxed on Philippine-source income only).
• Holding period: None for the final taxes.
• Trader recharacterisation: Dealers in securities are taxed on ordinary income at graduated rates (up to 35%).
• Foreign assets: Not taxed for aliens (resident or non-resident).

Dividends

Resident alien (standard)

Resident aliens pay a 10% final tax on dividends from domestic corporations. Foreign dividends are foreign-source income and not taxed for aliens; there is no foreign tax credit for aliens (PwC).

• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: headline 10% (0.1); domestic 10% (0.1); foreign gross 0% (0.0); foreign tax relief: exemption.
• How derived: Domestic 10% final (resident aliens). Foreign 0: outside the scope of tax for aliens.
• Outbound withholding: Dividends to non-resident aliens 20%/25% final, to non-resident foreign corporations 25% (15% with tax-sparing), reducible by treaty.
• Treaty network: About 44 DTAs including the US, the UK and major EU states (PwC list).
• Holding companies: Domestic corporations pay 25% CIT (20% for small companies); a company structure is not assumed.

Inheritance and gifts to children

Resident alien (standard)

Estate tax is a flat 6% of the net estate (TRAIN Law, NIRC Sec. 84). For citizens and residents (including resident aliens) the gross estate covers property wherever situated, after a PHP 5 million standard deduction, the family home (up to PHP 10 million), debts and the surviving spouse's share of conjugal property. Non-resident aliens are taxed only on Philippine property. Donor's tax is also 6%, on gifts above PHP 250,000 a year.

• Exemptions and thresholds: PHP 5,000,000 standard deduction per estate; family home deduction up to PHP 10,000,000; donor's tax exemption PHP 250,000 per calendar year.
• Important exceptions, statute references and announced changes: Reciprocity exemption for intangible personal property of non-resident aliens (NIRC Sec. 104; not verified). Foreign estate tax is creditable.
• Tax year / confidence / verification: 2026 / medium / partially_verified (checked 2026-10-15)
• JSON numbers: basis estate, children taxed, scope worldwide, exemption 5,000,000 PHP, brackets (marginal): 6% (0.06) from 0 PHP; other transfer costs 0% (0.0); deemed disposal 0% (0).
• Gifts: Donor's tax 6% on total gifts above PHP 250,000 in a calendar year, paid by the donor. (same as inheritance: False; tax-free after years: None)
• Foreign assets: Included in the gross estate of a resident alien (Sec. 85, 'wherever situated'); credit for foreign estate tax (Sec. 86(D)).
• Residence/domicile rules: Residence of the decedent decides: resident aliens worldwide, non-resident aliens Philippine assets only.
• Business relief covers listed shares: False

Surviving spouse: No marital deduction: what the spouse inherits is taxed at the flat 6% of the net estate; only the spouse's own net share of the conjugal or community property is deducted, and that is not an inheritance (NIRC Sec. 86(C), as amended by RA 10963).

Wealth tax

Resident alien (standard)

No net wealth tax.

• Tax year / confidence / verification: 2026 / high / partially_verified (checked 2026-10-15)
• JSON type: none
• Property tax (not a wealth tax): Real property tax up to 1% (provinces) or 2% (cities and Metro Manila municipalities) of assessed value plus 1% for the special education fund. Foreigners cannot own land (condominium units up to 40% of a project).

Special regimes

None modelled; see Residence and eligibility.

Company taxation (kept separate from personal tax)

Headline CIT rate: 25% (0.25). 25% CIT on domestic corporations' worldwide income (20% for small corporations); 2% minimum corporate income tax on gross income from the fourth year. Special zones/regimes: PEZA economic zones and CREATE/CREATE MORE incentives (not researched).

Cost of living notes

Not researched in this pass (no quickly verifiable sources).

Open questions

• Whether a family on a retiree or other permanent visa is a 'resident alien' (worldwide estate tax) or a non-resident alien depends on intention; assumed resident.
• SRRV deposit amounts not verified.
• (standard.capital_gains) The 0.1% stock transaction tax is from PwC's corporate page; the RA 12214 text was not opened.

Sources

• Philippines - Individual - Taxes on personal income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/philippines/individual/taxes-on-personal-income
• Philippines - Individual - Income determination (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/philippines/individual/income-determination
• Philippines - Corporate - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/philippines/corporate/other-taxes
• Philippines - Individual - Foreign tax relief and tax treaties (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/philippines/individual/foreign-tax-relief-and-tax-treaties
• Republic Act No. 10963 (TRAIN Law), amending NIRC Secs. 84-86 (estate tax) and 98-99 (donor's tax) (Lawphil Project (text of Republic Act), legislation): https://lawphil.net/statutes/repacts/ra2017/ra_10963_2017.html
• Philippines - Individual - Other taxes (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/philippines/individual/other-taxes
• Philippines - Individual - Residence (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/philippines/individual/residence
• Philippines - Corporate - Taxes on corporate income (PwC Worldwide Tax Summaries, professional): https://taxsummaries.pwc.com/philippines/corporate/taxes-on-corporate-income

Change log

• 2026-10-15: initial research.
• 2026-10-16: added surviving-spouse treatment.