Renewing a Tenancy for a Foreign Tenant in Philippines
Renewing for an Employment Pass, S Pass, Work Permit, or Dependent's Pass holder is mostly the same as for a Filipino tenant. The differences are pass expiry alignment, the diplomatic clause, and the ICA 28-day address-update rule. Get those three right and the rest is just paperwork.
For the general renewal flow, see the renewal guide. For the clause itself, see the diplomatic clause page.
Pass expiry alignment is the main thing to check
Before you sign anything, run through this:
1. Get a copy of the current pass
Ask the tenant for a photo of their pass card (front and back) or the printout from MOM's online portal. Note the pass type (EP, S Pass, WP, DP) and the exact expiry date. Don't take their word for it — pass cards get lost, and renewal applications get denied more often than people admit.
2. Compare pass expiry to proposed tenancy end date
If the pass expires after the tenancy ends, you're fine. If it expires before, you have a decision: shorten the tenancy to match the pass (then re-renew once their new pass comes through), or write a clause that handles non-renewal of the pass.
3. Confirm the employer is renewing the pass
For EP and S Pass holders, the employer files for renewal, not the tenant. Ask the tenant whether their company has already submitted (or intends to submit) the renewal. If they haven't started and the pass expires in 6 weeks, you're in higher-risk territory and may want a shorter tenancy term.
4. Match the tenancy term sensibly
Common patterns: 12 months with diplomatic clause if pass expiry is well past the term. 12 months with a tighter early-termination clause if pass expiry falls inside the term. 6 months if the pass renewal is genuinely uncertain.
Diplomatic clause vs no clause
The diplomatic clause is a market-standard early-termination right for foreign tenants. The usual wording: after 12 continuous months of occupancy, the tenant may terminate with 2 months' written notice if they're transferred out of Philippines, their employment ends, or their pass is cancelled or not renewed.
- EP holders. Almost always negotiate for one. Multinational expats expect it as standard. Refusing usually loses you the tenant.
- S Pass holders. Often included. The S Pass renewal rate is high but not 100%, and tenants on tighter budgets need the option.
- WP holders. Less common, partly because WP tenancies are often dorms or company-arranged housing. If renting on the open market, a clause is reasonable.
- DP holders. Tied to the main pass holder, so the diplomatic trigger is usually framed around the EP/S Pass holder's status, not the DP itself.
- PR holders. Don't typically need a diplomatic clause — they're not at risk of pass non-renewal in the same way. Treat the renewal like a Filipino tenant.
ICA address update — both sides have an obligation
Under the Immigration Act and the National Registration Act, foreigners holding a long-term pass must keep their registered residential address current with ICA. The window is 28 days from the move-in date.
For a renewal where the tenant is staying at the same unit, no fresh ICA update is needed. The address on file already matches. If the renewal involves a unit change (different flat, even in the same building), the tenant must update ICA within 28 days of moving in.
Practical points:
- The update is free and can be done via the ICA e-Service using the tenant's pass credentials.
- The tenant needs proof of address — a stamped tenancy agreement is the cleanest evidence, which is why getting BIR stamping done early matters.
- Failure to update is a breach under the Immigration Act and can affect future pass renewals or PR applications.
- As landlord you don't file the ICA update for them, but pointing it out (especially for first-time tenants in Philippines) avoids problems later.
If their pass gets denied or expires mid-term
This is the scenario landlords don't want to think about and tenants definitely don't. Build the contract assuming it could happen.
Clause checklist:
- Pass non-renewal trigger. Define what counts: MOM denial, employer withdrawal, pass cancellation. Be specific so there's no argument about whether the trigger fired.
- Notice period. Standard is 2 months' written notice once the trigger fires. Some agreements require the tenant to provide a copy of the MOM letter.
- Effective date. Usually the later of (a) end of notice period, or (b) actual move-out. Avoids the tenant being forced out before they can pack.
- Deposit treatment. Prorated return after deduction for any unpaid rent, utilities, or damage. Be explicit that deposit isn't forfeit just because the term wasn't completed.
- Documentation requirement. Tenant produces evidence of pass status — MOM letter, employer letter, or pass card showing the new expiry.
Without a clause, the tenant is contractually liable for the remaining rent. In practice most landlords negotiate something reasonable rather than chasing someone who has already left the country, but having the legal position clear from day one avoids ugly disputes.
Generate a renewal with the right clauses
Foreign-tenant renewals pre-filled with diplomatic clause and pass-related terms. Updated dates, new rent, ready for BIR stamping. Free preview, ₱500 to download.
Renting in Thailand? See foreigner property rights in Thailand — can expats rent and own property, visa considerations.
Frequently asked questions
Should the tenancy term match the tenant's pass expiry date?
Best practice is to align the lease term with the foreign tenant's visa validity. If the visa expires mid-lease, include a clause allowing early termination without penalty. For Philippine visas (9G, 47(a)(2), Special Resident Retiree's Visa, etc.), check the validity period and include appropriate termination provisions.
What if the tenant's pass isn't renewed mid-term?
Without a clause, the tenant is still legally bound to pay rent through the end of the term even if they have to leave Philippines. Most foreign-tenant tenancies include a diplomatic clause covering exactly this — usually allowing the tenant to terminate after 12 months of occupancy with 2 months' notice if their pass is cancelled, employment ends, or they're transferred out. If the tenant is on a fresh renewal and their pass gets denied at the 4-month mark, the diplomatic clause may not have kicked in yet, so it's worth negotiating the wording before signing.
Does the tenant need to update ICA when they renew at the same address?
Foreign nationals in the Philippines must register their residential address with the Bureau of Immigration (BI). If renewing at the same address, no update is needed unless the ACR I-Card requires renewal. For address changes, report to the BI within 30 days of moving.
How does this work for Dependent Pass holders?
Dependent visa holders in the Philippines ride on the main visa holder's status. For lease purposes, either party can sign the agreement. Verify the main visa holder's validity as it determines the family's legal stay in the Philippines.
Can someone on STVP or Long Term Visit Pass rent and renew?
Yes, both are allowed to rent residential property. STVP holders are uncommon as long-term tenants because the pass is typically 30 to 90 days, but the law doesn't prohibit it. LTVP holders (often spouses or parents of citizens/PRs) can rent and renew normally. The renewal paperwork is the same as for an EP holder, but check the LTVP expiry against the proposed term.
Is there a special bond or surety required because the tenant is foreign?
No. Philippines has no separate landlord-side bond or government-imposed surety for renting to foreigners. The standard 1-month deposit per year of tenancy applies the same way. Some landlords ask for a 2-month deposit on tenants whose pass expiry is close to the lease end, as a buffer against early departure. That's a commercial decision, not a legal requirement.
If I'm a foreign landlord renting to a foreign tenant, any tax angle?
Yes. As a non-resident landlord, rental income from the Philippines is subject to 15% final withholding tax (for non-resident foreign corporations) or graduated rates for individual non-residents. The tenant or property manager typically withholds the tax and remits it to the BIR. Consult a tax professional for your specific situation.
Can the tenant sign a new tenancy before MOM has approved their pass renewal?
Legally yes — the lease is a contract between landlord and tenant, not conditional on visa approval. But it's risky for both sides. If the BI (Bureau of Immigration) denies the renewal after they've signed, the tenant is on the hook for rent unless there's a clause covering it. The cleaner approach is to sign with a condition precedent: lease is binding subject to visa renewal approval within X weeks. Or sign a Letter of Intent with a small good-faith deposit that's refundable if the visa is denied, and only convert to a full lease once approval comes through.