Comparison of Philippine regions in 2023

Compare the regions of the Philippines and choose the optimal location for your business.

Regions of the PhilippinesNCRCalabarzon regionCentral LuzonCentral Visayas DavaoWestern VisayasNorthern Mindanao
Preferred city for incorporation of the company?ManilaBatangasSubic Bay Freeport ZoneCebu CityDavao CityBacolodCagayan de Oro
Business output market size?US$104.1 BnUS$40.4 BnUS$ 24.6 BnUS$18.2 BnUS$12 BnUS$ 11.2 BnUS$10.9 Bn
Market size relative to the economy?38.1%14.8%9.0%6.7%4.4%4.1%4.0%
Local purchasing power (GDP per capita)?US$8,146US$2,809US$2,185US$2,410US$2,390US$1,443US$2,280
Total population?12.8 Mn14.4 Mn11.2 Mn6 Mn4.8 Mn4.4 Mn4.6 Mn
Most popular business sector?BPOAgri-IndustryManufacturingHeavy industry & shippingAgricultureIT-BPOAutomobile
Specific attractive Government incentives available?YesYesYesYesYesYesYes
Hub for the headquarters of multi-national firms?YesNoNoNoNoNoNo
City airport with direct flight to Europe, Asia and America?YesNoNoYesYesNoNo
Total foreign investment in 2017?US$ 2.4 BnUS$1.1 BnUS$3.4 BnUS$846 MnUS$253 MnUS$504 MnUS$238 Mn
Logistical considerations
Attractive State for a manufacturing business?YesYesYesYesNoNoYes
Attractive State for a e-business?YesNoNoNoNoYesNo
Attractive State for an export-oriented service business?YesNoNoNoNoYesNo
CBD monthly office rental per sq m?US$6US$6US$6US$4US$6US$7US$5
Average monthly warehouse rental per sq m?US$7US$3US$4US$2US$4US$2US$5
Average monthly electricity prices? (per Kwh)US$1
Proximity of sea port to the main city?5 km2.5 km5 km6 km5 km5 km5 km
Proximity of airport in kilometres to the main city?20 km83 km20 km14 km33 km12 km43 km
Average annual inflation rate?1.2%0.9%2.2%3.2%3.2%1.9%1.4%
Corporate Banking and Finance considerations
Is the main city a financial services hub?YesNoNoNoYesNoNo
Recommended bank for corporate banking?BPIMetrobankBPIPNBSBCCBCDBP
Quality of bank customer services?SatisfactorySatisfactorySatisfactorySatisfactorySatisfactorySatisfactorySatisfactory
Quality of online banking services?SatisfactorySatisfactorySatisfactorySatisfactorySatisfactorySatisfactorySatisfactory
Does the State have a reputable financial district?NoNoNoNoNoNoNo
Does the State have a local Stock Exchange?NoNoNoNoNoNoNo
Are there Private Equity Funds/VCs in the State?NoNoNoNoNoNoNo
Employment considerations
Average monthly salary for local employees?US$158US$166US$158US$152US$141US$152US$140
Average skilled labour monthly salary?US$159US$166US$159US$153US$142US$153US$141
Average unskilled labour monthly salary?US$145US$126US$145US$145US$139US$123US$135
Is there a large expatriate community in the State?NoNoNoNoNoNoNo
Mercer Survey Ranking for global cities?Not rankedNot rankedNot rankedNot rankedNot rankedNot rankedNot ranked
Literacy rate? (% of population)98.2%98.4%98.2%96.2%95.2%95.4%95.4%
Accounting and tax considerations
How many tax exempt free zones available?21572151162210
Local VAT rate?0%12%0%12%12%12%12%
Corporation tax rate?0%25%0%25%25%25%25%
Withholding tax on dividends to overseas shareholders?0%30%0%30%30%30%30%
Minimum monthly wage?US$158US$166US$158US$152US$141US$152US$140
Average pension and insurance benefits (% of salary)?US$23US$23US$23US$23US$ 23US$23US$23
Mandatory labour unions?NoNoNoNoNoNoNo
Other country considerations
Average unemployment rate?5.3%
Time zone? (ahead of GMT)8 hours
Quality of internet broadband and Wi-Fi?Average
How many global banks are based in the state?24
How many Filipino banks with local branches?20
International schools for children of expatriate employees?YesYesYesYesYesYesYes
Golf courses near the main city of the State?YesYesYesYesYesYesYes
General availability of bars and restaurants?YesYesYesYesYesYesYes
Will I find European F&B products in the supermarkets?YesYesYesYesYesYesYes
Is the main city of the State safe for expatriates?Moderately
Computer literacy rate? (% of population)63%
Working overtime is common?Yes
Payroll tax rates?1.19%
Stamp duty rate on asset transfers?US$0.1 per US$4
Real estate tax rate?? (per Kwh)3%
Monthly state tax filing required?Yes
Business grants offered by the state government?Yes
Specific tax incentives available in this state?Yes
Average customs duty of export products?0%
Average customs duty for imported products?10.5%
Minimum notice to dismiss employees?1 month
Minimum redundancy indemnity?1 month

Contact us

For additional information on our company registration services in Philippines, please contact our in-house country expert, Mr. Simon Guidecoq, directly:
client relationship officer - Simon