10/06/2026
🧐 𝗪𝗵𝘆 𝗱𝗼 𝗻𝗲𝘄 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝗶𝗲𝘀 𝘀𝗲𝗲𝗺 𝘀𝗼 𝗰𝗼𝘀𝘁𝗹𝘆?
One big reason is 𝗩𝗔𝗧.
When you buy from a developer, you are usually not buying a “capital asset.” You are buying an 𝗼𝗿𝗱𝗶𝗻𝗮𝗿𝘆 𝗮𝘀𝘀𝗲𝘁.
Here’s the simple difference:
🏡 𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗮𝘀𝘀𝗲𝘁
This is usually a personal property being sold by an individual — like a family home, an inherited lot, or a property they are not selling as part of a real estate business.
The taxes are usually simpler. Instead of VAT, the sale may involve taxes and fees like:
• 6% Capital Gains Tax
• 1.5% Documentary Stamp Tax
• Transfer tax
• Registration fees
In simple terms: this is usually a resale property from a private owner, and 12% VAT normally does not apply.
🏢 𝗢𝗿𝗱𝗶𝗻𝗮𝗿𝘆 𝗮𝘀𝘀𝗲𝘁
This is usually a property being sold by a developer or someone in the real estate business. Because it is part of their business inventory, 12% VAT may apply.
That matters because VAT is often already built into the selling price.
So when you see a ₱5M condo or house-and-lot from a developer, part of that price may actually be tax — not just the value of the property itself.
This is why developer prices and resale prices are not always “apples to apples.”
Before buying, always ask:
✅ Is VAT already included in the price?
✅ Are there transfer or processing fees?
✅ What is the total cost, not just the selling price?
✅ How does this compare with a resale property?
Real estate can feel confusing, but understanding the basics can help you make smarter decisions. 🏡
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For general information only. This is not legal or tax advice.
