08/10/2024
Concerned about the fees you have to pay for when buying real property? Here are the taxes you have to consider before buying:
𝟔 𝐓𝐚𝐱𝐞𝐬 𝐘𝐨𝐮 𝐍𝐞𝐞𝐝 𝐭𝐨 𝐂𝐨𝐧𝐬𝐢𝐝𝐞𝐫 𝐖𝐡𝐞𝐧 𝐁𝐮𝐲𝐢𝐧𝐠 𝐋𝐚𝐧𝐝
🏠 𝐂𝐚𝐩𝐢𝐭𝐚𝐥 𝐆𝐚𝐢𝐧𝐬 𝐓𝐚𝐱: this is paid when you sell property at a higher price than the purchase cost.
🏠 𝐃𝐨𝐜𝐮𝐦𝐞𝐧𝐭𝐚𝐫𝐲 𝐒𝐭𝐚𝐦𝐩𝐬 𝐓𝐚𝐱: This Applies to instruments that record obligations, rights, or property ownership. It also charges documents related to loans, sales, or property transfers.
🏠 𝐑𝐞𝐚𝐥 𝐏𝐫𝐨𝐩𝐞𝐫𝐭𝐲 𝐓𝐚𝐱: This is paid annually for owning land, buildings, or other real property. This is imposed by the LGU to fund public services.
🏠 𝐃𝐨𝐧𝐨𝐫’𝐬 𝐓𝐚𝐱: Applies to the free transfer of property between individuals by donation or gift, while both parties are still alive.
🏠 𝐓𝐫𝐚𝐧𝐬𝐟𝐞𝐫 𝐓𝐚𝐱: Imposed during the transfer of property ownership through sale, donation, or other means. This ranges from 0.5% to 0.75% of the zonal value or selling price, depending on the municipality.
🏠 𝐄𝐬𝐭𝐚𝐭𝐞 𝐓𝐚𝐱 (𝐈𝐧𝐡𝐞𝐫𝐢𝐭𝐚𝐧𝐜𝐞 𝐓𝐚𝐱): Paid on the transfer of property upon the owner's death. This must be paid before ownership can be passed to heirs.
