This document provides an in-depth overview of the fees and taxes associated with purchasing property in the Philippines, featuring two specific examples: a luxury condo in Bonifacio Global City (BGC) and a house and lot in Laguna.
Introduction #
Understanding the financial obligations involved in purchasing property is crucial for buyers in the Philippines. This guide outlines the various fees and taxes to consider.
Key Fees and Taxes #
Capital Gains Tax (CGT): Typically 6% of the selling price, zonal value, or fair market value, whichever is highest.
- Luxury Condo in BGC: For a condo priced at PHP 15,000,000, CGT would be PHP 900,000.
- House and Lot in Laguna: For a house priced at PHP 5,000,000, CGT would be PHP 300,000.
Documentary Stamp Tax (DST): Charged at 1.5% of the selling price or zonal value.
- Luxury Condo in BGC: For a condo priced at PHP 15,000,000, DST would be PHP 225,000.
- House and Lot in Laguna: For a house priced at PHP 5,000,000, DST would be PHP 75,000.
Transfer Tax: Varies by location, generally 0.5% to 0.75% of the selling price or zonal value.
- Luxury Condo in BGC: Assuming a 0.75% rate, for a PHP 15,000,000 condo, the transfer tax would be PHP 112,500.
- House and Lot in Laguna: Assuming a 0.5% rate, for a PHP 5,000,000 house, the transfer tax would be PHP 25,000.
Registration Fee: Based on a sliding scale relative to the property value.
- Luxury Condo in BGC: For a PHP 15,000,000 condo, the fee might be around PHP 20,000.
- House and Lot in Laguna: For a PHP 5,000,000 house, the fee might be around PHP 10,000.
Miscellaneous Fees: Including notarial fees, appraisal fees, etc.
- Luxury Condo in BGC: Miscellaneous fees might total around PHP 50,000.
- House and Lot in Laguna: Miscellaneous fees might total around PHP 30,000.
Conclusion #
Prospective property buyers in the Philippines must account for various fees and taxes in their budget. These include CGT, DST, transfer tax, registration fee, and miscellaneous fees, which can significantly impact the total cost of property acquisition.
