- A yearly tax based on the assessed value of a property.
- For residential properties, the tax is usually around 0.75% of the assessed value.
Capital Gains Tax (CGT)
- Applies to the sale of a property and is calculated as a percentage of the net sales price.
- The CGT rate is 6% for individuals and corporations.
- A tax on property passed down to an heir through inheritance.
- The tax rate is 6% of the net value of the estate.
- A tax on property gifted to another person.
- The tax rate is 6% of the fair market value of the property.
Tax on Property Income
- Applies to rental income from a property.
- The tax rate is based on the rental income and ranges from 20% to 32%.
Tax Advantages in Buying a House in the Philippines
- No CGT for a primary residence that is sold after 10 years of ownership.
- A tax exemption of up to PHP 1,000,000 ($20,000) on the sale of a principal residence.
- Tax incentives for individuals and corporations who invest in socialized housing or low-cost housing projects.
- Bureau of Internal Revenue, Republic of the Philippines: https://www.bir.gov.ph/
- Philippines Tax Guide 2021: https://www.pwc.com/ph/en/tax-services/publications/tax-guide/philippines-tax-guide-2021.html