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How much do I pay in taxes and other fees?

In the event of a SALE of real estate, the buyer usually accounts for the following:

• Documentary Stamp Tax – 1.5% of documented value (based on the BIR’s Zonal Value)
• Transfer Tax – ½ of 1% of documented value
• Registration & Miscellaneous Fees

The seller, on the other hand, accounts for:

• Capital Gains Tax – 6% of documented value
• Agent’s fee/Broker’s commission – 3% of agreed price

For RENTAL transactions, the Lessee/Tenant accounts for the following:

• VAT – 12% of one month’s rent

The Lessor/Owner accounts for the following:

• Witholding Tax – 5% of one month rent
• Agent’s fee/Broker’s commission – one month’s rent

Other fees to take note of are:

• Annual Real Property Tax
• Association dues (annual for residential villages, monthly for office and residential condominiums)