Uncategorized
How much do I pay in taxes and other fees?
August 8, 2005 by Johanna · Leave a Comment
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)
