If it is time to sell a property, you probably already have a lot on your plate. There is trying to find a buyer and then convincing them your property is the right one for them. Once you agree to a sale, there are a number of other things you must consider before putting the money in your bank account.
This includes paying taxes. Property sellers must pay a one big tax and some other fees in order to complete the transaction. Not doing this can delay any agreement and may possibly see the buyer back out of the deal.
(Editor’s note: Buyers are required to pay different taxes. Click here to learn about these.)
Property taxes sellers must pay in the Philippines
Capital Gains Tax
If you are selling a property, be prepared to pay out the Capital Gains Tax. The tax assumes you are earning from the sale of the property based upon capital appreciation. Capital Gains Tax is 6 percent of the selling price, fair market value or zonal value with the highest total used. You have 30 days to pay this tax upon completion of the property sale.
Other fees sellers must pay in the Philippines
While the only tax sellers are on the hook for in the Philippines is the Capital Gains Tax, there are a few fees you may also need to pay as part of the property transaction.
If you use an agent or broker to sell your property, you are going to be responsible for their commission fee. Be sure to incorporate this into your estimations when selling the property.
Unpaid real estate taxes
Any outstanding taxes on your property must be paid prior to it being sold. The debt cannot be transferred from you to the person buying the property. Failing to pay these could see the proposed transaction voided.