Free Legal Advice Philippines
Would you like to react to this message? Create an account in a few clicks or log in to continue.
Free Legal Advice Philippines

Disclaimer: This web site is designed for general information only and does not create attorney-client relationship. Persons accessing this site are encouraged to seek independent counsel for legal advice regarding their individual legal issues.

Log in

I forgot my password




You are not connected. Please login or register

selling a property in the philippines

2 posters

Go down  Message [Page 1 of 1]

1selling a property in the philippines Empty selling a property in the philippines Sun Jul 12, 2009 7:07 pm

jenjas


Arresto Menor

Hi,

I am selling a house and lot to my sister. I have given my brother a power of attorney to conduct everything on by behalf. How much would it cost for me, as the seller, to finish all transactions?
Do I have to pay 50,000 Pesos for the Deed Of Sale and would have to pay half of the closing costs?

Thank you for your help.

Jenjas

attybutterbean


moderator

The taxes that you will pay will depend on how much you are selling the property. If the purchase price is more than the zonal value of the property (as determined by the BIR), the purchase price will be the basis for the taxes. If the purchase price is less than the zonal value of the property, the zonal value will be the basis for the computation of taxes.

The taxes that will be paid with the BIR are (1) capital gains tax (6% of the purchase price or zonal value whichever is higher); (2) transfer tax (1.5%); and (3) doc. stamp tax (.5%).

There is also registration fees to be paid with the Register of Deeds once you secure the Certificate Authorizing Registration from the BIR.

The capital gains tax is usually shouldered by the seller. On the other hand, the transfer tax, doc. stamp tax, and registration fees are usually shouldered by the buyer. In any case, the parties may agree otherwise.

Of course, real estate taxes (amelyar) of the property must be updated.

Filipinos are very resourceful if they want to minimize the cap. gains tax, doc. stamp tax, and transfer tax.

Regarding your question "Do I have to pay 50,000 Pesos for the Deed Of Sale and would have to pay half of the closing costs?"

Php50,000.00 for a Deed of Sale and its notarization is too expensive. You must be referring to the taxes to be paid in order to transfer the property in the name of your sister.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum