Do you own a real estate property in the Philippines? Whether you have a vacant lot waiting to be built on, a townhouse in Manila that you rent out, or a commercial building in the province, you have to pay your actual property taxes.
Q: What is real property tax?
This is a tax levied on Philippine Real estate properties. The applicable rate depends on the location. A city or municipality in Metro Manila may impose 1 percent while cities and municipalities outside Metro Manila can collect a tax at a rate not exceeding 2 percent. Owners of real estate properties in the Philippines have the option to pay taxes in four equal installments on or before the last day of each calendar quarter.
Q: Real Property Tax Payment
Payment is made at the city hall where your property is located. If you own a property in Ayala Alabang, by all means, visit the lovely Muntinglupa town hall where they have made it easy to pay your real estate tax – through nice and cozy buildings, and signs/directional signs everywhere so you won’t get lost . In addition, the friendly staff is ready to help you.
Q: Is there a discount?
Usually, cities give discounts to early payers. For example, if you plan to pay all due for the following year, you can pay as early as November-December of the current year so you will get a discount. This doesn’t apply to all cities – so visit your town hall to be sure.
Q: Do I have to pay if I don’t own the property and I already occupy the property?
Yes, you have to pay real property taxes from the time you moved to the present or nearly a year. With or without title.
Q: If my property is in my husband’s name who is a foreigner, does he still have to pay actual property taxes?
Yes! Even if the property is in the name of your foreign husband, real property taxes are still imposed and must be paid to the local government where the property is located.
Q: I recently purchased a real estate property from auction and found out that the owner has 3 years unpaid real property taxes! Do I pay for it?
Most properties from auctions are on an “as is” basis, which means you’ll need to do your due diligence. Investigate the background of the property before you dive in. In other words, yes, you will have to pay unless you make prior arrangements with the auctioneer before bidding on the property.
Q: Gosh, I couldn’t pay my property tax last year, what could happen?
Taxpayers are subject to interest of 2 percent per month but not exceeding 36 months.
Here’s a quick recap on how to pay real property tax in the Philippines:
Visit your Property Tax Section at the Treasurer’s Office which is usually located at City Hall. Secure the payment order (OP) from the appraiser’s office, proceed to the realty tax section and present the OP with the most recent official receipt (OR) and a new tax declaration for the new property transferred. The collection clerk then calculates the tax and tells you, the taxpayer, how much you have to pay. After payment, an official receipt is issued and the payment is posted on the property tax card. After that, you just have to pay at the cashier after validating the official receipt. Done!