Common questions about property tax in the Philippines

Do you own real estate in the Philippines? Whether you have a vacant lot waiting for a house to be built, a townhouse in the city of Manila that you are renting, or a commercial establishment in the province, you must pay your real estate property tax.

Q: What is real estate tax?

It is a tax levied on Philippine real estate. The applicable fee depends on the location. A city or municipality in Metro Manila may levy 1 percent, while cities and municipalities outside of Metro Manila may levy the tax at a rate not to exceed 2 percent. The owner of real property in the Philippines has the option to pay the tax in four equal installments on or before the last day of each calendar quarter.

Q: Payment of Real Estate Tax

Payment is made at the Municipal Mayor’s Office of the area where your property is located. If you have property in Ayala Alabang, check out the beautiful Muntinlupa Town Hall, where they have made it easy to pay your property tax, through a nice comfortable building, and signs/directions everywhere for you to win. don’t miss Add to that the friendly staff ready to help you.

Q: Is there any disccount?

Typically, cities give discounts to first payers. For example, if you plan to pay the full amount due for the following year, you can pay between November and December of the current year to get a discount. This is not valid for all cities, so check with your local council to make sure.

Q: Do I have to pay if I don’t have title and I’m already occupying the property?

Yes, you must pay real estate tax from the time you moved to the date or nearly a year. With or without title.

Q: If my property is in the name of my foreign husband, does he still have to pay property tax?

Yeah! Even if the property is in the name of your foreign spouse, real estate property tax still applies and must definitely be paid to the local government where the property is located.

Q: I just bought a piece of real estate at auction and found out the owner has 3 years of unpaid property taxes! I pay it?

Most auction properties are on an “as is” basis, which means you should have done your due diligence. He did some background research on the property before taking the plunge. In other words, yes, he will have to pay unless he has made a prior arrangement with the auctioneer before bidding on the property.

Q: Wow, I couldn’t pay my property tax last year, what could happen?

The taxpayer is subject to paying interest at a rate of 2 percent per month but not to exceed 36 months.

Here is a quick summary of how to pay real estate tax in the Philippines:

Visit your Real Estate Tax Section at the Treasury Office usually located in City Hall. Obtain a payment order (OP) from the appraisers office, go to the real estate tax section and submit the OP with the latest official receipt (OR) and a new tax return for the newly transferred properties. The collection officer then calculates the tax and informs you, the tax to be paid, how much you have to pay. After payment, an official receipt is issued and the payment is recorded on the property tax card. After which, you only pay at the register upon validation of the official receipt. Finalized!