Important Taxes and Fees That Come With Buying a Home
When buying a home, the final selling price itself is a huge amount. On top of that, there are several fees and charges you need to be aware of. Some fees are charged to the seller of the property, but these are the four important transaction fees that buyers must settle.
Documentary Stamp Tax
1.5% of the property’s selling price, zonal value, fair market value, or whichever is higher. The documentary stamp tax is paid to the Bureau of Internal Revenue (BIR).
Varies depending on property type and is paid to the Registry of Deeds where the property is located.
May be as low as 0.5% to as high as .75% of the selling price or zonal value, whichever is higher depending on the guidelines of the municipality where the property is located. Transfer tax is paid to the city treasurer’s office.
The Deed of Absolute Sale should be also notarized, which requires a fee of typically 1% to 2% of the property’s selling price and no lower than P1,000.00.
Aside from these four important fees, home buyers are also required to pay property tax annually or quarterly beginning from the year a property is purchased. To know more, check out this guide to real estate property tax in the Philippines.