Array
Tips and Guides

4 Questions on Real Estate Tax Answered

Learn how to compute your property tax and other practical tips

Shares
Photography: Ocs Alvarez/ACME Visual Productions

Living in a condo unit means taking note of fees such as administration or development fees. As responsible homeowners, we also need to take note of real estate taxes. How much is the payment and where can we process it?

Real estate broker and interior designer Rochelle Granali shares a couple of important information about paying real estate property taxes for condo units:

What is Real Property Tax?

“Real Property Tax (RPT) is a tax that you need to pay every year so that the local government unit (LGU) will not auction off their property. This was legislated to provide additional funds to LGUs with which to underwrite basic public services. However, there are some investors who buy tax-delinquent real properties and participate in auctions held by LGUs. This is why some people can buy properties at low prices."

Source:http://www.foreclosurephilippines.com/real-property-tax-rpt-philippines/

Do all condo owners have to pay it?

The owner or the administrator of the unit pays for the real estate tax at the city or municipal treasurer’s office where the real property is located.

It’s advisable to pay the Real Property Tax and Special Education Tax on time because most cities and municipalities offer discounts ranging from 10% to 20% of the basic tax on early full payment or quarterly payments of Real Property Tax and Special Education Fund Tax.

How much does it usually cost?

The cost of the Real Property Tax is computed through multiplying the Real Property Rate by the assessed Value. (RPT = RPR x AV)

If you live in Metro Manila, the rate is 2% but if your property is located in the province, the rate will be 1%. As for the assessed value, you need to know the fair market value established by your provincial or city assessor’s office then you need to multiply it by assessment level.

 Is it applicable for rent to own units?

For condo developers, it’s a case-to-case basis. Some developers will have the unit turned over first, then unit owners will have to pay for the real estate tax even though the title is not yet transferred. Payment of real estate tax is in proportionate allocation method since it is a condominium corporation. For some, when the condominium certificate of title is transferred, that’s the time wherein they have to pay for the real estate tax.

More on Realliving.com.ph

4 Ways to Style a Dark Room

10 Budget-friendly Furniture and Accessories for Less Than P50,000

4 Important Questions to Ask Before Buying Furniture

Shares

Latest Stories

Get the Look of Iza Calzado’s Bedroom

Give your sleeping space an easy, dainty makeover with the right pieces

5 Amazing Closet Cleaning Tips You Can Try

Achieve your dream wardrobe with these handy tricks

How To Vacuum Your Home Properly

Here’s how to avoid all the usual vacuuming mistakes. Plus, learn about a revolutionary new material that will help you bust all that dirt at home.

A Cozy and Modern Family Home in Quezon City

Works of art, beautiful fabrics, and a mix of old and new pieces bring this townhouse to life

5 Things To Never Clean With Baking Soda

This finely milled powder has its downsides, too

There's An Affordable Way To Keep Your Home Smelling Good 24/7

Say no to artificial fragrances with this three-step hack

A KonMari Reality Show Is Coming To Netflix

Will de-cluttering diva Marie Kondo's new show spark joy?

You Only Need P5,000 To Work On These Home Improvement Projects

The best part? These can increase the value of your space, too.

What's Inside The Vatican Walls?

Aside from having one of the largest collections of art in the world, the Vatican holds many other treasures

Meet The Architect Behind This Industrial-Pinoy Home

Inspired by the Bahay Kubo, this architect worked with industrial details and affordable building materials to create an inviting space

Is It Possible to Paint Over Tiles?

No one likes the sight of lackluster tiles. Know what to do with these tips from an interior designer.

A Sneak Peek at the New Clark City

A Singaporean consulting firm has been tapped for the development project
Load More Stories

Get inspiring design ideas and handy hints.
Subscribe to our newsletter now!