PROPERTY TAX INFORMATION
Property tax, luxury property, urban open spaces (IPI) – IPI taxable property, owned by individuals, a tax of 1% per year, according to the estimate of the Main Cadastral Office (Article 1 and 3 of the Law 18-88). With estimates do not take into account, no furniture, no equipment, no other located inside the property (Article 2 of the Law 18-88). For built-up areas, 1%, based on the full value of the land and its developments, in excess of five million pesos (this amount varies each year depending on inflation).
For open spaces – a rate of 1% on property values, without taking into account the excess of the cost of 5,000,000 pesos. (Article 2 of the Law 18-88.) tax is paid annually on 11 March, or in two equal quotas, the first on March 11 and the second on September 11. If the tax is not paid on time, the owner will be charged 2% of the monthly outstanding amount. (Article 4 of the Law 18-88) is not taxed following property:
Built-up areas with a total value equal to or less than 5 million pesos – Property owned by charities, or diplomatic authorities. – Land held for development in agricultural. – Land held by persons 65 years and over in the event that the owner is that of at least the last 15 years, and his name was not on the other property. Property transfer tax. Transfer Tax is 3% of market value, as determined by authoritative tax authorities (Article 20 of Law 288-04), and not based on the price set in the contract of sale (as in many countries)
Payment this tax is required for registration of the transfer of ownership in the appropriate register of title. Taxes on the transfer of ownership is to be paid within six months from the date of the deed of transfer of ownership. (Article 20 of Law 288-04). 0.1% of the property’s market value is paid as general expenses, which carries the transfer process (print, fees, etc.) mortgage tax. Fits mortgage tax of 2% of the value of the mortgage (Article 8 of the Law 173-07 ).