Common Questions When It Comes to Real Property Tax in the Philippines

Do you own a piece of real estate property in the Philippines? Whether you have a vacant lot just waiting to have a house built on it, a townhouse in the city of Manila you're renting out, or a commercial establishment in the province, you should be paying your real property tax.

Q: What is real property tax?

It is tax levied on Philippine Real estate property. The applicable rate depends on the location. A city or municipality in Metro Manila may imposes 1 percent while cities and municipalities outside Metro Manila may levy the tax at the rate not exceeding 2 percent. The owner of the real estate 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 Property Tax

Payment is made at the Municipal hall of the area your property is located. If you have a property in Ayala Alabang, by all means, visit the beautiful Municipal hall of Muntinlupa where they have made it easy to pay your real estate tax - by way of a nice, comfortable building, and signs / directions everywhere so you won 't get lost. Add to that the friendly staff ready to assist you.

Q: Is there any discount?

Normally, cities give discounts to early payers. For example, if you plan to pay for the whole due for the following year, you can pay as early as November-december of the current year so you'll get a discount. This does not hold for all cities - so visit your municipal hall to make sure.

Q: Do I have to pay if I have no title and yet im occupying the property already?

Yes, you have to pay the real property tax from the time you moved in to-date or almost one year. With or without title.

Q: If my property is under the name of my husband who is a foreigner, does he still have to pay the real property tax?

Yes! Even if the property is under the name of your foreigner husband, real property tax is still imposed and should definitely be paid to the local government where the property is located.

Q: I just bought a real estate property from auction and found out the owner has 3 years worth of unpaid real property tax! Do I pay it?

Most properties from auction are on an "As is where is basis", which means you should have done due diligence. Investigate the background of the property before you dove in. In other words, yes, you will have to pay without you made prior arrangement with the auctioneer before bidding on the property.

Q: Yikes I did not get to pay my real property tax last year, what could happen?

The tax payer is subject to pay interest at the rate of 2 percent per month but not to exceed 36 months.

Here's a quick recap of how to pay real property tax in the Philippines:

Visit your Real Property Tax Section in the Treasurers Office located typically in the City hall. Secure an order of payment (OP) from the assessors office, proceed to the realty tax section and present the OP with the latest official receipt (OR) and new tax declaration for new transferred properties. The collection officer then computes tax and informs you, the tax payer, how much you have to pay. After payment, an official receipt is issued and payment is posted on the property tax card. After which, you just pay at the cash register upon validation of the official receipt. Finished!