How to Buy Property in the Philippines: A Complete Guide
Posted on December 10, 2018 by Marcus Sohlberg in Country Guides
Do you plan to buy property in The Philippines?
Philippines has become a prime destination when investors buy real estate in Asia.
It’s not strange as it has low living costs, cheap real estate, a number of long-term visa options,
a quickly growing economy, and promising demographics. Yes, it almost sounds a bit
overwhelming.
Still, buying real estate is one of the biggest decisions people make and always come with
some risks. This is especially the case for developing countries where laws can be fuzzy and
change fast.
Thus, it’s important that you have a good knowledge about local regulations beforehand.
In this article, you’ll learn about foreign property ownership regulations, property taxes, visa
options, and which places that should be of interest when you buy real estate in the Philippines.
Can foreigners buy property in the Philippines?
Philippines has many similarities to other Southeast Asian countries in terms of foreign property
ownership regulations. You can buy and own everything from condos, apartments, and houses,
but not the land that these structures are built on. Therefore, foreigners prefer to buy condos as
the buying process is more swift and the units often newly built.
It’s not rare that Chinese investors snap up 30 units at a time.
There are other reasons why foreigners are so enticed to buy condos. These often come with
24/7 security, swimming pools, tennis courts, gyms, and BBQ areas, which give are more
luxurious feeling. It’s the preferred option for expats, or investors who wish to reside in their
units a couple of weeks every year.
Just keep in mind that foreigners can’t buy more than 40% of the units in a condominium project,
or in an apartment block, as stated in the Condominium Act.
How to buy land in the Philippines
So, foreigners can’t own land in most Asian countries. You’ll not only stumble upon this issue
in the Philippines, but in places like Thailand, Cambodia, and Vietnam.
But there are ways to get around this and to indirectly own, or should I say, control land.
Here, opening a company to buy real estate is a popular option.
The same as it goes with condominium projects, Filipinos need to own at least 60% of the
shares in a company.
This results in a process where you need to deal with contractual setups where you appoint
yourself as a director, give yourself majority voting rights, and use different share classes.
Also, there must be at least 5 members of your company and the government’s Board of
Investment (BOI) should give you permission to buy, sell, or act as an intermediary in real estate
transactions.
As a part of the process, you also need to hire a lawyer and an accountant, which probably
doesn’t come as a surprise.
Steps when buying land in the Philippines
Having a plot of land is a preferable choice for people who plan to stay long term in the
Philippines. Might they buy or build a new house. Also, novice investors sometimes target land
plots as these can increase exponentially in value.
If you plan to buy land, you should pay attention to following:
 The best land to acquire is titled property
 You need to present verified documents like a tax declaration, a tax map, and, a certified
copy of the title to the relevant authorities. There should be no encumbrances and liens at
the back of the title. This should be confirmed with the help of a solicitor
 If there’s an encumbrance, like existing mortgages or similar, make sure that it’s cancelled
or released before signing the contracts
 In case you decide to make a spot cash payment, you need to provide a Deed of Absolute
Sale and Acknowledgement Receipt in front of a notary public
 If you agree to make payments in instalments, you and the seller should sign a Contract
to Sell and an Acknowledgement of Receipt. Your lawyer might also provide additional
documents
 When the contract and documents are finalized, the Bureau of Internal Revenue will
process the documents for payment of taxes, after, a Certificate Authorizing Registration
(CAR) is issued
 When the process is completed, transfer taxes will be paid at the City Assessor’s Office
and Registry of Deeds
 When you’ve paid the taxes, the Registry of Deeds issue the new title in your name. This
is referred to as the Transfer Certificate of Title when buying land, when buying a condo,
it’s referred to as a Condominium Certificate of Title
Leasing land in the Philippines
In case you want a more hassle free process when buying a house, a more common option is
to lease the land, which is 100% legal.
According to the Investor’s Lease Act, foreigners can lease land for an initial period of 50 years
and with an option of renewal of 25 years.
Getting a mortgage as a foreigner in the Philippines
If you need a house loan, you should contact a handful of banks earliest possible, letting them
do a background check. This is needed before they can issue a so called In-Principle Approval
(IPA).
During this time, the banks check your visa type, financial situation, age, employment, credit
history, and more, to confirm that you’re eligible of receiving one of their loan packages.
Previously, it was very difficult for foreigners to get property loans in the Philippines, but the
regulations have relaxed a bit over the years.
Unfortunately, many local banks still require that you have a visa, other than a tourist visa.
Some of the most common are the SRRV (Special Resident Retiree Visa) or simply a work
visa.
Being a permanent resident will increase your chances to get a loan significantly.

Banks offering house loans
Some of the biggest banks you should contact include:
 BDO UniBank, Metrobank, BPI Bank, Chinabank
HSBC is not as big as these banks in the Philippines, but might still be able to offer you a loan.
As mentioned, contact a handful of banks and see what options they have, and if you meet the
loan requirements.
Real estate agents in the Philippines
It’s not always easy to navigate and find a property that suits your needs in a foreign country.
A local real estate agent can help you to reduce hurdles as they have a good knowledge about
local regulations and the areas you’re interested in.
For example, they can tell you what prices properties have been sold for recently, which areas
that have high vacancy rates, and where prices are predicted to grow the most.
Of course you can do some research on your own, but I highly recommend to hire a credible
agent to help you throughout the process.
Some of the most popular agents in Manila include:
 RE/MAX Philippines
 Top Realty
 Phil. Property Expert
 Colliers International Philippines
 KMC MAG Group (KMC Savills, Inc.)
Commission rates for agents and brokers
Broker’s charge between 3-6% of the sales value, while the rate for agents is 2-3%.
Cheaper properties will have a higher rate to assure that the broker or agent earns “sufficient”
money.
Hiring a solicitor when buying property
You should try to find a reputable solicitor earliest possible to guide you through the buying
process, and to handle the paperwork when finalizing the sales contracts.
Fortunately, the cost to hire a solicitor is low compared to places like Singaporeand the US.
But, you also face a higher risk to come across people that aren’t credible.
First of all, you can check for solicitors online. You can also check on social forums, government
websites, and contact your embassy, that might help you.
The UK government has made a list of list of English speaking Solicitors, which can be useful.
Not to forget, the State Office of Court Administration can provide information about your
solicitor’s background, experience, and whether the firm is authorized to help you.
You’ll notice whether the solicitor seems reasonable or not, just by checking their website. Send
them an email and see if they reply timely. If the solicitor suddenly stops replying you or is hard
to reach, it’s a bad sign.
Do a background check
When you’ve found a solicitor, you can prepare a handful of questions to confirm their credibility.
Some of the questions can be:
 How long time have you served in this business?
 How many client cases have you handled?
 Do you have any testimonials from foreign clients?
 Will you charge me any additional fees that I’m currently not aware about?
 What will you help me with during the buying process?
 Will you handle all the communication with the seller’s side?
Simply add questions for a more thorough background check.
Investment and retirement visas in the Philippines
Philippines is one of a few Asian countries that offer different long-term visas.
You can find everything from retirement visas, investment visas, medical care visas, and more.
Below I’ve summarized some of the most popular visas, including a brief introduction and the
conditions you need to meet for each type.
SRRV – The retirement visa
The SRRV (Special Resident Retiree’s Visa) is a preferred visa thanks to the low requirements
that apply. Ironically, you only need to be 35 years old to qualify for this retirement visa, with
some minor investments on top of that.
The visa has five different categories, namely: SRRV Smile, SRRV Classic, SRRV Human
touch, SRRV Courtesy, and SRRV Expanded Courtesy.
The two most interesting here are SRRV Smile and SRRV Classic.
With SRRV Smile, you only need to meet two criteria: Be 35 years old or above and deposit
USD 20,000 in a local bank account. It almost sounds too good to be true, doesn’t it?
The SRRV Classic, on the other hand, has the same age restriction, but with the option to invest
USD 50,000 in a condominium unit, or to use the money for a long-term lease.
The cost to apply is USD 1400, while you need to add USD 300 for each dependent, if you plan
to bring your family over.
SIRV – The investment visa
Unfortunately, you’re not allowed to buy real estate to get the SIRV visa. Instead, you need to
invest at least USD 75,000 into a new or existing local company.
The same as it goes with the SRRV, you can include dependents such as your wife or your
children when applying for the visa.
Property taxes in the Philippines
Tax rates can change fast and it’s important that you’re up to date with the latest information.
As late as December 2018, President Duterte signed the Tax Reform for Acceleration and
Inclusion (TRAIN) Act, which aims to make Philippines’ tax system more efficient, fair, and
clear.
The new policies issued under TRAIN mainly benefit people in the low- and middle class. Real
estate taxes are affected by the new policies as well.
Let’s have a look at the latest tax rates that apply when buying, holding, or selling property.
Documentary stamp tax (DST)
The Documentary Stamps Tax (DST) is set to 1.5% and multiplied with the sales value, or the
zonal value, whichever is higher.
Transfer tax
In addition to the stamp duty, you need to pay a transfer tax of 0.5% – 0.75%. It’s multiplied
with the sales value, or zonal value, whichever is higher.

Rental income tax

Rental incomes are treated as personal incomes in the Philippines and fall under the same tax
rates.
If you’re a resident, the tax rates are as follows and applicable until 2022:
 PHP 0 – 250,000: 0%
 PHP 250,000 – 400,000: 20% of the excess over PHP 250,000
 PHP 400,000 – 800,000: PHP 30,000 + 25% of the excess over PHP 400,000
 Over PHP 800,000 – 2,000,000: PHP 130,000 + 30% of the excess over PHP 800,000
 Over PHP 2,000,000 – 8,000,000: PHP 490,000 + 32% of the excess over PHP 2,000,000
 Over PHP 8,000,000: PHP 2,410,000 + 35% of the excess over PHP 8,000,000
Non-resident foreigners are taxed at a flat rate of 25%, but can’t make any deductions, such as
for maintenance fees or depreciations of a property’s value.

Real property tax (RPT)

Local governments collect a yearly property tax to finance public services in the local area
where your property is located.
The rate is 2% in Manila and 1% in other provinces. But, the tax becomes almost negligible as
it’s multiplied by merely 20% of the appraised value for residential property.
For commercial real estate, the tax rate is multiplied by 50% of the appraised value.
You can pay the property tax yearly or quarterly.

Capital gains tax

The Capital gains tax is 6% and levied on the sales value or the zonal value.
Usually, the seller pays for the tax, but it’s not rare that the buyer pays for the tax.
Sometimes, it’s also included in the sales price.
Checklist before Buying Real Estate in the Philippines hiring a lawyer for this purpose but this is not customary in large project developments as
Here are the tips buyers / investors must remember before buying any property in the the documents are standardized. All the signed documents will be notarized and you
Philippines, especially if you are buying a single property from an individual: should have a copy of one original notarized document.
4.Choose or negotiate
The least cash out, least monthly installments, and if possible no interest for properties
If you are buying from an Individual: that are yet to be built or on-going in construction would be helpful and of great use for
1. Make sure the “Transfer Certificate of Title” is authentic. you. Retention can be negotiated to be paid upon turn-over of the unit.
The easiest way to check if the title to the property you are buying is authentic is by getting 5.Ask about adjustments that can be done
“Certified True Copy” of the title from the Register of Deeds. This office is usually located If you plan to make some modifications on the inside of the unit whether a house and lot
at the city or municipal hall where the property is located. Ask the seller of the property for or a condo, make sure that this is allowed by the developer and up to what extent they
a photocopy of the title -you will need the title number and the name of the owner to get a allow. There are developers who would not allow any changes in their plans but there are
certified true copy of the title from the Register of Deeds. those who entertain changes and can be negotiated or discussed before the construction
2.Verify that title is clean begins.
Meaning the property is not mortgaged (no debts against the property). You can see that 6.Whether you buy from individual owners or from a developer.
at the back of the title with the heading “Encumbrances”. This page must be empty if you It's best to choose a Licensed Real Estate Broker or Agent you can trust with proven
are told that the title is “clean”. But sometimes the space for the technical description of records of good and honest service and has extensive knowledge of the local area. Check
the property on the front page of the title is not enough and the description of the property for loyalty on previous work experiences. Only choose licensedprofessionals as the
is continued on the “Encumbrances” page, this is of course all right. unlicensed (“Colorum”) are now strictly monitored by government authorities and
3.Make sure that the land described on the title is really the land that you prohibited to practice real estate profession in the Philippines. Even if licensed, have
are buying. preference over independent brokers/agents compared to in-house agents. The in-house
You can validate this at the Register of Deeds or by hiring a private land surveyor or a agents of developers are strictly not allowed to sell the projects of their competitors and
geodetic engineer. Land titles don’t have any street name and number to pin point a therefore can be expected to be biased on their own projects.
property, it is a must to confirm that the actual property you are buying matches the
technical description on the Transfer Certificate of Title. If everything above is well sorted out and checked, then you are ready to purchase your
4.Make sure that the sellers are the real owners dream home. Here are some topics that might help you avail of your dream property:
If you are buying from an individual property owner, ask for identification papers like
passport or driver’s license, it is also a good idea to talk to the neighbors to confirm the
identity of the sellers (you might as well ask some history of the property).
Summary
House Condo
5.Confirm that the yearly real estate taxes are paid
Usually in area with less pollution and more Usually closer from everything,
Ask for a copy of the Tax Declaration and Tax Receipts to confirm that real estate tax Environment /
quiet, but further from shops, restaurant, but in more areas with more
payments are up to date. Proximity:
work… pollution / noise
Usually swimming pool and Gym.
If you buy from a developer: Amenities Usually none Sometimes meeting room, child
1. Check for the availability of the mother title playing room, ….
Usually developers offer pre-selling of properties. This means that the houses or 100% for the owner within his
Maintenance
condominiums will have to be constructed based on contract over a period of time. The 100% for the owner unit, shared among all unit owner
expenses
individual title may not be available as this takes up to three years to have the title within the building
individualized. Only the Philippine law apply at your place,
2.Trust a reputable developer who has a track record of completed there is no additional rules and regulation
You have to comply with the rules
developments Rules and (except if you leave in a community village
and regulation of the admin office
regulation where additional rules may apply when you
It's ideal if you can personally check these completed developments to have an idea what of your building
are outside your place but still inside the
it would look like in their pre-selling projects that you might be interested to invest.
village)
3.Check every provision of the Contract to sell that you are going to sign Possibility of
including the annexes extension / Possible Not Possible
A licensed real estate broker should be able to explain to you in layman terms all the legal change
jargons expressed in all documents that you need to sign. You might want to consider
Factors to consider when choosing or buying a Home
Visit at various times of day This would be very helpful because you can check the
surrounding of the property in different hours of the day, examples are traffic noises
during rush hour or noise of people on the streets, also consider the location of the
property if it is near public amenities like playgrounds or clubhouses, that would probably
generate a lot of noise during the afternoon or weekend mornings.
Ask the sellers What problems are they aware of that the house had in the past, even
if they’ve been fixed. Be it physical or legal to be assured that there wouldn’t be any
additional problems after the purchase the property. House repairs are a very common
issue, from flaky paintwork to leaky sinks, put aside some cash for unexpected property
maintenance.
Get a home inspection Virtually all houses have defects. Some will be obvious and
most can be easily fixed with renovation. But knowing what needs fixing can help you
negotiate a lower price – or at least prepare you for costs you’re soon to incur. Strongly
consider getting inspections not just for purposes of damages, but also with pest.
Consider the view It would be useful if you have an open space near your property or
if not, a comfortable proximity from your neighbors. You wouldn’t want to see another
window just 10 meters away from yours and destroy your privacy.
Ask for utility bills You may adore the stylish architectural style and the big windows
or closed walls of your soon to be modern home –but bear in mind those almost weekly
typhoons during the typhoon season, or the scorching sun during the summer, those
minor leak repairs and cooling system payments are beyond affordable.
Pay close attention to taxes
Don’t just ask what the seller’s most recent tax bill was; ask what several recent tax bills
have been. In some areas, houses are re-appraised – and taxed at higher rates –
frequently.
Reconsider the small details
Are you sure you really need a two car garage? or a space big enough for 10 people if
there are only two of you that is going to live there? Or do you really need a pool and can
you afford the upkeep? It is always important to live within your lifestyle and means, if
there is too much for you to take care of, it might as well re-assess your options.
Explore the surrounding area
Except if you are already familiar with the area you are moving to, take time to walk around
the area surrounding your investment, there might be illegal settlers around that might lead
to unwanted circumstances or if you are near small rivers or creeks that might result to
flooding during the rainy season. Also if you are near an airport, a fire station, hospital or
train track (especially near the Makati-Manila border) expect to hear planes, sirens and
ambulances on a daily basis. Make sure that you’re not too close to an agricultural area
as well, as it may generate odors and kick up dust and other airborne problems.
Type and location
Before buying a condo, make sure that you have a clear idea of the type that you are
looking for, and assess whether the condos that you see meet your needs. For example,
you might prefer to purchase a traditional condominium where you own everything from
the walls in, and don't own the land that the condo sits on. Alternatively, you might want a
site condominium where you also own the land. Another option is a condominium hotel,
where you rent out your condo when you're not using it.
Also decide where you ideally would like the condo to be situated, such as your preference
for a particular city or neighborhood. Within the development itself, the condo's location is
also important. You might, for example, not want a condo facing a busy street. Perhaps
you are looking for a condo that is near to the entrance of a building, or one that has a
nice view.
Pricing
Pricing is the easiest way to ensure that you are on the right track. Take into consideration
the area where you are buying the unit from, as well as the surrounding building with in
that area, the usual price ranges of the property, besides the very recent buildings, are
usually not far when it comes to prices. Check other options (as much as possible, more
or less, as old or as new as what you are looking to buy) and compare the prices of these
units.
Developer experience
The problem with heated markets is that it attracts amateurs that want to get in on the
action. But, more often than not, these products lack quality and design. They may look
good on paper, but the underlying issues will make you want to leave the unit faster than
you moved in. Try to buy from a local developer that has a portfolio of successful
products in the neighborhood. They might be a bit pricey than the others but the quality
and (maybe in the future) the resale value would still be good. Try to visit their other
projects and get a glimpse from there.
Amenities
The last thing you want to discover after buying a condo is that things don't work properly,
particularly those amenities that dragged you to buy the unit in the first place. There are,
of course, the basic checks, such as making sure that the gas, water and electricity all
work. Then there are the more fundamental things like whether the building is properly
maintained by the condo association.
If, for example, the swimming pool is one of the things that you like best about the condo,
make sure that it is cleaned regularly and open at the hours that you want access.
So, given with all the options that you have read, it is still your decision whether to buy a
house and lot or a condo unit, just take into consideration the factors that might affect your
choice in the future. These factors will help you, if not make up your mind, but give you
the right options in buying your dream house or flat.
Transaction costs are very high in the Philippines: November 22, 2017 Buying condominiums
A down payment of 10% to 30% is usually required. Ownership of condominium
How high are realtors' and lawyers' fees in the Philippines? What about other units is evidenced by the Condominium Certificate of Title (CCT) but the transfer of
property purchase costs? title is usually not executed until the property is fully paid. Foreigners can only own
up to 40% of a condominium project.
TRANSACTION COSTS Who Pays?
Holders of Special Resident Retiree's Visa (SRRV), a non-immigrant resident visa,
Notary Fee 1% - 2% buyer can get additional benefits aside from being allowed to buy a condo unit or lease a
parcel of land or a house and lot. The SRRV holders can reside in the Philippines
Local Transfer Tax 0.50% - 0.75% buyer permanently, with multiple-entry privileges and zero travel taxes. Other benefits and
Registration Fee 1% buyer information about the SRRVisa is available on the Philippine Retirement
Authority Website
Documentary Stamp Tax 1.50% buyer
Capital Gains Tax 6.00% seller Buying land
The process of buying land in the Philippines is cumbersome and tedious. Aside
Real Estate Agent's Fee 3.00% - 5.00% seller from the fact that foreigners are not allowed to buy land, the system of land
registration and classification should make any investor think twice. The farther you
Costs paid by buyer 2.50% - 3.75%
are from the capital the more caution one must take.
Costs paid by seller 4.50% - 6.50% However, serious land problems also exist in the NCR. There are 11 laws directly
related to land registration and nine others indirectly related to land disposition and
ROUNDTRIP TRANSACTION COSTS 7.00% - 10.25% administration. Aside from the Department of Environment and Natural Resources
and the Bureau of Lands, there are several agencies that have direct and indirect
control over land. The courts also have the authority to award land ownership.
How difficult is the property purchase process in the Philippines? Legal Procedures in transfer of title (land and apartments)
Foreigners cannot own land, but can own condominium units or apartments in high- 1. Owner and Buyer agree on sale of a piece of land. Through a lawyer, a Deed of
rise buildings as long as the foreign proportion does not exceed 40%. They can also Absolute Sale (DOAS) is created and notarized.
buy a house but not the land on which it is built. Leases on land up to 50 years, 2. A Land Tax Declaration is secured from the Bureau of Internal Revenue (BIR)
renewable for another 25 years, are available. and submitted to the city or municipal Assessor's office.
3. Buyer pays real estate tax to the City Treasurer's Office.
If a foreigner is keen on acquiring land, there are several options. One, if married to 4. The Assessor's office assesses the market value of the property.
a Filipino citizen, is to have the ownership of the land under the Filipino's name. 5. Transfer taxes are paid by the buyer to the Assessor's Office.
Even though a foreigner cannot buy land, he may acquire land through inheritance. 6. Capital Gains Tax and Documentary Stamp tax are paid to BIR.
Another option is to acquire land through a corporation. Corporations can only be, 7. The Registry of Deeds (RD) cancels old title and issues a new one in the name of
at the maximum, 40% foreign-owned. the buyer.
The maximum area that may be acquired for residential purposes is 1,000 square 8. The buyer, now the new owner, obtains a photocopy of the new title and
meters of urban land or one hectare of rural land. requests tax declaration from the Assessor's office.
When buying new property, it is important to look for properties backed by
established developers and licensed real estate agents/ brokers, especially in cases of
Ownership is evidenced by the Transfer Certificate of Title (TCT) in the case of single
off-plan or pre-selling (the property is at the planning stages and non-existent
houses and raw land, and The Land Registration Act requires the owners of property
during the time of the sale). to register titles with the Registry of Deeds. The titles must be registered in the same
In general, property can be acquired by simple agreement. After deciding what
province as the property. However, the records are inaccurate in such that
property to buy as well as inspecting the premises and documents, the buyer usually
overlapping might exist. There is a proliferation of fake and double titles. The
signs a binding notarized Deed of Sale. Employing the services of a reputable sales completion of survey of all the lands in the country, mandated by the 1903 Public
agent is convenient because they not only provide vital information regarding the
Land Law, is nowhere in sight. The whole process of registering property may take
transaction and property, but also assist the buyer in getting mortgage loans.
around 39 days to complete eight procedures.
Value Added Tax: According to RA 9337, the following sales of property are VAT-
Exempt
i. Sale of real properties not primarily held for sale to customers or held for
lease in the ordinary course of trade or business;
ii. Sale of real properties utilized for low-cost housing as defined by R.A. No. 7279,
otherwise known as the "Urban Development Housing Act of 1992" and other
related laws, such as R.A. No. 7835 and R.A. No. 8763 wherein the price ceiling
per unit is PHP450,000 (US$9,000) or as may from time to time be
determined by the Housing and Urban Development Coordinating Council
(HUDCC) and the National Economic Development Authority (NEDA);
iii. Sale of real properties utilized for socialized housing as defined under R.A. No.
8763, wherein the price ceiling per unit is PHP450,000 (US$9,000) or as may
from time to time be determined by the HUDCC and the NEDA and other
related laws;
iv. iv. Residential lot valued at PHP1,919,500 (US$38,390) and below, house and
lot, and other residential dwellings valued at
v. PHP3,199,200 (US$63,984) and below: provided, that not later than January
31, 2009 and every three (3) years thereafter, the amounts herein stated shall
be adjusted to their present values using the Consumer Price Index, as
published by the National Statistics Office (NSO).

It takes around 32 days to go through the nine procedures needed to register a

property in the Philippines.

The round trip transaction costs include all costs of buying and then re-selling a
property - lawyers' fees, notaries' fees, registration fees, taxes, agents' fees, etc.
 Notary Fee: Notary fees are generally around 1% to 2% of the property value.
Notary fees are negotiable.
 Local Transfer Tax: Local transfer tax is 0.50% for properties located in
provinces, and 0.75% for properties located in cities and municipalities in
Manila.
 Documentary Stamp Tax: Documentary stamp tax is around 1.5% and it is levied on
the selling price or fair market value of the property, whichever higher.
 Capital Gains Tax: Capital gains tax is really a transaction tax on selling or transferring
real estate properties classified as capital assets. The capital gains tax is levied at 6% of
the gross selling price or fair market value of the property, whichever is higher. For
taxation purposes, properties are treated as capital assets if it is not used in trade or
business, and properties are treated as ordinary assets if it is used in trade or business,
such as rental property. Ordinary assets are not subject to the 6% Capital Gains Tax.
 Real Estate Agent's Fee: The real estate agent's fee is generally around 3% to 5% of
the property value. Real estate agents will usually do the registration process without
any additional payments aside from the commission.