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Philippines passes major real estate tax reform: Here’s how it affects you

The Senate of the Philippines has passed the Real Property Valuation and Assessment Reform Act (RPVARA), Senate Bill No. 2386. This new piece of legislation is set to significantly impact the country’s real estate investment landscape. It is a top priority for President Ferdinand R. Marcos Jr.’s administration and is expected to bring about greater transparency, efficiency, and fairness in the Philippine property market, particularly for foreign investors looking to invest in the archipelago.

property taxes in the philippines

New tax amnesty offers relief to property owners

The RPVARA has introduced a two-year amnesty program for unpaid real property taxes, which is one of its most immediate benefits. The aim of this amnesty program is to reduce the financial burden on property owners, encourage compliance, and boost the government’s revenue collection. Senator Sherwin Gatchalian, who sponsored the bill and is the chair of the Senate Committee on Ways and Means, emphasized that this move is expected to significantly enhance tax compliance and, therefore, improve the government’s fiscal health.

Automation boosts efficiency in property services

The RPVARA (Real Property Valuation and Assessment Reform Act) intends to revolutionize the way local government units (LGUs) manage real estate services. The act aims to automate these services, streamline tax collection, and improve the delivery of public services. This will make the process more efficient and less cumbersome for property owners and investors. As part of this effort, a Real Property Information System will be established. This electronic database will maintain up-to-date records of all real property transactions and declarations nationwide.

Standardized property valuation to attract more investors

The RPVARA has established uniform valuation standards for real property assets across the Philippines, which is a significant development. This initiative promises to bring transparency and investor confidence, which was previously unseen in the Philippine real estate market. The RPVARA ensures equitable property rights enforcement and fosters an environment that is conducive to wealth generation. As a result, the economic potential of lands and real properties will be unlocked, making the Philippines an even more attractive destination for foreign investment.

The RPVARA is a significant reform for foreign investors and property owners in the Philippines, aiming to make the real estate market more transparent, efficient, and equitable. With these reforms in place, the opportunities for investment and development are expected to increase, promising a brighter future for those looking to own a piece of the Philippines. Own Property Abroad offers support to investors to navigate this new landscape with confidence, making informed decisions that capitalize on the promising prospects of the Philippine property market.

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2 Responses

  1. We have a farm land in Bohol Philippines that we wanted to sell. Please let me know how and all about expenses. Our farm is 17 hectares and also ideal for shopping mall or hospital to build. This farm has mangoes and coconut and also a small
    Warehouse.

    1. Hello Jen,

      Selling a large farm like yours involves several steps and expenses. First, it’s wise to get a property valuation to determine its market price, especially given its potential for development. Expenses will include capital gains tax, documentary stamp tax, transfer tax, and possibly broker’s fees if you use a real estate agent. Preparing your property for sale means ensuring the title is clear and all taxes are up to date.

      For a smooth process, please email us at [email protected]. We can assist you through the sales process and advise on specific local requirements and potential buyers.

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