Question on Property tax in the Philippines

[Crazyhorse]

Hi,  first post here!   I am a US Citizen, and my Filipina wife recently received her US Naturalization.   We are older and in the process of buying a lot (2500sm) and building a couple houses on the lot.  My question is, and my wife was told that we should put the property in someone else's name, like a relative, because we would have to pay taxes to the Philippines AND the US.  I don't think that is correct.   Perhaps if the property was sold, one may have to pay an income tax to both, but not property tax.  I am pushing 71 and a veteran,  and wife will in all likelihood restore her Philippine Citizenship and go with the dual Cit.  We don't own any property in the US.    Any advice would be appreciated by those who have been there and done that!   (I have a lot more questions coming! LOL)

[Old55]

Welcome to the forum. 

IMO, you would be foolish to put YOUR property in another individuals name. At an extreme could be hazardous to your health. Property tax are low in Philippines.

Curious who told you to put it in another name. I would be highly suspicious.

 

 

[BrettGC]

1 minute ago, Old55 said:

Welcome to the forum. 

IMO, you would be foolish to put YOUR property in another individuals name. At an extreme could be hazardous to your health. Property tax are low in Philippines.

Curious who told you to put it in another name. I would be highly suspicious.

 

 

Welcome to the forum!

I agree wholeheartedly with @Old55's comment; it's an opening to a can of worms you do not want to deal with here.  The advice given to you can only be called very bad and even dangerous in extreme circumstances.  Property disputes in PI can get very ugly if it comes to that.  

[Crazyhorse]

25 minutes ago, Old55 said:

Welcome to the forum. 

IMO, you would be foolish to put YOUR property in another individuals name. At an extreme could be hazardous to your health. Property tax are low in Philippines.

Curious who told you to put it in another name. I would be highly suspicious.

 

 

My Wife's niece, who is in real estate.  Said that we would have to pay property tax in the PH and in the US.  I don't think that is correct.  Case in point, If I had property in Yuma county and in Pima County, I would pay tax to the county in which the property was in, and not to both counties. 

[Crazyhorse]

23 minutes ago, BrettGC said:

Welcome to the forum!

I agree wholeheartedly with @Old55's comment; it's an opening to a can of worms you do not want to deal with here.  The advice given to you can only be called very bad and even dangerous in extreme circumstances.  Property disputes in PI can get very ugly if it comes to that.  

Yeah, Property tax is 1 percent in PH.  Not too bad.    Her grandfather has farm land, and they (all the relatives) each fight for the title!  It's a mess and I think they are waiting for everyone to die and leave it to the last one standing! I mean, even some who were born after the grandfathers death wants a cut... crazy.  At any rate, she owns  2 properties (paid in full) in the PH..

[Old55]

3 minutes ago, Crazyhorse said:

My Wife's niece, who is in real estate.  Said that we would have to pay property tax in the PH and in the US.  I don't think that is correct.  Case in point, If I had property in Yuma county and in Pima County, I would pay tax to the county in which the property was in, and not to both counties. 

You are correct. I would keep my eye on your wife's niece she should know the correct facts kinda suspect. 

 

[Freebie]

And dont forget if you sell, there some strangely named item of 6% thats "called " Capital Gains Tax.. its actually nothing of the sort.. its a 6% sales tax based on the price its sold for or the zonal value of the property.  Capital Gains.. nothing like calling something by totally the wrong name.

[Crazyhorse]

16 minutes ago, Freebie said:

And dont forget if you sell, there some strangely named item of 6% thats "called " Capital Gains Tax.. its actually nothing of the sort.. its a 6% sales tax based on the price its sold for or the zonal value of the property.  Capital Gains.. nothing like calling something by totally the wrong name.

Yeah, what if you buy for P 1 million and sell for P 700k, a loss of P 300k, so does the seller still gets stuck with the 6% of the P 700k? for a P300k loss?  I doubt we will sell it once we move on it.  It's nice farm country.  Wife is 12 yrs younger, but who knows.  I may kick around for another 20 yrs.  We are still planning other income adventures.

[Joey G]

1 hour ago, Crazyhorse said:

My question is, and my wife was told that we should put the property in someone else's name, like a relative, because we would have to pay taxes to the Philippines AND the US.

Forget the tax issue.... Just don't do it!!!  Once that property is in someone else's name, it will never be in yours.  You will never get your money back!!!  If you build houses you will lose them.  

 

[Freebie]

48 minutes ago, Crazyhorse said:

Yeah, what if you buy for P 1 million and sell for P 700k, a loss of P 300k, s

Then the tax would be based on the zonal value of the property... there would still be a tax.. remember death and taxes... Many folk make two sale and purchase agreements , one the "real one" and one, which shows a much lower price in an effort to reduce the 6% owed. Sometimes it works.