Question on Property tax in the Philippines

[Joey G]

Call me crazy... but I would never purchase any real estate (property, land, building, etc.) with a lawyer representing me... In the Philippines, the United States, or anywhere in the world. If you find a lawyer willing to write up two sales documents to save on taxes... run from them.  

I've closed on several real estate transactions... never take anything for granted... never take someones word that "it's all good" or  "there are no issues"... thats what you pay the lawyer representing you to tell you. 

 

[Mike J]

29 minutes ago, gbmmbg said:

I think you might be mistaken as to why it is that way on the title. If both party's are Filipino then yes it becomes a conjugal asset under Philippine law. You might want to read this. Its a bit long but worth the read. Most husbands don't think the house or land can be sold with out them but it can.              https://www.guampdn.com/news/local/owning-land-in-philippines-when-married-to-a-foreigner/article_93904827-aaa6-5930-9b29-885adf632e17.html                                                                            

Interesting for sure.  This is rather a unique case in the sense that the "property" was "willed" to the man.  There is no indication the "property" contained a dwelling or other buildings which a foreigner is allowed to own.  Also I wonder about assets that come into possession as part of a will.  Does Philippine law say they become conjugal?  And let's assume the land/building etc can be sold by the Filipino spouse.  Would Philippine law require the Philippine spouse to then give 50% of the sale price to the foreign spouse?

Edited March 24, 2023 by Mike J

[Dave Hounddriver]

18 minutes ago, Mike J said:

And let's assume the land/building etc can be sold by the Filipino spouse.  Would Philippine law require the Philippine spouse to then give 50% of the sale price to the foreign spouse?

Not if he is out of the country, on vacation perhaps, when the sale takes place.  Seen that happen too many times.  Husband comes back and find wife has sold the house for some reason and gave the money to her family.  Disclaimer:  Atty Sabitsana, in Biliran Province, was disbarred for one year for facilitating a sale like this.  He laughed.  Worked out of his house on the side for a year then re-opened his office.

[Gas]

11 hours ago, fillipino_wannabe said:

Property tax is local, 1% for the province based on the zonal value which is normally a lot lower than the real value..

One of the reasons us country boys usually stay out of discussions about property tax. 

[hk blues]

1 hour ago, Gas said:

One of the reasons us country boys usually stay out of discussions about property tax. 

I'm not sure what there is to discuss though - the value is set by the LGU and the rate is fixed.  

[Crazyhorse]

6 hours ago, gbmmbg said:

I think you might be mistaken as to why it is that way on the title. If both party's are Filipino then yes it becomes a conjugal asset under Philippine law. You might want to read this. Its a bit long but worth the read. Most husbands don't think the house or land can be sold with out them but it can.              https://www.guampdn.com/news/local/owning-land-in-philippines-when-married-to-a-foreigner/article_93904827-aaa6-5930-9b29-885adf632e17.html                                                                            

Not long at all, but informative, and I would have to say I pretty much agree with the article.    Thanks!

[gbmmbg]

10 hours ago, Mike J said:

There is no indication the "property" contained a dwelling or other buildings which a foreigner is allowed to own

Yes a foreigner can own a dwelling but unless it is on leased land, witch you can't lease land from your wife, you have no control over the sale of the lot.

[hk blues]

2 hours ago, gbmmbg said:

Yes a foreigner can own a dwelling but unless it is on leased land, witch you can't lease land from your wife, you have no control over the sale of the lot.

I only take a passing interest in such things but our title deed clearly states both me and my wife. I understood the title deed refers to the land (lot) rather than the house built on it, but I may be mistaken  

Either way, I wouldn't be putting the property title in any name other than mine, my wife or our son. 

[gbmmbg]

20 hours ago, hk blues said:

I only take a passing interest in such things but our title deed clearly states both me and my wife. I understood the title deed refers to the land (lot) rather than the house built on it, but I may be mistaken  

Either way, I wouldn't be putting the property title in any name other than mine, my wife or our son. 

Yes, your name is on the title but that is just a legal formality. Unless your a Filipino your wife can sell the lot with the house on it at any time. The reason I bring up the lease thing is some people try to get around the land issues by having their wife or g/f buy the lot then lease it from them. Under philippine law spouses can't lease land to each other, also if she is just your g/f and you live together on the lot the common law wife issues come around. One other thing most people dont think of if your wife passes away before you the house is not all yours. Here is a good article that explains it.    https://www.duranschulze.com/partition-of-estate-in-the-philippines/

[hk blues]

3 hours ago, gbmmbg said:

Yes, your name is on the title but that is just a legal formality. Unless your a Filipino your wife can sell the lot with the house on it at any time. The reason I bring up the lease thing is some people try to get around the land issues by having their wife or g/f buy the lot then lease it from them. Under philippine law spouses can't lease land to each other, also if she is just your g/f and you live together on the lot the common law wife issues come around. One other thing most people dont think of if your wife passes away before you the house is not all yours. Here is a good article that explains it.    https://www.duranschulze.com/partition-of-estate-in-the-philippines/

Yep, I'm under no illusions as to the legality of our house and lot...foreigners cannot own land period.