Philippines Second-hand Property Renamed: Details Revealed

Recently we came across a case of a client who bought a second-hand apartment in Makati and the agent promised to help him complete the process of renaming the property. A year or two has now passed, but he is still not clear about the current situation. Every time he asked, the intermediary said it was fast, which made him feel anxious.

In this article, EasyGo International will reveal the government departments and related costs involved in the second-hand property renaming process:

01. Rename Application and Payment of Relevant Taxes

First, the name change application is submitted to the Land Registration Authority (LRA) of the Philippines for processing. The agency will review the title documents to ensure that the name change process is legal and ownership is properly transferred.

During this phase of the name change process, there are certain fees involved, including application fees, document processing fees and taxes:

State Revenue Service (BIR): Capital gains tax (fixed rate) is 6%

National Revenue Service (BIR): Stamp duty (fixed rate) is 1.5 per cent

Municipal Finance Office: transfer tax of about 0.25 - 0.75 per cent, depending on the city/province

Land Registry: registration fee (change of title) about 0.45 - 0.50 per cent, depending on the city/province

Appraisal Office: Tax Statement (Property Change) Amount Not Fixed, Low Amount

02, property rights renewal and registration.

Upon completion of the payment of taxes and fees, the title owner information will be updated to the Bureau of Land Management records.

03. Delivery of Title Certificate

The Bureau of Land Management will issue new title certificates to new title owners.

Through the above steps, the entire process of the transfer of apartment property rights in the Philippines is successfully completed.