Rental property as Income - Tax

Hi Guys!

I'm looking to retire to the Philippines with my Filipino wife in a few years and we are toying with an idea for an income.

We are thinking of buying a few condo's in Manila(? possibly) and then renting them out.   I've been looking at prices to buy at and also the rental prices and I think it's do-able to the point where I can assure ourselves around $1500-$2000 USD.  Given that we will own our own house and so won't pay rent, i get the impression this enough to live comfortably on.

The question I would ask though, the amount above is before any tax that might apply.  What tax, if any would be payable on the income and roughly what rate is it?

Thank you!!

Hello and welcome on board Stuza :cheers:

Hope some members Tip in soon! You could check out this below article to have an idea about Tax meanwhile :

> Tax in the Philippines

The forum section below too has a lot to offer:

> Tax system in the Philippines

Best regards


Great, thank you very much!!!

I'm not a tax expert. But, I do have parents, both Filipinos, who have rental properties / apartments (not condos though). Here's what they pay on a regular basis to Bureau of Internal Revenue or BIR:

Monthly percentage tax (BIR Form 2551M): 7% of rent received.

Quarterly income tax (BIR Form 1701Q); There are tax brackets. You can pick itemized or 45% standardized deduction.

Annual income tax (BIR Form 1701).

You can download the BIR online forms app or samples of forms from the BIR website to give you an idea of what you would need to fill out and pay.

My parents also pay an annual real estate tax to the city. This may or may not increase per year depending on whether there's an increase in zonal valuation.

Thank you for the perfect response!

Hi. I am about to rent a condo unit somehwere in Makati. May I know if I need to pay income tax for rental? I only purchased 1 condo unit.

Is there anyone here who knows how the real property tax for a typical condo unit carpark is assessed? PErhaps anyone here who has any experience paying it? (figures would be welcome).

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