⌛ Attorney

The capital gains is 6% of the selling price, it must be paid within 30 days of the notarizing of the deed of sale. The penalty is figured at 25% per month starting on the 30th day after the sale.

So if the property sold for P1 million, 6% of that would be P60,000. On day 31 there would be a penalty of 25% of the P60,000, or P15,000, so the owed amount would then be P75,000. Every month thereafter would add another P15,000 to the tax bill.

So on that basis in two years and one month after the sale, that original P60,000 owed, would now be P420,000.

Larry

 

I am in the final process of closing a title in Bacong using a local attorney. I am sure his fees are not that high, I will contact him and see if he is interested.

 

My attorney who is finalizing my Bacong title is interested in talking to you, if you like. You can call me at 09175663990 for his name and number. My name is Patrick, I am an American.

 

I only paid 3% when I bought our property, but that was after "shopping" and negotiating down from 10%. This was not local though. This is in rural farm country. I like the fact that she let me look over her shoulder while drafting everything on the computer and allowed necessary changes in the paperwork that I thought were in everyone's best interest. I'm not a lawyer, but had 2 years of business law in college. It was refreshing to see that the "legalese" here is in English and extremely similar to American law in the way contracts are (correctly?) written.

 

I will assume the 3% did not include the 6% capital gains tax, or the 1.5% documentary stamp tax, or the titling of the lot, etc. Could be that 10% would have been a MUCH better deal if it had included this.

The attorney we work with charges us 1% for competing the contracts, and my wife does the title transfer, pays the sales tax, etc. all for a total of 10% for everything.

Larry