Global Property Guide

Financial Information for Residential Property Buyers

Taxation Researcher

The Global Property Guide's Taxation Researcher is a senior property analyst for a leading international property company in Manila.  She joined the Global Property Guide in September 2005.  She is particularly interested in reports involving research and analysis.   

Education: Master in Business Administration - University of the Philippines - Diliman;  BS in Management, Major in Legal Management – Ateneo de Manila University

The Global Property Guide's tax assumptions and method

The rental income tax figures that we cite are based on computations provided by accountancy firms commissioned by us. See also a complete list of contributing firms.

To arrive at the tax payable, calculations are made on the basis of 3 gross rental income bands:

  • €/US$1,500/month, or
  • €/US$6,000/month, or
  • €/US$12,000/month (in cross-continent comparisons we assume €/US$1,500/month)

Assumptions about the property and buyers' status:

  • The property is personally directly owned jointly by husband and wife
  • Both owners are foreigners and non-residents
  • They have no other local income
  • There is no mortgage, i.e., no loan is taken for the purchase

In arriving at the pre-tax profit figure, deductions are made for:

  • Depreciation / capital allowances – if available.  A typical value for the apartment is assumed, based on our valuation research, and it is depreciated on this basis.

Any other typical costs which a landlord pays are deducted - management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical ‘actually incurred’ costs. If real estate tax is normally payable by the landlord, we deduct that.