Boracay Estate tax 2026
What You Need to Know
Boracay Estate Tax for 2026
For 2026, the Philippine estate tax remains a flat 6% on the net taxable estate. The most critical update for property owners in Boracay is the extension of the Estate Tax Amnesty until December 31, 2028, allowing families to settle unpaid taxes for those who died on or before May 31, 2022, without incurring surcharges, interest, or penalties.
Key Estate Tax Facts for 2026
- Tax Rate: A flat 6% of the net taxable estate.
- Standard Deduction: Up to ₱5,000,000 can be deducted from the gross estate for resident and citizen decedents.
- Family Home Allowance: A deduction of up to ₱10,000,000 if the family home is part of the estate.
- Filing Deadline: The Estate Tax Return (BIR Form 1801) must be filed within one year from the date of death to avoid late fees.
Estate Tax Amnesty (Extended to 2028)
The Philippine government has backed a significant extension to help families unlock “idle assets” like Boracay real estate:
- New Deadline: December 31, 2028.
- Coverage: Applies to estates of decedents who passed away on or before May 31, 2022.
- Benefits: Waiver of all penalties and interest; heirs pay only the basic tax of 6% or a minimum of ₱5,000 per decedent.
- Installment Option: Amnesty payments can be spread over one year from the date of acceptance.
Local Boracay Context: Real Property Tax (RPT) Amnesty
In addition to national estate taxes, the local government has offered a Real Property Tax Amnesty available until July 5, 2026.
- Purpose: Clears unpaid annual “Amilyar” (property tax) without penalties or surcharges.
- Requirement: Owners must process applications through the Municipal Treasury Office before the July deadline.
Estate Planning for Boracay Properties
To minimize the future tax burden on premium island assets, experts suggest these strategies:
- Lifetime Sale: Selling the property to heirs during your lifetime subjects the transaction to a 6% Capital Gains Tax rather than a potentially larger estate valuation later.
- Donation: Transferring via a Deed of Donation incurs a 6% Donor’s Tax, similar to the estate tax rate but avoids the probate process.
- Life Insurance: Using insurance proceeds to provide heirs with the liquidity needed to pay the 6% estate tax upon transfer.
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