Real estate appraisal for estate and inheritance tax in the Philippines
How fair market value is set for BIR estate tax, why heirs need it, and how a licensed appraisal prevents disputes and penalties.
By Jose Dante Almeda Jr., PRC Licensed Real Estate Appraiser No. 11261 & Broker No. 33179 · Last updated June 2026
When a property owner passes away in the Philippines, the estate pays estate tax based on the fair market value of the property at the time of death. A licensed real estate appraisal establishes that value credibly — which supports the BIR return and protects heirs from overpaying tax or fighting over an unfair split.
How the BIR values property for estate tax
For estate tax, property is generally valued at the higher of the BIR zonal value or the assessor’s fair market value — but those figures often understate real market value, and heirs frequently need an independent, defensible number for the estate settlement. Our guide on zonal value vs fair market value explains how these figures relate.
Why heirs need an independent appraisal
An impartial valuation lets co-heirs divide an estate fairly, especially when one heir keeps the property and buys out the others. It also documents the value you declare on the estate tax return, reducing the risk of a later BIR challenge.
Value as of the date of death
Estate tax is based on the property’s value at the time of death — not today. When death occurred years ago, this requires a retrospective valuation, which only a licensed appraiser can prepare defensibly using historical market evidence.
How it fits into settling the estate
The appraisal supports the estate tax computation, then the estate proceeds through extrajudicial settlement, payment of estate tax, the BIR eCAR, and finally transfer of title into the heirs’ names. Getting the value right at the start keeps the whole chain moving.
Avoiding penalties and disputes
Under-declaring invites a BIR assessment with penalties and surcharges; over-declaring means the estate overpays. An independent appraisal gives you a value you can stand behind either way.
Who can prepare an estate valuation?
Only a PRC-licensed Real Estate Appraiser can sign a report the BIR and courts will accept. Almeda Realty and Appraisal Services is a licensed real estate appraiser in the Philippines (PRC No. 11261). See also how to choose a real estate appraiser and when you need a property appraisal.
Settling an estate? Get the valuation right before you file. Talk to our team or explore our appraisal service.
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