*Updated April 2026 · Based on TRAIN Law (RA 10963), Local Government Code, and current BIR/LRA fee schedules*
You just agreed to buy a house and lot for PHP 3,000,000. You saved for years, negotiated hard, and finally shook hands with the seller. Then someone at BIR tells you: "Prepare another PHP 260,000 for transfer costs."
That's the reality of Philippine real estate. The total cost to transfer a land title runs between 6% and 10% of the property's value — and most buyers have no idea until they're sitting at the Revenue District Office with insufficient funds.
This guide breaks down every single cost, shows you three real-world examples, explains who pays what, and tells you exactly how much cash to prepare before you start the process.
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Here is every tax and fee involved in transferring a land title through a property sale in the Philippines:
| Tax / Fee | Rate | Typical Amount (PHP 3M property) | Who Pays | |---|---|---|---| | Capital Gains Tax (CGT) | 6% of tax base | ₱180,000 | Seller | | Documentary Stamp Tax (DST) | 1.5% of tax base | ₱45,000 | Buyer | | Transfer Tax | 0.5% – 0.75% of tax base | ₱15,000 – ₱22,500 | Buyer | | Registration Fee (LRA) | Sliding scale | ₱18,000 – ₱25,000 | Buyer | | Notarial Fee | 1% – 2% of property value | ₱30,000 – ₱60,000 | Negotiable | | Miscellaneous (certified copies, loose DST, IT filing) | Fixed | ₱2,000 – ₱5,000 | Buyer | | Total | ~8.5% – 10% | ₱290,000 – ₱337,500 | |
Let's unpack each one.
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This is the biggest single cost. CGT is a tax on the seller's gain from selling real property classified as a capital asset. The rate is a flat 6% of the tax base.
Critically, the tax base is not simply the selling price. BIR computes CGT based on the highest of:
1. The actual selling price stated in the Deed of Absolute Sale 2. The BIR zonal value (per square meter × lot area) 3. The fair market value per the local Assessor’s Office
This means even if you sell a property for PHP 2,000,000, if the BIR zonal value computes to PHP 3,500,000, your CGT will be 6% of PHP 3,500,000 = PHP 210,000 — not PHP 120,000.
Don't get blindsided at BIR. Check your property's official zonal value before computing taxes. Look up BIR zonal value →
DST is a tax on the document (Deed of Absolute Sale) that transfers ownership. The rate is 1.5% of the same tax base used for CGT (highest of selling price, zonal value, or FMV).
Filed using BIR Form 2000-OT, due within 5 days after the end of the month of notarization.
This is a local tax paid to the City or Municipal Treasurer's Office. The rate varies:
Due within 60 days after notarization of the deed.
The Land Registration Authority charges a fee based on a sliding scale tied to the property value. It is not a percentage — it follows a fixed schedule. Approximate amounts:
| Property Value | Registration Fee | |---|---| | PHP 500,000 | ₱6,000 – ₱8,000 | | PHP 1,000,000 | ₱10,000 – ₱14,000 | | PHP 3,000,000 | ₱18,000 – ₱25,000 | | PHP 5,000,000 | ₱28,000 – ₱35,000 | | PHP 10,000,000 | ₱45,000 – ₱55,000 |
The notary public charges a fee for notarizing the Deed of Absolute Sale. This is negotiable, but typically ranges from 1% to 2% of the property value. Some lawyers charge a flat fee for lower-value properties.
Budget PHP 2,000 – PHP 5,000 for:
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A 200 sqm residential lot in Batangas province. Selling price matches zonal value at PHP 1,000,000.
| Cost Item | Amount | |---|---| | CGT (6%) | ₱60,000 | | DST (1.5%) | ₱15,000 | | Transfer Tax (0.5%) | ₱5,000 | | Registration Fee | ₱12,000 | | Notarial Fee | ₱10,000 | | Miscellaneous | ₱3,000 | | Total | ₱105,000 | | As % of property value | 10.5% |
Seller pays: ₱60,000 (CGT). Buyer pays: ₱45,000.
A house and lot in Quezon City. Selling price PHP 3,000,000, BIR zonal value computes to PHP 3,200,000. Tax base = PHP 3,200,000.
| Cost Item | Amount | |---|---| | CGT (6% of ₱3.2M) | ₱192,000 | | DST (1.5% of ₱3.2M) | ₱48,000 | | Transfer Tax (0.75%) | ₱24,000 | | Registration Fee | ₱22,000 | | Notarial Fee | ₱40,000 | | Miscellaneous | ₱4,000 | | Total | ₱330,000 | | As % of selling price | 11% |
Notice: the zonal value exceeded the selling price. The buyer and seller both pay more than expected.
A commercial lot in Cebu City. Selling price PHP 8,000,000, zonal value PHP 7,500,000. Tax base = PHP 8,000,000.
| Cost Item | Amount | |---|---| | CGT (6%) | ₱480,000 | | DST (1.5%) | ₱120,000 | | Transfer Tax (0.75%) | ₱60,000 | | Registration Fee | ₱40,000 | | Notarial Fee | ₱80,000 | | Miscellaneous | ₱5,000 | | Total | ₱785,000 | | As % of property value | 9.8% |
Seller pays ₱480,000 (CGT). Buyer pays ₱305,000.
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The single biggest reason buyers and sellers are shocked by transfer costs is the tax base rule.
BIR does not simply use your selling price. They use the highest of:
1. Selling price — what the buyer actually paid 2. BIR zonal value — the per-sqm value BIR assigns to your street/barangay, multiplied by lot area 3. Fair market value — from the local Assessor’s Office tax declaration
In many areas — especially Metro Manila, Cebu, and Davao — the BIR zonal value is significantly higher than the actual selling price. This means your taxes are computed on a value you didn't actually receive.
There is no way around this. It is the law under Section 6(E) of the Tax Code.
Know before you go. Check your property's BIR zonal value and get all transfer taxes pre-computed. Get your property valuation report →
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Philippine custom and law divide the costs between buyer and seller:
| Cost | Default Payor | Legal Basis | |---|---|---| | Capital Gains Tax | Seller | Tax Code, Sec. 24(D) | | Documentary Stamp Tax | Buyer (by custom) | Tax Code, Sec. 196 | | Transfer Tax | Buyer | Local Government Code | | Registration Fee | Buyer | PD 1529 | | Notarial Fee | Negotiable | Agreement of parties |
However, these are defaults. In practice, buyer and seller can negotiate who pays what. Some sellers agree to "net of taxes" deals where the buyer shoulders everything in exchange for a lower selling price.
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The complete process typically takes 3 to 6 months:
| Step | Duration | |---|---| | Notarize deed + prepare documents | 1 – 3 days | | Pay CGT + DST at BIR | 1 day | | Process eCAR at BIR | 5 – 15 working days | | Pay transfer tax at Treasurer's Office | 1 day | | Register at Registry of Deeds | 5 – 10 working days | | Update tax declaration at Assessor's Office | 3 – 7 working days | | Total | 3 – 6 months |
The biggest bottleneck is the eCAR. If any document is missing or incorrect, BIR returns the entire package and you restart the queue.
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The tax rates are fixed by law — you cannot negotiate with BIR. However, you can:
Do not under-declare the selling price. BIR will use the zonal value anyway if it's higher, and under-declaration can result in penalties and criminal charges.
Inherited property does not incur CGT or DST. Instead, the estate pays estate tax (6% of net taxable estate) under the TRAIN Law. The PHP 5,000,000 standard deduction and PHP 10,000,000 family home deduction mean many estates owe zero tax.
Read our complete guide: Extrajudicial Settlement of Estate in the Philippines
Strictly speaking, no. You can process the transfer yourself. However, a lawyer or licensed broker can save you weeks of back-and-forth at BIR. Budget PHP 15,000 – PHP 50,000 for professional assistance, depending on the complexity.
You must settle all unpaid RPT before the Treasurer's Office will issue a Tax Clearance. Without the Tax Clearance, BIR will not process the eCAR. Learn more: Amilyar: Real Property Tax in the Philippines
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The most expensive mistake in Philippine real estate is going to BIR unprepared. Our property valuation tool computes every transfer cost — CGT, DST, transfer tax, registration — based on your property's actual BIR zonal value.
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*This article is for general information only. Tax rates and procedures are based on the TRAIN Law (RA 10963), the Local Government Code (RA 7160), and current BIR administrative orders as of April 2026. For specific legal or tax advice, consult a licensed attorney or certified public accountant.*
*Last updated: April 2026 · LandValuePH.com*