Real Estate Fees

Here's the following fees that you need to consider upon buying and transferring the title to your name

Capital Gain Tax (CGT) must be on Seller's account but here in the Philippines, it depends on your deal. CGT equivalent to 6% of the selling price on the Deed of Sale or Zonal Value, whichever is higher, for example, you bought a lot worth P500,000.00 from the seller, you went to the city assessor's office and filed a copy of Tax Declaration, you learned that the zonal value of the property worth P180,000.00 only. Now, the BIR will compute the CGT equivalent to 6% of the selling price (SP) or zonal value (ZV), in this case the SP is higher than ZV. Therefore, they will compute the 6% of P500,000. Need to settle at BIR Regional District Office of your property.

The Buyer usually pays the following:

Documentary Stamp Tax (DST) equivalent to 1.5% of the selling price or zonal value, whichever is higher. In our example, SP is higher than ZV, therefore 1.5% of P500.000. Need to settle at BIR Regional District Office of your property.

Transfer Tax equivalent to 0.5% of the selling price or zonal value, whichever is higher again. Need to settle at City Hall of your property.

There's also another fee needed to settle at Land Registration Authority, click here.