Who pays Capital Gains Tax when selling property in the Philippines?

Capital Gains Tax (CGT) is legally the seller's responsibility. It is 6% of the selling price or the zonal value (BIR-published), whichever is higher. In practice, some buyers agree to share or absorb this cost as a negotiation term, but by default the seller pays CGT.

Who pays the Documentary Stamp Tax on a real estate sale in the Philippines?

Documentary Stamp Tax (DST) is technically the buyer's obligation under the Tax Code, but it is commonly shared or fully absorbed by the seller in practice. It is 1.5% of the selling price or zonal value, whichever is higher.

What is the LGU Transfer Tax rate in Metro Manila?

LGU Transfer Tax in Metro Manila is 0.75% of the selling price or zonal value (whichever is higher). In provinces and other cities outside Metro Manila, the rate is 0.5%. This is paid to the local government unit where the property is located.

How long does property title transfer take in the Philippines?

Title transfer typically takes 3–6 months when done properly: BIR CAR (Certificate Authorizing Registration) processing takes 30–60 days after CGT and DST payment; LGU Transfer Tax and clearance add 5–15 days; Register of Deeds processing takes 15–30 days. Hiring a licensed broker or title transfer specialist can reduce errors that cause delays.

What is the BIR zonal value and why does it matter for title transfer?

The BIR zonal value is the minimum property valuation set by the Bureau of Internal Revenue per location. CGT and DST are computed on the higher of (a) the actual selling price or (b) the BIR zonal value or (c) the assessed value. You cannot compute transfer costs accurately using only the contract price if the zonal value is higher — you must check the BIR e-zonal value lookup tool for the property's address.

Is title transfer required when buying a house and lot?

Yes — title transfer is required to legally move ownership from the seller to the buyer. Without a new Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT) in your name, you have no legal proof of ownership and cannot use the property as collateral for a loan. Always complete title transfer regardless of whether the seller says it is 'optional.'

Can I transfer title without a real estate broker?

Yes, you can handle title transfer yourself or hire a title transfer specialist (a service typically costing ₱15,000–₱50,000 depending on property value). However, errors in BIR filings lead to penalties and delays. For transactions above ₱3M, hiring a licensed broker or lawyer to manage the transfer process is strongly recommended.

🏠 Property Cluster · 2026 BIR Rates

Philippines Title Transfer Cost Calculator

Estimate Capital Gains Tax, Documentary Stamp Tax, Transfer Tax, and all registration fees — instantly. Updated 2026 BIR rates.

✓ CGT 6% ✓ DST 1.5% ✓ LGU Transfer Tax ✓ LRA Registration Fee ✓ Seller vs. Buyer split ← Construction Calculator Pag-IBIG Affordability →

Selling Price / Contract Price in Philippine Peso (₱) Tip: use the higher of selling price vs. BIR zonal value for accurate tax estimates.

BIR Zonal Value (optional) if known

Property Location

Transaction Type

Include agent/broker commission (5%) Standard PRC-licensed broker fee

Include notarial fee (~0.15%) For Deed of Absolute Sale notarization

Include title transfer service fee Professional service: ₱15,000–₱50,000 typical

Cost Breakdown

Fee	Rate / Basis	Normally Paid By	Amount
Enter a selling price above to see breakdown

* "Normally paid by" is the default legal obligation. In practice, buyers and sellers negotiate who absorbs each fee. Commission shown is deducted from seller's net proceeds. All figures are estimates — consult a licensed broker or CPA for exact computation.

What Is Philippine Title Transfer?

A real estate title transfer in the Philippines is the legal process of moving ownership of a property — recorded in a Transfer Certificate of Title (TCT) for land/house, or a Condominium Certificate of Title (CCT) for condominiums — from seller to buyer. The process involves the Bureau of Internal Revenue (BIR), the Local Government Unit (LGU), and the Register of Deeds (LRA).

Total transfer costs in the Philippines typically range from 8% to 12% of the transaction value — one of the highest in Southeast Asia. Understanding these fees before signing a Deed of Absolute Sale prevents costly surprises.

🏛️

Capital Gains Tax (CGT)

6% of the selling price, zonal value, or assessed value — whichever is highest. Paid to BIR within 30 days of the notarized Deed of Sale. Legally the seller's obligation. CGT clearance (CAR) is required before the title can be transferred.

📋

Documentary Stamp Tax (DST)

1.5% of the selling price or zonal value (whichever is higher). Filed at BIR simultaneously with CGT. Legally the buyer's obligation, but commonly negotiated. One DST stamp is affixed to the Deed of Sale.

🏙️

LGU Transfer Tax

0.75% in Metro Manila, 0.5% outside Metro Manila. Paid to the city or municipality where the property is located. Required before the Register of Deeds will process the title transfer. Deadline: 60 days from date of sale.

📁

LRA Registration Fee

Charged by the Register of Deeds on a tiered schedule set by the Land Registration Authority. Ranges from ~0.25% to 0.5% of property value. This is the fee to physically issue the new Transfer Certificate of Title (TCT) in the buyer's name.

2026 Title Transfer Fee Reference Table

Fee	Rate	Base Value	Who Pays	Deadline
Capital Gains Tax	6%	Higher of selling price or zonal value	Seller	30 days from notarization
Documentary Stamp Tax	1.5%	Higher of selling price or zonal value	Buyer (often negotiated)	5th day of next month after sale
LGU Transfer Tax — Metro Manila	0.75%	Higher of selling price or zonal/assessed value	Buyer	60 days from date of sale
LGU Transfer Tax — Provinces	0.5%	Higher of selling price or zonal/assessed value	Buyer	60 days from date of sale
LRA Registration Fee	~0.25–0.5%	Property value (tiered LRA schedule)	Buyer	After BIR CAR & LGU clearance
Notarial / Notarization Fee	~0.1–0.25%	Contract value	Buyer (usually)	At signing of Deed of Sale
Agent/Broker Commission	5%	Selling price	Seller (from proceeds)	At closing
Title Transfer Service Fee	₱15,000–₱50,000	Flat / sliding fee	Negotiable	At engagement

Step-by-Step: How to Transfer Property Title in the Philippines

Execute a Notarized Deed of Absolute Sale (DOAS)

Seller and buyer sign the DOAS before a notary public. The notarized deed is the document that legally records the transfer. The notarial fee is typically 0.1–0.25% of the contract value.

Pay Capital Gains Tax and DST at BIR

File BIR Form 1706 (CGT) and 2000-OT (DST) within 30 days of notarization. Payment must be made at the BIR Revenue District Office (RDO) where the property is located or via AABs (authorized agent banks). BIR will issue a Certificate Authorizing Registration (CAR) within 30–60 days.

Pay LGU Transfer Tax at the City/Municipal Treasurer

Present the BIR CAR, DOAS, and latest Real Property Tax receipts to the LGU Treasurer's Office. Pay the Transfer Tax (0.75% Metro Manila, 0.5% provinces) within 60 days. Obtain the LGU tax clearance.

Submit the DOAS, BIR CAR, LGU tax clearance, and original owner's duplicate copy of title to the Register of Deeds. Pay the LRA Registration Fee. The RD will cancel the old TCT and issue a new one in the buyer's name — typically within 15–30 working days.

Update Tax Declaration at the Assessor's Office

After the new TCT is released, go to the city/municipal Assessor's Office to transfer the Tax Declaration to the buyer's name. This is required to pay annual Real Property Tax (RPT) in the buyer's name.

Pay Annual Real Property Tax

Clear any unpaid RPT (amilyar) before or at transfer — buyers typically require a current RPT receipt as a condition of sale. RPT is an annual obligation of the registered owner.

Frequently Asked Questions

How much does title transfer cost in the Philippines?

Total title transfer costs typically range from 8% to 12% of the property value. The main components are CGT (6%), DST (1.5%), LGU Transfer Tax (0.5–0.75%), and LRA Registration Fee (0.25–0.5%). On a ₱5,000,000 property, expect ₱400,000–₱600,000 in total transfer costs before agent commission.

Who pays Capital Gains Tax — seller or buyer?

CGT is legally the seller's responsibility. It is 6% of the selling price or zonal value (whichever is higher). However, in practice some transactions negotiate CGT to be absorbed by the buyer — especially in a buyer's market. Whatever is agreed, it must be documented.

What is the BIR zonal value and why does it matter?

The BIR zonal value is the minimum property valuation published by the Bureau of Internal Revenue per street/barangay. CGT and DST are computed on the higher of the selling price, zonal value, or assessed value. If you sell a property for ₱3M but the BIR zonal value is ₱4M, taxes are computed on ₱4M. Check the BIR's e-Zonal Value tool at bir.gov.ph before computing.

How long does title transfer take in the Philippines?

Realistically 3–6 months end-to-end: BIR CAR takes 30–60 days, LGU clearance adds 5–15 days, and Register of Deeds processing takes 15–30 working days. Errors in BIR filings can add months. Hiring a licensed title transfer specialist reduces processing errors significantly.

Can I transfer title myself without a broker or lawyer?

Yes, title transfer can be done without a broker or lawyer, but errors are common for first-timers. For transactions above ₱3M, hiring a licensed broker (PRC Broker's License required) or a real estate lawyer is strongly recommended. Title transfer specialist services typically cost ₱15,000–₱50,000.

What happens if you don't transfer the title right away?

Failing to transfer title promptly creates serious risks: the property remains legally in the seller's name (exposure to seller's debts, liens, and succession claims); CGT and DST filing deadlines trigger BIR penalties of 25% surcharge plus 12% annual interest; LGU Transfer Tax late fees apply after 60 days. There is no time limit per se, but costs and risks compound rapidly.

Is there Capital Gains Tax exemption for principal residence?

Yes — Section 24(D)(2) of the Tax Code allows a CGT exemption on the sale of a principal residence if: (1) the proceeds are fully used to acquire/construct a new principal residence within 18 months, (2) the seller notifies BIR within 30 days of sale, and (3) the seller has not claimed this exemption within the past 10 years. The amount not reinvested remains taxable.

What documents are needed for title transfer in the Philippines?

Core documents: Notarized Deed of Absolute Sale, Original TCT/CCT (owner's duplicate copy), updated Tax Declaration, latest Real Property Tax receipts (amilyar), BIR TIN of both parties, valid IDs of buyer and seller, and marriage certificate (if property is conjugal). Additional documents may be required by BIR or RD depending on the transaction.