15/04/2026
๐ฐ You just bought a property. Now BIR wants their cut. Here's EVERYTHING to be paid before that title lands in your name. ๐งต
Many Pinoys don't realize this until it's too late: buying property isn't just about the purchase price. There's a whole stack of taxes and fees between "SOLD" and "title transferred" โ and if even ONE is missed, the transfer gets stuck.
Here's the full breakdown for sale of real property classified as a **capital asset:**
1๏ธโฃ Capital Gains Tax (CGT) โ 6%
Based on the gross selling price, BIR zonal value, OR assessed value โ whichever is HIGHEST. Yes, kahit lugi si seller. It's not a tax on profit โ it's on the entire value. Filed via BIR Form 1706 within **30 days** from notarization of the Deed of Sale. Legally, this is the **seller's** obligation.
2๏ธโฃ Documentary Stamp Tax (DST) โ 1.5%
Same tax base โ selling price, zonal value, or assessed value, whichever is highest. Due on or before the **5th day of the month following** notarization. Required before BIR will issue a CAR. Usually shouldered by the **buyer**, but negotiable.
3๏ธโฃ Local Transfer Tax โ 0.5% to 0.75%
Paid to the city or municipal Treasurer's Office where the property is located. Metro Manila cities tend to charge the higher rate. Must be paid within **60 days** from the deed's ex*****on. Usually the **buyer's** responsibility.
4๏ธโฃ Registration Fee โ ~0.25% (varies)
Paid to the Registry of Deeds for the issuance of a new title under your name. Based on a schedule from the Land Registration Authority. This is always on the **buyer**.
5๏ธโฃ Notarial Fee โ ~1% to 2%
For notarizing the Deed of Absolute Sale. Varies depending on the notary public and the property value. Can sometimes be negotiated. Typically shared or shouldered by the **buyer**.
6๏ธโฃ Real Property Tax Clearance (Amilyar)
Not a transfer tax per se, but ALL unpaid real property taxes must be settled BEFORE the title can be transferred. If the seller has years of unpaid amilyar โ guess who gets stuck waiting? The **buyer**.
๐ The real kicker?
None of this moves forward without BIR issuing a **CAR (Certificate Authorizing Registration)**. No CGT and DST paid = no CAR = no title transfer. Period.
And here's the part nobody tells you: **kahit obligation ng seller ang CGT, in practice, mas problema ito ng buyer.** If you don't bring up who pays what BEFORE closing, you could end up fully paid but with zero title to show for it.
**Pro tips for buyers:**
โ Clarify ALL tax responsibilities in writing inside the Deed of Sale โ who pays CGT, DST, transfer tax, etc.
โ Consider an escrow arrangement โ don't release full payment until taxes are filed
โ Budget an additional **~10% on top of the purchase price** for all taxes and fees combined
โ Verify that the seller has no unpaid amilyar BEFORE you close
Quick example: On a โฑ5,000,000 property, expect roughly:
โ CGT: โฑ300,000
โ DST: โฑ75,000
โ Transfer Tax: โฑ25,000โโฑ37,500
โ Registration + Notarial: โฑ12,500โโฑ100,000+
**That's potentially โฑ400,000โโฑ500,000+ in taxes and fees on top of the purchase price.**
Save this. Screenshot it. Send it to a friend buying or selling property right now. ๐
