Cost Estimates for Title Transfer via Deed of Donation in the Philippines

Updated for the TRAIN-era donor’s tax rules. This is a general guide for informational purposes only and isn’t a substitute for advice from your lawyer, BIR RDO, or Registry of Deeds.

1) What “title transfer via donation” means

When a property owner (the donor) gratuitously transfers ownership to another person (the donee) during the donor’s lifetime, that’s a donation inter vivos. For real property (land/condo/house & lot), the transfer must be in a notarized public instrument (a Deed of Donation), accepted by the donee, and registered so a new title can be issued.

Key effects:

Ownership passes without sale price or consideration.

Donor’s tax (not capital gains tax) applies.

Local and registration fees still apply.

A new eCAR (Electronic Certificate Authorizing Registration) and tax declarations must be obtained before titling.

2) Core cost components (and how to estimate them)

Below are the usual, legitimate cost items for a donation of real property. Exact amounts vary by location and office schedules; the formulas will help you budget and check quotations.

A. Donor’s Tax (BIR)

Rate: A flat 6% on net gifts (total donations made during the calendar year in excess of ₱250,000).
Tax base: For real property, use the higher of:
1. BIR zonal value of the land (and separate valuation of improvements), or
2. The fair market value per latest tax declaration.
Filing & payment: Within 30 days from the date of donation using BIR Form 1800. Late filing triggers 25% surcharge, interest (per annum), and compromise penalties.

Quick formula: Donor’s Tax = 6% × (Total gifts this year – ₱250,000), but not less than zero.

Notes:

Donations to certain government entities and accredited non-profit/charitable/educational organizations may be exempt, subject to strict documentary proof and accreditation rules.

Donations between spouses or those that impair legitimes (rights of compulsory heirs) can be void/ineffective; get counsel if any of these applies.

B. Local Transfer Tax (Province/City Treasurer)

Typical range: 0.5% of the tax base in provinces; up to 0.75% in cities/Manila.
When due: Commonly within 60 days from execution of the deed (check your LGU ordinance).
Tax base: Usually the same base used for donor’s tax (higher of zonal value or tax dec value).

Rule of thumb:

Province: Transfer Tax ≈ 0.5% × base
City/Manila: Transfer Tax ≈ 0.75% × base

C. Registry of Deeds (LRA) Registration Fees

What’s covered: Registration of the Deed of Donation, issuance of the new TCT/CCT, entry/annotation fees.
How computed: Graduated schedule that scales with property value; expect minimums and step-ups per bracket.
Budgeting tip (practical): For most residential values, earmark ~₱8,000–₱30,000 for LRA-related fees (higher for high-value parcels, multiple titles, or many annotations).

D. Assessor’s Office Fees

What’s covered: Issuance of new tax declarations (land and improvements), annotation, and certification fees.
Budget: ~₱1,000–₱5,000 (varies by LGU, number of tax decs, certified copies requested).

E. Notarization and Professional Fees

Notarial fee (Deed of Donation): Commonly a fixed professional fee or value-based quote. In practice: ~₱3,000–₱10,000 for straightforward residential donations; some firms quote ~0.5%–1.0% with caps for complex/high-value matters.
Optional legal services: Document vetting, due diligence, drafting of special clauses (e.g., reservation of usufruct, conditions, partition with donation), or handling at BIR/LGU/RD. Fees vary—get a written engagement letter.

F. Incidental & Documentary Costs

Certified True Copies (CTCs) of title, tax decs, tax clearances
TIN issuance/updates for donor and donee (mandatory)
SPA (Special Power of Attorney) if using a representative
Photocopying, ID pictures, forms
Courier or liaison services
Budget: ₱1,000–₱5,000 (more if many CTCs or if you need a new survey).

3) Does Documentary Stamp Tax (DST) apply?

DST primarily attaches to instruments with consideration (e.g., sale/assignment for value). A pure donation of real property is generally not subject to DST under the “deed of sale/conveyance” DST head because there is no consideration; instead, the transfer is governed by donor’s tax. (Different DST heads can apply to other donated assets—e.g., shares—so don’t generalize across asset classes.) When in doubt, confirm with your RDO under which DST head, if any, the specific instrument falls—but for real property donations, donor’s tax, local transfer tax, and registration fees are the usual drivers.

4) Sample “all-in” estimates

Below are illustrative computations using a simple set of assumptions. Replace the Tax Base with your property’s higher of zonal value or tax dec FMV.

Assumptions (for simplicity)

One parcel; no complex annotations/conditions.
No exemptions.
No late penalties.
LRA fees budgeted conservatively.
Province transfer tax = 0.5%; City transfer tax = 0.75%.

Example A — Base: ₱1,000,000

Donor’s Tax: 6% × (₱1,000,000 − ₱250,000) = ₱45,000
Transfer Tax (Province 0.5%): ₱5,000 | City 0.75%: ₱7,500
LRA/RD Fees (budget): ₱8,000–₱15,000
Assessor/CTCs/etc.: ₱1,500–₱3,000
Notarial Fee: ₱3,000–₱8,000

Estimated Total (Province): ₱62,500–₱76,000 Estimated Total (City): ₱65,000–₱78,500

Example B — Base: ₱3,000,000

Donor’s Tax: 6% × (₱3,000,000 − ₱250,000) = ₱165,000
Transfer Tax (Province 0.5%): ₱15,000 | City 0.75%: ₱22,500
LRA/RD Fees (budget): ₱12,000–₱22,000
Assessor/CTCs/etc.: ₱2,000–₱4,000
Notarial Fee: ₱5,000–₱12,000

Estimated Total (Province): ₱199,000–₱218,000 Estimated Total (City): ₱206,500–₱225,500

Example C — Base: ₱10,000,000

Donor’s Tax: 6% × (₱10,000,000 − ₱250,000) = ₱585,000
Transfer Tax (Province 0.5%): ₱50,000 | City 0.75%: ₱75,000
LRA/RD Fees (budget): ₱20,000–₱35,000
Assessor/CTCs/etc.: ₱3,000–₱5,000
Notarial Fee: ₱10,000–₱30,000 (or value-based quote)

Estimated Total (Province): ₱668,000–₱705,000 Estimated Total (City): ₱693,000–₱730,000

These ranges widen with more titles, co-owners, complex annotations (easements, usufruct reservations), boundary issues, or if there are delinquencies in real property tax that must be settled to obtain clearances.

5) Step-by-step process (with timing checkpoints)

Pre-check & docs
- Latest TCT/CCT (owner’s copy), tax declarations (land & improvements), Real Property Tax (RPT) receipts/clearances, zonal value printouts, survey plan/lot plan if needed.
- TIN of donor & donee (required).
- Marital property regime; spousal consent if applicable.
- Identify compulsory heirs and potential legitime issues.
Draft & notarize the Deed of Donation
- Include clear property description (as in title), donee’s acceptance, and any conditions/reservations (e.g., reserved usufruct or right to use).
BIR filing (Form 1800) within 30 days
- Compute and pay donor’s tax; secure eCAR(s)—usually one for land and one for improvement.
- Prepare standard BIR requirements (IDs/TINs, deed, CTC of title, tax decs, RPT clearance, etc.).
Pay Local Transfer Tax (Treasurer)
- Usually within 60 days; present deed and BIR documents as required.
Register at the Registry of Deeds (RD)
- Present original owner’s title, Deed of Donation, eCAR(s), Transfer Tax receipt, RPT clearance, and pay RD fees.
- RD cancels old title and issues new TCT/CCT in donee’s name.
Assessor’s Office
- Update/issue new tax declarations to reflect the donee as the new owner.

6) Common pitfalls (and how to avoid extra costs)

Late donor’s tax filing: Triggers surcharge, interest, compromise—the single biggest “avoidable” cost. Calendar the 30-day deadline.
Wrong valuation base: Always compare zonal value vs tax dec FMV and use the higher one; improvements are valued separately.
Unsettled RPT: Arrears must be paid before clearances or registration—budget for penalties if any.
Defective deed: Missing acceptance, vague descriptions, or improper conditions can delay RD registration; pay for proper drafting once, not twice.
Prohibited/void donations: E.g., between spouses (subject to strict limits) or donations that impair legitimes; consult counsel for family/succession constraints.
TIN issues: No TIN, no processing—secure/verify TINs early.

7) Quick budgeting worksheet (fill-in)

Tax Base (₱): __________________ (higher of zonal vs tax dec FMV)
Other gifts this calendar year (₱): __________________
Net gifts this year over ₱250,000 (₱): __________________
Donor’s Tax (6% × line 3): ₱__________________
Transfer Tax (0.5% province or 0.75% city × Tax Base): ₱__________________
LRA/RD Fees (budget): ₱__________________
Assessor/CTCs/etc.: ₱__________________
Notarial/Professional: ₱__________________ Estimated Total: ₱__________________

8) Special situations

Donation with conditions/reservations (e.g., usufruct to donor): Draft precisely; may affect valuation and annotations (added RD fees).
Multiple parcels / condominium + parking: Expect separate eCARs and incremental RD/annotation fees.
Co-owned or conjugal properties: Confirm capacity to donate and secure needed consents; check marital regime and titles for liens.
Cross-border donors/donees: If any party is a non-resident, additional ID/travel/notary/apostille costs may arise.
NGO/charitable gifts: Keep accreditation and donee’s certification ready for BIR to substantiate exemptions.

9) Document checklist (typical)

Notarized Deed of Donation (with donee’s acceptance)
Donor & donee valid IDs; TINs
Owner’s copy of TCT/CCT
Latest Tax Declarations (land & improvements)
Real Property Tax receipts/clearances (no arrears)
Zonal value/valuation printouts; lot/plan if needed
BIR Form 1800, eCAR(s)
Local Transfer Tax receipt
SPA (if represented)
Marriage certificates/consents if applicable
Any other RD/Assessor forms required locally

10) Bottom line

For most straightforward residential donations, the lion’s share of cost is Donor’s Tax (6%) and Local Transfer Tax (0.5%–0.75%), with registration and professional fees forming the remainder. If you stay within deadlines and prepare complete documents, you can keep total costs predictable and avoid penalties.

If you want, tell me the property’s tax/zonal value and LGU (province or city), and I’ll run a tailored breakdown using the worksheet above.