Executive summary

Transferring land/condo title triggers national taxes, local imposts, and registry fees. For sales, the tax base is the highest of: (1) contract price, (2) BIR zonal value of land (plus appraised value of improvements), or (3) fair market/assessed value (LGU reference). By market convention (unless the deed reallocates): seller shoulders 6% Capital Gains Tax (CGT) on capital assets or income-tax/CWT/VAT on ordinary assets; buyer shoulders Documentary Stamp Tax (DST), local transfer tax, and Registry of Deeds fees. Donations and inheritances use 6% donor’s/estate tax, then still pay DST/transfer tax/registration to re-title. Missing statutory filing windows adds surcharges and interest and delays the BIR eCAR (Certificate Authorizing Registration) needed to register the title.

1) Identify the mode of transfer

A. Sale (Deed of Absolute Sale)

If property is a capital asset (e.g., personal/family property not used in business):
- CGT = 6% of higher of deed price or zonal/appraised value → seller.
- DST = 1.5% of the same base → buyer.
- Local Transfer Tax ≈ 0.5% (provinces) to 0.75% (cities/MM) of higher of deed/zonal/assessed → buyer.
- Registry fees (LRA/RD) → buyer (graduated; often ~0.25% plus fixed charges).
If property is an ordinary asset (e.g., by a developer/real-estate dealer or used in business):
- No 6% CGT. Seller is taxed under income tax; buyer withholds CWT at applicable rates.
- VAT may apply (subject to VAT rules/exemptions).
- DST / Transfer Tax / Registry → typically buyer.

B. Donation (Deed of Donation)

Donor’s Tax = 6% of net gift (FMV base; after allowable deductions). → donor.
DST (on the deed), Local Transfer Tax, Registry → generally donee by convention (may be reallocated in the deed).

C. Succession (Heirship/Estate)

Estate Tax = 6% of net estate (FMV less deductions). → estate.
After paying estate tax and securing eCAR(s), heirs still shoulder DST (if applicable), Local Transfer Tax, and Registry to obtain titles in their names.

Capital vs. Ordinary asset: Classification depends on seller’s status and use of property. This changes the entire tax path (6% CGT vs. CWT/VAT). When in doubt, analyze before signing.

2) What value will be used (your real cost driver)

BIR national taxes (CGT/CWT/DST): base is the higher of contract price or BIR zonal value for land plus appraised value of improvements.
LGU Transfer Tax: many LGUs use the highest of contract, zonal, or assessed (assessor’s schedule).
Condo units: zonal/appraised values also apply; association/management clearance may be required before registration.

3) Who pays what (legal liability vs. market practice)

Item	Legal liability (simplified)	Market convention
CGT (6%, capital assets)	Seller	Seller
Income tax/CWT (ordinary assets)	Seller (buyer withholds)	Seller (via buyer’s withholding)
VAT (if VATable)	Seller	Economically borne by buyer in price
DST (1.5%)	Any party to instrument	Buyer
Local Transfer Tax	Transferee	Buyer
Registry/LRA fees	Registrant	Buyer
Unpaid RPT up to deed date	Owner of period	Seller by practice
Notarial fee	—	Usually buyer

Parties may reallocate in the deed, but government will still look to the statutorily liable party if the other defaults.

4) Statutory timelines (avoid penalties & delays)

CGT (capital asset sale): normally within 30 days from notarization of the deed.
CWT/VAT (ordinary asset sale): follow withholding/VAT filing schedules.
DST: generally on or before the 5th day of the month following the date of deed (or per current BIR rule).
Local Transfer Tax: many LGUs require within 60 days of deed.
Registration: only after BIR issues eCAR. Submit to Registry of Deeds; then Assessor for new Tax Declaration.

Surcharges, interest, and compromise penalties apply when late. Administrative backlogs extend processing; timely, complete filings shorten the cycle.

5) Step-by-step process (private resale; capital asset)

Deed of Absolute Sale (complete TCT/CCT details, area, technical description; TINs; civil status; tax dec nos.).
BIR: file CGT (or CWT/VAT) and DST with required forms, IDs/TINs, title & tax dec copies, lot plan/previous CAR if needed, and RPT receipts; await eCAR issuance.
LGU: pay Transfer Tax; secure Tax Clearance/updated RPT.
Registry of Deeds: submit eCAR, DST proof, transfer tax receipt, original owner’s duplicate title, and clearances; pay registry fees; obtain new TCT/CCT.
Assessor: issue new Tax Declaration to buyer.

6) Sample computations (illustrative only)

A. Sale of capital asset (city property)

Deed price: ₱5,000,000
Zonal/appraised value: ₱4,700,000 → Tax base = ₱5,000,000

Seller:

CGT 6% = ₱300,000

Buyer:

DST 1.5% = ₱75,000
Transfer Tax 0.75% (city) = ₱37,500
Registry fees (~0.25%) ≈ ₱12,500 (+ fixed/annotation fees)
Notarial fee (e.g., 1%) ≈ ₱50,000

B. Donation (to child; city)

FMV/zonal: ₱3,000,000
Donor’s Tax 6% (assume no deductions) = ₱180,000 (donor)
DST 1.5% = ₱45,000 (donee)
Transfer Tax 0.75% = ₱22,500 (donee)
Registry ~0.25% ≈ ₱7,500 (donee)

C. Estate settlement (one parcel to a single heir)

FMV/zonal at death: ₱6,000,000
Estate Tax 6% of net estate (assume net = ₱5,000,000 after deductions) → ₱300,000
After eCAR, heir pays Transfer Tax (LGU base/policy), DST if applicable, and Registry to re-title.

(Exact rates/thresholds may change; run an updated check before filing.)

7) Special situations that change the bill

Developer/Business seller (ordinary asset): expect CWT and possibly VAT (some residential sales exempt subject to current thresholds), no 6% CGT.
Mixed land + building: BIR often values land by zonal and improvements by appraised value; both affect DST and sometimes local transfer tax.
Installment sales: taxes may follow special timing for business sellers (DST generally on full consideration).
Condominiums/Subdivisions: Management/Developer Clearance fees, move-in fees, and unpaid dues must be settled.
Agrarian/eco-zone/heritage lands: additional clearances (DAR, DENR, PEZA, HLURB/HSAC legacy) can add cost/time.
Conjugal/community property: secure spousal consent/proof of exclusive ownership to avoid re-filing.
Corporate reorganizations: may qualify for tax-free exchanges under specific rules (documentation-heavy; professional advice essential).

8) Documents & clearances that affect cost and time

Owner’s duplicate title (TCT/CCT) and latest tax declarations (land/improvements).
TINs and government IDs of all parties.
RPT receipts (current, with penalties settled).
Lot plan/technical description (if required), subdivision/condo clearances, association dues clearance.
SPA (if represented), marital consent, board/partners’ resolutions (if entity sellers/buyers).
For donations/estates: Deed of Donation, death certificate, affidavit of heirship/extrajudicial settlement, notarized partition, and supporting PSA docs.

9) Practical cost-control tips

Check zonal & assessed values early to prevent shock on DST/transfer tax.
Allocate costs expressly in the deed (who pays CGT/DST/transfer/registry/notarial).
Meet filing windows—interest and surcharges compound.
Clean title & dues before sale to avoid extra trips and penalty interest.
For developers/business sellers, confirm VAT/CWT mechanics and whether the price is VAT-inclusive.
Bundle submissions (complete annexes) to shorten eCAR processing.
Keep a contingency for annotation fees, certified copies, and unforeseen LGU/association charges.

10) One-page checklists

Buyer (resale; capital asset)

☐ Verify zonal/assessed values; budget DST 1.5%, Transfer 0.5–0.75%, Registry ~0.25%, notarial
☐ Confirm seller’s tax side (CGT) timeline to avoid eCAR delay
☐ Prepare TIN/IDs, funds, and clearances (association/condo)
☐ After eCAR → RD registration → Assessor tax dec

Seller (resale; capital asset)

☐ Classify asset (capital vs ordinary)
☐ Prepare title, tax decs, RPT clearance, TIN/IDs, civil status docs
☐ File CGT 6% within 30 days (or CWT/VAT for ordinary assets)
☐ Coordinate with buyer on DST/Transfer Tax filing schedule

Donation / Estate

☐ Compute Donor’s/Estate tax 6% (with deductions for estate)
☐ Secure eCAR(s), then pay DST (if applicable), Transfer Tax, and Registry to re-title
☐ Attach PSA/court documents; notarize settlement/partition where needed

Key takeaways

Your cash out turns on asset class (capital vs ordinary) and the highest lawful value (deed vs zonal/appraised vs assessed).
Sales of capital assets: headline split is CGT 6% (seller), DST 1.5% (buyer), Transfer 0.5–0.75% (buyer), Registry ~0.25% (buyer).
Donations/Estates: use 6% donor’s/estate tax first, then still settle DST/Transfer/Registry to re-title.
Missed deadlines create surcharges/interest and stall eCAR and registration.
Put cost allocation in the deed, audit values early, and file complete, on time, to avoid expensive detours.

This guide is general information. For complex setups (corporate sellers, VAT issues, multiple parcels, liens/annotations, estate partitions) get tailored tax/legal advice before you sign.