Cost to Transfer Land Title in the Philippines
A comprehensive legal‑practice guide
(updated to Philippine laws and revenue regulations in force as of 21 April 2025)
1. Overview
When ownership of real property changes hands in the Philippines—whether by sale, donation, barter, partition, extrajudicial settlement of estate, or even corporate mergers—the parties must cause the transfer of the certificate of title in the Registry of Deeds (RD). Aside from documentary requirements and procedural steps, the single biggest concern is how much the transfer will cost. Costs fall into two broad groups:
| Group | Who Collects / Pays To | Typical Basis |
|---|---|---|
| National & local taxes | Bureau of Internal Revenue (BIR); City/Municipal Treasurer | % of “higher of zonal value, fair‑market value (FMV) in tax declaration, or stated consideration” |
| Administrative & incidental fees | Registry of Deeds, Notary Public, professional service providers, misc. | statutory schedules or market‑based rates |
Except where a law fixes liability (e.g., the Civil Code says the seller pays CGT), parties can re‑allocate who ultimately bears each item in their deed of conveyance.
2. National Taxes (BIR)
| Tax | Statutory Basis | Rate / Formula | Typical Payor | Comments |
|---|---|---|---|---|
| Capital Gains Tax (CGT) – for onerous transfers of real property classified as capital asset | Sec. 24(D), National Internal Revenue Code (NIRC) as amended | 6 % of the higher of (a) gross selling price, (b) zonal value, or (c) FMV per provincial/city assessor | Seller (may shift by agreement) | Payable within 30 days of notarization; file BIR Form 1706 |
| Creditable Withholding Tax (CWT) – if property is an ordinary asset and seller is engaged in real‑estate business | Secs. 57, 58; RR 2‑98 | Tiered rates (1 %–6 %) depending on holding period & amount | Buyer (withholds) | Replaces CGT for ordinary assets |
| Donor’s Tax | Sec. 99, NIRC; TRAIN Law (RA 10963) | 6 % of total net gifts over ₱250 k per calendar year | Donor | Applies to deeds of donation; file BIR Form 1800 |
| Estate Tax | Sec. 84, NIRC | 6 % of net estate > ₱5 M | Heirs / estate | Must secure eCAR before RD transfer |
| Documentary Stamp Tax (DST) | Sec. 196, NIRC | ₱15 for first ₱1,000 + ₱15 per add’l ₱1,000 ≈ 1.5 % | Buyer (customarily) | Use BIR Form 2000‑OT |
| Value‑Added Tax (VAT) – if seller is VAT‑registered and property is an ordinary asset | Sec. 106, NIRC | 12 % of gross selling price or FMV, whichever higher | Seller | Often passed on to buyer |
Tip: The BIR will issue an Electronic Certificate Authorizing Registration (eCAR) only after taxes & penalties are paid. No eCAR = no new title.
3. Local Transfer Tax (Local Government Unit)
| Basis | Statute / Ordinance | Rate Ceiling | Typical Payor |
|---|---|---|---|
| Local Government Code (LGC) of 1991, Sec. 135; local revenue code | Province: ≤ 0.5 % of higher of zonal value, FMV, or selling price | ||
| Highly‑urbanized/ component cities: ≤ 0.75 % | Buyer (by custom) |
Payment is made at the Treasurer’s Office where the property is located; the tax clearance is required by the RD.
4. Registration & Annotation Fees (Registry of Deeds)
The Land Registration Authority (LRA) issues a schedule of fees (updated last in 2024):
| Item | How Computed |
|---|---|
| Registration Fee for transfer certificate | ₱30 + 0.25 % of the first ₱500 k, plus scaled brackets up to 0.10 % beyond ₱10 M (minimum ₱1,000)** |
| Entry Fee | ₱50 per instrument |
| Issuance of Owner’s Duplicate | ₱330 per title |
| Certification / CTC | ₱150 first page + ₱20 each succeeding page |
Amounts may vary slightly among registries (they can add legal research/data processing fees of ₱20–₱100).
5. Notarial, Documentation & Miscellaneous Costs
- Notarial Fee for Deed of Conveyance – Integrated Bar of the Philippines (IBP) guidelines: ~ ₱1,000 – ₱10,000, typically 1 % of selling price for large deals, negotiable.
- Professional fees – real‑estate broker’s commission (up to 5 % of gross), lawyer’s handling fee (₱5 k – ₱50 k).
- Clearances & Certifications –
- Tax Declaration (Assessor): ₱150–₱300
- Real‑Property Tax (RPT) Clearance: ₱300–₱500
- Secretary’s Certificate / Board Resolution (if corporation): ₱500–₱2 k
- Processing service fees – if using a liaison or “runner”: ₱5 k – ₱15 k.
6. Timeline & Step‑by‑Step Cost Triggers
- Draft & notarize Deed of Sale/Donation/… → Notarial fee
- Secure tax clearance (RPT up to quarter of transfer); obtain Tax Declaration & latest Statement of Account → minimal fees
- File with BIR (within 30 days) → pay CGT/CWT, DST, receive eCAR
- Pay Transfer Tax at Treasurer (within 60 days of notarization)
- Register with RD → pay registration & certification fees, surrender Owner’s Duplicate, receive new TCT/CCT
- Request new Tax Declaration at Assessor’s Office (free to ~₱300)
7. Sample Cost Computation (Sale Scenario)
Facts: Residential lot in Cavite sold for ₱3,500,000 on April 1, 2025. Zonal value = ₱3,800,000.
| Item | Rate / Formula | Amount (₱) | Who Pays (customary) |
|---|---|---|---|
| Capital Gains Tax | 6 % × ₱3,800,000 | 228,000 | Seller |
| Documentary Stamp Tax | 1.5 % × ₱3,800,000 | 57,000 | Buyer |
| Transfer Tax (Province, 0.5 %) | 0.5 % × ₱3,800,000 | 19,000 | Buyer |
| RD Registration Fee | ₱30 + (0.25 % × ₱500 k) + … scaled (≈ 0.20 % avg) | ≈ 7,300 | Buyer |
| Entry & CTC fees | fixed | ≈ 600 | Buyer |
| Notarial Fee (1 % capped) | 1 % × ₱3.5 M (cap ₱10 k) | 10,000 | Seller |
| TOTAL CASH‑OUT | ≈ ₱322,900 |
(Seller: ₱238 k; Buyer: ₱85 k)
8. Penalties & Surcharges
- Late BIR filing – 25 % surcharge on tax due + 12 % annual interest + compromise penalty (₱200–₱50 k).
- Late Transfer Tax – 2 % per month up to 72 % of basic tax.
- Unregistered deed – does not bind third persons; may incur RD surcharge of ₱50/day after 30 days (local rules).
9. Exemptions & Preferential Rates
| Transaction | Tax Relief | Citation |
|---|---|---|
| Sale of principal family dwelling up to ₱2 M & proceeds fully used to acquire/build new principal dwelling within 18 months | Exemption from 6 % CGT (one‑time) | Sec. 24(D), NIRC; RR 13‑99 |
| Transfer of property under Comprehensive Agrarian Reform | Exempt from CGT & DST | RA 6657 |
| Merger or consolidation where property is transferred to surviving corp. solely for shares | Exempt from CGT, subject to DST | Sec. 40(C)(2), NIRC |
| Donation to qualified donee institution (non‑profit, accredited NGOs) | Exempt Donor’s Tax; deductible | Sec. 101(A)(3), NIRC |
10. Documentary Checklist (CGT/DST path)
- Deed of Sale (original + two photocopies)
- TCT/CCT (Owner’s Duplicate)
- Tax Declaration – Land & Improvement
- BIR Forms 1706 & 2000‑OT + payment slips
- IDs of parties; TINs; SPA/board resolutions if needed
- Official receipts of real‑property tax & transfer tax
- eCAR (to be issued)
- Transfer Tax Receipt & Tax Clearance
- RD‑required misc. forms (RD intake sheet, DAR clearance if agricultural)
11. Practical Tips
- Check zonal values early—they change irregularly and often exceed the list price, inflating taxes.
- Time the signing near month‑end only if ready to file promptly; the 30‑day BIR clock starts on notarization.
- Split payments in the deed (e.g., buyer to shoulder DST & transfer tax) to match who will physically transact at BIR/LGU/RD.
- Bring cash or manager’s checks—some RDs and Treasurer’s offices still do not accept electronic payments.
- Secure certified copies of the new title immediately; you will need them to update the tax declaration and for any subsequent mortgage.
12. Frequently Asked Questions
| Question | Answer |
|---|---|
| Can I use the Bureau of Treasury’s e‑payment portal? | For DST on real‑property sale, yes (eFPS/eBIRForms) in major cities, but you must still present the eCAR barcode printout to the RD. |
| Is the 6 % CGT deductible against personal income tax? | No; it is a final tax. |
| What if the selling price is lower than the zonal value? | BIR will automatically assess taxes on the higher zonal value. Contested valuations require a Zonal Value Protest (rarely granted and time‑consuming). |
| Does a mortgage release need separate fees? | Yes—cancellation/annotation fees (~ ₱1,000) and notarial fee for Release of Real Estate Mortgage. |
| How long does the whole process take? | Metro Manila: 4–8 weeks; provincial RDs: 2–6 weeks, assuming complete documents. |
13. Summary Table of Mandatory Costs (2025)
| Cost Component | Rate | Legal Basis |
|---|---|---|
| Capital Gains Tax | 6 % | NIRC §24(D) |
| Documentary Stamp Tax | 1.5 % | NIRC §196 |
| Transfer Tax (LGU) | ≤ 0.75 % | LGC §135 |
| RD Registration Fee | Avg. 0.20 % + fixed | LRA Schedule 2024 |
| Notarial Fee | Market (IBP) | 2004 IBP Standards |
14. Final Caveat
Statutory rates are stable, but zonal valuations, local tax ordinances, and LRA schedules are periodically revised. Always re‑confirm figures with the BIR Revenue District Office, the City/Provincial Treasurer, and the Registry of Deeds immediately before closing a transaction. When significant sums are involved, engage a Philippine‑licensed lawyer or tax professional for current computations and risk assessment.
This article is for general information only and does not constitute legal advice or create a lawyer‑client relationship.