Estimated Costs for Land Title Transfer via Deed of Donation in the Philippines

This practitioner-style explainer walks you through the legal bases, the moving parts of valuation, the taxes and fees you’ll face, typical timelines, and a worked cost example. It’s written for inter vivos donations (i.e., gifts made while the donor is alive) of titled land/real property.

1) What is a Deed of Donation?

A Deed of Donation is a public instrument where a donor voluntarily transfers ownership of property to a donee out of liberality, accepted by the donee. For real property, the deed must be in writing and notarized; acceptance can be in the deed or a separate instrument notified to the donor.

Who commonly uses it? Parents donating lots to children; siblings; donations to charities/NGOs; estate planning to settle property while still alive.

Key validity points

Donor must have capacity to donate; donee must have capacity to accept.
If the property is conjugal/community, both spouses must consent.
Donations between spouses during marriage are generally void (except moderate gifts on family occasions).
Donations that impair the legitime of compulsory heirs may later be reduced (collation) in succession proceedings.

2) Tax Base and Valuation Rules

Nearly every cost hinges on “value at the time of donation.” Two government values usually matter:

Zonal Value (BIR) — the Bureau of Internal Revenue’s schedule per location/land class.
Fair Market Value (FMV) per Assessor — as shown on the latest tax declaration.

Working rule: For taxes, the base is the higher of the zonal value or the assessor’s FMV at the time of donation. If there are improvements (house/building), the building value typically follows the assessor’s replacement cost less depreciation (again, higher rule can apply depending on the tax).

3) National Taxes

A. Donor’s Tax (BIR Form 1800)

Rate: Flat 6% on the net gifts made during the calendar year in excess of ₱250,000.
Net gift: Value of the property donated minus allowable deductions (e.g., some donations to accredited NGOs subject to strict conditions).
Who is liable: Donor (but parties can contract who shoulders; BIR still looks to donor).
When due: Within 30 days from the date of donation (file and pay).
Interest/penalties if late: Surcharge (commonly 25% for late filing/payment, higher for willful neglect) plus interest per annum until fully paid; compromise penalties may also apply.

B. Documentary Stamp Tax (DST) on Conveyance (BIR Form 2000-OT)

Trigger: The instrument transferring real property (including by donation) is subject to DST.
Common computation method: Many practitioners compute DST at an effective ~1.5% of the higher of zonal/assessor’s FMV (because the schedule is ₱15 per ₱1,000 or fraction thereof of value).
When due: Typically together with the donor’s tax as a one-time transaction.

Important: Donor’s tax and DST are separate. Even if the donation is donor’s-tax-exempt (e.g., qualifying NGO with donee-institution compliance), the DST on the deed may still apply.

4) Local Taxes and Fees

A. Local Transfer Tax (City/Municipal Treasurer)

Range: Commonly 0.5% to 0.75% of the same tax base (higher of zonal/assessor’s FMV). Rates vary by LGU and sometimes by whether the property is urban/rural.
When paid: Before registration; you’ll need the official receipt for the Registry of Deeds (RD).

B. Real Property Tax (RPT) Clearances

Requirement: No arrears. You’ll typically secure a Tax Clearance from the Treasurer and, for lots with structures, separate statements for land/building.
Cost impact: Payment of any delinquent RPT + interest (if any). No new tax is imposed here; you’re just settling dues to get clearances.

5) Registry of Deeds & Assessor Fees

A. Registration Fees (RD / LRA)

What: Fees to register the deed and issue a new Transfer Certificate of Title (TCT)/Condominium Certificate (CCT) in the donee’s name.
How computed: The Land Registration Authority (LRA) has a graduated schedule by property value.
Practical range (rule-of-thumb): Often ends up around ~0.25% of value, plus fixed charges, entry fees, annotation fees, IT service fees, etc. (The exact amount is bracketed; expect a few thousand to over ten thousand pesos depending on value.)

B. Assessor’s Office

What: Cancellation/issuance of new Tax Declaration(s) in the donee’s name; certifications (e.g., No Improvement/With Improvement).
Fees: Usually modest, but plan for several hundred to a few thousand pesos total, depending on the LGU and number of documents.

6) Professional & Process Costs

Notarization: Typically ₱2,000 to ₱10,000+, depending on complexity and city.
Survey/Lot Plan (if needed): If boundaries are unclear or the last survey is old, a geodetic engineer may be required; costs vary widely by area/lot size.
Certified True Copies: From RD for title, and from Assessor/Treasurer for declarations and clearances (hundreds each set).
Processing/Runner’s Fees (optional): If you hire someone to queue and file, budget accordingly.
Legal fees (optional): For deed drafting, due-diligence on title, and tax planning.

7) Documentary Checklist (Typical)

Notarized Deed of Donation (with donee’s acceptance).
IDs & TINs of donor and donee (BIR requires TINs).
Owner’s Duplicate Title (TCT/CCT) + Certified True Copy.
Latest Tax Declaration(s) (land and improvements) + Assessor certifications (e.g., No Improvement, if bare land).
Real Property Tax Clearance(s) and latest RPT receipts.
Location/Vicinity Map or Lot/Building Plans (as required for valuation).
BIR Forms:
- BIR Form 1800 (Donor’s Tax Return)
- BIR Form 2000-OT (DST for one-time transactions)
- Supporting docs (IDs, deed, title, tax decs, valuation printouts, etc.)
Proof of Tax Payments (Donor’s tax, DST).
Local Transfer Tax OR and any LGU certifications.
RD fees ORs; new title issuance; Assessor issuance of new tax declaration.

Agencies you’ll typically visit (in sequence): BIR (for CAR), City/Municipal Treasurer (local transfer tax, RPT clearance), Assessor (certs, later new tax dec), then Registry of Deeds (registration & new title), then back to Assessor (update tax declaration to donee’s name).

8) Timelines (Practical)

BIR filing and payment: Within 30 days from donation.
BIR CAR processing: Varies by RDO and completeness (practically from a couple of weeks to a few months).
LGU payments/clearances: Often same day to a few days if documents are complete.
Registry of Deeds: Entry + examination + printing of new title can range from days to a few weeks depending on office load and any issues/annotations.

9) Worked Cost Example (Illustrative Only)

Scenario:

Bare residential lot; higher of zonal/assessor’s FMV: ₱3,000,000.
Single donation this year by the donor (no other gifts).
LGU transfer tax rate assumed 0.5%.
Assume typical RD fees around ~0.25% + fixed charges (illustrative).
Ignore any deductions/NGO exemptions.
No arrears in RPT.

Computations (rounded):

Donor’s Tax (6% of net gift over ₱250,000) Net taxable gift = ₱3,000,000 − ₱250,000 = ₱2,750,000 Donor’s tax = 6% × ₱2,750,000 = ₱165,000
DST on the Deed (effective ~1.5% of value) ≈ ₱45,000 (i.e., ~1.5% × ₱3,000,000)
Local Transfer Tax (0.5%) 0.5% × ₱3,000,000 = ₱15,000
Registry of Deeds Fees (illustrative) Approx. ₱8,000 – ₱12,000 (graduated schedule + IT/entry/annotation)
Assessor/LGU Certifications & CTCs Approx. ₱1,000 – ₱3,000 (varies)
Notarization ₱2,000 – ₱10,000+

Estimated total cash outlay (exclusive of any professional/runner’s fees): ₱236,000 – ₱250,000+ (= Donor’s Tax 165k + DST 45k + Transfer Tax 15k + RD/Assessor/CTCs/Notary ranges)

If your LGU’s transfer tax is 0.75% (instead of 0.5%), add ~₱7,500 per ₱1M of value. If there’s a house, include the improvement’s value in the base; taxes/fees increase accordingly. Late filing triggers surcharge + interest, which can materially increase the total.

10) Special Situations That Change the Numbers

Multiple gifts in the same calendar year: The ₱250,000 exclusion applies to the aggregate net gifts; later donations can push more value into the 6% base.
Donation to accredited NGOs/charitable institutions: Possible donor’s tax exemption if stringent statutory requirements are met (incl. utilization rules and accreditation). DST may still apply.
Co-ownership / conjugal property: If the lot is conjugal/community, expect both spouses on the deed; donation between spouses (except moderate gifts) is void.
Outstanding mortgages/encumbrances: These can affect net gift and documentation (e.g., mortgagee’s consent, annotation fees).
With improvements: Building valuation (assessor’s tables) increases the base.
Subdivided or untitled property: May require survey, titling, or consolidation steps first.

11) Practical Tips

Align the donation date with readiness to file so you can meet the 30-day donor’s tax deadline.
Collect both valuation references (zonal value printout + latest tax decl) early; use the higher one.
Pay RPT first (if any arrears) to avoid roadblocks on clearances.
Double-check names and TINs across all forms to avoid BIR/RD rework.
Keep originals and multiple photocopies of IDs, title, tax decs, ORs, and the deed.
For sizeable properties, consider pre-donation legal/tax planning (e.g., splitting gifts across calendar years, NGO qualification, or alternatives like sale for a nominal price—mind CGT vs donor’s tax).

12) Quick Costing Template (fill-in-the-blanks)

Property value (higher of zonal/assessor FMV): ₱__________
Less annual exclusion: ₱250,000 → Net gift: ₱__________
Donor’s tax (6%): ₱__________
DST (~1.5% of value): ₱__________
Local transfer tax (___% of value): ₱__________
RD/LRA registration + IT/entry/annotation: ₱__________
Assessor/CTCs: ₱__________
Notarization: ₱__________
Total estimate: ₱__________

Bottom Line

For a straightforward donation of a titled lot, expect four major cash items: Donor’s tax (6%), DST (~1.5%), Local transfer tax (0.5–0.75%), and RD registration fees (~0.25% bracketed + fixed), all computed from the higher of zonal value or assessor’s FMV (plus any improvement value). Add notarial and miscellaneous costs, and budget buffer for certifications and photocopies. For complex cases or large values, getting a lawyer or tax professional to structure and process can save both time and unexpected penalties.