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

This article explains the costs you should expect when transferring land ownership through a Deed of Donation in the Philippines—plus the legal bases, timelines, documentary requirements, and a worked example you can adapt.

1) What a Deed of Donation Does (and When It’s Valid)

A donation inter vivos is a gratuitous transfer of property while the donor is alive. It takes effect upon valid acceptance by the donee. For real property, acceptance must be in the same deed or in a separate notarized instrument and made known to the donor during the donor’s lifetime.

Key validity notes (Family Code/Civil Code concepts):

Between spouses. Donations between spouses during marriage are generally void, except moderate gifts on family occasions. If you intend to shift title between spouses, consult counsel for safer structures (e.g., partition/settlement).
Conjugal/community property. If the land is conjugal/ACP property, you typically need spousal consent to donate.
Minors as donees. A parent/legal guardian signs the acceptance on the minor’s behalf.
Formalities. The deed must be in a public instrument (notarized) describing the property and conditions of the donation.

2) Cost Components at a Glance

Below are the usual, legally required or process-related costs for donating land. Amounts depend on property value, location, and office schedules/rates. “Value” here means the higher of: (a) BIR zonal value or (b) Fair Market Value (FMV) per the local assessor’s schedule, as of the date of donation.

A. National Taxes (BIR)

Donor’s Tax (BIR Form 1800)

Rate: 6% on the net gifts exceeding ₱250,000 made by the donor during the same calendar year (TRAIN law).
Base: The land’s FMV (higher of zonal or assessor’s) minus allowable deductions/exemptions (see exemptions below).
When due: Within 30 days from the date of donation.

Documentary Stamp Tax (DST) on Conveyances (BIR Form 2000-OT)

Rate: Commonly 1.5% of the higher of consideration (often none in donation) or FMV/zonal value at the time of donation.
When due: On or before the 5th day after the close of the month when the deed was executed.

Practical note: In donations of real property, the BIR typically collects both Donor’s Tax and DST.

B. Local Taxes/Fees (LGU)

Local Transfer Tax (Provincial/City Treasurer)

Typical ceilings under the Local Government Code:
- Provinces: up to 0.5% of the FMV or consideration (whichever is higher)
- Cities and municipalities within Metro Manila: up to 0.75%
When due: Commonly within 60 days from execution of the deed (check your LGU ordinance).

Real Property Tax (RPT) arrears/clearance

Any unpaid RPT must be settled to secure tax clearance. Amount varies based on arrears, penalties, and current year dues.

C. Registration & Titling (Registry of Deeds & Assessor)

Registry of Deeds (RoD) fees

Primary Entry Fee, Registration Fee, Issuance of new title, Annotation fees (schedule-based, brackets by value).
As a planning number: for mid-value properties, low five figures (₱) is common; small parcels can be in the several thousands.

Assessor’s Office fees

Transfer of Tax Declaration, issuance/certifications. Usually hundreds to a few thousand pesos.

D. Documentation, Professional, & Incidental

Notarial Fee (Deed of Donation and any separate Acceptance)

Varies by complexity and location. For straightforward deeds: ~₱1,500–₱10,000 is typical; high-value/complex transactions may be quoted as a percentage or higher flat fee.

Professional Fees

Lawyer’s review/drafting, tax consultant, or liaison services: variable (often fixed-package or hourly).

Supporting documents

Certified True Copy (CTC) of Title from RoD, Tax Declaration, Vicinity/lot plan, IDs/TINs, marital/birth certificates to prove relationship, RPT receipts, etc. Expect per-document fees (usually tens to hundreds of pesos each; plans can be more).

3) Donor’s Tax: Exemptions & Special Cases

Annual ₱250,000 exemption per donor (aggregate of all gifts in the calendar year).
Exempt donees (illustrative, not exhaustive): the National Government and its agencies/instrumentalities; certain accredited NGOs meeting full-exemption conditions; some socialized housing donations; certain charitable/educational/scientific institutions under special rules.
Gifts in favor of political parties or candidates are subject to separate rules and are not ordinary donor’s tax-exempt gifts.
Common mistake: treating a transfer to a spouse as a donation—remember the prohibition on donations between spouses (with narrow exceptions).

4) Step-by-Step Process (High Level)

Prepare & notarize the Deed of Donation
- Ensure acceptance by donee (or guardian) is properly made and acknowledged.
- Confirm spousal consent if property is conjugal/community.
BIR One-Time Transaction (ONETT) processing
- Submit required docs (IDs/TINs of parties, CTC of title, tax dec, lot plan/sketch, RPT receipts, deed, proofs of relationship, etc.).
- BIR determines tax base (higher of zonal/assessor’s FMV) as of donation date.
- Pay Donor’s Tax (6%) and DST (~1.5%).
- Receive eCAR (electronic Certificate Authorizing Registration).
LGU Treasurer
- Pay Local Transfer Tax and secure RPT clearance (if not already).
Registry of Deeds
- Present owner’s duplicate title, eCAR, LGU receipts, and deed.
- Pay RoD fees; new TCT/CTC is issued in donee’s name.
Assessor’s Office
- Transfer Tax Declaration to the donee.

5) Worked Example (Illustrative Only)

Facts:

Residential lot in a province (not Metro Manila)
FMV/zonal value at donation date: ₱2,000,000 (assume this is the higher base)
Donor made no other gifts this calendar year
LGU transfer tax rate: 0.5% of value
RoD fee (estimate): ₱12,000
Notarial: ₱5,000
Incidental docs: ₱3,000

Computations:

Donor’s Tax
- Net gifts this year = ₱2,000,000 − ₱250,000 = ₱1,750,000
- 6% of ₱1,750,000 = ₱105,000
DST (on conveyance)
- 1.5% × ₱2,000,000 = ₱30,000
Local Transfer Tax
- 0.5% × ₱2,000,000 = ₱10,000
Registration (RoD) Fees (est.) = ₱12,000
Notarial = ₱5,000
Incidental documents = ₱3,000

Estimated Out-of-Pocket Total = ₱105,000 + ₱30,000 + ₱10,000 + ₱12,000 + ₱5,000 + ₱3,000 = ₱165,000

If the property were in a city/MM with a 0.75% transfer tax, item (3) would be ₱15,000 and the total would become ₱170,000 (all else equal).

6) Typical Timelines (Practical)

BIR ONETT evaluation & eCAR issuance: varies by RDO, completeness, and valuation issues.
LGU & RoD processing: usually faster once eCAR is in hand.
Always calendar the BIR deadlines (30-day donor’s tax; DST filing next month’s 5th day rule) and LGU 60-day transfer tax window to avoid penalties.

7) Common Pitfalls & How to Avoid Them

Wrong tax base date. Always use values as of the donation date.
Skipping DST. Even for donations, DST on conveyance of real property typically applies.
Missing acceptance or marital consent. This can invalidate the donation or block registration.
Unpaid RPT. Arrears will stall clearances and registration.
Donor’s multiple gifts in a year. Remember the ₱250,000 exemption is per donor, per year, across all gifts.
Donations between spouses. Generally void—get legal advice before proceeding.

8) Document Checklist (Core)

Notarized Deed of Donation (with donee’s acceptance; spousal consent if required)
IDs & TINs of donor/donee (and spouses/guardians as applicable)
Owner’s duplicate title (TCT/CTC) & Certified True Copy from RoD
Latest Tax Declaration (land and improvements)
Real Property Tax (RPT) receipts / clearance
Lot plan/sketch / vicinity map (if requested)
Proof of relationship (PSA birth/marriage certificates) for family donations
Other BIR/LGU forms: BIR Form 1800 (donor’s tax), Form 2000-OT (DST), ONETT checklist, LGU transfer tax assessment/receipt
Special documents when applicable (e.g., SPA, court/guardianship orders, NGO accreditations)

9) Quick Planning Heuristics

National taxes drive the total. Expect ~7.5% of FMV if the ₱250k exemption has little impact (i.e., large gifts): 6% donor’s tax + ~1.5% DST, plus local/registration/other fees (~0.5–1.5%+).
Local transfer tax is typically 0.5–0.75%.
RoD/Assessor and incidentals usually total a few thousand to low tens of thousands.
Notarial/professional fees vary widely—get written quotes.

10) FAQs

Q: Is Capital Gains Tax (CGT) or VAT due on a donation? A: No. Those apply to sales/business transfers. Donations trigger Donor’s Tax (not CGT) and DST on the conveyance.

Q: Can I donate just a share/portion? A: Yes, but ensure the title/plan supports the split (subdivision/partition if needed). Co-owner consents may be required.

Q: What if donor/donee lacks a TIN? A: Apply for a TIN; it’s required for BIR processing.

Q: Can conditions be attached (e.g., right to use for life)? A: Yes—modal or conditional donations are allowed. Draft carefully to avoid void conditions or registration issues.

11) Bottom Line

For a land donation, budget for:

Donor’s Tax (6% of net gift over ₱250k)
DST on conveyance (~1.5% of FMV)
Local Transfer Tax (0.5–0.75%)
RoD/Assessor fees (schedule-based)
Notarial/professional & incidental costs

Run a quick computation using the higher of zonal or assessor’s value as of the donation date, then add local and administrative fees for a realistic total. For edge cases (spouses, minors, special exemptions, conditional donations), have counsel review the deed and structure before you file and pay.