How Much Are Land Title Transfer Taxes and Fees in the Philippines? (Agricultural & Residential)

Transferring land ownership in the Philippines triggers national taxes, local taxes, and registration fees. The exact bill depends on (1) who the seller is (individual vs. developer/corporation), (2) how the property is classified for tax purposes (capital vs. ordinary asset), (3) location (province vs. city/Metro Manila), and (4) the property’s tax base (the higher of the contract price and the government’s fair market values).

Below is a practitioner-style explainer covering the common scenarios for private resales of agricultural and residential real property.

Core Concepts You’ll See Repeated

Tax base (what the percentages apply to). For sales, the government uses the higher of:

the gross selling price stated in the notarized Deed of Sale; or
the fair market value (FMV)—generally the BIR zonal value (by classification: agricultural/residential/commercial/industrial) or the Assessor’s fair market value under the local Schedule of Market Values.

Who usually pays what (market custom). Parties can contract otherwise, but in ordinary resales it’s standard that:

Seller: Capital Gains Tax (or income tax/VAT if applicable), any unpaid real property tax (RPT) up to the date of sale, and notarial fee (often shared/negotiated).
Buyer: Documentary Stamp Tax, Local Transfer Tax, Registry of Deeds (LRA) registration fees, and incidental clearances/processing fees.

National Taxes (BIR)

1) Capital Gains Tax (CGT) – 6% (typical for private resales of land/house)

Applies when the seller is an individual (or a corporation disposing of land and/or buildings treated as capital assets).
Rate: 6% of the tax base (see above).
Deadline: Commonly treated as due within 30 days from notarization of the deed (as part of BIR’s one-time transaction or “ONETT” workflow, culminating in the eCAR—Electronic Certificate Authorizing Registration). Late filing triggers surcharges and interest.

Residential vs. Agricultural: The 6% rate is the same. What changes is the zonal value used to compute the base, which differs by location and by classification (agricultural or residential).

2) Documentary Stamp Tax (DST) – 1.5%

Rate: 1.5% of the same tax base (higher of price or FMV).
Who pays: Typically the buyer in resales (but can be varied by agreement).
Filed alongside the CGT/CWT in ONETT to obtain the eCAR.

3) Creditable Withholding Tax (CWT) instead of CGT (when the property is an ordinary asset)

If the seller is engaged in real estate business or selling an ordinary asset (e.g., a developer, or a company’s inventory property), CGT does not apply. Instead, the sale is subject to income tax (and often VAT) on the seller’s side, and the buyer may be required to withhold a creditable withholding tax (rates depend on the specific ONETT category).
Practical tip: In most private resales (non-developer sellers), treat land/house as capital assets → CGT at 6% is typical. If buying from a developer or a business, expect CWT + possible VAT, not CGT.

4) Value-Added Tax (VAT) (only for ordinary-asset sales by VAT-registered sellers)

Applies when a VAT-registered seller disposes of ordinary assets (e.g., developers selling units).
Residential VAT exemptions exist for lower-priced dwellings, subject to indexed thresholds set by law (these thresholds are adjusted from time to time). Always check the current threshold; if the contract price exceeds it, 12% VAT commonly applies.

Local Taxes (LGU)

Local Transfer Tax (a.k.a. Tax on Transfer of Real Property Ownership)

Base: Again the higher of price or FMV.
Rates (ceiling set by law; check ordinance):
- Provinces: up to 0.5%
- Cities and municipalities in Metro Manila: up to 0.75%
Who pays: Commonly the buyer.
Deadline: Often within 60 days from execution of the deed (varies by local ordinance). Paid at the City/Provincial Treasurer.

Registry of Deeds (LRA) Fees & Other Charges

Registration Fees (issuance of new title/TCT or CCT): Graduated schedule based on the value of the property. As a field estimate, buyers budget roughly ~0.25% of the tax base plus modest fixed charges (entry, IT, annotation). The official schedule governs.
Annotation Fees: For mortgages, adverse claims, easements, etc.—fixed or minimal per annotation.
Certified true copies (CTCs) and documentary copies: nominal fees.

Deadlines & Penalties (Typical)

BIR ONETT (CGT/CWT + DST) & eCAR: File and pay promptly (commonly within 30 days from notarization for CGT/CWT; DST is processed in the same ONETT package). Late filings incur surcharge (commonly 25%), interest (linked to the prevailing legal interest rate), and compromise penalties.
Local Transfer Tax: Commonly within 60 days of the deed; late payment incurs local penalties.
Registry of Deeds: Register before the BIR eCAR or LGU tax receipts expire (some offices annotate validity windows). Delays can force revalidation or re-payment.

What Changes Between Agricultural and Residential?

Valuation input: The BIR zonal value and Assessor’s FMV depend on classification—agricultural vs. residential. This directly affects the tax base for CGT/DST/LTT.
Clearances:
- Agricultural land transfers commonly require DAR documentation (e.g., DAR clearance or certification), an Affidavit of Non-Tenancy, and, where relevant, conversion approval if land will be used for non-agricultural purposes.
- Residential properties in subdivisions/condos may require developer/condominium corporation or homeowners’ association clearances and updated association dues.
Special title types:
- CARP-awarded lands (CLOAs) carry strict transferability limits and typically require DAR approval; transfers within restricted periods are constrained (e.g., generally allowed only to heirs or back to the government).
- Agricultural free patents issued under Commonwealth Act No. 141—as amended by later laws—no longer carry the old 5-year alienation/encumbrance bar (but always verify your patent type and issuance date; different rules can apply to other patents/titles).
Reclassification/Conversion: Using agricultural land for residential purposes requires lawful conversion (DAR conversion order and local zoning compliance) before development; selling “as agricultural” avoids a conversion step but the buyer must still respect agrarian and zoning rules.

Typical Cost Stack (Private Resale Scenarios)

Assumptions: Seller is an individual disposing of a capital asset (so CGT 6% applies); no VAT/CWT. Buyer pays DST, LTT, and registration. Numbers below use the tax base (higher of price or FMV).

A. Agricultural land in a province

Selling price: ₱2,000,000
Zonal value (agricultural): ₱1,800,000 → Tax base = ₱2,000,000
CGT (6%): ₱2,000,000 × 0.06 = ₱120,000 (seller)
DST (1.5%): ₱2,000,000 × 0.015 = ₱30,000 (buyer)
Local Transfer Tax (0.5%): ₱2,000,000 × 0.005 = ₱10,000 (buyer)
Registration fee (field estimate ~0.25%): ₱2,000,000 × 0.0025 = ₱5,000 (buyer)
Indicative total buyer-side taxes & fees: ₱45,000 (+ minor RD/LGU/CTC fees)
Seller-side CGT: ₱120,000

B. Residential condo in Metro Manila (city)

Selling price: ₱6,000,000
Zonal value (residential): ₱6,500,000 → Tax base = ₱6,500,000
CGT (6%): ₱6,500,000 × 0.06 = ₱390,000 (seller)
DST (1.5%): ₱6,500,000 × 0.015 = ₱97,500 (buyer)
Local Transfer Tax (0.75%): ₱6,500,000 × 0.0075 = ₱48,750 (buyer)
Registration fee (field estimate ~0.25%): ₱6,500,000 × 0.0025 = ₱16,250 (buyer)
Indicative total buyer-side taxes & fees: ₱162,500 (+ minor RD/LGU/CTC fees)
Seller-side CGT: ₱390,000

Note: Replace the sample rates for Local Transfer Tax and Registration fee with your locality’s ordinance/schedule. The LRA has an official graduated fee—the 0.25% is just a planning cushion.

Step-by-Step Transfer Checklist (Resale)

Due Diligence (before paying the price):
- Latest certified true copy of title (TCT/CCT) from the Registry of Deeds—check for liens/encumbrances, adverse claims, pending cases (lis pendens), and correct technical description/area.
- Tax Declarations (land and improvements) + RPT receipts; obtain RPT tax clearance (no delinquencies).
- Zoning compliance from the LGU; if agricultural, secure DAR clearance/certifications and, if applicable, conversion order.
- For condos/subdivisions: Association/developer clearance (dues paid; no violations).
- TIN of both parties (BIR will require this).
Contracting & Notarization:
- Prepare and notarize the Deed of Absolute Sale (or Deed of Donation/Exchange, as applicable).
- If married/specific civil status: include spousal consent or proof of separation regime as required.
BIR One-Time Transaction (ONETT):
- Submit deed, IDs/TINs, title CTC, tax declarations, RPT clearance, and other BIR checklists.
- Pay CGT (or CWT, as applicable) and DST based on the BIR-validated tax base.
- Secure the eCAR (Electronic Certificate Authorizing Registration). This is the BIR’s clearance required by RD.
LGU Treasurer (Local Transfer Tax & RPT checks):
- Pay the Local Transfer Tax within the ordinance deadline (often 60 days).
- Obtain official receipts and updated Tax Declarations in buyer’s name (often processed after RD registration; sequencing can vary by LGU).
Registry of Deeds (LRA):
- File the original owner’s duplicate title, notarized deed, eCAR, DST & CGT/CWT proofs, Local Transfer Tax receipt, RPT clearance, and required IDs/clearances.
- Pay registration and annotation fees.
- Receive the new TCT/CCT in buyer’s name.
Post-Registration:
- Ensure Assessor issues new Tax Declarations for land and improvements under the buyer’s name.
- For condos/subdivisions: deliver a copy of the new title to the Condominium Corporation/HOA for records.

Special Notes for Agricultural Land

Tenancy & Agrarian Coverage: Disclose and clear any tenancy. Buyers typically require an Affidavit of Non-Tenancy and/or DAR certification confirming status.
CLOA/EP Titles (CARP awards): Transfers are restricted (e.g., within the holding period, sale is generally prohibited except by hereditary succession or with DAR approval; allowed transferees are limited). Never proceed without DAR clearance when a CLOA is involved.
Conversion: To lawfully use agricultural land for residential or commercial purposes, obtain DAR conversion and comply with local zoning (and environmental) rules before development or change of use.
Patented lands: Many agricultural free patents issued in recent years no longer carry the old 5-year sale/encumbrance ban, but always confirm your title type and issuance date—different patent regimes have different restrictions.

Other Ways Titles Transfer (Non-Sale)

Donation (inter vivos): Subject to Donor’s Tax (commonly a 6% final tax on the net gift after allowable deductions), DST (documentary requirements differ), and Local Transfer Tax/registration fees.
Succession (mortis causa): Estate settlement triggers Estate Tax (commonly 6% of the net estate), followed by DST on certain instruments, LGU transfer tax, and RD fees upon adjudication and partition.
Extra-judicial settlement is common where heirs are of legal age and there are no debts (or debts are settled).

Frequently Asked Practical Questions

1) Can parties re-allocate who pays the taxes? Yes. The law imposes liability, but parties can contract on who shoulders what. BIR/LGU/ RD only care that taxes/fees are paid before they issue clearances and register.

2) Are notarial fees regulated? Minimum notarial fees are set in professional guidelines, but market practice varies—often 0.5%–1.0% of the price for real estate deeds (sometimes with caps), or a flat fee. Large transactions are negotiable.

3) Do improvements change the tax base? Yes. When there is a building/house, BIR and the Assessor consider land+improvement values. Submit Tax Declarations for both. If truly no improvement, expect to execute a Sworn Statement of No Improvement.

4) What if the deed price is below zonal/assessor’s FMV? Taxes will be computed using the higher government value anyway.

5) What happens if we file late? Expect surcharge, interest, and compromise penalties at BIR, and penalties at the LGU for the Local Transfer Tax. These can be painful—budget to comply on time.

Quick Reference (Resale of Capital Asset)

Item	Rate / Basis	Typical Payer
Capital Gains Tax (CGT)	6% of higher of price or FMV	Seller
Documentary Stamp Tax (DST)	1.5% of higher of price or FMV	Buyer
Local Transfer Tax (LTT)	Up to 0.5% (provinces) or 0.75% (cities/Metro Manila) of the same base	Buyer
Registry of Deeds fees	Graduated (plan ~0.25% + small fixed fees)	Buyer
VAT / CWT (if ordinary asset)	Depends on transaction & thresholds	Seller pays VAT/Income; Buyer may withhold CWT

Bottom Line

For agricultural and residential resales where the seller is an individual and the property is a capital asset, the headline numbers are CGT 6% (seller), DST 1.5% (buyer), Local Transfer Tax up to 0.5% (province) or 0.75% (city/MMA) (buyer), plus LRA registration fees.
The tax base is the higher of the contract price and the government FMVs (zonal/assessor).
Agricultural transfers add DAR touchpoints (non-tenancy, possible conversion; CLOA/EP restrictions).
Timely BIR ONETT processing to obtain the eCAR, followed by LGU and RD steps, keeps you on track and avoids penalties.

If you share your property’s location, classification (agricultural vs. residential), contract price, and any zonal/assessor values you have on hand, I can compute a tailored, line-by-line estimate and a documents checklist for your exact transaction.