How Much Are Transfer of Title Fees in the Philippines?

Transferring land or condominium title in the Philippines involves several government taxes and charges, plus administrative and professional fees. This article lays out what each fee is, how it’s computed, who typically pays it, when it applies, and what to expect in practice—whether you’re buying, selling, donating, or inheriting real property.

I. The Big Picture

When people ask “How much are transfer of title fees?”, they’re usually referring to the sum of taxes and charges needed to move ownership from the seller (or decedent/donor) to the buyer (or heir/donee) and to register the new owner with the Registry of Deeds (RD) and the local Assessor’s Office. In a standard sale, the major cost buckets are:

National taxes (BIR)
- Capital Gains Tax (CGT) or Creditable Withholding Tax (CWT) / VAT (depending on the asset and the seller)
- Documentary Stamp Tax (DST)
Local government tax
- Transfer Tax (TT)
Registration charges
- Registry of Deeds Registration Fee (per LRA schedule) and IT/entry fees
Administrative & professional costs
- Notarial fees, processing/liaison fees (if you hire one), condo/homeowners’ clearances, certification copies, and miscellaneous documentary expenses

Different modes of transfer (sale, donation, succession, exchange, corporate restructuring) change the tax set, but registration and local transfer tax almost always apply.

II. Core Taxes and Fees (Sale of Real Property)

1) Capital Gains Tax (CGT)

What it is: A national tax on the presumed gain from the sale of real property classified as a capital asset (e.g., a personal home or lot that is not used in business).
Rate & base: 6% of the higher of (a) the contract price, (b) BIR zonal value, or (c) the fair market value per tax declaration.
Who usually pays: Seller (by default under law), though parties can contract otherwise.

2) Creditable Withholding Tax (CWT) or VAT (if not CGT)

When used instead of CGT: If the property is an ordinary asset (used in business) or the seller is habitually engaged in real estate sales, the transaction typically falls under CWT and possibly VAT, not CGT.
CWT: Withheld by buyer and credited against the seller’s income tax. Rates vary by circumstances (e.g., type of seller/asset, location, and guidelines).
VAT: Applies if the seller is VAT-registered and the property sold is an ordinary asset. Certain residential sales may be VAT-exempt if below the statutory exemption threshold (which may change over time).
Practical tip: For transfers of ordinary assets, align early with your accountant on CWT rates and VAT treatment to avoid under/overpayment and processing delays.

3) Documentary Stamp Tax (DST)

What it is: A national tax on the document of sale.
Rate & base: 1.5% of the higher of the contract price, zonal value, or fair market value.
Who usually pays: Buyer by custom (but negotiable).

4) Local Transfer Tax (TT)

What it is: A local tax imposed by the city/municipality or province on the transfer of real property ownership.
Typical rates (practice):
- Cities / Metro Manila: often 0.75% of the higher value (contract/zonal/FMV)
- Provinces: often 0.50% of the higher value
Who usually pays: Buyer (by custom; negotiable).

Note: Rates are set by LGUs within limits of the Local Government Code; always verify the current rate applicable to the specific locality.

5) Registry of Deeds Registration Fees

What they are: Fees charged by the Land Registration Authority (LRA)/Registry of Deeds to register the Deed and issue the new Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT).
How computed: Graduated schedule based on the property value; expect several thousand to tens of thousands of pesos for mid- to high-value transactions, plus IT/entry and annotation fees as applicable.
Who usually pays: Buyer (customary; negotiable).

6) Notarial & Administrative Fees

Notarial: Commonly a percentage of consideration (often quoted 0.5%–1% with minimums/negotiated caps) or a flat fee depending on value and complexity.
Processing/Liaison: If you hire a processor, expect a flat service fee; confirm scope (BIR/LGU/RD runs, clearances, follow-ups).
Certifications & Misc.: Certified True Copies (CTCs) of title and tax declarations, Real Property Tax (RPT) clearance, Homeowners’/Condo clearances, management certificates, lift of mortgage/encumbrance annotations if any, and HOA/condo move-in/transfer fees (varies widely).

III. Who Customarily Pays What (Sale)

While the law assigns liability for some taxes (e.g., seller for CGT), commercial practice can differ and parties may agree otherwise:

Charge	Usual Payer (Practice)
Capital Gains Tax (if capital asset)	Seller
CWT / VAT (if ordinary asset)	Typically borne by Seller (CWT withheld by Buyer)
Documentary Stamp Tax	Buyer
Transfer Tax (LGU)	Buyer
Registry of Deeds Fees	Buyer
Notarial Fees	Often shared or borne by party who engaged the lawyer
RPT arrears & penalties	Seller (cover up to date of sale), unless negotiated
HOA/Condo certificates & charges	Often Seller for seller-side clearances; Buyer for move-in/transfer fees

Always specify in the deed or a side agreement who pays each item to avoid disputes.

IV. Other Modes of Transfer

A) Donation

Donor’s Tax: Generally 6% of the net gifts in excess of exclusions/allowances (applied per rules).
DST: Still typically due (document-based).
Transfer Tax & RD fees: Payable.
Customary payer: Donor for donor’s tax; donee often shoulders DST/TT/RD fees (but negotiable).

B) Succession (Inheritance)

Estate Tax: Generally 6% of the net estate, subject to allowable deductions.
No CGT on transmission by succession.
DST: Usually not imposed on transmission by death (but DST can arise on certain documents executed during settlement).
Transfer Tax & RD fees: Payable to place titles in the heirs’ names.
Practical: Secure TINs of heirs, extrajudicial settlement (if no will and all heirs of legal age), court orders (if with will or minors/contested), tax clearance, and CAR (Certificate Authorizing Registration).

C) Exchange / Corporate Reorganization

May qualify for tax-free exchanges under specific conditions; otherwise CWT/VAT may apply instead of CGT when ordinary assets are transferred. Special documentation and rulings/compliance can be required.

V. Step-by-Step: Typical Sale Transfer Flow

Deal & Deed Preparation
- Finalize Deed of Absolute Sale (DOAS) with clear allocation of taxes/fees and complete seller/buyer details (including TINs).
- Secure RPT clearance; settle RPT arrears. Obtain CTC of Title and Tax Declaration.
BIR One-Time Transaction (ONETT) Processing
- Submit DOAS, IDs/TINs, title, tax dec, zonal valuation print, and other required annexes (special power of attorney, corporate secretary’s certificate, board resolutions, etc., as applicable).
- Pay CGT or CWT/VAT, and DST.
- Obtain eCAR (Certificate Authorizing Registration)—this is mandatory for registration.
Local Government Unit (LGU)
- Pay Transfer Tax at the City/Municipal/Provincial Treasurer/Assessor using the eCAR, DOAS, title, and IDs.
Registry of Deeds (RD)
- Submit eCAR, TT receipt, original owner’s duplicate title, DOAS, tax dec, RPT clearance, IDs, and other attachments.
- Pay RD registration fees.
- RD cancels old title and issues new TCT/CCT in buyer’s name.
Assessor’s Office
- Transfer/issue new Tax Declaration to buyer.
Post-Registration
- Update RPT account to reflect new owner; inform HOA/Condo Corp and utility providers.

VI. Worked Examples (Illustrative Only)

Example 1: City Property (Sale; Capital Asset)

Contract Price: ₱5,000,000
Zonal Value: ₱4,800,000
Higher value: ₱5,000,000 (used for percentage-based taxes)

Computations

CGT (6%): ₱5,000,000 × 0.06 = ₱300,000 (seller)
DST (1.5%): ₱5,000,000 × 0.015 = ₱75,000 (buyer)
Transfer Tax (city, 0.75%): ₱5,000,000 × 0.0075 = ₱37,500 (buyer)
RD fees: Graduated schedule (estimate only for planning) → budget several thousands to low tens of thousands
Notarial & misc.: Negotiated (e.g., 0.5%–1% or a flat fee), plus certifications/clearances

Example 2: Provincial Property (Sale; Capital Asset)

Contract Price: ₱3,000,000
Zonal Value: ₱3,200,000
Higher value: ₱3,200,000

Computations

CGT (6%): ₱3,200,000 × 0.06 = ₱192,000
DST (1.5%): ₱3,200,000 × 0.015 = ₱48,000
Transfer Tax (province, 0.5%): ₱3,200,000 × 0.005 = ₱16,000
RD fees: Graduated; budget accordingly
Notarial & misc.: As negotiated

Tip: Always compare contract price vs. zonal value vs. FMV (tax dec.) and use the highest for percent-based taxes unless a specific rule says otherwise.

VII. Timing, Penalties, and Practical Pointers

Deadlines: National and local tax deadlines apply to one-time transactions. Missing them can trigger surcharges and interest. Align with your BIR/LGU office on current cut-offs and e-payment options.
TINs are required for all transacting parties (including heirs and donors/donees).
Zonal value checks: Use the correct RDO’s valuation for the property’s location and the current table.
Encumbrances: If there’s a mortgage, coordinate release/cancellation in time for registration.
Condo specifics: Secure Management Certificate, Unit Ledger/Statement, Condo Corp certs, and settle association dues through the transfer date.
RPT splitting: Agree who shoulders RPT for the year of sale (pro-rated customarily).
Invoice/OR trail: Keep official receipts for all taxes and fees; they’ll be needed for eCAR and RD.
Professional help: For complex cases (mixed assets, corporate sellers, estate/donation, VAT/withholding questions), consult a tax counsel or CPA early.

VIII. Special Situations That Change the Bill

Sale of Ordinary Asset by Business Seller: Expect CWT and possible VAT instead of CGT; DST still applies.
Donation: Donor’s tax instead of CGT/CWT; DST usually due; transfer tax and RD fees still payable.
Inheritance: Estate tax applies; no CGT on the transmission; transfer tax and RD fees still payable to retitle to the heirs.
Tax-free Exchanges / Corporate Restructuring: Possible tax deferral if requirements are strictly met; documentation heavy.
Low-value/threshold sales: Some residential sales by registered sellers can be VAT-exempt if within the statutory threshold. Confirm the prevailing threshold at the time of sale.

IX. Quick Checklist of Documents (Sale)

Deed of Absolute Sale (notarized)
Valid IDs & TINs of seller and buyer
Owner’s Duplicate Title (TCT/CCT) and CTCs
Latest Tax Declaration (land/improvements) and CTCs
Real Property Tax (RPT) clearance and latest official receipts
Zonal valuation printout / valuation request proof
BIR ONETT forms and eCAR
Transfer Tax (LGU) receipt
HOA/Condo certs (if applicable), management certificate, dues clearance
SPA / Board Resolutions / Secretary’s Certificate (if represented or corporate parties)
Any release of mortgage/encumbrance documents

X. Bottom Line / Budgeting Guidance

For a typical sale of a capital asset, a buyer can expect around 2%–3%+ of the higher property value for DST + Transfer Tax + RD fees + admin/misc., while the seller typically shoulders 6% CGT (unless the transaction is an ordinary-asset sale involving CWT/VAT instead). Exact outlay depends on LGU rates, LRA fee schedule, and deal-specific admin costs.

Important Note

This is general information for the Philippine setting and not legal or tax advice. Rates, thresholds, and procedures can change, and local practices vary. Before paying, confirm the current requirements and amounts with your BIR RDO, LGU Treasurer/Assessor, and the Registry of Deeds—or coordinate with a lawyer/CPA for a tailored computation.