1) What “land title transfer” means in practice

A “transfer” of land (or a house-and-lot / condominium unit) is not complete in a practical, bankable sense until:

A valid conveyance document exists (e.g., Deed of Absolute Sale, Deed of Donation, Extra-Judicial Settlement, Deed of Exchange, etc.), typically notarized; and
Taxes are paid and a BIR Certificate Authorizing Registration (CAR/eCAR) is issued; and
The Registry of Deeds (RD) registers the instrument and issues a new title (new TCT for land; CCT for condominium units) in the transferee’s name; and
The Assessor’s Office updates the tax declaration (for real property tax billing and local records).

Each stage has corresponding taxes and government charges.

2) Key agencies and the usual “order of battle”

Core agencies

BIR: collects national taxes on the transfer (e.g., CGT / income tax, DST, donor’s tax, estate tax) and issues CAR/eCAR.
LGU Treasurer (City/Municipality/Province): collects local transfer tax and may require tax clearances.
Registry of Deeds (LRA / RD): collects registration fees and issues the new title after registration.
City/Municipal Assessor: updates tax declaration and may charge administrative fees.

Typical sequence (sale scenario)

Notarize deed → 2) Pay BIR taxes & get eCAR → 3) Pay LGU transfer tax → 4) Register with RD & pay RD fees → 5) Update tax declaration at Assessor

Other transfer types (inheritance, donation) follow the same skeleton, but the BIR tax type changes.

3) The tax base: why “zonal value” and “assessor’s value” matter

For most transfer taxes and fees, the taxable base is generally the highest among:

Contract price / gross selling price (what the deed says),
BIR zonal value, and
Assessor’s fair market value (as reflected in the tax declaration / schedule of market values).

Even if parties “undervalue” the deed, taxes are commonly computed on the higher statutory valuation.

4) Taxes on transfers by SALE

A. Capital Gains Tax (CGT) — common for individuals selling “capital assets”

When it applies: Most private individuals selling real property in the Philippines that is treated as a capital asset (i.e., not used in the ordinary course of the seller’s trade/business).

Rate (typical): 6% of the tax base (generally the higher valuation rule above).

Who pays: Legally, the seller is liable, but parties may allocate by contract (a buyer can pay on seller’s behalf).

Important classification issue (capital vs ordinary): CGT treatment is typical for non-dealers. If the property is an ordinary asset (see below), CGT generally does not apply and the tax treatment shifts to income tax/VAT rules.

Common CGT exemption: sale of principal residence

A natural person selling a principal residence may qualify for CGT exemption if the proceeds are used to acquire/build a new principal residence within the allowed period and other conditions are met (including procedural requirements and frequency limits). This is document-heavy and timing-sensitive.

B. If the property is an “ordinary asset”: income tax and possibly VAT (instead of CGT)

When it happens: If the seller is a real estate dealer/developer, or the property is used in business (depending on facts and BIR classification rules), the sale may be treated as sale of an ordinary asset.

Possible consequences:

Income tax on net income (not a flat 6% CGT), and
Creditable withholding tax (CWT) obligations on the buyer in many cases, and/or
VAT may apply if the seller is VAT-registered or required to be VAT-registered and the transaction is VATable (thresholds and rules vary by property type and seller status).

Because classification drives which taxes apply, the first question in many transactions is: Is this sale subject to 6% CGT, or to income tax/VAT/CWT?

C. Documentary Stamp Tax (DST) — imposed on the document/instrument

What it is: A tax on the document (e.g., Deed of Absolute Sale), not on the “profit.”

Typical rate basis: For deeds of sale/conveyance of real property, DST is commonly computed as the equivalent of ₱15 per ₱1,000 of the tax base (effectively 1.5%), using the higher valuation rule.

Who pays: Often shouldered by the buyer by convention, but negotiable by contract.

D. Local Transfer Tax — imposed by LGU ordinance (within statutory limits)

What it is: A local tax on the transfer of ownership of real property, payable to the LGU treasurer where the property is located.

Rate: Set by local ordinance subject to the cap in the Local Government Code. Many LGUs use 0.5% as a common rate, but the exact rate can vary by locality within the legal cap.

Deadline concept: Often required within a defined period (commonly counted from execution of the deed), with surcharges for late payment; local rules matter.

5) Taxes on transfers by DONATION

A. Donor’s Tax

Rate (typical after reforms): 6% of net gifts exceeding the annual exemption threshold, with exemptions for certain donations (e.g., to government or accredited entities, subject to rules).

Tax base for real property donation: Generally tied to the fair market valuation rules (zonal/assessor/declared).

Who pays: The donor is liable.

B. DST still commonly applies

Even without “sale consideration,” the deed of donation is still an instrument that may trigger DST based on the property’s valuation.

C. Local transfer tax and registration fees

Donation still results in an ownership transfer that typically requires:

LGU transfer tax, and
RD registration and issuance of new title, plus fees.

6) Taxes on transfers by INHERITANCE (estate / extrajudicial settlement)

A. Estate Tax

What it is: A tax on the net estate of the decedent, after allowable deductions (which may include a standard deduction, family home deduction, claims against the estate, etc., subject to rules).

Rate (typical): 6% of net estate (after deductions).

Who pays: The estate (effectively the heirs/administrator) before distribution/transfer is fully registrable.

B. Instruments used and related costs

Common documents include:

Extra-Judicial Settlement of Estate (if no will and heirs agree),
Affidavit of Self-Adjudication (sole heir),
Judicial settlement / probate (if required),
Publication requirement for extrajudicial settlement (a significant cost driver).

C. DST and local transfer tax often appear here too

In practice, BIR and LGUs commonly require payment of DST and local transfer tax in settlement transfers, based on valuation, before RD will issue titles to heirs.

7) Registration fees and government charges (non-tax)

A. Registry of Deeds (RD) fees

When you register the deed and transfer the title, the RD typically collects:

Registration fee (based on a fee schedule tied to value/consideration),
Entry fees / annotation fees,
Issuance fee for the new owner’s duplicate title,
Certified true copies if requested.

RD fees are not a simple flat percentage; they usually follow a schedule.

B. BIR administrative fees and related charges

Depending on the transaction, expect charges for:

Certificates / CAR processing,
Documentary requirements (certifications, true copies),
DST stamping/electronic filing costs (where applicable).

C. Assessor’s Office fees (tax declaration transfer)

After RD issuance, the Assessor updates the tax declaration and may charge:

Administrative/processing fees,
Fees for certified copies of tax declaration or documents.

D. Notarial and legal documentation costs (private but practically unavoidable)

Notarial fees (vary widely by locality/value/arrangement),
Attorney’s fees if a lawyer prepared/negotiated/handled the transfer,
Survey costs if there are boundary issues, subdivisions/consolidations, or missing technical descriptions.

E. Clearances commonly required (varies by locality and property)

Depending on the LGU/RD/BIR practice and property circumstances:

Real Property Tax (RPT) clearance / tax receipts,
Barangay clearance or local certifications in some LGUs,
Homeowners’ association clearance (for subdivision lots),
Condominium corporation clearance (for condo units),
DAR-related requirements for agricultural lands (especially if under agrarian reform coverage/restrictions),
Special documents if the title has liens/annotations that must be cleared.

8) The “big four” cost buckets most buyers/sellers feel

BIR taxes (often the largest): CGT or donor’s/estate tax + DST
LGU transfer tax
RD registration and title issuance fees
Professional/document costs: notarial, legal, publication (estate), surveys, clearances

9) A practical example (illustrative computation only)

Assume a sale where the highest valuation among deed price / zonal / assessor FMV is ₱5,000,000.

CGT (if applicable): 6% × 5,000,000 = ₱300,000
DST (typical): 1.5% × 5,000,000 = ₱75,000
Local transfer tax: depends on LGU rate (example 0.5%) → 0.5% × 5,000,000 = ₱25,000
RD fees: per schedule (varies; not a straight %), plus issuance/annotation costs
Notarial/legal: varies

This illustration shows why parties focus on (a) correct valuation basis and (b) correct tax type (CGT vs ordinary asset taxation).

10) Deadlines, penalties, and why timing matters

A. Tax filing/payment deadlines

BIR filing/payment deadlines for CGT/DST/donor’s/estate tax are governed by the Tax Code and BIR regulations, and may differ by transaction type and the instrument date. Because the CAR/eCAR is typically required before RD transfer, delays often stall the entire transfer.

B. Penalties for late payment (national taxes)

Late BIR payments can trigger:

Surcharge (commonly 25%, higher in certain willful/serious cases),
Interest (computed from due date until full payment, based on the statutory interest rule in effect),
Compromise penalties (depending on the violation).

C. Local penalties

LGU transfer tax late payment can result in:

Surcharges/interest under the local ordinance.

11) Common “gotchas” that cause delays or unexpected charges

Wrong tax type (CGT filed when it should be ordinary asset, or vice versa).
Title issues: missing owner’s duplicate title, inconsistent names, adverse claims, mortgages, lis pendens, or other annotations.
Unpaid real property taxes or missing tax clearances.
Estate transfers without proper settlement (title still in decedent’s name).
Condominium documentation gaps (condo corp dues/clearances; CCT details).
Agricultural land restrictions (CARP coverage, CLOA restrictions, DAR clearances).
Authority issues (seller is a corporation: board resolutions/secretary’s certificate; seller is represented: SPA validity and consularization/apostille if executed abroad).
Mismatch of technical descriptions (lot boundaries; mother title issues; subdivision without approved plan).

12) Who customarily pays what (market practice, not a legal rule)

Common private-practice allocation in many Philippine transactions:

Seller: CGT (or income tax if ordinary asset), sometimes seller-side documentation
Buyer: DST, transfer tax, RD fees, tax declaration transfer fees
Either: notarial fees (often buyer, but negotiable)

This is purely contractual; parties can reallocate costs in the deed or side agreement.

13) Checklist: documents commonly required (varies by case)

For BIR (sale, common)

Notarized deed
Title (TCT/CCT) copy and owner’s duplicate (for later stages)
Tax declaration and/or assessor certifications
Valid IDs / TIN of parties
Authorization documents (SPA, corporate secretary’s certificate/board resolution, etc.)
Proof of payment forms and supporting schedules
Other BIR-required attachments depending on classification (capital/ordinary), exemptions, and special cases

For LGU transfer tax

Deed
BIR CAR/eCAR (often required in practice)
Title copy, tax declaration
Official receipts / clearances as required by local treasurer

For Registry of Deeds

Original deed and supporting documents
CAR/eCAR
Transfer tax receipt
Owner’s duplicate title (for cancellation and issuance of new)
RD application forms, IDs/authority documents, and payment of RD fees

For Assessor

New title (or RD proof), deed, CAR/eCAR, transfer tax receipt
IDs and local forms for issuance of new tax declaration

14) Bottom line: what “all-in transfer costs” usually consist of

When budgeting, separate costs into:

National taxes: CGT or donor’s/estate tax, plus DST
Local taxes: transfer tax (plus any local clearances)
Registration charges: RD schedule-based fees + incidentals
Process costs: notarial, publication (estate), professional fees, surveys, copies/certifications

In most ordinary private sales, CGT (6%) + DST (≈1.5%) drive the bulk of the predictable government cost, while transfer tax + RD fees are meaningful add-ons that vary by locality and schedule.