Real Property Transfer Taxes and Fees: Title Transfer Guide (Philippines)

This guide compiles the key taxes, fees, deadlines, documents, and processes involved when a parcel of land, a house-and-lot, or a condominium unit changes ownership in the Philippines—whether by sale, donation, inheritance, exchange, or corporate reorganization. It is written for practical use and organized so you can confirm who pays what, when, where, and how.

1) Core concepts

Fair Market Value (FMV) benchmarks. For tax computation, the base is the higher of:

the contract/consideration (price on the deed),
the BIR zonal value, or
the assessor’s fair market value (Schedule of Market Values of the LGU).

Capital vs. ordinary assets.

Capital asset: real property not used in the ordinary course of business (typical for individuals selling a home or raw land not used in trade/business).
Ordinary asset: real property used in business, held for sale/lease, or developed by real estate dealers/developers.

eCAR. The BIR’s electronic Certificate Authorizing Registration (eCAR) is required before the Register of Deeds (RD) will transfer the title.

2) Taxes & who typically pays

Market practice varies and can be negotiated. The allocations below reflect common practice in private sales.

Tax / Fee	What it is	Typical Base	Common Rate(s)	Typical Payer
Capital Gains Tax (CGT)	Income tax on the sale of capital assets	Higher of consideration or FMV	6%	Seller
Creditable Withholding Tax (CWT)	Collected on sales of ordinary assets	Often on gross selling price or FMV (higher)	1.5%–6% (varies by seller type/transaction)	Buyer (withholds from seller)
Value-Added Tax (VAT)	VAT on sale of ordinary assets by VAT-registered sellers (subject to exemptions)	Selling price / gross receipts	12% (if VAT-applicable)	Seller
Documentary Stamp Tax (DST)	Tax on the conveyance instrument (sale, donation, exchange)	Higher of consideration or FMV	₱15 per ₱1,000 (≈ 1.5%)	Often Buyer (can be split)
Transfer Tax (LGU)	Local tax for transfer of ownership	Higher of consideration or FMV	Provinces: up to 0.5%; Cities & MM municipalities: up to 0.75%	Buyer
Registration Fees (RD/LRA)	For issuance of new title	Graduated schedule (≈ 0.25% range; see LRA schedule)	As per LRA schedule	Buyer
Notarial / Professional Fees	Notary, processing, brokerage, liaison	N/A	Contractual	Usually Buyer (except broker’s commission paid by seller)

Other scenarios

Donation: Donor’s Tax at 6% of net gifts (after allowable deductions). DST generally still applies to the deed.
Inheritance: Estate Tax at 6% of net estate (after deductions)—paid before partition/transfer to heirs. DST on deeds of extrajudicial settlement/partition may apply.
Tax-free exchanges (property-for-shares under corporate reorganizations): may be income-tax exempt if requirements are met; however, DST and local transfer tax may still be due unless a specific exemption applies.

3) Deadlines & returns (national taxes)

Missing these triggers surcharges, interest, and compromise penalties.

CGT (BIR Form 1706): within 30 days from date of sale/transfer (for capital assets).
- For installment sales of capital assets, the BIR allows proportional CGT based on collections per installment if the sale qualifies as an installment (e.g., initial payments ≤ 25%); still, observe BIR instructions and secure eCARs aligned with the chosen treatment.
CWT (BIR Form 1606): usually on or before the 10th day of the month following the month of withholding (eFPS filers have specific schedules).
VAT (BIR Forms 2550M/2550Q): per regular VAT filing schedules, if applicable.
DST (BIR Form 2000/2000-OT): typically on or before the 5th day following the close of the month when the document was executed/accepted/transferred.

After taxes are paid, the eCAR is released by the BIR once documentary requirements are cleared.

4) Standard documentary requirements

A. For BIR (to secure eCAR)

Deed (Sale/Donation/Exchange/Extrajudicial Settlement, etc.), notarized
TIN of parties (buyer, seller, heirs/donor/donee as applicable)
Owner’s Duplicate Title (TCT/CCT) and photocopy
Latest Tax Declaration(s) (land and improvements)
Tax Clearance for Real Property Tax (RPT) / updated RPT Official Receipts
BIR zonal valuation printout (if any) and LGU assessment (FMV)
Proofs of payment: CGT/CWT, VAT (if any), DST (and donor’s/estate tax, if applicable)
IDs, corporate docs (Board Secretary’s Cert/Resolutions, Articles/By-Laws), if juridical persons
Additional: Subdivision plan/condo cert., SPA/Secretary’s Certificate, marriage/death certificates for estates, affidavit of no improvement (if applicable), occupancy permits (for improvements), computation sheets, etc.

B. For LGU (Transfer Tax)

eCAR + BIR payment proofs
Deed and IDs
Latest RPT receipts / Tax Clearance
Title & Tax Declarations

C. For Register of Deeds (Title Transfer)

eCAR
Transfer Tax Official Receipt
Deed, Owner’s Duplicate Title, photocopies
RD fees (registration/entry/issuance)
Condominium/HOA clearances (if required)
Assessor’s requirements for new Tax Declaration issuance post-transfer

5) Step-by-step process (private sale)

Due diligence
- Verify title authenticity (RD), encumbrances/annotations, lot/condo plan, actual possession, boundaries, arrears in RPT, association dues, utilities.
- Confirm zonal value and assessor’s FMV (to estimate taxes).
Contracting
- Sign Offer/Receipt / Contract to Sell; collect IDs, TINs, corporate authorities; agree on who pays which taxes/fees and timing.
Execute and notarize Deed (Absolute Sale / Conditional Sale / Deed with Assumption of Mortgage).
Pay national taxes (BIR)
- CGT or CWT, VAT (if any), and DST within their deadlines; submit documents to BIR, respond to any evaluation/verification.
- Secure eCAR (and any related eCAR for land vs. improvement if separately valued).
Pay LGU Transfer Tax using the eCAR and deed.
Register with RD (LRA)
- Submit eCAR, Transfer Tax OR, Deed, Title, IDs, pay RD fees.
- RD cancels old title and issues new TCT/CCT in buyer’s name.
Assessor’s Office
- Issue new Tax Declaration(s) under buyer’s name for land and improvements.
Turnover/aftercare
- Update RPT billing to the new owner, transfer utilities and association membership, safekeep originals.

6) Special transaction types

A) Donation

Donor’s Tax: 6% of net gifts (aggregate for the calendar year after allowable deductions).
DST: on deed of donation (rate similar to conveyance).
Transfer Tax and RD fees apply.
Consider valuation for related-party transactions and substantiation of donative intent.

B) Succession (estate settlement)

Estate Tax: 6% of net estate (after deductions).
Settled via extrajudicial settlement (if no will/minor claims and heirs agree) or testate/intestate proceedings.
Post-payment, eCAR for estate is issued, then partition deeds/waivers per heir, then transfer tax, RD, assessor.

C) Installment sales

For capital assets, CGT may be computed proportionally per installment if the sale qualifies (e.g., initial payments are within allowed thresholds); ensure consistency of the eCAR issuance with the installment structure.
For ordinary assets, CWT/VAT apply per collection terms; keep accurate collections ledger.

D) Property-for-shares / reorganizations

Potential income-tax exemption under the tax-free exchange rules if control thresholds and other requirements are met.
DST and local transfer tax may still apply unless specifically exempt.

E) Foreclosure / dacion en pago

Transfers via dación or foreclosure are generally taxable conveyances (DST, transfer tax, RD fees).
Income-tax/VAT/CWT implications depend on whether the property is capital vs. ordinary asset and the parties’ business status.

7) Practical cost illustration (private sale)

Assume Selling Price = ₱10,000,000; Higher of zonal/assessor’s FMV = ₱10,500,000. Use ₱10,500,000 as the base.

CGT (capital asset): 6% × 10,500,000 = ₱630,000 (Seller)
DST: 1.5% × 10,500,000 = ₱157,500 (Buyer, often)
Transfer Tax (city/MM, assume 0.75%): 0.75% × 10,500,000 = ₱78,750 (Buyer)
RD Fees: per schedule (≈ ₱20k–₱30k+ on this value; check LRA schedule) (Buyer)
VAT/CWT: Only if applicable (ordinary asset/business seller); compute separately.
Notarial/processing: contractual.

Always recompute using the actual highest base and the specific LGU rates and LRA fee schedule in force at the time of transfer.

8) Common pitfalls and tips

Wrong base: Always compare consideration vs. BIR zonal vs. assessor’s FMV and use the highest for taxes.
Deadlines: CGT (30 days), DST (next-month 5th day rule), CWT (next-month 10th day) are strict.
eCAR sequencing: You cannot register the transfer without the eCAR.
Improvements vs. land: Some offices require separate valuations and may issue separate eCARs.
RPT arrears: RD and assessor will require RPT clearance; settle delinquencies to avoid holds.
Principal residence relief: Individuals selling their principal residence may apply for CGT exemption if (a) duly notified the BIR within the prescribed period, (b) fully utilized the proceeds to acquire/construct a new principal residence within the allowed window, and (c) comply with interval limits (e.g., once in a set number of years). Any unutilized amount is subject to CGT.
Installment/eCAR strategy: Align your installment structure with how the CGT/CWT and eCAR issuance will be handled.
Corporate sellers: Expect CWT and potential VAT; ensure correct withholding certificate (BIR Form 2307) and reconciled VAT returns.
Related-party pricing: Be ready to defend valuation; tax base rules (higher of price or FMV) blunt underpricing.
Condo sales: Confirm condo corp clearance, arrears in dues, special assessments, and parking-slot title status (separate CCT?).
Agricultural or special-use land: Check tenancy, land use restrictions, DAR clearances, and conversion issues.

9) Quick checklists

Buyer’s checklist

Title due diligence (authenticity, liens, technical description)
HOA/condo clearances, utility arrears, RPT clearance
Confirm LGU transfer tax rate and LRA fees
Agree who pays CGT/DST/transfer/RD
Secure eCAR, then transfer tax, then RD
Update Tax Declarations and RPT account

Seller’s checklist

Determine capital vs. ordinary asset
Compute CGT (or CWT/VAT if ordinary) on highest base
Prepare IDs/TIN and corporate authorities (if any)
Keep proof of tax payments; monitor eCAR release
Turn over original title & documents upon safe payment

Heirs/Donors

Prepare civil registry docs; list assets and liabilities
Compute estate/donor’s tax and settle within timelines
Secure eCAR then proceed with partition/transfer

10) Frequently asked clarifications

Who usually pays CGT and DST?

CGT: commonly Seller (capital asset sale).
DST: commonly Buyer (but negotiable).
Local transfer tax and RD fees: commonly Buyer.

Can we split DST and other fees?

Yes. Allocations are contractual, but the RD/LGU/BIR will look only at whether the taxes are paid, not who paid them.

Is VAT always due on sales by companies?

Not always. VAT depends on seller’s registration, nature of asset (ordinary), and exemptions (e.g., certain residential sales under statutory thresholds). If VAT-exempt, percentage tax may apply instead for non-VAT businesses.

Can the BIR question the price in the deed?

The tax base is automatically the highest of price, zonal, assessor’s FMV. Underpricing won’t reduce taxes.

How long does the whole transfer take?

It depends on document completeness, backlogs at BIR/eCAR, LGU, RD, and whether issues (liens, arrears, mismatched technical descriptions) arise.

11) Action plan for your transaction

Identify asset type (capital vs ordinary) and parties’ tax profile (individual vs corporation; VAT-registered?).
Pull valuations (zonal and assessor FMV) to estimate taxes on the highest base.
Allocate taxes/fees in the deed; set responsible party and deadlines.
Compile documents up-front (IDs, TIN, title, tax decs, RPT clearance, corporate authorities).
Sequence payments: CGT/CWT/VAT → DST → eCAR → Transfer Tax → RD Registration → Assessor.
Calendar deadlines to avoid penalties.
Safekeep originals (new title, new tax declarations, ORs, eCAR).

Important final notes

Rates and procedures above are standard nationwide, but LGU transfer tax rates, LRA fee schedules, and certain thresholds (e.g., VAT-exempt amounts) are subject to change and vary by locality/date. Always compute using the actual current rates applicable to your LGU and the current LRA fee schedule at the time of transfer.
For complex or high-value transfers (installment sales, exchanges, corporate restructurings, mixed-use properties, related-party deals), get professional tax and legal advice to structure properly and document compliance.