Here’s a comprehensive Philippine-context legal explainer on transferring land to an unadopted relative via deed of donation—what it means, when it’s allowed, formalities, tax, family-property limits, and common traps. This is general information, not legal advice.

What “unadopted relative” means (and why it matters)

“Unadopted relative” here means someone not legally adopted by the donor (e.g., a niece/nephew, cousin, stepchild, foster child, sibling’s child), or otherwise related only by affinity (in-laws, step-relations) or by blood outside the direct line. In Philippine law, only legally adopted children are treated as children for succession/compulsory-heir purposes. Unadopted relatives:

Can be recipients of land by donation inter vivos (during the donor’s lifetime) provided all legal and tax conditions are met.
Are not compulsory heirs. Donations to them cannot impair the legitime (reserved shares) of the donor’s compulsory heirs.

Threshold questions before donating land

Citizenship / foreign ownership Only Filipino citizens (or qualified Philippine corporations) may own land. Foreigners generally cannot acquire land by donation inter vivos. The constitutional carve-out is hereditary succession (inheritance), not ordinary gifts during life. If your “unadopted relative” is a foreign national, donation of land is not allowed.
Type of property being donated
- Immovable: Land (and buildings/real property) requires strict formalities.
- Condominium units: Allowed if the condo corporation remains at least 60% Filipino-owned; a foreigner can own a condo unit (subject to the 40% cap), but not the land beneath it.
Marital property regime
- Absolute Community / Conjugal Partnership: Land acquired during marriage is usually community/conjugal; both spouses must consent to donate common property. A donation of common property without spousal consent is void as to the non-consenting spouse’s share.
- Exclusive property: If the land is exclusively the donor’s (e.g., acquired before marriage or via exclusive modes), the donor may donate subject to legitime limits and other rules.
Compulsory heirs and legitime limits Donations inter vivos cannot reduce the legitime of compulsory heirs (legitimate/illegitimate children and descendants, surviving spouse, and, absent descendants, legitimate parents/ascendants). If the donation encroaches on legitimes, it is inofficious and may be reduced after the donor’s death.
Capacity and prohibitions
- Donor must have capacity to donate and free, informed consent.
- Donee must have capacity to receive (minors/wards need legal assistance through parents/guardians).
- Void donations: those between persons guilty of adultery/concubinage with each other at the time of donation; donations to public officers by reason of their office; donations of future property (as a donation inter vivos).
- Stepchildren/foster children: not barred per se; they simply are not compulsory heirs unless adopted.

Inter vivos vs. mortis causa: pick the right instrument

Donation inter vivos (during life)
- Immediate transfer of ownership once all formalities are satisfied and acceptance is made/communicated.
- Must not impair legitimes.
- Subject to donor’s tax (TRAIN law regime).
- Irrevocable except for limited causes (ingratitude, non-fulfillment of conditions, etc.).
Donation mortis causa (effective at death)
- Operates like a testamentary disposition and must follow will formalities.
- Typically addressed in estate planning; estate tax applies at death (not donor’s tax), and legitimes are computed then.
- If the intended donee is a foreigner, remember the constitutional rule: foreigners may acquire land only by hereditary succession. Mortis causa transfers must genuinely qualify as succession (i.e., through a valid will or by intestacy). Do not try to relabel an inter vivos gift as mortis causa to evade the rule.

Formalities for donating land (immovables)

Public instrument The donation must be in a public instrument (notarized deed of donation) specifying the property and the charges the donee must satisfy.
Acceptance by the donee
- Acceptance must be in the same deed or in a separate public instrument.
- If in a separate instrument, the donor must be notified in authentic form, and such notice must be noted in both instruments.
- Without proper acceptance and notification, the donation is ineffective.
If the donee is a minor or otherwise incapacitated Acceptance is made by a legal representative (parent/guardian) with court approvals where required.
Spousal consent (if applicable) Include the non-donor spouse’s consent on the deed if the land is common/conjugal.
Delivery and registration
- Constructive delivery occurs through the executed, accepted deed;
- Transfer of title vs. third persons requires registration with the Registry of Deeds. Present the deed, tax docs, and pay fees to secure a new TCT/CCT in the donee’s name. Without registration, the donation is valid between the parties but does not bind third persons.

Taxes and fees (high-level)

Donor’s Tax: Under the TRAIN law, generally 6% on net gifts in excess of ₱250,000 per calendar year, aggregated across all gifts that year. No more graduated/relationship-based rates.
Documentary Stamp Tax (DST): Payable on the donation instrument.
Local transfer fees/registration fees: Registry of Deeds and local treasurer’s fees.
Real property tax (RPT): Ensure arrears, if any, are settled before transfer.
Basis/valuation: Usually whichever is higher of zonal value (BIR) or fair market value (assessor) at the time of donation.
No capital gains tax on a pure donation (there’s no sale), but donor’s tax applies.
Exemptions/Special cases: Certain donations for public use or accredited charitable purposes can be exempt; this does not apply to a private gift to a relative.

Practical tip: The BIR issues an eCAR (electronic Certificate Authorizing Registration) after donor’s tax/DST compliance; the Registry of Deeds requires this to transfer title.

Collation, reduction, and future disputes

Collation: Upon the donor’s death, lifetime donations to descendants are brought to collation (added back to the hereditary mass) to compute legitimes. If your donee is not a descendant (e.g., niece, stepchild), collation rules differ, but the broader reduction of inofficious donations may still affect the gift if legitimes were impaired.
Reduction of inofficious donations: If the donation exceeded the donor’s free portion, compulsory heirs can ask a court to reduce the donation after the donor’s death to restore legitimes.
Fraud on creditors: Donations made when the donor is insolvent or meant to defeat creditors can be rescinded.

Common special situations

Donating to a stepchild/foster child (unadopted) Allowed, but be mindful of legitime limits. If the donor also has children, expect scrutiny at estate-settlement time. Consider usufruct-nuda proprietas splits or conditions (e.g., right to repurchase) only if carefully drafted.
Donor is elderly/ill Expect challenges to capacity/consent. Use medical certification, independent counsel, and video/notarial safeguards to reduce litigation risk.
Donation with conditions or reservations You can impose conditions (e.g., the donee cannot sell for X years; donor retains usufruct for life). Ensure conditions are lawful, possible, and clear; register them so they bind third persons.
Revocation for ingratitude Limited grounds exist (e.g., the donee commits serious offenses against the donor). This is rare and litigated; don’t count on revocation after the fact as a planning tool.
Agrarian or special-law land Lands subject to agrarian reform, ancestral domains, or with land-use restrictions may have transfer limits or require government clearances. Do due diligence.

Step-by-step practical checklist

A. Pre-donation planning

Confirm donee’s eligibility (Filipino? of legal capacity? any prohibitions?).
Identify ownership status (exclusive vs. conjugal/community).
Compute potential donor’s tax and DST using current values.
Check for compulsory-heir exposure: model the free portion vs. legitime.
Run title due diligence: latest TCT/CCT, tax declarations, RPT receipts, liens/encumbrances, subdivision restrictions, right-of-way, zoning.

B. Paperwork

Draft Deed of Donation of Real Property: accurate legal description (lot/block, survey plan, area, boundaries, TCT/CCT number), conditions (if any), delivery clause.
Include donee’s acceptance (same deed or separate public instrument).
If separate, prepare acceptance deed + authentic notice to donor and annotate in both instruments.
If conjugal/community: attach spousal consent and identify the property regime.

C. Taxes & transfer

Secure zonál/fair-market valuations and compute Donor’s Tax and DST.
File with BIR, pay taxes, and obtain eCAR.
Submit to Registry of Deeds: eCAR, owner’s duplicate TCT/CCT, notarized deeds, tax clearances, IDs, and pay registration fees.
Obtain new TCT/CCT in donee’s name; update Assessor and Treasurer records for RPT.

D. Post-transfer housekeeping

Keep certified copies of deeds, eCAR, official receipts.
Update estate plan to reflect the gift (note its date/value for potential collation/reduction issues).
If conditions were imposed (easements, usufruct, no-sale periods), ensure they’re annotated on title.

Strategy notes: donation vs. will vs. sale

Donation inter vivos: immediate transfer; triggers donor’s tax now; can simplify later estate but watch legitime.
Will/testamentary transfer: no transfer now; estate tax later; easier to align with legitime computations; can include substitutions and clearer control.
Sale to the relative: If for value, triggers capital gains tax (or normal income tax depending on seller’s status) and DST; frowned upon if a sham to mask a donation.

Red flags that cause delays or invalidity

Missing donee acceptance or failure to notify donor when acceptance is in a separate instrument.
No spousal consent where required.
Foreign donee for land.
Donation that impairs legitime, inviting future reduction litigation.
Unpaid donor’s tax/DST → no eCAR → no registration.
Vague or wrong technical description of the land.
Using donation to evade creditors or defraud heirs.

Bottom line

Transferring land to an unadopted relative by deed of donation is lawful in the Philippines if (1) the donee is legally eligible to own land (generally Filipino), (2) the Civil Code formalities for donating immovables are followed to the letter (public instrument + proper acceptance and notification), (3) marital-property and legitime limits are respected, and (4) taxes/registration steps are completed (eCAR then Registry of Deeds). Plan the donation alongside your overall estate strategy to avoid inofficiousness, and paper the file carefully to minimize future challenges.