Roberto Dela Cruz
Philippine Tax & Finance Advisor
Buying property in the Philippines involves capital gains tax, documentary stamp tax, and transfer fees. Learn exactly how to calculate each cost before you sign anything.
Capital Gains Tax (CGT)
CGT is 6% of the selling price or the zonal value/fair market value (whichever is higher). It is typically paid by the seller, but in practice is often negotiated into the purchase agreement. CGT must be paid within 30 days of the sale.
Documentary Stamp Tax (DST)
DST is 1.5% of the selling price or zonal value (whichever is higher), paid by the buyer. It is due within 5 days from the close of the month when the document was notarized.
VAT on Developer Sales
If purchasing from a developer (primary market), 12% VAT applies to properties with a selling price above PHP 3.2M. This significantly affects total acquisition cost and should be factored into your budget.
Transfer Tax and Registration
Local government transfer tax runs 0.5–0.75% of the property value. Title registration fees at the Registry of Deeds are approximately 0.25–0.5%. Total transaction costs typically add 8–10% to the purchase price.
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