Philippine Taxes and Other Fees on Real Estate Purchases

A. Buying a property from a developer

The following taxes and fees are added on to the purchase price and is payable by the buyer:

1. 10% Value Added Tax - 10% of the purchase price is added on. This tax is sometimes incorporated to the purchase price already. But it is advised to make sure if it is included in the price or not.

2. Documentary Stamp Tax - 1.5% of the total selling price

3. Transfer Fee - 1/2 of 1% of the total selling price

4. Registration Fee - approximately 1/2 of 1% of the total selling price



B. Buying property from individual owners

1. Capital Gains Tax (CGT) - 6% of the total selling price. This tax is usually paid by the seller but some owners quote prices net of tax, meaning the CGT is for the buyer's account.

2. Documentary Stamp Tax - 1.5% of the total selling price. Just like the CGT, this tax is usually for the seller's account, unless otherwise arranged.

3. Transfer Tax - - 1/2 of 1% of the total selling price

4. Registration Fee - approximately 1/2 of 1% of the total selling price




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