Buyer's Guide › Chapter 4 of 6
The real cost of buying: taxes and fees at closing
The sticker price is only part of what you'll pay. Budget for the extras so nothing surprises you at closing:
- Reservation fee — to hold the property (see financing above).
- Down payment — typically 10–20% of the price.
- Association / condo dues — ongoing monthly costs for condos, townhouses, and gated subdivisions.
Then there are the closing costs and taxes tied to the transfer of ownership:
- Documentary Stamp Tax (DST) — roughly 1.5% of the selling price or fair market value, whichever is higher.
- Transfer Tax — a local tax, commonly around 0.5%–0.75% depending on the province or city.
- Registration Fee — paid to the Registry of Deeds to register the new title, based on a graduated schedule.
- Notarial fees — for notarizing the Deed of Absolute Sale.
- Capital Gains Tax — typically 6%, usually shouldered by the seller (though everything is negotiable and should be stated in writing).
Who pays what? By common practice, the seller shoulders the Capital Gains Tax, and the buyer shoulders the Documentary Stamp Tax, Transfer Tax, registration, and notarial fees. This is customary, not law — always confirm the split in writing in your contract.
Estimate these in seconds. The free capital gains tax and transfer tax calculators give you ballparks while you budget (always confirm final figures with the BIR or your LGU). Estate tax is in the app's Tools tab.
Frequently asked questions
Who pays capital gains tax, buyer or seller?
By common practice the seller shoulders the 6% capital gains tax, while the buyer shoulders the documentary stamp tax (~1.5%), local transfer tax (~0.5–0.75%), registration, and notarial fees. This is customary, not law — confirm the split in writing in your contract.
What closing costs should I budget beyond the price?
Plan for the documentary stamp tax, transfer tax, Registry of Deeds registration fees on a graduated schedule, notarial fees, and — for condos and gated communities — ongoing association dues.
Reminder: this guide is for general information only and is not legal, tax, or financial advice. Fees, rates, and requirements change and depend on your specific situation and location. Always consult a PRC-licensed broker, a lawyer, and your lender before making a decision.