Total closing costs to buy property: CGT, DST, transfer tax, and registration.
Buyer closing costs
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Documentary stamp tax
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Transfer tax
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Capital gains tax
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Who pays what when a Philippine property changes hands
Buying a titled home or lot in the Philippines is rarely just the price on the deed. A handful of taxes and fees land on the parties at signing, and the deed of sale will not transfer cleanly at the Registry of Deeds until they are paid and stamped. This calculator pulls those charges together and shows what falls on the buyer, because that is the side most people underbudget. The three moving parts are the capital gains tax, the documentary stamp tax, and the local transfer tax, all charged on the higher of the selling price or the fair market value.
By long-standing custom the seller shoulders the capital gains tax while the buyer carries the documentary stamp tax, the local transfer tax, and the Registry of Deeds registration fee. That split is a market convention, not a rule written into law, so a deed can assign it differently. The dropdown lets you move the capital gains tax to the buyer to model exactly that. The tax rates here, the 6 percent capital gains rate and the 1.5 percent documentary stamp rate this calculator applies, should be confirmed against the current Bureau of Internal Revenue (BIR) issuances before you sign anything.
The buyer's running total, line by line
The tool works on a single base, the larger of what you agreed to pay and the assessor's fair market value, then layers each charge on top. Two of them always sit with the buyer under the default split, and the third is optional.
A PHP 5 million sale in Metro Manila
Take the default scenario: a PHP 5,000,000 selling price, a matching PHP 5,000,000 fair market value, a city location, and the seller paying the capital gains tax. Using the rates this calculator applies, the buyer's side comes together like this.
| Charge | Rate applied | Amount |
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The buyer walks away owing PHP 112,500 in taxes, roughly 2.25 percent of the price, before the graduated Registry of Deeds registration fee that the calculator flags separately. The seller, meanwhile, faces a PHP 300,000 capital gains tax on that same base. The chart below shows how the buyer's total is built and how much larger it gets the moment the capital gains tax shifts across the table.
When the capital gains tax lands on the buyer
Sellers sometimes quote a price net of taxes, expecting the buyer to absorb everything. Switch the dropdown to buyer and the same PHP 5,000,000 deal jumps to PHP 412,500 in buyer-side taxes, because the PHP 300,000 capital gains tax now rides along. That is a PHP 300,000 swing on one toggle, so it is worth nailing down in writing before you shake hands. A practical tip: whoever is named in the deed of sale as the one paying a tax is the one the BIR will chase, so put the agreed split in the contract rather than relying on a handshake.
Costs this calculator leaves out
The estimate covers the three transfer taxes, which are the big, percentage-based numbers. It does not model the Registry of Deeds registration fee, which follows a graduated schedule under the Land Registration Authority and runs into the low tens of thousands of pesos on a mid-priced home. It also leaves out notarial fees, which often track a small percentage of the price, broker commissions, and any unpaid real property tax the seller must clear first. Build a small buffer on top of the figure here so the final settlement statement does not surprise you.
Can the buyer and seller legally swap who pays the capital gains tax?
Yes. The customary split is just a market default, and the deed of sale can place any of these taxes on either party. What matters to the BIR is what the document says and that the tax is actually paid within the filing window, so spell the arrangement out clearly in the contract to avoid a dispute later.
Why does the calculator use fair market value instead of my agreed price?
It uses whichever is higher. The BIR and the local treasurer both base their taxes on the greater of the selling price or the assessor's fair market value so that an artificially low contract price cannot shrink the tax. If your agreed price is below the assessed value, expect the taxes to be computed on the assessed value instead.
Does this estimate change if I buy from a developer?
It can. A property sold by a developer in the ordinary course of business is usually an ordinary asset rather than a capital asset, so instead of the 6 percent capital gains tax it may attract creditable withholding tax and possibly value added tax. The closing-cost mix differs in that case, so confirm the treatment with the developer and the BIR.