Capital Gains, DST, Transfer Tax: Real Estate Taxes Explained

Three taxes are unavoidable when title to a Philippine property changes hands. Knowing the percentages and timing helps you budget the close — and helps you negotiate cleanly with the seller (or developer) on who pays what.

1. Capital Gains Tax (CGT) — 6%

Imposed on the seller (the developer in a primary sale, the previous owner in a resale). Calculated on the higher of (a) the gross selling price, (b) BIR zonal value, or (c) fair market value. For a primary sale of a brand-new Alveo unit, this is built into the developer's pricing — you don't see it as a line item. For a resale, the seller pays. Due within 30 days of the Deed of Absolute Sale.

2. Documentary Stamp Tax (DST) — 1.5%

Imposed on the document itself (technically). Customarily paid by the buyer in primary sales (often built into closing fees). Calculated on the same base as CGT. Due within 5 days of the close of the month the document was signed.

3. Transfer Tax — 0.5% to 0.75%

A local-government tax (LGU). The exact rate varies by city — Makati and Manila trend higher; Quezon City and Las Piñas are middle-of-the-range. The buyer pays. Due within 60 days of the Deed of Absolute Sale.

Plus closing-related fees

- Registration fee at the Registry of Deeds (~₱4,000-₱8,000 + small percentage of price) — buyer - Notarial fee on Deed of Absolute Sale (~0.5% of selling price, capped) — buyer - Bank loan fees if financed (varies by bank) - Real Property Tax (RPT) prorated to the date of transfer - Condominium Certificate of Title (CCT) issuance fee

Total buyer-side closing costs typically run 4-7% of the unit price

— plan for this on top of the down payment and bank-loan-balance budget.

On a brand-new Alveo unit

Most of these are folded into the developer's billing schedule — you won't usually pay them as separate line items. The developer's accredited processor handles BIR, LGU, and Registry of Deeds work for you.

On a resale Alveo unit (you're buying from a previous owner)

The seller is responsible for CGT; you (buyer) handle DST + Transfer + closing fees. Negotiate this in writing on the Reservation/Earnest Money Agreement.

Message me through the contact form if you want a closing-cost worksheet for a specific unit.