How Much Does It Cost to Transfer a Land Title?

A: Unlike in other purchases, buying real estate does not consist of “one big cost.” Apart
from the price of the property, there are also fees and taxes that need to be covered to
complete the transaction. Among these is the cost to transfer the land or property title,
which itself is not one singular expense, but also a number of fees and taxes, the amounts
of which are based by how much the property cost at the time of transaction or transfer.

 Capital Gains Tax: equivalent to 6 percent of the selling price on the Deed of Sale
or the zonal value, whichever is higher
 Withholding Tax: applies only when the seller of the property is a corporation
 Unpaid real estate taxes due (if any)
 The commission of the agent or broker
 Documentary Stamp Tax: this is commonly set at 1.5 percent of the selling price,
or its zonal value or fair market value, depending on which is higher
 Transfer Tax (Local Treasurer’s Office): this is tax is imposed on the sale, barter,
or any other mode of transferring of ownership or title of real property, at the
maximum rate of 50 percent of 1 percent (75 percent of 1 percent in the case of
cities and municipalities within Metro Manila) of a property’s worth.
 Transfer Tax (BIR): Transfer taxes may also be owed to the Bureau of Internal
Revenue. According to the BIR, if the property was/is donated, this is in the form
of donor’s tax. If the property was transferred by way of inheritance, this is in the
form of estate tax.
 Registration Fee: commonly set at 0.25 percent of the selling price, or zonal value
or fair market value, depending on which is higher.
 Incidental and miscellaneous expenses incurred during the registration process,
such as notary fees.

The total of these taxes and fees is the cost of transferring a land title which, as mentioned,
depends on the overall value of the land or property being transferred.