The Real Cost of Buying: Fees and Taxes in the Philippines
The asking price is only the start — capital gains tax, documentary stamps, transfer fees and registration add 6-10%. Here is every line item, who legally pays it, and how to budget honestly.
Ask five buyers what a ₱5 million home actually cost them and you will hear five different numbers — because the price on the listing is never the whole story. Plan for 6-10% on top, and you will not be surprised at the closing table.
What the seller legally pays
- Capital gains tax: 6% of the selling price or zonal value, whichever is higher — technically the seller's obligation, though many sales negotiate it into the buyer's share.
- Real property tax arrears: any unpaid RPT must be settled before transfer.
- Broker's commission: typically 3-5%, paid by the seller unless agreed otherwise.
What the buyer legally pays
- Documentary stamp tax: 1.5% of the selling price or zonal value, whichever is higher.
- Transfer tax: 0.5-0.75% depending on the city or municipality.
- Registration fee: a graduated schedule at the Registry of Deeds — roughly 0.25-0.5% for typical prices.
- Notarial fees: usually ₱500 to a few thousand per document.
Costs nobody warns you about
Move-in fees in condos (association dues in advance, utility deposits, elevator bonds), bank charges on financed purchases (appraisal, MRI insurance, handling), and the cost of updating the tax declaration to your name. On a ₱5M condo, budget around ₱300,000-₱500,000 beyond the price.
How to keep it honest
Ask the seller or developer for a written schedule of all charges before paying a reservation. Compare it against the BIR and Registry of Deeds schedules — every legitimate fee has an official receipt, and every unofficial "fee" deserves a second question.
The Upah.ph mortgage calculator and document checklist both flag these closing costs so you can budget before you commit — not after.