Closing costs and taxes when buying a home

The buyer-side bill, itemised

Philippine buyers budget roughly 3–5% of the purchase price in transfer costs on top of the price itself. The same rates power this site's closing-cost estimate on every listing page:

• Documentary Stamp Tax (DST) — 1.5% of the price or zonal value, whichever is higher.
• Local transfer tax — around 0.5–0.75% depending on the LGU (higher inside Metro Manila).
• Registration fee — about 0.25% paid to the Registry of Deeds plus fixed entry fees.
• Notarial fees — commonly ₱5,000–₱15,000 for notarising the deed of absolute sale.
• Moving and minor costs — certified copies, clearances and the occasional assessor's fee.

What the seller usually pays

By convention the seller shoulders the 6% Capital Gains Tax (CGT) and any unpaid real property tax up to closing — but convention is negotiable, and "net of taxes" listings pass some seller costs to the buyer. Confirm in writing who pays what before the earnest money moves. If the listing is priced below the BIR zonal value, taxes are computed on the zonal value, not the negotiated price.

When the money moves

DST is due to the BIR within the 5th day after the month of the deed's signing; late payment adds surcharges and interest that can quietly exceed the tax itself. Registration follows tax clearance — the Registry of Deeds will not issue the new title without the BIR certificate authorising registration.

Keep every official receipt — they are the audit trail if a tax computation is ever questioned.

Budgeting it on Upah.ph

Every listing shows an estimated closing-cost figure beside the price, computed from the rates above. The affordability tool adds them to the cash you need up front alongside the down payment, so the "cash to close" number you see is the honest all-in figure.