Guide on the Title Transfer Fees in the Philippines Buyer and Seller Pay during for during the Process
TITLE TRANSFER FEES PHILIPPINES – Here are the fees applicable in transferring a title of a property in the country.
One of the biggest transactions you can ever make is to buy a residential property — a vacant lot, a house and lot, a townhouse, a condominium unit, etc. You must be financially prepared for it as the costs that you will have to prepare for is not the selling price of the property only.
You need to transfer the title of the property and there are transfer title fees that you must be prepared of as the buyer. Meanwhile, some of the fees are shoulder by the seller of the property.
Capital Gains Tax
The Capital Gains Tax is one of the biggest amounts among the title transfer fees in the Philippines. It is equivalent to 6% of the property’s total selling price as stated in the Deed of Sale or the Zonal Value of the property, whichever is higher.
You can get the computation of your Capital Gains Tax from he Bureau of Internal Revenue. The same government agency releases the Electronic Certificate Authorizing Registration or eCAR after the payment of the capital gains tax. The said document is needed in the processing of the transfer of the title at the Register of Deeds.
If the property that you are buying is owned by a corporation, the seller usually pays for the Withholding Tax.
Most of the time, it is also the seller that pays for the Registration Fee. It is equiavelent to 0.25% of the zonal value of the property or the selling price or the fair market value, or whichever is higher.
Commission of the Agent or Broker
There are cases when there are individuals who help in the processing of the title transfer. Most of the time, they are given some amounts as gratitude and it is usually given by the seller of the transaction.
There are also title transfer fees that are shouldered by the buyer and these are the important factors that first time buyers of properties must know. Here are these fees:
The buyer pays for the Documentary Stamp which is equivalent to 1.5% of the selling price of the property as indicated in the Deed of Sale or the property’s zonal value, or whichever is higher.
The buyer also pays for the Transfer Tax is at a rate of 50% of 1% or 75% of 1% (in Metro Manila) of a property’s worth. This fee is paid at the local Treasury’s Office.
Incidental and Miscellaneous Fees
Among the title transfer fees in the Philippines are notary fees and other fees that may take place during the processing. These are often shouldered by the buyer of the property.