Taxes are where Philippine property transactions stall. Deals that take days to negotiate can take months to close because the tax and registration chain — BIR, City Treasurer, Registry of Deeds — is sequential and unforgiving of missing documents. Understanding the main taxes upfront protects both buyers and sellers.
The Taxes on a Sale
Capital Gains Tax (CGT) is 6% of the gross selling price or the zonal/fair market value, whichever is higher — customarily paid by the seller and due within 30 days of notarizing the Deed of Sale. Despite its name, it is charged on the price, not the actual gain.
Documentary Stamp Tax (DST) is 1.5% of the same base, customarily for the buyer's account, due within five days after the close of the month of notarization. Transfer Tax (up to 0.75% depending on the LGU) and registration fees at the Registry of Deeds follow.
Real Property Tax (RPT) is the annual tax on ownership — up to 2% of assessed value in Metro Manila — payable to the city, with discounts for early payment. Sellers must clear all RPT arrears before transfer; buyers should always demand an RPT clearance.
The eCAR: The Document Everything Waits For
The Electronic Certificate Authorizing Registration (eCAR) is the BIR's confirmation that all taxes on the transfer have been paid. Without it, the Registry of Deeds will not transfer the title — full stop. Securing the eCAR requires the notarized deed, tax returns and payment confirmations, tax clearances, IDs, and supporting documents, all consistent with each other. A single name mismatch can restart the queue.
This is why professional handling pays for itself. Infinity Realty's transfer liaison team processes CGT, DST, eCAR, and title transfer as a single managed workflow — clients sign, we handle the government offices. Ask us for a transfer cost estimate before you buy or sell.
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Buying, renting, or listing in Rockwell, Makati, or BGC? Our team transacts there every week.
