What will it cost to sell the property?
Families selling a house in Cebu or a lot in Batangas from abroad almost always budget for the price and forget the transfer. Between capital gains tax, documentary stamp tax, the local transfer tax and a broker, roughly a tenth of the value changes hands in fees — and the taxes are not calculated on the price you agreed.
That last part is the one that surprises people. The BIR taxes the higher of your selling price and the property's zonal value. Selling cheaply to a cousin does not lower the tax bill; it just means the tax is a bigger share of what you actually received.
Taxes are computed on
₱5,000,000
Your selling price, because it is at or above the zonal value.
| Cost | Customarily paid by | Amount |
|---|---|---|
| Capital gains tax — 6% | Seller | ₱300,000 |
| Documentary stamp tax — 1.5% | Buyer | ₱75,000 |
| Local transfer tax — up to 0.50% | Buyer | ₱25,000 |
| Broker's commission — 4% | Seller | ₱200,000 |
| Registry of Deeds registration fee | Buyer | not estimated — see below |
Seller's side
Costs ₱500,000
₱4,500,000
net, before any mortgage payoff
Buyer's side
On top of the price
₱100,000
plus registration and notarial fees
Registry of Deeds registration fee is a graduated LRA schedule and is not included above. Ask the Registry of Deeds where the property sits for the exact figure — on a mid-priced property it is usually a few thousand pesos, not a percentage-sized cost.
Who pays what is custom, not law — it is negotiable and the deed governs. Statutory rates as of August 2026; local transfer tax is a ceiling set by ordinance, so confirm the actual rate with the city or provincial treasurer. This covers a capital asset sold by an individual, not property held by a dealer or developer. Nothing transfers at the Registry of Deeds until the BIR issues the eCAR.
Before you sign anything
Selling from abroad means someone in the Philippines signs for you, which means a special power of attorney drawn narrowly enough that it can't be used for anything else — the single biggest risk in a remote sale is an SPA that is too broad. The full process, including the eCAR that gates every transfer at the Registry of Deeds, is in selling property in the Philippines from abroad.
If the property came to you through a parent who has died, the estate has to be settled and its tax paid before anything can be sold at all — start with the estate tax calculator instead.