Guide on the Fees of Title Transfer in PH Buyer & Seller Will Shoulder
FEES OF TITLE TRANSFER IN THE PHILIPPINES – Here is a guide for both the buyer and the seller in the transfer of the title of the property.
Are you selling a house or buying one soon? Whichever end of the spectrum you are, it is best to be aware that there are fees shared by the buyer and the seller. It will lessen how much the seller will get and increase the expenses of the buyer — but neither has a choice. Meanwhile, it is best to know the clear details about these fees.
The buyer and the seller of the property share the fees of the title transfer in the Philippines often under a mutual understanding of how things will go. Meanwhile, there are specific fees that are usually shouldered by the seller such as the following:
Capital Gains Tax
This is equivalent to 6% of the total selling price of the property as indicated in the Deed of Sale or the zonal value, or whichever is higher. It is computed by the Bureau of Internal Revenue which releases the eCAR or the Electronic Certificate Authorizing Registration which is needed for the transfer of the title. The seller need to secure the BIR eCAR requirements aside from the fee.
Withholding Tax
This type of tax is applied to properties that are owned by corporations and it is often paid by the seller of the property during the processing.
Registration Fee
Also one of the fees for title transfer in the Philippines is the registration fee which is equivalent 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
In most transactions, there are agents or individuals who assist during the process of transferring a land title. They are given some amount by the seller as gratitude for the service rendered.
There are also fees for title transfer in the Philippines that are shouldered by the buyer of the property. Here are these fees that are often added to the expenses of the buyer apart from the selling price of the property:
Documentary Stamp
The Documentary Stamp 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.
Transfer Tax
The Transfer Tax is at a rate of 50% of 1% or 75% of 1% (in Metro Manila) of a property’s worth. It is paid at the local Treasury’s Office. There is a table for the transfer of title fee and there are also requirements for transfer of title process.
Incidental and Miscellaneous Fees
This refers to the fees during the registration process including the notary fees and the other registration fees.