Can foreigners buy property in the Philippines?

Yes. Foreign nationals can purchase condominium units in the Philippines under the Condominium Act (R.A. 4726), which allows foreigners to own up to 40% of a condominium building's total units on a freehold basis.

What is the rental yield for condos in BGC?

Gross rental yields in BGC range from 7% to 9% depending on unit size, building quality, and location. Smaller units in well-managed buildings can push above 9%.

Which is better for investment, BGC or Makati?

BGC wins on rental yield (7-9% vs 6-8%), Makati wins on resale liquidity and brand prestige. The best approach is to hold one of each.

What are the taxes when buying property in the Philippines?

VAT (12%), Documentary Stamp Tax (1.5%), Transfer Tax (0.75%), Registration Fee (0.25%). Annual: Real Property Tax (1-2%) and HOA dues (P60-150/sqm/month).

Can foreigners buy property in the Philippines?

Yes. Foreign nationals can purchase condominium units in the Philippines under the Condominium Act (R.A. 4726), which allows foreigners to own up to 40% of a condominium building's total units on a freehold basis.

What is the rental yield for condos in BGC?

Gross rental yields in BGC range from 4% to 6.5% depending on unit size, building quality, and location. Smaller units in well-managed buildings can push above 7%.

Which is better for investment, BGC or Makati?

For pure investment returns: BGC wins with faster appreciation, better liquidity. For capital preservation: Makati wins with deeper secondary market. The best approach is to hold one of each.

What are the taxes when buying property in the Philippines?

VAT (12%), Documentary Stamp Tax (1.5%), Transfer Tax (0.75%), Registration Fee (0.25%). Annual: Real Property Tax (1-2%) and HOA dues (P60-150/sqm/month).

How much is capital gains tax on property sale in the Philippines?

Capital Gains Tax (CGT) in the Philippines is 6% of the gross selling price or the fair market value, whichever is higher. This is paid by the seller and must be settled within 30 days after each installment payment (or within 30 days of the final sale for lump sum transactions).

What is Documentary Stamp Tax (DST) for real estate in the Philippines?

Documentary Stamp Tax (DST) for real estate transactions in the Philippines is 1.5% of the selling price or fair market value, whichever is higher. DST is typically paid by the buyer and must be filed and paid within five days after the close of the month when the taxable document was executed.

What are the total transaction costs when buying property in the Philippines?

Total buyer acquisition costs in the Philippines typically add 3.5–4.5% on top of the purchase price: Documentary Stamp Tax 1.5% + Transfer Tax 0.75% + Registration Fee 0.25% + Notary/Legal Fee ~1%. The seller pays Capital Gains Tax at 6%. A broker commission (3–5%) may also apply.

How much is capital gains tax on property sale in the Philippines?

Capital Gains Tax (CGT) in the Philippines is 6% of the gross selling price or the fair market value, whichever is higher. This is paid by the seller and must be settled within 30 days after each installment payment (or within 30 days of the final sale for lump sum transactions).

What is Documentary Stamp Tax (DST) for real estate in the Philippines?

Documentary Stamp Tax (DST) for real estate transactions in the Philippines is 1.5% of the selling price or fair market value, whichever is higher. DST is typically paid by the buyer and must be filed and paid within five days after the close of the month when the taxable document was executed.

What are the total transaction costs when buying property in the Philippines?

Total buyer acquisition costs in the Philippines typically add 3.5–4.5% on top of the purchase price: Documentary Stamp Tax 1.5% + Transfer Tax 0.75% + Registration Fee 0.25% + Notary/Legal Fee ~1%. The seller pays Capital Gains Tax at 6%. A broker commission (3–5%) may also apply.

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Tax Simulator

Calculate all Philippine property taxes and transaction costs — CGT, DST, Transfer Tax, Registration, and Notary fees.

Selling / Purchase Price (₱)

Fixed Tax Rates (Philippines)

Capital Gains Tax

6.00% of selling priceSeller pays

Documentary Stamp Tax

1.50% of selling priceBuyer pays

Transfer Tax

0.75% of selling priceBuyer pays

Registration Fee

0.25% of selling priceBuyer pays

Notary / Legal Fee

~1.00% of selling priceNegotiated

Include Broker Commission

Broker Commission (%)

Enter the price and click
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Philippine Property Taxes: Complete Breakdown

Philippine real estate transactions involve four main taxes and fees, each with specific payers, deadlines, and filing requirements. Missing any deadline triggers surcharges, penalties, and potential tax evasion exposure.

Capital Gains Tax (CGT)

6%Seller

Basis: Gross selling price OR zonal value, whichever is HIGHER

Deadline: 30 days after each installment (or 30 days after final payment)

BIR Zonal Values are updated periodically and may be higher than the agreed selling price
CGT is non-deductible as business expense for individual sellers
Corporations selling property use a different tax treatment (EWT vs CGT)
Developer-issued pre-selling units: CGT applies on the final transfer, not the reservation

Documentary Stamp Tax (DST)

1.5%Buyer (convention) — negotiable

Basis: Same as CGT — higher of selling price or zonal value

Deadline: 5 days after close of month when document was executed

Filed and paid through the BIR using BIR Form 2000-OT
Applies to the deed of sale, not the contract to sell
For condominium units in residential developments, DST is typically paid at title transfer
Installment buyers may have DST obligations at each payment — verify with your attorney

Transfer Tax

0.75%Buyer

Basis: Selling price or zonal value, whichever is higher

Deadline: 60 days from execution of deed of sale

Paid to the Local Government Unit (LGU) — Taguig City for BGC, Makati City for Makati, etc.
Rate may vary slightly by LGU — some cities charge up to 1%
Required before the Registry of Deeds will process title transfer
A Transfer Tax receipt is required by the Register of Deeds

Registration Fee

~0.25%Buyer

Basis: Assessed value / selling price

Deadline: Upon submission of documents to Registry of Deeds

Paid to the Land Registration Authority (LRA) / Registry of Deeds
Actual fee is computed from a schedule — ~0.25% is the typical effective rate
Required to get the new Transfer Certificate of Title (TCT) or Condominium Certificate of Title (CCT)
Processing time at LRA: 2–6 weeks (BGC/Makati offices), longer for provinces

Tax Payment Timeline: From Sale to Title Transfer

The sequence and timing of each payment matters. Missing a step blocks the next, and late payments trigger penalties of 25% + interest.

Deed of Sale Executed

DST deadline begins (5 days after month-end)

CGT Payment

Seller pays CGT to BIR within 30 days

DST Payment

Buyer pays DST to BIR (within 5 days of month close)

CAR Issuance

BIR issues Certificate Authorizing Registration

Transfer Tax

Buyer pays transfer tax to LGU (within 60 days)

Registry of Deeds

New TCT/CCT issued in buyer's name

Example Tax Calculations by Property Type

Here are the approximate taxes for three common transaction scenarios. Use our Tax Simulator above to model your specific situation.

BGC 1BR Condo Purchase

BGC, Taguig · New unit from developer (pre-selling final payment)

₱15,000,000

Selling Price

CGT (Seller)

₱900,000

DST (Buyer)

₱225,000

1.5%

Transfer Tax

₱112,500

0.75%

Buyer Total

₱15,525,000

incl. price

Seller Net

₱14,100,000

after CGT

Makati 2BR Resale

Makati CBD · Resale unit from individual seller, no broker

₱28,000,000

Selling Price

CGT (Seller)

₱1,680,000

DST (Buyer)

₱420,000

1.5%

Transfer Tax

₱210,000

0.75%

Buyer Total

₱28,980,000

incl. price

Seller Net

₱26,320,000

after CGT

Rockwell 3BR Premium

Rockwell, Makati · Trophy unit resale with 5% broker commission

₱55,000,000

Selling Price

CGT (Seller)

₱3,300,000

DST (Buyer)

₱825,000

1.5%

Transfer Tax

₱412,500

0.75%

Buyer Total

₱56,925,000

incl. price

Seller Net

₱51,700,000

after CGT

Need to Model Your Full Investment Return?

Use the ROI Calculator to combine purchase costs, taxes, rental income, and capital appreciation into a complete investment model.

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