The Legal & Financial Framework Every Philippine Property Buyer Must Know
Philippine real estate law is complex, and the consequences of getting it wrong — title fraud, unpaid taxes, CARP restrictions, squatter rights — can be severe. This guide covers the 21 most important legal and financial questions every buyer must understand before investing in Philippine real estate.
Transaction Tax Summary
Tax / Fee
Rate
Paid By
Capital Gains Tax
6%
Seller
Documentary Stamp Tax
1.5%
Buyer (negotiable)
Transfer Tax
0.5–0.75%
Buyer
Registration Fee
~0.25%
Buyer
Estate Tax
6% of net estate
Heirs
Total buyer transaction costs: approximately 3–5% of purchase price
The Registry of Deeds — where all Philippine land title transfers are officially recorded
FAQ
21 Questions on Philippines Real Estate Law & Finance
Key Takeaways
Always verify TCT/CCT authenticity at the Registry of Deeds — never rely on photocopies.
BIR clearance (CAR) is mandatory before any title transfer can be processed.
DHSUD License to Sell must be verified before purchasing from any developer.
Total buyer transaction costs are approximately 3–5% of the purchase price.
Philippine REITs offer liquid real estate exposure from as little as a few thousand pesos.
