The purchase price is only part of what you’ll actually pay when buying property in the Philippines. Closing costs — the taxes, fees, and charges that accompany every property transaction — typically add 3 to 8 percent on top of the purchase price. Buyers who don’t budget for these upfront can find themselves short at closing, or forced to renegotiate terms at the worst possible moment. This guide covers every buyer-side cost category so you can plan accurately.

Documentary Stamp Tax is generally considered a buyer’s obligation, though this can be negotiated between parties. It is computed based on the higher of the gross selling price or the Bureau of Internal Revenue (BIR) zonal value of the property. DST must be filed and paid to the BIR within until the 5th day of the following month from the date of the Deed of Sale. Filing late triggers surcharges and penalties.

The specific DST rate applicable to your transaction should be verified with the relevant BIR Revenue District Office before closing, as rates are set by law and subject to amendment. Do not rely on rates from previous transactions or third-party summaries as your primary reference.

Transfer Tax is a local government tax paid to the city or municipality where the property is located. The rate varies by local government unit (LGU) and is generally computed on the higher of the selling price or zonal value. The Transfer Tax receipt is a required document for the Registry of Deeds to process the title transfer.

Verify the specific Transfer Tax rate with the local treasurer’s office before closing. Because rates vary by LGU and are set locally, the rate for a property in Makati City will differ from one in Quezon City or a municipality in a different province.

Registration fees are paid to the Registry of Deeds when submitting documents for title transfer. These fees are computed on a sliding scale based on the transaction value and are set by the Land Registration Authority. They are generally lower than the taxes mentioned above but are a required cost that cannot be avoided.

Capital Gains Tax (CGT) is technically the seller’s obligation — it is a tax on the seller’s gain from the sale. However, in practice, many transactions involve negotiation over which party actually shoulders the CGT. If the seller asks the buyer to pay CGT, this effectively adds the equivalent of the CGT amount to the total purchase cost.

Before signing any agreement, clarify in writing which party is responsible for CGT. If the buyer is taking on CGT, this should be factored into the total cost calculation from the start — not discovered at closing. Never assume the allocation without confirming it in the contract.

If you are financing through a bank, additional costs apply on top of the transaction taxes. These typically include a property appraisal fee (paid to the bank’s appointed appraiser), a loan processing fee, mortgage registration fees at the Registry of Deeds, and fire insurance and mortgage redemption insurance (MRI) premiums, which most banks require as a condition of the loan.

Banks vary in how they structure and charge these fees. Request a complete fee disclosure from your bank before committing to a specific loan product. Some fees are upfront; others are rolled into the loan balance or charged annually.

The Deed of Sale and other transaction documents must be notarized by a licensed notary public. Notarial fees are regulated but vary in practice. For high-value transactions, notarial fees are typically computed as a percentage of the transaction value. Both parties typically share this cost, though the arrangement varies.

Hiring a lawyer to review contracts and advise on the transaction is not legally required, but for resale transactions it is strongly recommended. Legal fees vary by lawyer and scope of work. For a standard resale transaction involving contract review, document verification, and advisory, expect professional fees in the range of PHP 20,000 to PHP 50,000 — a modest cost relative to the value of the transaction and the risks involved.

In the Philippine real estate market, broker’s commission is traditionally paid by the seller, not the buyer. However, if a buyer engages a broker specifically to represent their interests, a separate fee arrangement may apply. Clarify commission arrangements with your broker before engaging their services to avoid surprises.