Sellers in the Philippines carry a significant portion of the tax burden in every property transaction. Understanding these costs before you set your asking price is essential — not after you’ve agreed to a number with a buyer. Calculating your net proceeds early prevents the costly and sometimes deal-breaking situation where a seller realizes too late that their take-home amount is substantially less than expected.

Capital Gains Tax is the primary tax obligation on a property sale and is generally the seller’s responsibility. It is computed on the higher of the gross selling price or the BIR zonal value of the property. The BIR updates zonal values periodically — always verify the current applicable zonal value for your property’s location with the relevant Revenue District Office before finalizing any price negotiation.

CGT must be filed and paid to the BIR within 30 days of the date of the Deed of Sale. This deadline starts on the date of the notarized Deed — not on the date payment is received, not on the date the title transfer is initiated, and not on any other date in the transaction. Late filing triggers surcharges and penalties that increase your cost and delay the buyer’s title transfer.

In practice, some sellers negotiate for the buyer to shoulder CGT as part of the overall transaction terms. If you do this, ensure the arrangement is documented in the contract — verbal agreements on tax allocation are not enforceable and create disputes at closing.

Documentary Stamp Tax applies to the Deed of Sale and is generally considered the buyer’s obligation — but this is negotiable. Like CGT, DST is computed on the higher of the selling price or BIR zonal value. It must also be filed within 30 days of the Deed of Sale date. In many transactions, the seller absorbs DST as part of a negotiated arrangement, particularly where the buyer has agreed to a higher price in exchange.

Know before you enter any negotiation whether you will be absorbing DST or passing it to the buyer. This affects your net proceeds calculation and must be reflected in the contract.

In the Philippine market, broker’s commission is traditionally paid by the seller. Commission rates are not regulated by law — they are negotiated between the seller and broker at the time of listing. Industry practice for residential resale properties typically runs in the range of 3 to 5 percent of the selling price, though rates vary by property type, value, and agreement.

If you are selling without a broker, you save the commission — but take on full responsibility for marketing, buyer screening, viewings, negotiation, and documentation management. See our guide on whether to sell with or without a broker for a balanced assessment of both approaches.

Any unpaid Real Property Tax balance must be settled before the title can transfer cleanly. Unpaid RPT is a lien on the property. If you have arrears — from years of non-payment or underpayment — these must be cleared from your proceeds at closing. The RPT clearance from the local government is a required document for the title transfer process.

Verify your RPT standing well before listing. If you have arrears, calculate the full balance including penalties and factor this into your net proceeds before setting your asking price.

The Deed of Absolute Sale must be notarized by a licensed notary public. Notarial fees for high-value property transactions are typically computed as a percentage of the transaction value and are usually shared between buyer and seller, though the arrangement varies. Attorney’s fees, if you engage a lawyer to review the transaction, are also a seller-side cost that should be planned for.