Real Estate Closing CostsCalculator
Calculate all taxes and fees for buying or selling property in the Philippines. Including 6% Capital Gains Tax, 12% VAT, 1.5% Documentary Stamp Tax, and more.
6%
CGT • Seller pays
1.5%
DST • Buyer pays
12%
VAT • If commercial
0.5%
Transfer • Buyer pays
Corporation/Developer: VAT-registered entity selling property. VAT (12%) is included in price, then EWT (6%) is calculated on the NET selling price. Broker commission is based on Net Selling Price.
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Enter the selling price to see a complete breakdown of closing costs
Philippine Real Estate Taxes 2025
Understanding the taxes and fees involved in property transactions
6%
Tax on presumed gains from sale of capital assets. Paid within 30 days of sale.
12%
Applies to commercial properties, properties that are/were rented, or sold by corporations above ₱3.6M threshold.
1.5%
Tax on documents transferring property ownership. Due within 5 days.
0.5% - 0.75%
Paid to the city/municipality where property is located. Rate varies by LGU.
0.25% - 1%
Paid to Registry of Deeds for title transfer. Tiered rate structure.
3% - 5%
Professional fee for licensed real estate brokers. Customarily paid by seller.
Frequently Asked Questions
When does VAT apply to property sales?
VAT (12%) applies when the seller is: (1) A corporation or developer, (2) An individual engaged in real estate business with annual gross sales exceeding ₱3,000,000. VAT is computed on a VAT-inclusive basis, meaning the Net Selling Price = Gross ÷ 1.12.
What is the difference between CGT and EWT?
Capital Gains Tax (CGT) is a 6% final tax paid by individuals selling capital assets (personal property not used in business). Expanded Withholding Tax (EWT) is a 6% creditable tax paid by corporations, which can be credited against their income tax liability. Both are 6% but have different tax treatments.
How is broker commission calculated for corporations?
For corporation/developer sales, the broker commission (typically 5%) is calculated on the Net Selling Price (after VAT extraction), not the gross selling price. For individual sales, commission is based on the gross selling price.
Why are parking slots calculated separately for condos?
Parking slots often have separate titles (CCT for parking) with different BIR zonal values. Standard parking slot is 12.5 sqm. Calculating them separately ensures accurate tax computation.
How is the tax base determined?
Taxes are calculated on the HIGHER of: (1) the actual selling price, (2) the BIR zonal value, or (3) the fair market value. BIR always uses the higher value to prevent under-declaration.
What are the VAT exemptions for residential properties?
Even VAT-registered sellers are exempt when selling: residential lots ≤ 1,500 sqm, house & lot ≤ 2,500 sqm, residential condos ≤ ₱3,199,200, agricultural land, and socialized housing.
Who pays what in a property sale?
Typically, the SELLER pays: CGT/EWT (6%), VAT (12% if applicable), and broker commission. The BUYER pays: Documentary Stamp Tax (1.5%), Local Transfer Tax (0.5-0.75%), Registration Fee, and Notarial Fee.
What is the formula for Net Proceed calculation?
For corporations: Net Proceed = Net Selling Price − EWT − Broker Commission. Where Net Selling Price = Gross ÷ 1.12. For individuals: Net Proceed = Gross − CGT − Broker Commission.