Philippines

Registering Property in

Philippines

Below is a detailed summary of the steps, time and cost involved in registering property in Philippines. It assumes a standardized case of an entrepreneur who wants to purchase land and a building that is already registered and free of title dispute.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2013.

Compare Philippines to 188 other economies.

  • Standard Property Transfer

  • Property Value: PHP 5,448,617.59
  • City: Quezon city
No. Procedure Time to Complete Associated Costs
1 Prepare the notarized deed of sale and related documents

While the deed of sale can be prepared by anyone, it must be executed before and notarized by a notary public. In many instances, the notary public drafts the deed of sale and conducts the whole process on behalf of the parties.

In addition to the deed of sale, the Register of Deeds also requires both the buyer and the seller to submit notarized secretary's certificates containing the resolution of their board of directors approving the sale. The buyer must also produce a certificate from the Securities and Exchange Commission (SEC) stating that its articles of incorporation have been registered with the SEC.

1 day 1 - 3% of the property value
* 2 Obtain the certified true copy of the latest tax declaration and the certificate of "with improvement" from the City Assessor’s Office (CAO)

The seller obtains a certified true copy of the latest tax declaration from the Assessor’s Office of Quezon City.
Agency: Assessor’s Office
1 day (simultaneous with procedure 3) PHP 250 constituting from:
PHP 50 per RPU [land(1 RPU)+ building (1 RPU)] + PHP 90 (certificate of "with improvement") + PHP 60 (PHP 20 documentary stamp tax per RPU/document)
* 3 Obtain the tax clearance certificate of the real property taxes from the Land Tax Division of the City Treasurer’s Office (CTO)

The seller, after paying any arrears, obtains a tax clearance certificate from the CTO.
The documentation shall include: (1) an original of the official receipt evidencing payment by seller of realty taxes; (2) certified true copy of latest tax declarations for each of the land and the warehouse;
(3) photocopy of official receipt for payment of real property tax for each of the land and the warehouse for the immediately preceding year.

Note: Separate tax clearance for real property tax should be obtained for the land and the warehouse



Agency: Real Estate Tax Division of the City Treasurer’s Office
2 days (simultaneous with procedure 2) PHP 115 constituting from: PHP 50 (tax clearance for land and real estate) + PHP 15 (documentary stamp tax)
4 Pay the documentary stamp tax and the final capital gains tax for the transfer of a property

The seller or the buyer (based on their agreement) files the Documentary Stamp Tax return and Capital Gains Tax return with the authorized agent bank. This is done within 5 days after the close of the month when the taxable document was signed or within 30 days after the sale, whichever is earlier. The taxes are paid at the authorized bank to the account of the Bureau of Internal Revenue.

Pursuant to Section 39(A)(1) of the Philippine Tax Code, real property used in trade or business of the seller is considered ordinary asset. If ordinary asset, the sale is not subject to capital gains tax. Instead, the gain is subject to regular corporate income tax as ordinary income, and would be subject to creditable withholding tax. In addition, the sale of real property in the ordinary course of trade or business is subject to 12% value added tax.

The Documentary Stamp Tax is 1.5% based on selling price or fair market value, whichever is higher. The seller may opt to have the taxing authority assess and compute the Capital Gains Tax and the Documentary Stamp Tax prior to payment to ensure accuracy of the amount of taxes due.

The documentation shall include:
Original copy and photocopy of notarized deed of sale of building (obtained in Procedure 1)
Certified true copy of transfer certificate of title (in the name of seller)
Certified true copy of latest tax declaration (in the name of seller) (obtained in Procedure 2)
Photocopy of the latest realty tax receipt
Letter-request
Identification card of the person requesting

Agency: Authorized Agent Bank (AAB)
1 day 1.5% of the property value (Documentary Stamp Tax)
5 Obtain the Certificate Authorizing Registration (CAR) from the Bureau of Internal Revenue (BIR)

The Certificate Authorizing Registration (CAR) is a certification issued by the BIR that the transfer and conveyance of the property was reported and the taxes due have been fully paid.

The taxpayer/applicant must submit the following documents to the BIR:

a. Tax identification number (TIN) of seller and buyer;
b. Notarized deed of absolute sale/document of transfer, but only photocopied document shall be retained by the BIR;
c. Certified true copy of the latest tax declaration issued by the City Assessor’s Office for the land and improvement applicable to the taxable transaction;
d. Owner’s copy (for presentation purposes only) and photocopy (for authentication) of the Original Certificate of Title (OCT), or the certified true copy of the Transfer Certificate of Title (TCT);
e. Sworn declaration of “with Improvement” by at least one (1) of the transferees, or certificate of “with Improvement” issued by the City Assessor’s Office.

All documents submitted must also include 2 photocopies.

The Certificate Authorizing Registration that will be released will be accompanied by the following documents:
The Original copy of the Deed of Absolute Sale stamped received by the BIR
Original Copies of the BIR Return Forms 1706 (CGT) and 2000 (DST) stamped received by the BIR

Applicant accomplishes BIR forms 2000-OT and 1706 for DST and CGT respectively, based on the ONETT computation sheets prepared by the BIR ONETT team. The applicant files the DST return and CGT return and pays the taxes at the AAB of the Revenue District Office (Procedure 4). Upon receipt of proof of tax payment from the taxpayer/applicant, the BIR immediately issues a claim slip.

Agency: Bureau of Internal Revenue (BIR)
21 days PHP 115 constituting from: PHP 100 (certification fee) + PHP 15 (documentary tax)
6 Pay the transfer tax at the CTO

The transfer tax must be paid at the CTO not later than 60 days from the date of execution of the Deed of Absolute Sale or the notarization date thereof, whichever is earlier.
The documentation shall include:
a. Certificate Authorizing Registration from the Bureau of Internal Revenue (obtained in Procedure 5);
b. Tax clearance certificate from the Treasurer’s Office of Quezon City (obtained in Procedure 3);
c. Official receipt of the Bureau of Internal Revenue (for documentary stamp tax) (obtained in Procedure 4).

Agency: Real Estate Tax Division of the City Treasurer’s Office
1 day 0.75% of the property price (transfer tax) + PHP 125 (certificate of payment)
7 Apply for the registration with the Register of Deeds

The buyer applies for registration with the Register of Deeds. The documentation shall include:

a. Copy of deed of absolute sale;
b. Official receipt evidencing payment of transfer tax;
c. Certificate Authorizing Registration from the BIR (CAR) including official receipts for payment of DST and CGT;
d. Real property tax clearance from the City Treasurer’s Office;
e. Original copy of owner's duplicate of TCT (in the name of the seller);
f. Original or certified true copy of the latest tax declaration;
g. Notarized secretary's certificate containing resolution of the board of directors of the seller approving the sale;
h. Notarized secretary's certificate containing resolution of the board of directors of the buyer approving the sale;
i. Articles of incorporation of the buyer and by-laws; and
j. Certificate from the SEC that the articles of incorporation of the buyer have been registered.


Agency: Register of Deeds
10 days Registration fee consisting of PHP 8,796 for first PHP 1,700,000
+ PHP 90 for every PHP 20,000 or fraction thereof in excess of PHP 1,700,000
+ PHP 199.56 legal research fee (1% of the registration fee)
+ PHP 30 judicial form fee
+ PHP 3,104.37 IT fee (PHP 344.93 per document)
+ PHP 300 primary entry fee (PHP 30 per document)
+ PHP 480 registration fee for specific documents (PHP 120 per document)
+ PHP 120 fixed entry fee for specific documents (PHP 30 per document)
+ PHP 40 legal research fee for specific documents (PHP 10 per document)
+ PHP 60 annotation fee (PHP 30 per document)
+ PHP 258 fee for issuance of new transfer certificate of title
8 Obtain the new tax declaration over the building and land in the name of a buyer from the CAO

The buyer applies with the CAO for the issuance of a new tax declaration over the building in his name.
The documentation shall include:

a. Photocopy of notarized deed of sale (obtained in Procedure 1);
b. Copy of latest tax declaration (in the name of seller) (obtained in Procedure 2);
c. Tax clearance certificate of real property taxes from the CTO (obtained in Procedure 3);
d. Certificate authorizing registration from the BIR (obtained in Procedure 5);
e. Photocopy of official receipt of transfer tax payment (original copy to be presented) (obtained in Procedure 6); and
f. The transfer certificate of title (TCT) issued by the RD (in the name of the buyer) (obtained in Procedure 7).

Agency: Assessor’s Office - City Government
2 days no cost
* Takes place simultaneously with another procedure.

Explore Economy Data


- OR -

OTHER OPTIONS