Taxes and fees when you buy a house or lot in Bacolod

When you agree on a price for a house or lot, a few taxes and fees still stand between you and a title in your name. Knowing them early keeps your budget honest.

What the seller usually pays

• Capital gains tax: 6%. It is computed on the selling price, the BIR zonal value or the fair market value, whichever is highest.
• Broker's commission. Agreed between the seller and the broker.
• Unpaid real property tax, if there is any, up to the date of sale.

What the buyer usually pays

• Documentary stamp tax: 1.5%, on the same base as the capital gains tax.
• Local transfer tax: 0.5% to 0.75%, paid at the city or provincial treasurer's office. The rate depends on the local government.
• Registration fee, paid to the Registry of Deeds. It follows a schedule and comes to roughly a quarter of one percent.
• Notarial fee for the deed of sale.

This split is custom, not law. Who pays what can be negotiated, so put it in writing before you sign.

A quick example

On a ₱5,000,000 property where the selling price is the highest of the three values:

Item	Rate	Amount
Capital gains tax (seller)	6%	₱300,000
Documentary stamp tax (buyer)	1.5%	₱75,000
Transfer tax (buyer)	0.5% to 0.75%	₱25,000 to ₱37,500
Registration fee (buyer)	about 0.25%	about ₱12,500

A buyer should set aside around 2.5% to 3% of the price for transfer costs, plus the notarial fee.

If you are taking a bank loan

Banks add their own charges: appraisal, mortgage registration, and fire and mortgage redemption insurance. Ask the bank for the full list before you apply.

Ask before you commit

Rates and rules change, and every sale has its own details. Ask us for a written computation on the property you are considering. It costs nothing to ask.