Selling cost

Selling cost

As far as selling a property is concerned, we must consider the following taxes and fees:

 

  1. Capital gains tax – 6%
  2. Documentary stamp tax – 1.5%
  3. Registration and transfer fee – 1.5% approximately (different cities may not have the same rate)
  4. Notarial fee – 1% (to be collected by the Notary Public who will notarize the Deed of Absolute Sale, however, the rate can be negotiated)
  5. Title transfer processing fee – No definite price (usually Php10,000.00 to Php20,000.00 more or less depends on the complexity of the processing work)
  6. Broker’s fee – 5% is the standard but will depend between the seller and broker
  7. Advertising fee – all depends on the agreement between the seller and broker who will shoulder what advertising fee

 

Generally, seller will shoulder the capital gains tax and broker’s fee and the buyer will shoulder the rest. However, seller and buyer can agree with each other upon who pay what cost which will affect the final selling price.

 

Raymond Ong

Global Investment Director – Land Asia Global Properties Network