Buying A Property in the Philippines: What Are the Hidden Charges 2026

What Are the Hidden fees in Purchasing a House in the Philippines

The thought of owning a house is a fulfilling feeling many Filipinos strive to achieve. Imagine having your own place, living your life on your terms, and securing your family. Buying a property, however, is not as easy as one may think. There are so many key considerations to make, including the costs of transferring the ownership under your name. So, let’s analyze the hidden fees in buying a house in the Philippines, especially for first-time buyers.

​Hidden Fees in Property Transfer

Buying a house is equivalent to taking care of financial responsibilities, including additional fees and taxes. So before you purchase a new property, make sure to consider these hidden costs not all sellers or developers make known during the buying process:

• Notarial Fee – notarization of the Deed of Absolute Sale is a requirements when buying a house. This is 1-2% of the home selling price, the higher the property price the bigger notarial fee you need to settle.
      
  
• Registration Fee – since you need to register the notarized Deed of Sale, you are also required to settle the registration fee. To find out how much you need to pay, here’s the formula: Base Fee + (Excess Value/PHP 20,000 x PHP 90), so the base fee is PHP 8,796 for the first PHP 1,700,000 selling price. The excess value is the amount that valuation exceeds from the first PHP 1,700,000 ceiling price.
      
  
• Documentary Stamp Tax – the BIR imposes this tax from the homebuyer or the investor after signing the sale contract. The buyer should settle 1.5% of the total selling price so that the property is properly documented. If not, the person buying the house may face a law suit for not settling the DST with the BIR.
      
  
• Local Transfer Tax – this fee is collected if your transferring the property from the seller to your name. The transfer tax depends on the location of the property, so the amount is equivalent to 0.75% if it’s in the city or 0.5% for properties in the province. Check with the local municipal office or City Hall to get the exact amount you need to pay.
      
  
• Move-In Fees – this is usually encountered when you buy a condo apartment in the city. Be aware that there are certain terms upon moving in to your new unit as services, facilities, and amenities don’t come for free.
  

Final Thoughts

Whether you’re buying a condo unit or a house for sale in Baguio City, make sure to be aware of the hidden charges that may come with the terms and agreements. These fees help provide residents with convenience and functionality as they move in to their new homes. If you’re currently looking for the best properties for sale in the Philippines, visit REALS.PH website today for a wide range of real estate options.