Authored by the expert who managed and guided the team behind the Philippines Property Pack
Yes, the analysis of Manila's property market is included in our pack
If you are a foreigner planning to buy residential property in Manila, you need to know exactly how much extra money you will spend beyond the purchase price on taxes, fees, and professional services.
This article breaks down every cost you can expect in Manila in 2026, from government taxes and registration fees to notary charges, agent commissions, and the hidden expenses that catch most foreign buyers off guard.
We constantly update this blog post to make sure the numbers, rates, and rules reflect the latest situation in Manila's property market.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Manila.
Overall, how much extra should I budget on top of the purchase price in Manila in 2026?
How much are total buyer closing costs in Manila in 2026?
As of early 2026, most foreign buyers purchasing residential property in Manila should expect total closing costs of roughly 4% to 7% of the purchase price, which on a typical PHP 5,000,000 condo (around USD 88,000 or EUR 82,000) means about PHP 200,000 to PHP 350,000 (USD 3,500 to 6,100, or EUR 3,300 to 5,700) in additional expenses.
If you negotiate well and the seller covers all seller-side taxes, Manila buyers can sometimes get away with a bare minimum of about 2.5% to 3.5% of the price, which on that same PHP 5,000,000 property would be around PHP 125,000 to PHP 175,000 (USD 2,200 to 3,100, or EUR 2,050 to 2,870).
On the other hand, if you end up absorbing the seller's capital gains tax or buying from a developer where VAT is passed through in the pricing, your total extra costs in Manila can climb to 10% to 15% of the purchase price, or PHP 500,000 to PHP 750,000 (USD 8,800 to 13,200, or EUR 8,200 to 12,300) on that same property.
The main factors that push your Manila closing costs toward the low or high end are who pays the 6% capital gains tax (seller or buyer), whether VAT applies because the property is sold by a developer above the PHP 3,600,000 threshold, and how much you spend on legal and professional help to manage the BIR and Registry of Deeds paperwork.
What's the usual total % of fees and taxes over the purchase price in Manila?
In most standard residential transactions in Manila, the usual total percentage of fees and taxes that a buyer pays on top of the purchase price falls in the range of 4% to 7%, assuming a normal deal where the seller covers the capital gains tax.
That said, the realistic spread across Manila property transactions runs from about 2.5% at the leanest (for a straightforward resale with minimal professional fees) up to about 12% to 15% if VAT, developer-related withholding, or seller-tax absorption inflates the buyer's share.
Within that 4% to 7% typical range, roughly three-quarters goes to government-imposed charges like Documentary Stamp Tax, local transfer tax, and registration fees, while the remaining quarter covers professional services such as notary, legal review, and document processing in Manila.
By the way, you will find much more detailed data in our property pack covering the real estate market in Manila.
What costs are always mandatory when buying in Manila in 2026?
As of early 2026, the costs that are always mandatory when buying property in Manila include the Documentary Stamp Tax (about 1.5% of the property value), the local transfer tax at the Manila City Treasurer (commonly 0.75%), the Registry of Deeds registration and issuance fees (roughly 0.3% to 0.6%), and notarization of the deed of sale, because you cannot complete the BIR clearance or title transfer in Manila without settling all of these.
On top of these mandatory charges, it is highly recommended (though technically optional) that Manila property buyers also pay for an independent lawyer or conveyancer to verify the title, check for liens, confirm the seller's authority, and review the tax declarations, because skipping this step is where most expensive mistakes happen in Manila real estate.
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What taxes do I pay when buying a property in Manila in 2026?
What is the property transfer tax rate in Manila in 2026?
As of early 2026, the local property transfer tax rate in Manila is commonly budgeted at 0.75% of the property's tax base, which is calculated on the higher of the selling price, the BIR zonal value, or the local fair market value.
There is no special "foreigner surcharge" transfer tax in Manila, meaning foreign buyers pay the exact same transfer tax rate as Filipino buyers, though the bigger restriction for foreigners is what type of property they can legally own (for example, condos are allowed but land ownership is generally not).
Buyers in Manila may also face Value Added Tax (VAT) on residential property purchases, but only when the seller is VAT-registered and the property's selling price exceeds the PHP 3,600,000 threshold set under BIR Revenue Regulations No. 1-2024, and in practice developers often include VAT in the listed price rather than adding it on top.
The main "stamp duty" equivalent in Manila is the Documentary Stamp Tax (DST), which is about 1.5% of the property value and must be paid as part of the BIR one-time transaction process before you can register the title in your name.
Are there tax exemptions or reduced rates for first-time buyers in Manila?
The Philippines does not currently offer a Manila-specific first-time buyer tax exemption or reduced transfer tax rate like you would find in some other countries, so all buyers in Manila pay the same rates regardless of whether it is their first property or their fifth.
If you buy property in Manila through a company instead of as an individual, the tax treatment can change significantly because the property may be classified as an "ordinary asset" rather than a "capital asset," which means withholding tax mechanics and different filing requirements apply through the BIR.
There is also a practical tax difference between buying a new-build property from a Manila developer versus a resale unit from an individual, because developer sales are more likely to involve VAT (if the price exceeds PHP 3,600,000) and creditable withholding tax, while a straightforward resale between individuals usually follows the simpler pattern of DST, local transfer tax, and seller-paid capital gains tax.
Since there is no formal first-time buyer relief program in Manila, the only real "exemption" most buyers benefit from is the VAT-exempt threshold for residential properties priced below PHP 3,600,000, and you do not need to file any special application to qualify for it because the exemption is automatic based on the sale price.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the Philippines versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you’re planning to invest there.
Which professional fees will I pay as a buyer in Manila in 2026?
How much does a notary or conveyancing lawyer cost in Manila in 2026?
As of early 2026, hiring a notary for the deed of sale and supporting documents in Manila typically costs between PHP 5,000 and PHP 30,000 (about USD 90 to 530, or EUR 80 to 490), while a conveyancing lawyer who handles the full transfer process usually charges between 0.1% and 0.5% of the purchase price or a negotiated flat fee.
Notary fees in Manila can be charged either as a flat rate for lower-value transactions or as a percentage of the property price for more expensive deals, and the exact schedule depends on locally approved rates under the Supreme Court's 2004 Rules on Notarial Practice.
If you are a foreign buyer who needs translation or interpreter services in Manila, you should budget roughly PHP 2,000 to PHP 8,000 per session (about USD 35 to 140, or EUR 33 to 130) for an interpreter, or about PHP 300 to PHP 800 per page (USD 5 to 14, or EUR 5 to 13) for document translation, with higher rates for notarized or legalized translations.
A tax advisor is not strictly required in Manila, but if your purchase involves a developer sale, VAT questions, or cross-border tax planning, you should budget PHP 15,000 to PHP 60,000 (about USD 260 to 1,050, or EUR 245 to 980) for a straightforward advisory and document review.
We have a whole part dedicated to these topics in our our real estate pack about Manila.
What's the typical real estate agent fee in Manila in 2026?
As of early 2026, the typical real estate agent commission in Manila is around 3% to 5% of the purchase price, and on a PHP 5,000,000 property (about USD 88,000 or EUR 82,000), that works out to roughly PHP 150,000 to PHP 250,000 (USD 2,600 to 4,400, or EUR 2,450 to 4,100).
In most Manila residential transactions, the seller is the one who pays the agent's commission, but if you hire your own dedicated buyer's agent (which is common for foreign buyers who want extra guidance), you may need to pay a separate fee or agree to a commission split arrangement.
The realistic range for agent fees in Manila runs from about 3% on the low end for a straightforward resale deal to 5% or sometimes higher for off-plan or developer projects where the agent also handles extensive paperwork and coordination on your behalf.
How much do legal checks cost (title, liens, permits) in Manila?
In Manila, a basic package of legal checks including a title search at the Registry of Deeds, verification of liens and encumbrances, and review of tax declarations typically costs between PHP 10,000 and PHP 35,000 (about USD 175 to 615, or EUR 165 to 575), while a more thorough review for houses or land that also covers permits, boundaries, and occupancy issues can run PHP 25,000 to PHP 80,000 (USD 440 to 1,400, or EUR 410 to 1,310).
If your Manila lender requires a professional appraisal, the property valuation fee usually costs PHP 5,000 to PHP 20,000 (about USD 90 to 350, or EUR 80 to 330) for a condo, or PHP 10,000 to PHP 50,000 (USD 175 to 880, or EUR 165 to 820) for a house-and-lot because of the added complexity.
The single most critical legal check you should never skip in Manila is the title verification at the Registry of Deeds, because this is the only way to confirm that the seller actually owns the property, that there are no hidden liens or adverse claims, and that the title is not forged or encumbered.
Buying a property with hidden issues is something we mention in our list of risks and pitfalls people face when buying real estate in Manila.
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What hidden or surprise costs should I watch for in Manila right now?
What are the most common unexpected fees buyers discover in Manila?
The most common unexpected fees that buyers discover in Manila include tax base surprises (where the BIR computes your taxes on the zonal or assessed value instead of your negotiated lower price), unpaid condo association dues or special assessments left behind by the seller, document production costs like certified true copies and notarized affidavits, and delay-related expenses when missing a BIR filing step forces repeat visits or triggers penalties.
Yes, you can inherit unpaid real property taxes in Manila, because if the seller has not settled their annual RPT obligations, the outstanding balance effectively becomes your problem to resolve before you can cleanly operate or resell the property, so always ask for proof of updated tax payments before closing.
Scams involving fake listings or inflated fees do happen in Manila, and the most common pattern is being pressured to pay a "reservation fee" or deposit before seeing verified documents like the original title, tax declarations, or proof that the seller has the legal authority to sell.
The fees that are usually not disclosed upfront by sellers or agents in Manila include condo move-in and move-out fees, renovation deposit bonds, small Registry of Deeds certification charges, and the cost of fixing or obtaining missing documentation that should have been the seller's responsibility.
In our property pack covering the property buying process in Manila, we go into details so you can avoid these pitfalls.
Are there extra fees if the property has a tenant in Manila?
If you buy a tenanted property in Manila, you should expect extra costs of roughly PHP 5,000 to PHP 30,000 (about USD 90 to 530, or EUR 80 to 490) to cover notice coordination, turnover documentation, deposit reconciliation, and any condo admin fees for change of occupant endorsements.
When you purchase a tenanted property in Manila, you legally inherit the existing lease agreement, which means you must honor its terms (including the rental rate, deposit arrangements, and lease duration) until the contract naturally expires.
You generally cannot terminate an existing lease immediately after purchase in Manila, because Philippine rental law protects the tenant's right to stay for the duration of the lease, and early termination typically requires mutual agreement, a valid legal ground, or a court order.
A sitting tenant in Manila can actually work in your favor during negotiations because some buyers see it as a hassle, which gives you leverage to negotiate a lower price, while other investors consider a paying tenant an advantage since it means immediate rental income from day one.
If you want to optimize your rental strategy, you can read our complete guide on how to buy and rent out in Manila.
We have made this infographic to give you a quick and clear snapshot of the property market in the Philippines. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which fees are negotiable, and who really pays what in Manila?
Which closing costs are negotiable in Manila right now?
In Manila, the closing costs you can usually negotiate include who pays the 6% capital gains tax, who covers the local transfer tax, the notary and legal fees, and how the real estate agent's commission is split between buyer and seller.
The closing costs that are fixed by law and cannot be negotiated in Manila include the Documentary Stamp Tax rate (1.5%), the Registry of Deeds registration fees computed by the LRA, and the City Treasurer's transfer tax computation, because these are government-set charges that apply regardless of what the parties agree to.
In practice, Manila buyers can realistically save 3% to 6% of the total deal value by successfully negotiating the capital gains tax onto the seller's side (where it legally belongs in most cases) and by shopping around for competitive notary and legal fees.
Can I ask the seller to cover some closing costs in Manila?
In Manila's residential market, it is quite common for buyers to ask sellers to cover certain closing costs, and many sellers will agree, especially in a buyer-friendly market or when the property has been listed for a while.
The specific closing costs that Manila sellers are most commonly willing to cover are the capital gains tax (which is legally the seller's obligation in most resale transactions) and the broker's commission, while DST and transfer tax are more often pushed to the buyer side by convention.
Sellers in Manila are more likely to accept covering closing costs when there is high inventory in the area (for example, in oversupplied condo buildings in Makati, BGC, or Ortigas), when the property has been on the market for several months, or when you can demonstrate you are a serious buyer ready to close quickly.
Is price bargaining common in Manila in 2026?
As of early 2026, price bargaining is very much a normal part of buying residential property in Manila, especially in the resale condo market where listing prices almost always include a margin for negotiation.
In most Manila resale transactions, buyers typically negotiate about 3% to 8% below the asking price, which on a PHP 5,000,000 property (about USD 88,000 or EUR 82,000) means a discount of roughly PHP 150,000 to PHP 400,000 (USD 2,600 to 7,000, or EUR 2,450 to 6,550), with even bigger reductions possible when the unit has been listed for a long time or has known issues.
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What monthly, quarterly or annual costs will I pay as an owner in Manila?
What's the realistic monthly owner budget in Manila right now?
For a typical condo owner in Manila, a realistic monthly budget for all recurring ownership costs (excluding any mortgage payment) is roughly PHP 8,000 to PHP 25,000 per month (about USD 140 to 440, or EUR 130 to 410), depending on the size and quality of the building.
The main recurring expense categories that make up this monthly budget in Manila are condo association dues (your biggest predictable line item), utilities like electricity, water, and internet, and any sinking fund or building maintenance levies that the condo corporation charges separately.
The realistic low-to-high range for monthly owner costs in Manila runs from about PHP 5,000 per month (USD 88, EUR 82) for a small studio in a basic building to PHP 40,000 or more per month (USD 700, EUR 655) for a large unit in a premium high-rise in Makati, BGC, or Rockwell.
The monthly cost that tends to vary the most in Manila is the electricity bill, because air conditioning in Manila's tropical climate can easily double or triple your power costs depending on usage, the unit's insulation, and whether you have energy-efficient appliances.
You can see how this budget affect your gross and rental yields in Manila here.
What is the annual property tax amount in Manila in 2026?
As of early 2026, the annual real property tax (RPT) in Manila can be up to 3% of the assessed value of your property (2% basic RPT plus 1% Special Education Fund), and for a condo with an assessed value of PHP 1,000,000 (about USD 17,500 or EUR 16,400), that means an annual bill of roughly PHP 30,000 (USD 530, EUR 490).
The realistic range for annual property taxes in Manila runs from about PHP 5,000 to PHP 10,000 (USD 90 to 175, EUR 80 to 165) per year for a modest studio unit to PHP 50,000 to PHP 150,000 (USD 880 to 2,600, EUR 820 to 2,450) or more per year for a high-value house-and-lot or large luxury condo.
Property tax in Manila is calculated based on the assessed value (not the market value or purchase price), which is determined by applying the city's assessment level percentage to the fair market value listed on the property's tax declaration, so the actual peso amount is usually much lower than you might expect from the percentage rates alone.
Some property owners in Manila may qualify for reductions such as early payment discounts offered by the City Treasurer (typically around 10% to 20% off if you pay the full year in January), and certain special categories of property may have different assessment levels, but there is no blanket property tax exemption for residential homeowners.
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the Philippines. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
If I rent it out, what extra taxes and fees apply in Manila in 2026?
What tax rate applies to rental income in Manila in 2026?
As of early 2026, rental income from property in Manila is subject to Philippine income tax, which for resident individuals means graduated rates from 0% up to 35% depending on your total taxable income, and for non-resident foreign owners is commonly applied as a flat 25% withholding rate on gross Philippine-sourced rental income.
Resident landlords in Manila can generally deduct legitimate expenses like condo dues, property taxes, repairs, depreciation, and management fees from their rental income, though the available deductions depend on how you are registered with the BIR (for example, the optional 8% flat income tax rate limits your deduction options).
After deductions, the realistic effective tax rate for a typical resident landlord earning moderate rental income in Manila often lands between 10% and 25%, while non-resident foreign owners face a higher effective rate because the 25% flat rate applies to gross income with limited deduction options.
Foreign property owners in Manila do pay a different rental income tax rate than residents, because non-resident aliens not engaged in trade or business in the Philippines are typically taxed at a flat 25% on gross rental income, compared to the graduated rates (up to 35%) available to residents who can also reduce their effective rate through expense deductions.
Do I pay tax on short-term rentals in Manila in 2026?
As of early 2026, short-term rental income in Manila (for example, from Airbnb or similar platforms) is fully taxable and also brings extra compliance costs including BIR registration, issuance of official receipts, periodic tax filings, and potentially percentage tax or VAT depending on your annual gross receipts.
Short-term rental income in Manila is not taxed at a different rate than long-term rental income, but the practical difference is that short-term rentals trigger more frequent filing obligations and additional registration requirements, which means higher accounting and compliance costs even if the tax rate itself is the same.
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If I sell later, what taxes and fees will I pay in Manila in 2026?
What's the total cost of selling as a % of price in Manila in 2026?
As of early 2026, the total cost of selling a residential property in Manila typically runs about 8% to 12% of the sale price, with the bulk of that going to the capital gains tax and the broker's commission.
The realistic low-to-high range for total selling costs in Manila is about 7% at the lean end (if you sell without a broker and manage paperwork yourself) up to 14% or more if you use a full-service agent and absorb all closing costs to attract a buyer.
The specific cost categories that make up a typical Manila sale include the capital gains tax (6%), the real estate agent's commission (3% to 5%), notary and documentation fees, and any outstanding property taxes or condo dues that must be settled before transfer.
The single largest cost when selling property in Manila is almost always the 6% capital gains tax, which alone accounts for more than half of total selling expenses in a standard transaction.
What capital gains tax applies when selling in Manila in 2026?
As of early 2026, the capital gains tax on the sale of real property classified as a capital asset in Manila is a flat 6%, computed on the higher of the selling price, the BIR zonal value, or the fair market value appearing on the tax declaration.
There are limited exemptions to capital gains tax in Manila, such as a one-time exemption for the sale of a principal residence if the proceeds are fully used to purchase a new principal residence within 18 months, but qualifying requires strict documentation and advance BIR coordination.
Foreigners do not pay an extra or different capital gains tax rate when selling property in Manila, because the same flat 6% rate applies regardless of the seller's nationality, though non-resident sellers may face additional paperwork and withholding requirements.
The capital gain in Manila is not calculated as "sale price minus purchase price" the way it works in many other countries; instead, the 6% tax is simply applied to the gross selling price (or the higher zonal/assessed value), with no deduction for the original purchase cost, improvements, or inflation adjustment.
We made this infographic to show you how property prices in the Philippines compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It’s an easy way to spot where you might get the best value for your money. We hope you like it.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Manila, we always rely on the strongest methodology we can ... and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why we trust it | How we used it |
|---|---|---|
| Bureau of Internal Revenue (BIR) - Capital Gains Tax | It is the official Philippine tax authority on property capital gains. | We used it to anchor what tax is triggered on a Manila property sale and who is legally responsible. We then separated the legal rule from the practical negotiation of who actually pays. |
| BIR - Zonal Values Portal | It is the official reference for BIR zonal values used as a tax base floor. | We used it to explain why Manila property taxes use the higher of price, zonal, or fair market value. We also flagged the risk that an undervalued contract can still raise your tax base. |
| Republic Act 7160 (Local Government Code) | It is the primary legal text for local transfer tax and property tax rules. | We used it to anchor the statutory ceilings for local transfer tax and real property tax in Metro Manila. We then applied Manila-specific practice to estimate practical rates and budgets. |
| BIR - RMC No. 28-2025 (eCAR/ONETT Processing) | It is a BIR issuance clarifying the processing pathway for property sales. | We used it to explain why professional help with BIR steps is commonly needed in Manila. We also identified timeline delays as a real cost driver for Manila buyers. |
| Manila Bulletin (RR No. 1-2024 Report) | It cites the BIR regulation updating the VAT-exempt threshold for residential sales. | We used it to set a 2026-relevant benchmark for when VAT applies to Manila property sales. We translated this into a practical rule for buyers to check their contracts. |
| Bureau of Local Government Finance (BLGF) | It is the national oversight body for local government finance guidance. | We used it to confirm that transfer tax is administered at the local level in Manila. We also used it to support our recommendation to always verify the City Treasurer computation. |
| Land Registration Authority - Circular No. 06-2025 | It is a current LRA circular clarifying how registration fees are determined. | We used it to explain why Registry of Deeds fees are based on official values, not just the negotiated price. We used it to justify our conservative registration fee budget range. |
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