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The Hidden Costs: CGT, DST, and Transfer Taxes Explained

The Hidden Costs: CGT, DST, and Transfer Taxes Explained

Don’t Let the Taxman Surprise You. Winning the bid is Step 1. Transferring the title is Step 2. And Step 2 costs money. Many beginners budget for the house but forget the government. Who Pays What? In a standard Bank Auction: The “All-In” Calculation As a rule of thumb, add 3.5% – 4.0% on top […]

Don’t Let the Taxman Surprise You.

Winning the bid is Step 1. Transferring the title is Step 2. And Step 2 costs money. Many beginners budget for the house but forget the government.

Who Pays What?

In a standard Bank Auction:

  • CWT/CGT (Creditable Withholding Tax / Capital Gains Tax): Usually paid by the SELLER (Bank). Check the specific asset conditions!
  • DST (Documentary Stamp Tax): 1.5% of the Price. Usually paid by BUYER.
  • Transfer Tax: ~0.5% – 0.75% (Depends on City). Paid by BUYER.
  • Registration Fee: ~0.25%. Paid by BUYER.

The “All-In” Calculation

As a rule of thumb, add 3.5% – 4.0% on top of your winning bid for taxes and fees. If you bid 1.0M, have 40k extra ready for the paperwork.

We Guide You

PropertyAuctions.ph provides a Sample Computation for every asset. We don’t hide the fees. We help you budget for them.