Capital gains tax in the Philippines 2026: rates by asset and legal savings

Last reviewed: November 2026 · Reviewed by Stéphane Gombauld, tax expert, technologist and digital nomad

You are selling a condo, exiting a startup, trimming a stock portfolio or cashing out crypto with a Philippine link. This guide shows what each sale costs in 2026, how your taxpayer category changes the answer, and which exemptions survive the 2025 capital markets reform.

Philippines capital gains tax in 2026: the key figures

What changed for 2026

• Stock transaction tax cut to 0.1%. The Capital Markets Efficiency Promotion Act (CMEPA, Republic Act No. 12214, approved 29 May 2025) lowered it from 0.6%. The Department of Finance marked its effectivity on 1 July 2025, so 2026 is the first full year at the new rate.
• The 15% now names foreign shares too. Amended Sec. 24(B)(3) covers shares "in a domestic or foreign corporation" not sold through an exchange subject to the stock transaction tax.
• Funds lost their stamp duty. Mutual fund and UITF units are now exempt from documentary stamp tax, and their redemption gains stay excluded from income, per RA 12214 on Lawphil.
• One interest rate. Interest on deposits and deposit substitutes is taxed at a single 20% final rate for individuals, whatever the term. Non-resident aliens not in business pay 25%.

Is this guide for you?

Read on if you…

• own property, shares or crypto with a Philippine connection and plan to sell in 2026;
• are a founder or employee holding equity in a Philippine company;
• are a Filipino returning home, or a foreigner living there, and need to know which gains the BIR can reach.

Probably not your case if you…

• sell property as a developer or dealer, which is ordinary business income, not capital gains;
• are a foreign national with no Philippine assets at all; your foreign gains are outside Philippine tax.

How does the Philippines tax capital gains?

The National Internal Revenue Code (NIRC) splits property into capital assets (investments you hold) and ordinary assets (stock-in-trade or property used in your business). Only capital assets get the special rules below.

Two capital assets get flat final taxes, one-off charges that settle the liability outside your annual income: Philippine real property and shares not traded on an exchange. Everything else stays in your graduated income.

Your taxpayer category decides the reach. Under Sec. 23 of the Tax Code, resident citizens are taxed on worldwide income. Non-resident citizens and all aliens, resident or not, pay only on Philippine-source income. Two source rules matter here:

• Gains on real property located in the Philippines are Philippine-source.
• Gains on shares of a domestic corporation are Philippine-source "regardless of where the said shares are sold" (Sec. 42 NIRC).

The categories themselves are explained in our guide to obtaining tax residency in the Philippines.

How much tax do you pay when you sell property?

The 6% final tax

Selling land, a house or a condo that you hold as a capital asset triggers a 6% tax. The base is the gross selling price or the current fair market value, whichever is higher (Sec. 24(B)(4) of the Tax Code, BIR). Fair market value means the BIR zonal value or the assessor's value under Sec. 6(E).

Here's the catch: the gain is presumed, so you owe the tax even if you sell at a loss. You file within 30 days after each sale. Sales to the government are the exception: you may choose graduated rates instead.

Other costs on a sale

Documentary stamp tax (DST) is PHP 15 for every PHP 1,000 of consideration or value, so 1.5% (PwC summary, secondary). Local transfer tax and registration fees also apply; rates vary by city or province, so ask the local treasurer.

The principal residence exemption

Selling your own home is exempt if you use the full proceeds to buy or build a new principal residence within 18 calendar months. The conditions are strict:

1. Notify the BIR within 30 days of the sale through the prescribed return.
2. Carry your old cost basis over to the new home.
3. Use the exemption no more than once every ten years.

Spend only part of the proceeds and the 6% applies to the unused portion, in proportion.

Foreigners and non-resident Filipinos

The 6% applies to every individual seller, resident or not, because the property sits in the Philippines and the gain is Philippine-source. Moving abroad before the sale changes nothing.

How much tax do you pay when you sell shares?

Unlisted shares: 15% of the net gain

Shares sold outside a stock exchange carry a 15% final tax on the net capital gain: price minus cost and selling expenses. CMEPA extended the wording to shares of foreign corporations. You file within 30 days of each sale, plus a consolidated return by 15 April of the following year.

Founders, take note. Under Sec. 100 NIRC, selling below fair market value turns the shortfall into a deemed gift. Donor's tax is 6% of gifts above PHP 250,000 a year (Sec. 99). A bona fide, arm's-length sale in the ordinary course of business is safe. Keep a valuation file for every secondary sale.

Listed shares: 0.1% stock transaction tax

Shares sold through the Philippine Stock Exchange are outside the 15% regime. The seller pays a stock transaction tax, a levy on the gross price, at 0.1% under amended Sec. 127(A). It is due whether you gained or lost. Check the BIR's CMEPA page for the implementing regulations before you file.

Shares of a domestic company traded on a foreign exchange bear the same 0.1% under Sec. 127(B).

Foreign shares

For aliens and non-resident citizens, gains on foreign shares sold abroad are foreign-source and untaxed. Resident citizens are taxed worldwide, and amended Sec. 24(B)(3) now names foreign shares. Read literally, a resident citizen selling foreign shares outside a stock-transaction-taxed exchange pays 15% on the net gain. How the BIR treats foreign-listed shares under this wording is not spelled out in the Act; check the latest CMEPA revenue regulations before you sell.

How are crypto and other assets taxed?

Crypto, bonds, art, collectibles and foreign real property have no dedicated final tax. If you hold them as capital assets, the gain joins your taxable income at the 2026 graduated rates (Sec. 24(A)(2)):

Two rules from Sec. 39 soften this for individuals:

• Holding period. Held more than 12 months, only 50% of the gain or loss counts. Twelve months or less, 100%.
• Losses. Capital losses offset only capital gains. A net capital loss, up to that year's net income, carries over to the next year only.

Trading as a business changes the picture: gains become ordinary business income. The detail is in our guide to cryptocurrency taxes in the Philippines.

Residents versus non-residents: who pays what?

Non-resident aliens pay the same 6% and 15% final taxes (Sec. 25(B)). A tax treaty may change the share rules, so check yours.

There is no exit tax on individuals in the Code. Changing category before a large foreign-asset sale is therefore a timing question, covered in our guide to ceasing your tax residency in the Philippines.

How can you pay less, legally?

• Reinvest home-sale proceeds within 18 months and notify the BIR within 30 days.
• Hold non-final-tax assets over 12 months to halve the taxable gain.
• Match losses with gains in the same or the next year; the carry-over lasts one year.
• Use funds for long-term equity exposure; redemption gains are excluded if final taxes were withheld on the underlying assets (Sec. 32(B)(7)(h)).
• Price related-party share sales at fair value to avoid a 6% donor's tax layer.

Common mistakes (and what they cost)

• Under-declaring the deed price. The 6% runs on the higher of price or fair market value anyway. A false return also exposes you to a 50% surcharge under Sec. 248(B).
• Missing the 30-day filing window. Late filing adds a 25% surcharge (10% for micro and small taxpayers) plus interest at double the legal rate, currently 12% a year. See tax fraud regulations of the Philippines.
• Selling founder shares at par to a co-founder. The discount to fair value becomes a deemed gift taxed at 6%, on top of any 15% on the gain.
• Skipping the 30-day notice on a home sale. The exemption depends on it; losing it costs the full 6%.
• Budgeting crypto at 15%. Crypto gains are ordinary income for individuals, up to 35% at the top bracket.

Frequently asked questions

What is the capital gains tax rate in the Philippines?

It depends on the asset. Real property held as a capital asset: 6% of the higher of selling price or fair market value. Shares not sold through an exchange: 15% of the net gain. Exchange-listed shares: a 0.1% stock transaction tax on the price since 1 July 2025. Crypto, bonds and other capital assets: graduated income tax of 0–35%, with half the gain excluded after 12 months.

Who pays capital gains tax in the Philippines, buyer or seller?

The law imposes the 6% and the 15% on the seller, the person who realises the gain. Deeds sometimes shift taxes to the buyer by contract, but that is a private arrangement. If the tax goes unpaid, the BIR pursues the taxpayer named by law. Settle who pays what in writing before signing.

Is selling your house in the Philippines taxed?

Yes, at 6% of the higher of price or fair market value, unless the principal residence exemption applies. You must reinvest the full proceeds in a new principal residence within 18 months, notify the BIR within 30 days, carry over your cost basis, and not have used the exemption in the past ten years. Partial reinvestment gives partial relief.

How are stock market gains taxed in the Philippines in 2026?

Shares sold through the Philippine Stock Exchange bear only the stock transaction tax, cut to 0.1% of the gross selling price from 1 July 2025 under CMEPA. No further income tax applies to the gain. Shares sold off-exchange fall under the 15% final tax on net gain instead.

Do foreigners pay capital gains tax in the Philippines?

On Philippine assets, yes. A foreigner pays 6% on Philippine real property and 15% on unlisted shares of a Philippine company, wherever the shares are sold. Listed shares bear the 0.1% stock transaction tax. Gains on foreign assets are foreign-source and not taxed for aliens. A tax treaty can reduce the share rules for treaty residents.

Is there an exit tax when leaving the Philippines?

The Tax Code contains no exit tax on individuals who stop being resident. What matters is your category on the date of each sale. Philippine real property and domestic company shares stay taxable after you leave, because their gains are Philippine-source. Neighbours differ: compare capital gains tax in Hong Kong and capital gains tax in Sri Lanka.

Related guides

• How cryptocurrency gains are taxed in the Philippines
• Stamp duty, VAT and other specific taxes in the Philippines
• Leaving the Philippines: ceasing your tax residency
• Choosing a legal form of business in the Philippines
• Philippines tax system overview
• Capital gains tax in Hong Kong
• All country tax guides

Sources

• National Internal Revenue Code of 1997, as amended – Bureau of Internal Revenue
• Capital Markets Efficiency Promotion Act (CMEPA) – Bureau of Internal Revenue
• Republic Act No. 12214 (CMEPA) – Lawphil
• CMEPA effectivity, 1 July 2025 – Department of Finance
• CMEPA cuts transaction costs – Department of Finance
• Republic Act No. 8424 (Tax Reform Act of 1997) – Lawphil
• Philippines: other taxes – PwC Worldwide Tax Summaries (secondary)

This guide is general information, not personalised tax advice. See how we research and review.