Donating Land or Money to Family

The Form Rules

The Civil Code is strict about how a donation (a gift) is made. A donation that is not done the right way can be void (have no legal effect).

• Land and buildings (Article 749). The donation must be in a public document, which in practice means a notarized Deed of Donation. It must describe the property and any conditions. The donee (the person receiving) must accept, either in the same deed or in a separate notarized document, and the acceptance only counts if made while the donor (the giver) is alive. If acceptance is in a separate document, the donor must be formally told and this must be noted in both documents.
• Money and other movable things (Article 748). A donation may be spoken, not written, if the thing is handed over at the same time. If the value is over ₱5,000, the donation and the acceptance must both be in writing.

Start with the Deed of Donation template, which has the acceptance in the same deed.

Donor's Tax

Under Section 99 of the Tax Code, as amended by Republic Act No. 10963 (TRAIN):

• The rate is 6% of total gifts in a calendar year above ₱250,000.
• The ₱250,000 is per donor, per year, for all gifts combined. It is not per recipient.
• Since 2018, the rate is the same whether the gift goes to a relative or a stranger.
• The donor files BIR Form 1800 and pays within 30 days after the date of the donation.
• For land, the value is the higher of the zonal value (the BIR's value for land in the area, or the approved schedule of market values) and the fair market value in the Tax Declaration.

Example. A parent donates a lot worth ₱1,000,000 to a child, and nothing else that year. The tax is 6% of ₱750,000, or ₱45,000. Work out your own figures with the donor's tax calculator.

The city or province also charges a transfer tax on donations, as with a sale. Documentary stamp tax of ₱15 per ₱1,000 of the zonal or fair market value, whichever is higher, also applies to a Deed of Donation of real property (NIRC Sec. 196).

Government fees can change. Always check the current amount with the office before you pay. Last checked October 8, 2026.

Transferring Donated Land

1. Sign and notarize the Deed of Donation, with the donee's acceptance.
2. File and pay the donor's tax (Form 1800) within 30 days.
3. Get the eCAR (the BIR's certificate that lets the title be transferred) from the BIR office that covers the property.
4. Pay the local transfer tax at the treasurer's office within 60 days.
5. Register the deed at the Registry of Deeds to get a new title in the donee's name.
6. Transfer the Tax Declaration at the assessor's office.

The steps after the tax are the same as for a sale. See transferring a land title.

Limits on What You Can Give

• Keep enough for yourself. A donor must keep enough property to support themselves and the relatives they must support by law (Article 750).
• Compulsory heirs (family members the law says must inherit, such as children and a spouse). You cannot give away by donation more than you could give by will (Article 752). A donation that cuts into the shares the law saves for children or a spouse can be reduced later.
• Donations to children count against their inheritance. Gifts to a child are usually counted as part of their share when the property left behind is divided, unless the donor said otherwise.
• Between spouses. Under the Family Code (Article 87), donations between spouses during the marriage are void, except moderate gifts on family occasions. The same rule applies to couples living together without marriage.
• Conjugal or community property (property a married couple owns together). A married donor cannot donate property owned with their spouse without the spouse's written consent.

These rules can be hard to apply to a real family. If the gift is large or the family may argue over it, talk to a lawyer. The Public Attorney's Office gives free help to people who qualify.