Yes, capital gains tax (CGT) generally applies to the sale of real property classified as a capital asset in the Philippines. The rate is 6% of the gross selling price or zonal value, whichever is higher. However, there is a one-time exemption under Section 24(D)(2) of the NIRC: if the proceeds are fully used to acquire or construct a new principal residence within 18 months from the date of sale, and the BIR is notified within 30 days of the sale, you may be exempt from CGT on that transaction. This exemption can only be availed once in a lifetime. If you missed the notification requirement or the 18-month window, the CGT would be due. A CPA-Lawyer can help you assess eligibility and manage the BIR process.