Acquiring Property in BGC: Legal Requirements and Process in the Philippines
Disclaimer: This article provides general information on Philippine real estate laws and procedures, specifically focusing on Bonifacio Global City (BGC) in Taguig. It should not be construed as legal advice. For specific questions and concerns, consult a licensed Philippine attorney or real estate professional.

1. Introduction to BGC and Its Real Estate Landscape

Bonifacio Global City (BGC) is a premier business, commercial, and residential district located in Taguig City, Metro Manila. Formerly part of the Fort Bonifacio military reservation, BGC has undergone extensive development under the supervision of the Bases Conversion and Development Authority (BCDA) and private developers. Today, it is home to modern high-rises, upscale commercial centers, and high-end residential condominiums—making it one of the most sought-after real estate locations in the Philippines.

Because BGC properties command high values and strong demand, understanding the legal requirements and processes involved in acquiring property here is crucial for prospective buyers—both Filipino and foreign.

2. Overview of Property Ownership Laws in the Philippines

2.1 Constitutional Restrictions on Foreign Ownership of Land

Under the 1987 Philippine Constitution, only Philippine citizens and Philippine-registered juridical entities (with at least 60% Filipino ownership) may own land outright. This applies throughout the country, including BGC. Consequently, foreign individuals cannot directly own land (i.e., a titled lot) in the Philippines.

2.2 Condominium Ownership for Foreigners

Notwithstanding the constitutional restriction on land, Republic Act No. 4726 (the Philippine Condominium Act) permits foreigners to own condominium units, provided that foreign ownership in a condominium project does not exceed 40% of the total project. This is often the most straightforward legal route for non-Filipinos to invest in residential property in BGC.

2.3 Long-Term Leases

Another alternative for foreign nationals who wish to enjoy land use (e.g., for a house-and-lot or commercial property) is by entering into a long-term lease. The Investor’s Lease Act (Republic Act No. 7652) and other laws allow leases up to 50 years, renewable once for a maximum of 25 years. However, this still does not confer ownership of land.

3. Types of Properties in BGC

Residential Condominiums: High-rise condo buildings dominate BGC’s skyline. Most of these developments offer premium amenities and have specific rules regarding foreign ownership in compliance with the 40% limit.
Townhouses and House-and-Lot Units (rare in BGC): A limited selection of low-rise developments or single-detached residences may be found in nearby gated enclaves like Forbes Park (outside BGC proper) or McKinley Hill. These are generally reserved for Philippine citizens or corporations majority-owned by Filipinos.
Commercial Spaces: Office units in commercial high-rises or retail spaces in mixed-use developments may be purchased in the form of condominium titles, or leased. Ownership follows the same condominium ownership rules.

4. Legal Requirements for Property Acquisition

4.1 For Filipino Citizens

Proof of Citizenship: Individuals must typically present a Philippine passport, birth certificate, or other government-issued ID.
Tax Identification Number (TIN): Required for payment of property-related taxes and fees.
Financial Documents: Banks and developers may require proof of income or financial capacity (e.g., payslips, bank statements) if seeking financing.

4.2 For Foreign Nationals

Condominium Ownership Limit: Ensure the project you are purchasing in has not exceeded the 40% foreign ownership cap.
Visa Requirements: While there is no requirement for foreigners to hold a specific visa to buy a condominium, having a valid Philippine visa (e.g., retirement visa, work visa, or tourist visa) is often required for practical matters like opening a local bank account.
Tax Identification Number (TIN): Foreign buyers must secure a TIN from the Bureau of Internal Revenue (BIR) for processing taxes and registration.
Documents Confirming Identity and Nationality: Passports, ACR I-Card (Alien Certificate of Registration), or other government-issued IDs.

4.3 Developer Accreditation and Project Registration

In the Philippines, real estate developers must be duly licensed by the Department of Human Settlements and Urban Development (DHSUD) (formerly HLURB). When buying from a developer (especially pre-selling units), verify:

License to Sell: The developer must have a valid License to Sell for the specific project.
Certificate of Registration: Ensure the project is duly registered and compliant with all local regulations.

4.4 Title Verification

For secondary market or resale properties, verifying the title is critical. The following checks are standard:

Certified True Copy of the Title (TCT or CCT): Obtain from the Register of Deeds to ensure the property is free from liens and encumbrances.
Tax Declaration and Real Property Tax Receipts: Verify that property taxes are fully paid and updated.
Encumbrances or Mortgages: Check the annotated section of the title for mortgages, adverse claims, or other encumbrances.

5. The Acquisition Process

Whether you are a Filipino citizen or a foreign national (purchasing a condominium), the steps to acquiring property in BGC generally follow the same outline:

5.1 Property Search and Due Diligence

Engage a Licensed Real Estate Broker or Lawyer: This ensures credibility and helps safeguard your interests.
Visit the Property and Review Project Details: Inspect the location, amenities, and building quality. For pre-selling units, check the developer’s track record.
Obtain Legal Documents and Verify Title: Request a certified true copy of the title, tax declarations, and other pertinent documents from the seller or developer.

5.2 Negotiation and Letter of Intent

Price and Terms: Negotiate the purchase price, payment terms, inclusions (parking spaces, furnishings, etc.), and other conditions.
Letter of Intent (LOI): A non-binding document that shows your sincere intention to buy. Typically, a reservation fee or earnest money is tendered.

5.3 Contract to Sell or Reservation Agreement

Reservation Agreement (for Pre-selling): Once you decide to purchase a pre-selling condominium unit, developers usually require you to sign a reservation agreement and pay a reservation fee.
Contract to Sell (CTS): This is a standard agreement that outlines the developer’s obligation to deliver the unit and the buyer’s obligation to pay under a certain schedule. The CTS precedes the final Deed of Absolute Sale.

5.4 Payment of Taxes and Fees

Capital Gains Tax (CGT): In the Philippines, CGT is imposed on the seller (6% of the property’s selling price or zonal value, whichever is higher). However, in practice, some sellers shift this burden onto the buyer.
Documentary Stamp Tax (DST): Normally 1.5% of the selling price or zonal value, whichever is higher, and typically borne by the buyer.
Transfer Tax: A local government tax, usually around 0.5% to 0.75% of the selling price (rates vary by location; Taguig’s may differ from other cities).
Registration Fee: Based on a graduated scale per the Land Registration Authority (LRA).

Note: Verify the specific tax rates in Taguig City, as local ordinances can adjust transfer tax percentages.

5.5 Execution of the Deed of Absolute Sale

Once all obligations under the Contract to Sell are fulfilled (e.g., final payment, clearing of taxes), the parties will execute a Deed of Absolute Sale (DOAS). This is the legal instrument transferring ownership from the seller to the buyer.

5.6 Title Transfer and Registration

Bureau of Internal Revenue (BIR) Clearance: Submit the DOAS, along with other required documents (e.g., tax returns, receipts for CGT and DST), to the BIR. The BIR will issue a Certificate Authorizing Registration (CAR) or BIR Clearance.
Local Government Transfer Tax: Pay the transfer tax at the Taguig City Treasurer’s Office.
Register of Deeds: Present the DOAS, CAR/BIR Clearance, and proof of transfer tax payment to the Register of Deeds in Taguig. Upon approval, the old title (or Certificate of Condominium Title) is canceled, and a new title is issued in the buyer’s name.
New Tax Declaration: Finally, update the property’s tax declaration at the City Assessor’s Office to reflect the new owner.

6. Special Considerations in BGC

Mixed-Use Developments: Many BGC buildings feature both commercial and residential spaces. If purchasing a commercial unit, check the building’s Master Deed and the Condominium Corporation’s rules.
Association Dues and Assessments: BGC developments often charge premium association dues, especially if the building offers high-end amenities.
Parking Spaces: Parking slots may have separate condominium certificates of title or be considered as exclusive-use common areas. Clarify ownership or assignment before purchase.
Zonal Values: BGC’s zonal values (used by the BIR for tax assessment) tend to be higher than in other Metro Manila districts, affecting CGT, DST, and transfer taxes.
Boundary Dispute (Taguig vs. Makati): Although largely settled by the courts, potential buyers should remain aware of any updates or announcements regarding local governance. Currently, BGC is under the jurisdiction of Taguig City.

7. Practical Tips for Buyers

Hire Professionals: Retain a Philippine-licensed attorney and a reputable real estate broker for due diligence and paperwork.
Check Developer Reputation (for Pre-selling): Research past projects, delivery timelines, and financial stability of the developer.
Secure Financing Early (if needed): Whether through a bank loan or in-house financing from the developer, prepare your documents in advance.
Budget for Closing Costs: Taxes, fees, and incidental expenses can add up to about 6–10% of the property price (sometimes more).
Monitor Property Management Rules: For condominiums, confirm rules regarding leasing, pets, renovations, etc.

8. Common Documents Required

Valid IDs and Proof of Citizenship (Passport, Driver’s License, etc.)
Tax Identification Number (TIN)
Contract to Sell or Reservation Agreement (from the developer)
Deed of Absolute Sale (DOAS) (for completed transactions)
Certificate of Title (Transfer Certificate of Title or Condominium Certificate of Title)
Latest Real Property Tax Receipts and Tax Declaration
Certificate Authorizing Registration (CAR) from BIR
Official Receipts for Taxes (CGT, DST, Transfer Tax)
Notarized Documents as required

9. Timeline of the Process

Property Search and Due Diligence: 1–4 weeks (can be longer if property is in secondary market).
Contract to Sell and Financing Arrangements: Several weeks to a few months.
Execution of Deed of Absolute Sale and Payment of Taxes: 1–2 weeks, assuming documents and funds are in order.
BIR Clearance and Register of Deeds Processing: Typically 2–6 weeks, though it can vary by locality.
Issuance of New Title: After the Register of Deeds completes processing, the new TCT or CCT is released.

10. Conclusion

Acquiring property in Bonifacio Global City (BGC) can be an excellent investment, given its status as a prime location for business, leisure, and upscale living. However, with premium real estate values come stringent legal requirements and higher financial stakes. Whether you are a Filipino citizen purchasing a house-and-lot or a foreigner investing in a condominium, it is essential to understand the legal framework—most notably the Philippine Constitution’s restrictions on land ownership, the Condominium Act’s 40% foreign cap, and the required taxes and fees.

A successful acquisition hinges on thorough due diligence, engagement of qualified professionals, and careful compliance with Philippine real estate laws and regulations. By following the steps outlined above, buyers can navigate the process efficiently and protect their rights and investment in one of the most dynamic real estate markets in the Philippines.

References and Relevant Laws

1987 Philippine Constitution, Article XII (National Economy and Patrimony)
Republic Act No. 4726 – The Condominium Act
Presidential Decree No. 1529 – The Property Registration Decree
Republic Act No. 7652 – Investor’s Lease Act
Department of Human Settlements and Urban Development (DHSUD) guidelines
Local ordinances of Taguig City regarding real property taxes and transfer fees
BIR Revenue Regulations on capital gains tax (CGT) and documentary stamp tax (DST)

Always consult professionals (lawyers, accredited brokers, and tax experts) to ensure compliance with current rules and regulations.