Getting an apartment for rent in Makati or any other city in the Philippines can be relatively painless once all the necessary paperwork is done. The Philippine real estate market is not a friendly one for foreigners looking to own actual land. Renting an apartment is fine, as is renting a house, though the latter is rare in the country. However, it is illegal to sell property to foreign nationals barring certain exceptions or loopholes. While attempts to amend this law have occurred, they have so far failed and it is still impossible for a foreign citizen to own something like a Makati house, which means that he will still need to pay for rent in Makati if he chooses to live there.
Common exceptions
There are exceptions to these rules. Not every foreigner in the Philippines is restricted to renting an apartment for living space. One of the loopholes applies if the property was acquired before the 1935 constitution, though this means the exception is limited to foreign families or businesses that have owned property in the Philippines since that time. It is also possible to own a Makati condo or house if the foreigner acquires the land through inheritance. This applies to natural heirs, such as spouses or children. It also covers legal heirs – those who inherit according to legally recognized last testaments.
Condo units
For those who prefer buying a condo over renting an apartment, there is also an applicable exception. Foreigners are allowed to own condominium property within one given limitation: they do not purchase or control more than 40% interest in a given project. For most, this is interpreted as allowing them to own a unit in a given condo tower, and possibly more. In an interesting loophole, there are some townhouses and detached units that are listed as condominiums. The law currently holds these as condo units, and thus allows foreigners to own them.
Former citizens
Filipino citizens who have acquired foreign citizenship are also allowed to own property as an exception to the rules, though within certain limits. They are allowed up to 1,000 square meters of residential land and one hectare of agricultural land. This means that they do not need to consider renting an apartment or purchasing a condo. Note that this applies only to those who were natural-born Filipinos, and not foreigners who acquired Filipino citizenship and later lost it.
It can be exceedingly difficult for a foreigner to own property in the Philippines, even with these exceptions. However, developers and expatriates alike are known to purchase detached units, townhouses, and condos thanks to the legal exceptions. It is sometimes far from ideal, but it is an effective way to avoid renting an apartment.
