Below is a comprehensive overview of condominium ownership by foreign nationals in the Philippines—with a focus on Makati City—and the Special Resident Retiree’s Visa (SRRV) application process under Philippine law. This article explains the legal framework, step-by-step procedures, and practical considerations for those looking to invest in residential condominium units and secure long-term resident status in the country.

1. Introduction

Makati City, often referred to as the financial hub of the Philippines, is a prime location for real estate investments. Due to its modern infrastructure, thriving business climate, and cosmopolitan lifestyle, Makati attracts foreign nationals seeking both property ownership and residency in the Philippines.

Two key considerations arise for foreigners looking to settle or invest in Makati:

Condo Purchase – Foreign ownership of Philippine real estate is heavily regulated, but specific provisions allow foreigners to own condominium units under certain conditions.
SRRV Application – The Special Resident Retiree’s Visa (SRRV) provides eligible foreign nationals with long-term residency status, offering benefits such as indefinite stay and multiple-entry privileges.

Understanding the Philippine legal framework governing these areas is crucial for a seamless, compliant, and secure investment.

2. Legal Basis for Foreign Condo Ownership

2.1 Constitutional Restrictions on Foreign Ownership

The 1987 Philippine Constitution restricts foreign ownership of land. Generally, only Filipino citizens and corporations that are at least 60% Filipino-owned are permitted to own land outright. However, Republic Act No. 4726 (the Condominium Act) creates an exception for condominium units. Under this law:

Foreigners may legally own condominium units, provided that foreign equity in any condominium project does not exceed 40%.
Ownership of a condominium unit is distinct from ownership of the land on which the condominium is built. The land is owned by the condominium corporation, which must remain at least 60% Filipino-owned.

2.2 Checking Foreign Ownership Ratios

Before purchasing, a foreign buyer must confirm that the 40% foreign ownership limit in the specific condominium project has not yet been reached. Developers or property managers can typically provide a certification or statement regarding the current ownership ratio.

2.3 Other Relevant Legal Provisions

Anti-Dummy Law (Commonwealth Act No. 108) – Prohibits schemes intended to circumvent foreign ownership restrictions. Foreigners should ensure they do not enter into illegal nominee arrangements.
Local Government Compliance – Makati City’s local ordinances and regulations must be observed, particularly concerning realty taxes, zoning, and building codes.

3. The Process of Purchasing a Condo in Makati

3.1 Preliminary Steps

Engage a Reputable Agent or Lawyer
Work with a licensed real estate broker or legal counsel familiar with Philippine property law to mitigate risks.
Property Due Diligence
- Verify the property developer’s credentials, license to sell (issued by the Department of Human Settlements and Urban Development, formerly HLURB).
- Check the condominium corporation’s bylaws and ensure foreign ownership allowances remain available.
Property Inspection and Comparison
- Evaluate location, accessibility, amenities, and price.
- Compare several options to find the best value and compliance with your requirements.

3.2 Document Preparation and Execution

Letter of Intent or Reservation Agreement
- Express your intention to buy and possibly place a reservation fee.
Contract to Sell (CTS)
- Once final terms are agreed, sign the CTS, which spells out payment schedules and obligations.
Deed of Absolute Sale
- Executed upon full payment or upon reaching a certain milestone (e.g., turnover).
- Must be notarized for legal effect and future registration with the Registry of Deeds.

3.3 Taxes and Fees

Capital Gains Tax (CGT) or Creditable Withholding Tax (depending on the seller) – Generally 6% of the selling price or the zonal value, whichever is higher.
Documentary Stamp Tax (DST) – 1.5% of the selling price or zonal value, whichever is higher.
Transfer Tax – Approx. 0.5%–0.75% of the property value (varies by local government unit, Makati sets its own rate).
Registration Fees – Based on a sliding scale set by the Land Registration Authority (LRA).

Note that tax liabilities can be negotiated between buyer and seller, but the typical practice is for the seller to cover CGT and the buyer to handle DST, transfer tax, and registration fees.

3.4 Condominium Certificate of Title (CCT)

After full payment and proper documentation, the buyer receives a Condominium Certificate of Title (CCT) in their name. This CCT is proof of ownership of the condominium unit itself.

4. Special Resident Retiree’s Visa (SRRV) Overview

The SRRV is a long-term visa offered by the Philippine Retirement Authority (PRA) under the Bureau of Immigration. It grants foreign retirees the right to reside in the Philippines indefinitely with multiple-entry privileges. Although commonly associated with retirees, the SRRV is available to qualified foreign nationals starting at the age of 35.

4.1 Types of SRRV

SRRV Smile
- Requires a time deposit of USD 20,000 in a Philippine bank.
- No provision to invest the deposit in real estate; the amount remains locked for the duration of the visa.
SRRV Classic
- Allows conversion of part of the required deposit into an active investment (e.g., purchase of a condominium).
- Deposit requirements vary with age:
  - Age 35 to 49: USD 50,000
  - Age 50 and above: USD 10,000 or USD 20,000 (depending on pension requirements)
SRRV Courtesy / Expanded Courtesy
- For former Filipinos and foreign nationals who have served in the Philippines (diplomats, etc.).
- Lower deposit requirements.

4.2 Key Benefits of SRRV

Indefinite Stay – No need for constant visa renewals; holders can come and go freely.
Multiple-Entry Privileges – Unlimited entry and exit from the country.
Tax Exemptions – Tax-free import of personal effects up to a certain value, and other PRA-member privileges.
Access to Government Services – Easier procedures for driver’s license, Alien Certificate of Registration (ACR I-Card), and local bank accounts.

5. Requirements and Steps to Apply for an SRRV

5.1 Eligibility Requirements

Age Requirement: Minimum of 35 years old.
No Criminal Record: Must present a police clearance from the applicant’s country of origin or last residence.
Medical Examination: A duly accomplished medical certificate that the applicant is physically fit.
Visa Deposit: The specified deposit amount in a Philippine bank accredited by the PRA.

5.2 Documentation Checklist

SRRV Application Form (provided by PRA).
Valid Passport (original and photocopies).
Police Clearance / NBI Clearance.
Medical Examination Results (in a PRA-accredited clinic/hospital).
Proof of Deposit – Certificate of time deposit from a PRA-accredited bank reflecting the required amount.
Birth Certificate / Marriage Certificate (if applying with spouse or dependents).

5.3 Application Procedure

Pre-Processing
- Contact the PRA or a PRA-accredited agent to assess eligibility and prepare documentation.
- Open a Philippine bank account and place the required visa deposit.
Submission to PRA
- Complete the SRRV application form and submit along with the documentary requirements.
- Pay the processing fees (application fee, annual PRA fee).
Evaluation and Approval
- The PRA reviews the documents and conducts background checks.
- Once approved, the applicant receives the SRRV.
Conversion of Deposit (for SRRV Classic)
- With PRA approval, part of the deposit may be used to invest in a Makati condominium (or other approved investments).
- The PRA must approve the property prior to investment.

6. Relationship Between SRRV and Condo Ownership

For foreigners keen on living in Makati long-term, SRRV Classic can be advantageous. The deposit can be converted into real estate investment—allowing you to purchase a condo in compliance with the 40% foreign ownership limit. After the investment is finalized:

Reduced Deposit in Bank: Only the required threshold remains in the bank (as set by PRA regulations).
Permanent Residence: Retiree visa holders need not exit the Philippines regularly to maintain legal status.

Note: The property must be expressly approved by the PRA for the SRRV deposit conversion. It typically must be new or first sale units, or other specific requirements as determined by the PRA.

7. Practical Considerations for Makati-Based Foreign Residents

Local Taxes
- Makati City imposes real property taxes (RPT) annually. Ensure timely payment to avoid penalties.
Condominium Association Dues
- Fees for maintenance, security, and amenities are part of condo living. Budget accordingly.
Resale and Rental Potential
- Makati properties typically command higher prices but also yield more competitive rental income.
Legal Counsel
- Consult an attorney to remain updated on regulations, especially if laws or local ordinances evolve.

8. Conclusion

For foreign nationals eyeing long-term residence in the Philippines—particularly in the vibrant and business-oriented locale of Makati City—condominium ownership combined with an SRRV can offer an optimal solution. The Philippine legal framework allows foreigners to purchase condos subject to the 40% foreign ownership limit, while the SRRV provides an attractive path to indefinite stay and multiple-entry privileges.

Key steps to success include thorough due diligence, strict adherence to legal and regulatory requirements, and consultation with licensed professionals. With proper planning, investing in Makati real estate under the SRRV program can be a strategic and rewarding venture, opening the door to a comfortable retirement or extended stay in one of the Philippines’ premier urban centers.

Disclaimer

This article provides general information and is not a substitute for legal advice. Foreign nationals should consult with an attorney, accredited real estate broker, or the Philippine Retirement Authority for personalized guidance based on their specific circumstances. Laws, regulations, and local ordinances may change; always verify current policies before proceeding with any investment or visa application.