Guide to Planning Your Retirement in the Philippines

One of the attractive reasons why the Philippines is considered one of the world’s best places to retire is its relatively cheap cost of living.

Retirees can lead a comfortable life in the country for less than US$1,000 per month. That already covers accommodation, dining out, utilities, and travel in domestic locations.

In addition, the Philippines also offers a number of potentially good business and investment opportunities, thanks to its steady economic growth and development.

As a general rule, foreign nationals are prohibited from owning land in the Philippines. But, on the contrary, they are allowed to legally own a house. For this reason, one of the best options will be to acquire a condominium, which entails owning the structure itself, but not the land.

Another option will be to buy a house on leased land. Under the country’s Investor’s Lease Act, a foreign national can enter into a lease agreement with a Filipino landowner for a long-term lease of 50 years, and with a one-time renewal option after 25 years. You may want to consider hiring a local agent, specifically someone who deals exclusively with expats before buying a house/property. This person can guide you through the entire process to help you avoid costly mistakes. Obviously, you will have to pay a fee for the service, but in the end, it may be well worth the investment.

Meanwhile, if you’re married to a Filipino citizen, you can purchase a property under your spouse’s name. Although your name can’t be on the title, it can be added to the contract to buy the property. In case your spouse passes away, or if you and your spouse have legally separated, the land can’t be transferred to you (since you’re still prohibited from owning land), but you will be given a reasonable time to sell the property and get the proceeds. Otherwise, the property will automatically be passed on your spouse’s heirs.

Once you’ve already made the decision to retire in the Philippines, the first thing you’ll need to do is to apply for a Special Resident Retiree’s Visa (SRRV).

It’s good to note that your retiree visa in the country comes with no expiration, and you can leave and return to the Philippines without having to reapply for residency. Other Privileges you can get once you have secured an SRRV are as follows:

• Exemption from obtaining annual ACR I-Card (Alien Certificate of Registration Immigration Card) from the Bureau of Immigration
• Exemption from Travel Tax if you haven’t stayed in the Philippines for more than 1 year from the last date of entry.
• Dependent children will no longer need to obtain a Student visa or Study permit
• Tax-free remittance of your annuities and pensions
• Discount privileges from the Philippine Retirement Authority (PRA) accredited Merchant Partners
• One-time custom-duties-free and tax-free importation of household goods and personal effects worth up to $7,000
• Free PRA assistance in transacting with other government agencies

A retiree can apply for the SRRV depending on his or her retirement status. Below are the different SRRV options for foreign nationals who wish to make the Philippines their new home for the rest of their retirement years:

SRRV Classic

This is the most popular SRRV option where retirees can use their SRRV deposit into active investments like purchasing a condominium unit (provided the property’s value is at least $50,000), or for a long-term house and lot lease. This type of visa requires retirees aged 50 years old and above to deposit $10,000 (if you have a guaranteed monthly income/pension of at least $800/single applicants and $1,000 for couples) and $20,000 if you don’t have a regular income/pension. For aged 35 to 49 years old, the required deposit is $50,000.

Under SRRV Classic, your Social Security pension can count as a guaranteed income and the annual letter from the Social Security Administration that states your monthly benefit amount is sufficient proof of income.

SRRV Smile

The simplest visa to obtain, you can apply for this visa as long as you’re active, healthy, and able to maintain a $20,000 deposit in any of the banks in the Philippines that’s accredited with PRA.

SRRV Human Touch

This visa is for retirees 35 years old and above with pre-existing medical conditions or those who have medical or clinical services needs. To qualify, you need to have at least $1,500 monthly pension, a health insurance policy accepted in the country, and a $10,000 SRRV deposit.

SRRV Courtesy

This visa is for former Filipinos aged 35 years old and above as well as for foreign nationals, aged 50 years old and above, who have served as ambassadors, diplomats, or as staff or officers of an international organization recognized by the DFA. The SRRV deposit amount required for this type of visa is reduced to $1,500.

SRRV Expanded Courtesy

This is for foreign nationals, age 50 and above, who are retired Armed Force officers of foreign countries that have existing military ties and/or agreement with the Philippines. To qualify, you need to have at least a monthly pension of $1,500 and an SRRV deposit worth $1,500 is required.

When applying for SRRV, the following are the basic requirements:

1. Accomplished Philippine Retirement Authority (PRA) application form
2. Valid Passport with current visa
3. Medical Clearance (which may be completed by a licensed physician from your country of origin and authenticated by the Philippine Embassy, or a PRA medical clearance certificate duly accomplished by a licensed physician in the Philippines)
4. Police Clearance from place of origin
5. NBI clearance, that is, if you’ve stayed in the Philippines for more than 30 days prior to your SRRV application.
6. Certification of dollar time deposit by PRA shortlisted bank
7. 1”x1” and 2”x2” photos, 6 pieces each
8. Birth Certificate for joining dependent-child
9. Marriage Contract, if the spouse is joining the applicant

The SRRV processing fee is $1,400 for the principal applicant and $300 for the dependent. You’ll also need to pay a $360 annual fee to renew the visa, after the first year, which covers the principal applicant, spouse, and one dependent/child. If you have more dependents the annual fee will be $100 each per additional dependents. Once you’ve submitted the application and complied with all the other application requirements, you can expect to receive your SRRV within 7 to 10 business days.

One significant advantage of living in the Philippines is that expat retirees are welcomed by the government as well as the local community. You can expect to find a prominently warm and friendly community and have the support of the government as you move into your new home to spend your golden years with.

While it’s very possible to live cheaply in the Philippines, a huge part of the standard/cost of living in the country depends on the location where you want to stay and the lifestyle you embrace. If you live a little more like the locals, get to know your local vendors, eat and shop modestly you can attain a very high quality of life in the country for a relatively low cost.

When it comes to the weather, the country generally enjoys sunny weather from January to May, with the rainy season usually starts in June.

English is widely spoken throughout the country’s region, which helps make it much easier to make new friends and acquaintances and to get by day by day. It’s also good to know that you can find a good number of expat communities, including high proportions of senior retirees, particularly in the cities and popular beach areas in the country. This means you can find other expats or seniors you can make friends or join activities with.

One of the crucial decisions that retirees who want to make the Philippines their second home will have to make is choosing the best place to live in the country. The Philippines has 81 provinces, 17 regions, and more than 100 cities. Naturally, some locations have more appeal compared to the others.

Some of the things you might want to consider when choosing where to retire in the Philippines includes your budget, lifestyle, entertainment, and amenities you want, and your health needs. If you want to enjoy the perks of having access to great selections of shops and markets, restaurants, nightlife, and entertainment, as well as access to advanced healthcare facilities, you may want to stay in upscale cities, which can be more expensive. If you’re seeking to retire on a limited budget, then looking to settle somewhere slightly outside of the center of town can be your option.

Ultimately, finding the best location for you is a highly personal choice. But some of the popular choices among foreign nationals include Makati City in Metro Manila, Cebu City, Baguio City, and Davao.