The Philippines is a relatively undiscovered travel destination. It is a country ideal for people who love water sports such as scuba diving, surfing and, more recently, kitesurfing.
Presentation of the country:
It is an archipelago with thousands of islands filled with sandy beaches and with year-round tropical weather. This country has much to discover, from the famous islands of Palawan, Cebu and Bohol to inland territories such as Banaue, Cagayan, and the bustling capital of Manila.
Filipino people are also known for their cheerful, optimistic, and friendly behaviour. Family and community are very important to them and this reflects in their unique culture.
Foreigners who choose to retire in the Philippines can take advantage of a special program with tax breaks.
HDI ranking: 124/196 countries
HDI 0.682 = medium
The human development index (HDI) is based on 3 criteria: health, education and longevity
Average journey times:
Paris – Manila: 14 hours
London – Manila: 13 hours 54 mins
New York – Manila: 17 hours 38 mins
Los Angeles – Manila: 15 hours 07
Sydney- Manila: 8 hours 16 mins
Currency and cost of living:
1 peso philippin (PHP): EUR0.017 / USD 0.019
Big Mac Index: USD 2.67
Restaurant Meal for 2 People, Mid-range Restaurant, Three-course: PHP 1000.00
Market – Milk (regular, 1 liter): PHP 79,31
Basic Utilities (Electricity, Heating, Cooling, Water, Garbage) for 85m2 Apartment in Manila: PHP 7 485,80
Monthly Rent for Apartment (1 bedroom) in City Centre of Manila: PHP 27 953,75
Price per Square Meter to Buy Apartment in City Centre of Manila: PHP 133 538,46
How can you live in the Philippines – residency requirements:
If you plan to stay more than 30 days in the country, you will have to request a visa prior to your arrival. For stays beyond 59 days, you must not only hold a proper visa, but you must also apply for an “Alien Certificate of Registration” (ACR) and a “Certificate of Residence for Temporary Visitors” (CRTS). These documents are issued by the Office of Immigration and you will be responsible for applicable fees.
There are various special resident retiree (SRRV) visas available for those foreigners 35 years of age and over, including SRRV smile and SRRV classic. There are a number of financial benefits for expat residents under the SRRV programs, including special discounts and incentives and a duty-free import allowance of $7,000 worth of household goods. SRRV residents are also allowed to work or start a business in the Philippines. In order to qualify for the SRRV programs, you are required to deposit a certain amount of money into a Philippine bank account. Some SRRV programs will require that you receive a monthly pension into your Philippine bank account. Once permanent residency is obtained, your visa does not expire.
Housing in the Philippines:
The majority of expats moving to the Philippines will rent their housing. The traffic can be terrible in large cities, so it might make sense to live close to your place of work or schools. Some homes might be lacking basic amenities such as air conditioning, insulation, or Western toilets. Due to frequent crime, some expats choose to live in gated communities. You should not sign any rental contract without the advice of a lawyer.
Buying property: Though foreigners can buy a house or a condo in the Philippines, they cannot own the land on which it stands. Control of the land is usually through a long-term lease agreement of 50 years. Because of this law, most foreigners choose not to purchase property.
Taxation:
There are several classifications of taxpayers in the Philippines, including the following: Resident citizen, Non-resident citizen, Resident alien, Non-resident alien engaged in trade or business, and Non-resident alien not engaged in trade or business.
Resident aliens are foreigners who intend to reside for an extended period within the country. All other non-citizens are classified as non-resident aliens.
Both resident and non-resident aliens are subject to tax only on income from sources within the Philippines. Non-residents staying in the country for more than 180 days per year are subject to higher tax rates.
Foreign residents are required to pay tax on their net taxable income at different rates ranging from 5% to 32%, with tax deducted at the source by the employer.
Special expatriates having an employment contract will pay tax at a lower rate (15%). Non-resident foreigners engaged in a trade or business in the Philippines will also pay income tax at the same rates. Moreover, a final tax is levied at a rate of 20% on the company’s dividends.
Non-resident aliens not engaged in trade or business in the Philippines have to pay tax at a rate of 25% on gross income received in the Philippines.
Under the SRRV program, any foreign pension or annuities remitted to the Philippines are tax-free.
Safety:
In the Philippines there is a large disparity between the rich and the poor, resulting in high crime levels. Watch out for petty crimes, especially pickpockets, robberies, and scammers in densely populated areas in the larger cities. Islamic militants are active in remote areas such as Mindanao and the Sulu Archipelago, so it’s best to avoid these areas.
The current president, Rodrigo Duterte, has been implementing a series of initiatives to clean up the country, from cracking down on drug trafficking rings to imposing strict environmental standards, most recently to famous beach resort Boracay. It’s best to keep yourself updated with the changing political climate.
Many parts of the Philippines are also vulnerable to natural disasters such as cyclones, floods, and avalanches.
