Retirement in the Philippines:

Why Retire in the Philippines?

“Smile at Life in the Philippines.” This is our invitation to our former Filipino citizens and foreign nationals to choose the Philippines as their second home. Famous for our vibrant culture, hospitality, friendly English-speaking population, natural attractions, and tropical climate, retirees can expect the good life in the Philippines at an affordable cost.   GEOGRAPHY The Philippines is an archipelagic nation made up of 7,107 islands spanning 1,840 kilometers north to south. It is part of the Southeast Asian region, and is bordered by Taiwan to the north, Indonesia and Malaysian Borneo to the south, the South China Sea to the west, and the Pacific Ocean to the east. The Three main Philippine Island groups are Luzon, Visayas, Mindanao. The Capital is Manila. Time Zone is GMT +8 hours. CLIMATE Generally, Philippines has a tropical climate. March to May is hot and dry. June to October is rainy, November to February is cool. Average temperatures: 78F/25C to 90F/32C; humidity is 77%. LANGUAGE Understanding each other will not be a problem between the retirees and our people. Almost every Filipino can understand and speak some English. In fact, we are the third largest English-speaking nation in terms of population. Two official languages are Filipino and English. Filipino which is based on Tagalog is the national language. English is widely used and is the medium of instruction in higher education. Eight (8) major dialects spoken by majority of the Filipinos: Tagalog; Cebuano; Ilocano; Hiligaynon or Ilonggo, Bicol, Waray, Pampango, and Pangasinense. RELIGIONS Some 83% of Filipinos are Catholic. About 5% are Muslim. The rest are made up of smaller Christian denominations and Buddhist. COST OF LIVING The principal appeal for retirement in the Philippines is the lower cost of living. Housing, food, and labor costs are quite reasonable. Global Filipinos and foreign retirees can retire in the Philippines and enjoy not only the lower cost of living but also the very favorable currency exchange rate. The Philippines’ monetary unit is the Peso. Foreign currency may be exchanged at any hotels, most large department stores, banks and authorized money changing shops accredited by the Central bank of the Philippines. International credit cards such as Visa, Diners Club, Bank Americard, Master Card, and American Express are accepted in major establishments. WORLD-CLASS MEDICAL AND HEALTH SERVICES In terms of medical services, our facilities are comparable to the best anywhere else. Our highly trained medical personnel and caregivers are in demand all over the world not only for their competence and expertise but most especially for the care and compassion they show to their wards. Healthcare, a top priority of the senior market, is an expertise of the Filipino who is world-renowned for his excellent healthcare practitioners. FILIPINO HOSPITALITY Filipinos are naturally warm, friendly and hospitable. We have a ready smile for everybody and our religious background that is predominantly Catholic makes service to others an innate trait. TELECOMMUNICATION EDGE Every retiree can avail of the country’s continuously improving telecommunication facilities. They can keep abreast of what is happening around the world and keep in touch with their relatives and friends back home. ECO-TOURISM DESTINATION Philippines can provide the retirees endless choices of world-class destinations that will bring them closer to Mother Nature with clean air and beautiful sceneries. The white sand beaches of Boracay and Panglao and the virgin islands of Palawan often referred to as “the last frontier” are truly unforgettable places that entice the visitors to come back in the Philippines. PRA SERVICE The Philippine Retirement Authority (PRA) prides itself on the after-membership service that it provides to the retirees. During their stay in the country, they can consider PRA as their second family. PRA helps them address their needs. If and when they encounter any problem, PRA is with them every inch of the way.

WHAT IS THE SPECIAL RESIDENT RETIREE’S VISA (SRRV)?

The Special Resident Retiree’s Visa (SRRV) hereinafter referred to as the “Retiree’s Visa”, is a special non-immigrant visa separate and distinct from the existing visa categories defined by the Philippine Immigration Act of 1940, as amended, and allied laws. (Sec. 1, Rule II of LOI 1470)

LOI 1470, as a supplemental statute to E.O. 1037 was passed on July 4, 1985 aimed at:

1) Developing and promoting the Philippines as a preferred retirement haven for former Filipinos and foreign nationals;

2) Attracting foreign exchange; and

3) Directing the issuance of the Special Resident Retiree Visa (SRRV).

The issuance of the SRRV to qualified PRA applicants, entitles the holder to reside in the Philippines for an indefinite period with multiple-entry privileges as long as the required minimum deposit investment subsists. (Sec. 2, Rule II of LOI 1470)

Moreover, the SRRV offers benefits which includes the exemption from the Exit Clearance, Re-Entry and Annual Registration requirements of the Bureau of Immigration, Travel Tax (provided the retiree has not stayed in the Philippines for more than a year from date of last entry) Special Study Permit, importation of household goods/personal effects worth US$7,000 for family use and other value added services.

The SRRV, characterized by its being indefinite with multiple-entry privileges, partakes the nature of a permanent and/or “lifetime” visa. Thus, guaranteeing the principal retiree and family members the privilege to settle permanently in the Philippines and enjoy the best quality of life in the most attractive package. This is the Authority’s international commitment and is the true meaning of “Smiling at Life” in the Philippines.

WHO MAY APPLY?

All foreign nationals provided they are issued an entry visa by the Philippine Embassy/Consulate and former Filipino citizens who are now holders of foreign passports both of whom are at least 35 years old.

For inquiries email us now: custcare@myphilippineproperty.com

HOW CAN ONE JOIN THE PRA PROGRAM?

1. If you are based in the Philippines, you may secure an application form and file the same with the following:
 

Philippine Retirement Authority (contact: Odilon A. dela Merced)
29/F Citibank Tower
8741 Paseo de Roxas
Makati City 1227
Tel. No.: (632) 8971624; (63917) 8073342
Website: http//www.pra.gov.ph
E-mail: odydelamerced@myphilippineproperty.com

2. If you are based abroad: Through the Philippine Embassy/Consulate

WHAT ARE THE FEES FOR JOINING THE PRA PROGRAM/APPLYING FOR SRRV?

a. Processing Fee

A one-time payment of US$1,400.00 for the principal and US$300.00 for each dependent (spouse/children).
Note: These fees are inclusive of the Bureau of Immigration fees and the fee for the issuance of the PRA I.D. Card.

b. Annual Renewal/replacement of PRA ID Card

US$10.00 per member/card/year

 

HOW LONG IS THE VISA VALID?

The SRRV is valid for so long as one remains a member of good standing of the Program and provided his time deposit and/or investment exists in the Philippines.

CAN A RESIDENT RETIREE BRING HIS/HER FAMILY MEMBERS WITH HIM/HER INTO THE COUNTRY TO JOIN THE PROGRAM?

Yes. A resident retiree can bring with him/her, without additional deposit, his spouse and a child who is unmarried and below 21 years old or if the spouse is not joining, two (2) children (provided they are unmarried and under 21 years of age). Additional children with the same qualifications may also be allowed to join the principal retiree provided there is an additional deposit of US$15,000.00 or equivalent foreign currency per child. The deposit is subject to the same terms and conditions with that of the principal deposit. This does not apply to former Filipinos citizens.

WILL DEPENDENTS CONTINUE TO BE SRRV HOLDERS OR RETAIN THEIR SRRV EVEN AFTER REACHING 21 YEARS OLD?

Yes. For so long as the principal retiree remains a member of the Program, his dependents retain their SRRV even if they reach 21 years of age and above.

WHAT HAPPENS IF THE PRINCIPAL RETIREE DIES?

The surviving spouse, provided he/she is a SRRV holder, has the option to assume the status of a principal retiree using the original account as his/her qualifying deposit. Should he/she not choose to become the principal retiree, then the law on Succession prevails.

As far as the beneficiary is concerned, the withdrawal of the time deposit should be made in accordance with the Philippine banking rules and regulations. The beneficiary will have to pay estate tax as the retiree is treated as a resident alien and therefore covered by the National internal Revenue Code.


 

Retirement Option and their Required Time Deposit

1. With Pension – 50 years. Old and above – the required time deposit is US$10, 000.00 plus a monthly pension of US$800.00 for a single applicant and US$1,000.00 for couple

2. Without Pension

• 35 to 49 years old – US$50, 000.00 time deposit
• 50 years old and above – US$20, 000.00 time deposit
• Former Filipino Citizens (at least 35 years old, regardless of the number of dependents – US$1,500.00
• Ambassadors of foreign countries who served and retired in the Philippines- US$1,500.00

Note: The PRA Accredited banks agree to accept any acceptable foreign currency for deposit in the accounts, provided that it shall be credited to the account as the United States Dollars or Philippine Pesos equivalent

WHAT ARE THE DOCUMENTS REQUIRED FROM A RETIREE BEFORE HE CAN JOIN THE PROGRAM?

A prospective retiree-participant shall submit to PRA the following:

1. PRA application form;
2. Original passport with valid entry status;
3. Medical Examination Clearance -can be secured abroad (with English translation) duly authenticated by the Philippine Embassy/Consular Office. If the applicant is in the Philippines, this can aslo be secured at the PRA One-Stop Shop
4. Bank Certificate of Dollar Time Deposit inwardly remitted to any PRA accredited banks;
5. Police Clearance issued abroad translated into English and duly authenticated by the Philippine/Consulate or National Bureau of Investigation (NBI) Clearance issued in the Philippines. This also applies to spouse and dependents 18 years of age and above (Age requirement of 18 is for purpose of NBI Clearance only);
6. Photographs, 6 pieces 1”x1” and 6 pieces 2”x2”;
7. If the spouse is also applying for SRRV, Marriage Certificate or Marriage Contract translated into English (if necessary) and duly authenticated by the Philippine Embassy/Consulate nearest the applicant’s residence if the marriage was contracted abroad. If the marriage was solemnized in the Philippines, original Marriage Certificate; and
8. If dependent/s is/are also applying for the SRRV, original Birth Certificate/s of dependent/s born in the Philippines or Birth Certificate/s or Household Register translated into English (if necessary) and duly authenticated by the Philippine Embassy/Consulate nearest the applicant’s residence abroad.
   
    

WHAT ARE THE BENEFITS UNDER THE PROGRAM?

1. Multiple/Indefinite entry privileges with the option to reside permanently in the Philippines.
2. Exemption from exit Clearance & Re-Entry Permits.
3. Exemption from Customs Duties and Taxes for the Importation of Personal Effects up to US$7,000.00.
4. Exemption from Travel Tax, if stay in the Philippines is less than a year from the last entry date.
5. Exemption from the Bureau of Immigration’s Annual registration requirement.
6. Assistance in Obtaining an Alien Employment Permit.
7. Tax-free remittance of Annuities and Pensions.
8. Guaranteed repatriation of the deposit/investment.

WHAT ARE THE OBLIGATIONS OF A SRRV HOLDER?

1. To give a written notice of any change of information supplied in the Application Form (e.g. status, name or address) within (60) days from such change;
2. To give a written sixty (60) day notice of termination of his participation

DOES PRA ACCEPT CURRENCIES OTHER THAN US DOLLARS AS REQUIRED FOREIGN CURRENCY DEPOSIT?

No. Nonetheless, the PRA Accredited Banks agree to accept any acceptable foreign currency for deposit in the accounts, provided that it shall be credited to the account as United States Dollars or Philippine Peso equivalent.

after the issuance of SRRV the retiree may convert the Dollar time deposit to Philippine Peso or Euro money.

CAN THE REQUIRED DEPOSIT BE DIVIDED INTO ANY OF PRA’s ACCREDITED BANKS?

Yes, for a minimum deposit of US$10,000.00

UNDER WHOSE NAME IS THE REQUIRED FOREIGN CURRENCY DEPOSIT BE CREDITED?

The required foreign currency deposit maybe opened in the name of the principal retiree or under an “and/or” account with the spouse provided the latter is also a member of the PRA Program. This applies also to an applicant/retiree who is legally married to a Filipino Citizen even if not a PRA member.

WHEN CAN THE REQUIRED FOREIGN CURRENCY DEPOSIT BE CONVERTED INTO INVESTMENT?

After one (1) month from the time it was opened in any of the PRA accredited banks as a retiree account.

WHAT AREAS OF INVESTMENTS ARE AVAILABLE TO A RESIDENT RETIREE?

The areas of investment are the following:

1. Purchase of a condominium unit;
2. Lease of a parcel of land or house and lot;
3. Construction of a residential unit on a leased parcel of land;
4. Propriety shares in golf clubs;
5. For former Filipinos, purchase of a lot not exceeding 5,000 square meters in urban areas or three (3) hectares rural areas to be used for business or other purposes.

CAN RESIDENT RETIREE APPLY FOR PHILIPPINE CITIZENSHIP?

Yes, in accordance with the Naturalization Law of the Philippines. One of the basic requirements for naturalization is the continuous residency in the Philippines for a period of ten (10) years.
The period may be reduced to five (5) years if the applicant has any of the following qualifications:

1. Has honorably held office under the Government of the Philippines or under that of any of the provinces, cities, municipalities, or political subdivision thereof;
2. Has established a new industry or introduced a useful invention in the Philippines;
3. Being married to a Filipino citizen;
4. Has been engaged as a teacher in the Philippines for a period of at least two (2) years;
5. Has been born in the Philippines.
    

Note: For former Filipino citizens, the Citizenship Retention and Reacquisition Act of 2003 applies.

• SCHEDULE OF FEES

  For Retiree Services           1. SRRV Application Fee                                                     Principal $ 1,400.00                                                   Spouse/Dependents $ 300.00 per applicant       2. ID Renewal Fee $ 10.00 per year/ per member       3. Visa Cancellation                                                     B.I. Downgrading Php 1,510.00 per member                                                 B.I. Cancellation Php 500.00 per member                                                 PRA Service Fee $ 10.00 per member       4. Re-stamping of SRRV on Passport                                                     B.I. Fee Php 1,010.00 per member                                                 PRA Service Fee $ 10.00 per member       5. Certificate of Membership $ 5.00 per member       6. Management (Visitorial) Fee (varies per member)     SRRV# 0001 to SRRV# M-002161 1/2% of the Total amount withdrawn per year SRRV# M-002162 to M-006392 1% of the Total amount withdrawn per year       SRRV# M-006393 and Above      $50,000.00 Requisite Deposit $ 750.00 per year $20,000.00 Requisite Deposit $ 500.00 per year $10,000.00 Requisite Deposit $ 500.00 per year $1,500.00 Requisite Deposit $ 15.00 per year     7. Management (Harmonization) Fee 1.5% of Withdrawn amount of Deposit per year       Various Accreditation Fees           1. Accreditation as Marketer $ 300.00   2. Renewal as Accredited Marketer (yearly) $ 150.00   3. Accreditation of Facility $ 250.00   4. Renewal as Accredited Facility (yearly) $ 125.00   5. Accreditation as Merchant Partner no fee   6. Accreditation as Approved Project no fee   7. Accreditation of Bank no fee         Other Fee(s)           1. Request for Bidding Documents Php 500.00     Note: All fees in US$ may be paid with equivalent amount in Philippine Pesos computed at the prevailing currency exchange rate for the day.