Sip on naturally grown fruit juices while basking on a lazy afternoon. While kids build sandcastles by the rocky shoreline, you can’t help but wonder what would happen if you stay in white-sand beaches longer. The Philippines is one of the most famous retirement destinations in the world. What’s also lovely here is the versatility of urban and rural life. And moving to the Philippines to retire is not so difficult.
Requirements to Retire in the Philippines
There are certain requirements that you need to possess whether you plan to retire in the Philippines, particularly in visa application and Alien Certificate of Registration (ACR-I) card. The latter comes with your fingerprints and a microchip containing biometric data. This is your re-entry permit together with your valid passport having a visa stamped. It costs $50 and must be renewed annually.
Luckily, the Philippines offers a special retirement visa to cater specifically to foreign retirees. Whether you’re British, American, or Australian citizen, whatever that might be, it is really possible to retire in this country using this visa.
Eligibility:
- 50 years old and above
- Deposit at least $10,000 to $50,000 into a Philippines bank if you have guaranteed monthly income ($20,000 otherwise). This changes according to your age. Scope includes you and two dependents. This can be used towards an investment apartment with a minimum purchase price of $50,000.
- Deposit $15,000 for each additional dependent.
- This is to be returned when the visa is canceled for any reason applicable.
- Proof of pension earning at least $800 a month ($1,000 for couples).
There is a $1,400 admin fee for household head on the side (plus $300 for each family member) to process your visa and a $360 annual fee for a family of three (plus $100 for each other children), applies too, which grants you some benefits and support. For instance, this includes access to government services or search for the right medical care.
Enough details are posted on the specific government website, and you can also apply online and upload the documents for verification and improving your profile.
Pension applies to most sources of retirement income including Social Security benefits. You can also count on other benefits in your retirement income such as the United States Social Security payments.
Its other benefits include PhilHealth, the government health care program, exemption from certain taxes, and access to special Philippine Retirement Authority benefits (e.g., “Greet and Assist Program,” upon arrival at the airport).
Budget to Retire Comfortably in the Philippines
Deciding the amount of money you need to retire comfortably in the Philippines depends on your lifestyle, pleasures, and standards. Generally, the Philippines is super cheap. Manila is pricey though. Places like Cebu, Subic, Baguio, Bohol makes an awesome lifestyle possible. Altogether, you may hire drivers, cooks, and maids with just a $1000 estimate per month. Helpers cost as low as $60 per month (you provide for the room, meals, and health insurance). You can even visit the spa for a massage a week.
According to International Living, ex-pats can live comfortably in the Philippines for about $1,500 to $2,000 a month. This covers housing and traveling and exploring the country.
Is the Philippines Good Place to Retire?
The Philippine government has branches specifically for encouraging ex-pats to retire there. Aside from the cheap prices, ex-pats smile to benefits such as duty-free import up to $7,000, exemption from airport taxes, partnership discounts.
Healthcare is competent here and some hospitals feature state-of-the-art technology. But resources are allocated to big cities like Manila and not much to provinces. Charges are far cheaper than in the U.S. General consultations cost the equivalent of $6 estimated, and consultations with specialists cost about $10 estimated.
You will only be taxed on income earned from Philippine sources and won’t be more than 35%. Good news, the tax climate in the Philippines is friendly to ex-pat retirees.
Most retirees rent in the Philippines. Condos and apartments cost around $300 per month.
Four Cities to Consider
- provides the ideal climate for mossy plants, beautiful orchids, and lush gardens.
- Enjoy outdoor activities, including golf, horseback riding, and biking
- Many festivals (Panagbenga as a highlight) and art exhibits (e.g., BenCab Museum).
- experience conveniences of urban living with beaches and mountains nearby
- Region’s center of commerce, education, industry, and trade.
- Home to countless developed private medical facilities, including the Cebu Doctors’ University Hospital, considered the cream of the crop nationwide.
Dumaguete
- principal seaport
- consistently named one of the best places in the world to retire according to reports from Retire Overseas Index, International Living, Forbes, and others.
- Beach resorts, world-class dive sites, and dolphin and whale watching
Tagaytay
- mountainous region: the town, known for its beautiful scenery and cooler climate from its high altitude
- beautiful scenery, outdoor activities, and two 18-hole golf courses.
It’s a splendid idea to do an ocular visit in the area first to support major decisions (and resolve dilemmas). Perhaps envision a resident’s perspective, rather than as a tourist.
How Can a Foreigner Retire in the Philippines?
A foreigner will fall in love with the Philippines because of its friendly and cheerful people. Here are the specifics to help you decide:
Philippine islands are prone to storms. Floods come naturally and uninvited in some homes. You may experience running to avoid raindrops messing your suit. Or enduring ankle-deep waters.
English and Filipino are the country’s official languages. And there are countless dialects (more than a hundred). Unlike many countries, English is not much of a worry here. Many can entertain with much enthusiasm.
The Philippines has many of the most spectacular ocean sceneries in the world. You can engage in world-class aquatic activities such as diving, surfing, and riding jet-ski.
Wildlife is rich too. During snorkeling, you can see colorful schools of fish, seagrass beds, and coral reefs. Animals lurk in forests, mountains, lakes, and lagoons.
The metropolis is lined with skyscrapers and the traffic is heavy. Two thumbs up to Manila, whether you’re thinking of operating a business.
Now we talk about the downsides. In some areas, you can’t count on infrastructure, and power and water outages are pretty much common things.
Since a big percentage of Filipinos suffer in poverty, some resort to illegal activities such as thievery. So you better keep your eyes vigilant at all times.
Peace and safety are concerns getting out of hand particularly in some areas in Mindanao. Retirement communities are relocated away from these dangerous areas. Thankfully, the government prioritizes keeping popular areas safe. What a sigh of relief!
Can a Foreigner Buy a House in the Philippines?
In a typical ex-pat budget, housing takes up a large percentage of the budget. While many choose to rent, it may be more practical to buy.
In general, foreigners aren’t allowed to own land in the Philippines, but they can legally own a residence. We’ll discuss some of the best options one by one.
Purchase a condominium.
This is the easiest way. If you do so, you only own the condo unit itself—not the land beneath it. The Philippine Condominium Act emphasizes foreigners can own condominium units, but 60% of the units in the building must be Filipino-owned.
Buy a house.
To work around this, you can buy a freestanding house but lease the property.
Under the Investor’s Lease Act of the Philippines, a foreigner can sign a lease agreement with a Filipino landowner for a long-term lease up to 50 years minimum, with a one-time chance to renew for another 25 years.
The price will be highly influenced by where you want to live. The closer you want to be in a commercial district, the higher is the expected price.
If you want to buy, then you can do so, but you can’t buy a detached home without $50,000 invested in a Philippine bank. Choose neighborhoods providing utmost security.
You may seek local agents who can brief you through the process and discuss financial risks and the rules.
Marry a Native.
If you do, you can buy property in your spouse’s name. Your name won’t be written in the title, but it can be in the contract binding the property.
Buy Through a Company.
Corporations can own land in the Philippines, only if Filipino citizens own at least 60% of the company. They must be registered with the government Board of Investment (BOI) stating permission to buy, sell, or act as an intermediary in a real estate transaction.
The largest piece of residential land you can legally own, either with your Filipino spouse or through a corporation, is 1,000 square meters.
To protect your property rights, you may consult with an expert real estate professional and an attorney.
Making big decisions, such as moving to the Philippines to retire, surely entails a great amount of scrutiny. But, nothing beats pleasing the senses in travel, hobbies, and living the happy-go-lucky life.
Freedom from routine work is the best reward you can give to yourself! Life, after all, is about adventure and nurturing the soul.
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