Looking for advice on moving to Philippines

[bikerpat]

Hi all,

Am retired living in Ireland and I am considering moving to Phils. I have formed a relationship there and also am sick of the cost and weather in Ireland.
I have been to Phils 4 times. I have checked out the requirements for an SRRV visa. Spoke to Immigration and an agent they referred me to.

I guess my basic questions are?

1. Re the $10,000 I have to deposit in the bank for Srrv visa, I have already opened a bank account there with Bank of Philippines Islands. I understand this $10,000 is usable against condo rental?

2. What information have you re paying tax on my pension in Phils? Currently the Irish Revenue Commissioners deduct tax from my pensions at source. Is there some way to avoid this tax if I move to Phils or worse would I be double taxed?

3. If I paid my pensions directly to BPI bank account, do I pay a tax on that?

4. If I lodged a lump sum over and above the $10,000 in BPI is that taxable in Phils?

5. What is a good and safe place to live outside Manila, preferably near the sea. Any views re condo/apartment lettings in or around the Boracay/Aklan/Bohol areas?

6. What is the Philippine Retirement Authority all about?? Do I need to join this organisation to qualify for retirement visa?

7. Is the retirement visa a permanent visa and is there any yearly fees to be paid to maintain the visa?

8 My budget pension wise would be about 100,000php a month.


Any help most welcome.

Regards

Pat

[Michael Parnham]

I just transferred my pension via internet banking from my UK a/c to my Philippine bank a/c each month. Also p100,000 per month is more than enough, I only had p50,000 per month and managed to save approx p25,000 per month, had £7000 in my bank in Philippines and never paid any taxes. Negros Oriental is a good area to base yourself with easy access to all destinations. Hope I've answered some of your questions Bikerpat, I'm sure some more members will answer your remaining queries. Good luck with your future plans, and welcome to the forum!

[bikerpat]

Thanks Michael. That is very helpful.

[bikerpat]

Hi Michael, are there many foreigners living in Negros Oriental?

[fred]

Pat..I dont know anyone with the SRRV visa and they keep changing the rules.. I believe that you can only convert the deposit money when buying a condo..Not rent though? Perhaps they changed the rules again..
We live on Panglao island and its just about the best place Ive lived in the R.P.. Thoroughly recommend..
My mate has got a couple of nice self contained units No separate bedroom though but you can use the pool for free.. Lots of nice expats and Filipino`s passing through plus the owner Mike knows just about anything you need to know about Bohol and some surrounding provinces...
www.bingagsportsbar.com
Oh yeah..and the Beers are really really cold..
Terp will probably answer all those complicated tax questions.. I only answer the easy stuff!!

[BRIAN WEBSTER]

hi bikerpat you found the site then hope you get as much help as you need on ere, they are a very good bunch on ere and every body knows some thing

[andy222]

So what requirements do you need to live in phils if your already married to one? The same?

[Terpe]

Hi there bikerpat, welcome to the forum.

A good, stable income is a great start.

I would say that for someone in your situation the SRRV (Special Resident Retiree's Visa) route is probably the best option.

I'm sure you've done plenty of research, if you haven't then do it. You're considering a life-changing decision and you MUST be doing it for all the 'right' reasons.

1. Re the $10,000 I have to deposit in the bank for Srrv visa, I have already opened a bank account there with Bank of Philippines Islands.

The Dollar Time deposit must only be made in Philippine Retirement Authority PRA-Accredited Banks in the Philippines.
You can find a listing of PRA-Accredited Banks on their website here - Philippine Retirement Authority (PRA)

I understand this $10,000 is usable against condo rental?

No, not really.

Firstly, the convertibility of the time deposit into investment is only allowable after a period of 30 days from the date the SRRV gets issued.
At that time you have 3 options

1. Do not touch the money, just keep it in the USD deposit account with interest
2. Convert the Dollar time deposit to Philippine Peso time deposit for a better interest rate.
3. Convert for an active investment such as:-
a) Purchase investment in condominium (must be Ready For Occupancy) or
b) Long-term lease of house and lot, condominium or townhouse for a period not shorter than twenty (20) years.(must be Ready For Occupancy)

If you choose route 3 (a or b) you'll need to first secure permission from the PRA Board of Trustees and provide specific documentary proofs.
You also need to fully understand ALL those 'small print' clauses. Best practice is to check with the PRA for a definitive answer and be sure to get that in writing.
Just to give you a flavour of some of those 'small prints':-
- you must have a minimum of USD50,000 investment, and be registered under the PRA Classic program.
- The condo unit must be ready for occupancy and be purchased on a cash basis only
- All PRA programs (except the SRRV Courtesy Program) are subject to annual fee of USD360.00
- SRRV application fee for the principal is USD1,400
- Please see the PRA webpage here for their Schedule of Fees

2. What information have you re paying tax on my pension in Phils? Currently the Irish Revenue Commissioners deduct tax from my pensions at source. Is there some way to avoid this tax if I move to Phils or worse would I be double taxed?

Personally I can't help you with that question.
UK actually does have what is called a 'Double Taxation Agreement' with the Philippines and subject to certain conditions allows the switching of tax liability from UK to Philippines.
The benefit is that currently the tax rate on pensions within the Philippines is set to ZERO
(means for UK residents no tax payable on pensions)

Your best bet is to check with the Irish Revenue Commissioners.
At least your pension will not be subject to tax in Philippines unless the tax rate gets hiked at some point.

3. If I paid my pensions directly to BPI bank account, do I pay a tax on that?

See above. There'll be no tax to pay from BIR as long as it's pension income. Just be sure (as always) to keep your documentary evidence.

4. If I lodged a lump sum over and above the $10,000 in BPI is that taxable in Phils?

Well that all depends on a number of things including your tax status in Philippines how much you deposit, under what scheme and how BIR view any income.
I would just say to think very carefully about where you put such money.

5. What is a good and safe place to live outside Manila, preferably near the sea. Any views re condo/apartment lettings in or around the Boracay/Aklan/Bohol areas?

Have you spent time in the Philippines so that you’ll know if you’d really like to live there?
Whatever you decide, I would strongly caution against making a decision based solely on cost of living.

Plenty of good information here in the forum pages waiting for your search.

Since I don't live there I leave this for others to comment on.

6. What is the Philippine Retirement Authority all about?? Do I need to join this organisation to qualify for retirement visa?

See their website here Philippine Retirement Authority (PRA)

7. Is the retirement visa a permanent visa and is there any yearly fees to be paid to maintain the visa?

OK from the basic starting point, the SRRV is a special category of non-immigrant resident visa that allows multiple-entry and indefinite stay status.
Means reside permanently…or for as long as you want, hassle free. Exemption from the BI Exit & Re-Entry Clearances.
Also exemption from Travel Tax (as long as you didn't stay in the Philippines for more than 12 months from last entry.
Yes, to remain in the programme you will need to pay the annual fee of USD360 (think of the value of the benefits before deciding it's too much!!)

You allowed to work (just need the Alien Employment Permit (AEP) which PRA can get for you)
You can start own business. (Subject to local legal requirements PRA can help)

You can get the Tax-free importation of your household goods/personal effects (up to value of USD7,000)

It also allows the holder to certain Tax-Free incentives and privileges as well as special services and discounts/benefits from PRA partners
(Hotels, Resorts, Retirement Facilities,Restaurants etc)

There's a guaranteed repatriation of your Dollar Time Deposit if you decide to quit the scheme.
Means if you get lucky and find a wonderful lady you could get married and convert to a section 13a residence visa and get your USD10,000 back. Good luck with that option!!!

8 My budget pension wise would be about 100,000php a month.

Not sure if that's a question.
But really, no-one can tell you if that's going to be enough to support your planned lifestyle.
You'll get lots of great advice anyway
Everybody has a different view. My own (for me) is that anything above P50k will satisfy me.

Good luck

[jake]

So what requirements do you need to live in phils if your already married to one? The same?

Andy, it is not the same. The easiest visa for a foreigner married to a Philippine citizen is the 13a visa. Not difficult to get just takes a few trips back and forth from immigration. in total it should cost between 10 and 15,000 pesos. There is a new rule that you should have police clearance from your own country.

[Terpe]

To apply for SRRV you'd need to submit the following:-

- PRA SRRV application form

- Original passport with valid entry status

- 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, other requirements such as National Bureau of Investigation (NBI) clearance and Medical Examination can be conducted at the PRA One-Stop Shop in Manila.

- Bank Certificate of Dollar Time Deposit inwardly remitted to any PRA accredited banks.

- Police Clearance issued abroad translated into English and duly authenticated by the Philippine/Consulate and NBI Clearance issued in the Philippines.

- ID Photographs, twelve (12) pieces 2ins x2ins

- 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, the original Marriage Certificate is required.

- 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.

- Pension documents and Pension Scheme details

[Terpe]

Here's a good starting point on Double Taxation Agreements - Irish Tax & Customs - Tax Treaties

Just scroll down to the alphabetical listing. Looks like no treaty with Philippines.
Means Taxed at source, I'm afraid.(well if Ireland is the source?)

Might be worth a discussion with the tax office just to discover if there are any other possibilities.

[bikerpat]

Hi Terpe,

Thanks for taking the time to respond. Have a lot to think about.

Regards

Pat

[Ako Si Jamie]

Hi Michael, are there many foreigners living in Negros Oriental?

There's a few in Dumaguete.

Here's a Dumaguete site. Scroll down and on the left is a section called Expats.

Very nice laid back city.

http://www.dumagueteinfo.com/

[bikerpat]

Hi Fred, was in Bohol a few times and loved it. Is rental accomodation affordable there? What would be a typical price per month for a condo/apartment in Panglao or in Tagbilaran? I meant a longterm lease.

[bikerpat]

Thanks Terpe. No agreement between Ireland and Philippines. So looks like I'll be taxed at source here but am getting an international tax expert to have a closer look at this for me. Pat

[bikerpat]

Hi Jamie, what would be a typical apartment/condo rental price per month in Dumaguete and what would typical utilities/food costs. Rental on a longterm lease like a year or so? Is there colleges there that my girlfriend could attend? It looks like a nice place. Regards, Pat

[fred]

Hi Fred, was in Bohol a few times and loved it. Is rental accomodation affordable there? What would be a typical price per month for a condo/apartment in Panglao or in Tagbilaran? I meant a longterm lease.

Hi Pat..
I know guys that pay 20k a month and some that pay 5K a month..
You really just have to be here,get to know a few of us local expats and drive around to find the best deals.. Boots on the ground is most important as cheap deals often get snapped up quite quickly..
I have a couple of friends that have small 1 bedroom houses..They pay PHP12,000 a month..
Just to give you an idea.
Utility bills vary usually because of A/C usage.. We dont use A/C anymore as we have a native style roof that keeps out the heat.. Our bill is usually no more than 2k per month.
Our water is 10 Pesos per Cubic meter..(20 PHP in Tagbilaran)

[bikerpat]

Meant to ask Jamie, looking at a map of Dumaguete is it near the sea or beaches etc?

[bikerpat]

Fred, sounds like a plan. Not near decision time yet. Just gathering facts but this site is exactly what I was looking for. Thanks to all for the info so far. Pat

[bikerpat]

Fred, been to Mactan, Boracay, Pagadian City, Manila, and Bohol. Bohol was by far the best place. Drove all over it on a motorbike. And it seems to have the extra dimension of colleges in Tagbilaran for my girlfriend should she want to attend college. Is that 12,000 on Panglao?

[fred]

Is that 12,000 on Panglao?

Yes they are.. About 5 mins to Alona and Doljo beaches.

[fred]

Here`s a cottage near the beach for only 8.500 per month.. That would do me!!

The Cottage" is a traditional Filipino cottage but with modern amenities for rent/let for only 8,500peso/month (4 weeks) excluding electricity at 12.00/KWH. It has a queen size bed, fridge, airconditioner, FREE WIFI (selected area) it also has its own spacious bathroom and an outdoor kitchen with maid service to clean the cottage (once a week) and changing sheets (once a week). For single/double occupancy only.
10 min. walk from white sandy beach and 3min. away from local Panglao market.

[fred]

Another for only 8k a month...
http://panglao.olx.com.ph/ma-fortuna...-iid-495285612

[Arthur Little]

Pat ... to our friendly, online filipino/uk community. Stay tuned; take your time to reflect on what you've already gleaned from those who've responded to your introductory thread (people "in the know"!!!) before committing to any definite plan and then, gradually, you'll have a much clearer vision of the way ahead.

[bikerpat]

Hi all, thanks again for your advice. Super stuff. Love all your ideas. My thinking is to get out of Ireland (we're ripped off here big time and it's harder to have a decent living on a pension anymore) and move to Phils on a full time basis. But I want to be near the sea. I can't swim or no interest in water sport but I just love a beach near me and I love to drive a motorcycle. I want a simple affordable life. But I want somewhere clean, affordable, and especially safe. And you're right Arthur, I am only at the exploraty stage but my mind is very much swayed towards this move. Always loved Asia. Thanks again everyone for your advice. Truly appreciate it and I'll probably become a pain in the ass here with questions on this and that. Regards, Pat

[Ako Si Jamie]

Hi Jamie, what would be a typical apartment/condo rental price per month in Dumaguete and what would typical utilities/food costs. Rental on a longterm lease like a year or so? Is there colleges there that my girlfriend could attend? It looks like a nice place. Regards, Pat

Not sure about rent but it's big enough for a college.

Meant to ask Jamie, looking at a map of Dumaguete is it near the sea or beaches etc?

It has a boulevard next to the sea but it's more of a port than a beachy place and it's nicer than Tagbilaran. The nearest beach I think is Dauin which is popular with divers but has dark sand. Just further down about 30 minute trike ride from Dumaguete is Zamboanguita and there's a beach there, not a great one but inviting enough for a swim.

[Ako Si Jamie]

There's also pools up in the mountains in Valencia, just outside of Dumaguete. Lovely scenic ride up there too.

[Michael Parnham]

Sorry a long time coming back to you Bikerpat, as Jamie says Dumaguete is ideal and there are a number of foreigners in the area of various nationalities so you would soon make friends, good luck!

[grahamw48]

With p100,000 a month budget, I'd be on the plane tomorrow...probably save 2/3rds of that too. lol.

[Terpe]

Hope you're not planning on shipping your bike over Pat