Retiring in the Philippines

As a public service, I am reproducing below the full text of the information guide of the Philippine Retirement Authority (www.pra.gov.ph) for the information of foreigners who plan to apply for special resident retiree’s visas to enjoy the exotic and natural beauty of the Philippines in their twilight years.

General Information

Q. WHAT IS THE SPECIAL RESIDENT RETIREE’S VISA (SRRV)?
A. It is a special non-immigrant visa issued by the Bureau of Immigration of the Republic of the Philippines through the Retirement Program of the Philippine Retirement Authority (PRA) to foreigners and former Filipino citizens. It entitles the holder to multiple-entry privileges with the option to reside permanently in the Philippines.


Q. WHO MAY APPLY?
A. 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.


Q. HOW CAN ONE JOIN THE PRA PROGRAM?
A: Through online at www.pra.gov.ph
or If you are based in the Philippines, you may secure an application form and file the same at:

Philippine Retirement Authority
29/F Citibank Tower
8741 Paseo de Roxas
Makati City 1227
Tel. No.: (632) 848-1412 to 16
Fax No.: (632) 848-1411
Direct Line: (632) 848-7104
Website: http//www.pra.gov.ph
E-mail: inquiry @pra.gov.ph


Q: WHAT ARE THE FEES FOR JOINING THE PRA PROGRAM/APPLYING FOR SRRV?
A: 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 initial PRA I.D. Card.


Q: HOW LONG IS THE VISA VALID?
A: 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.


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


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


Q: WHAT HAPPENS IF THE PRINCIPAL RETIREE DIES?
A: 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.

SRRV Requirements

Q: WHAT IS THE AGE/DEPOSIT REQUIREMENT OF AN APPLICANT?
A: 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, current and former staff members of international organizations including ADB (at least 50 years old) -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



Q. WHAT ARE THE DOCUMENTS REQUIRED FROM A RETIREE BEFORE HE CAN JOIN THE PROGRAM?
A: 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 also 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 only, for retiree-applicants whose stay in the Philippines is thirty (30) days or less from date of last entry, which must be secured from the applicant’s country of origin (with English translation) duly authenticated by the Philippine Embassy or Consular Office. Police Clearance (from the applicant’s country of origin) and National Bureau of Investigation (NBI) Clearance for retiree applicants whose stay in the Philippines is more than 30 days from date of last entry.This also applies to spouse and dependents 18 years of age and above;
6. Photographs, 12 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.

Note: If you prefer to enroll under the With Pension Scheme, below are the additional requirements:

a. Certification of Retirement Benefits issued by the concerned government and/or private entity which clearly states your identity, date of effectivity of the payment of pension and the amount of monthly pension; and
b. Proof of your monthly pension remitted to the Philippines.


Q: WHAT ARE THE BENEFITS UNDER THE PROGRAM?
A: Once you are an SRRV Visa holder, it opens the door to vast opportunities and benefits. These include:

1. Option to Retire Permanently
a. You may live, work and study in the Philippines
2. Multiple Entry Privileges
b. You may travel outside the Philippines and re-enter anytime
3. Exemptions from:
a. Income tax over your pension and annuities;
b. Exit and re-entry permits of the Bureau of Immigration;
c. Annual registration requirement of the Bureau of Immigration;
d. Customs Duties and Taxes with regard to the importation of household goods and
e. personal effects up to US$7,000.00;
f. Travel tax, if you stay in the Philippines is less than one year from the last entry date; and
g. I-Card

As an SRR Visa holder, the PRA can assist you in obtaining basic documents from other government agencies. These include, but are not limited to:
a. Alien Employment Permit
b. Driver's License
c. Tax Exemption/Extension Certificate
National Bureau of Investigation (NBI) Clearance


Q: WHAT ARE THE OBLIGATIONS OF A SRRV HOLDER?
A: 1. Yearly renewal of the PRA ID Card
Retirees may request for a 3-year validity of the ID card upon the accomplishment of a Deed of Undertaking that the required deposit will remain in the bank for another 3 years.
2. Payment of Annual Visitorial Fee
Retirees are obliged to pay the annual visitorial fee and submit specific documents if the required deposit has been converted into active investment.
3. Notification of Changes in Personal Information
These changes may include change in address, phone numbers and email address.
4. Cancellation of the SRR Visa
Retirees should provide a written notice to the PRA within 30 days prior to his/her cancellation of the SRR Visa.


Q. DOES PRA ALLOW CURRENCIES OTHER THAN US DOLLARS AS REQUIRED FOREIGN CURRENCY DEPOSIT?
A. For purpose of applying for SRRV, the PRA allows currencies other than US Dollars as required foreign currency deposit. This is explicitly provided for under Section 2(b), subsection 1.7 of the Memorandum of Agreement between PRA and accredited banks, which read:

Section 2. Duties of the Bank
b.1. Opening of Account
1.7. A retiree may elect to remit or deposit funds in any of the Following foreign currencies:
a. British Pound
b. Australian Dollar
c. Canadian Dollar
d. Hong Kong Dollar
e. Japanese Yen
f. Singapore Dollar
g. Swiss Franc
h. US Dollar
i. Euro
j. Korean Won
k. Chinese Yuan

Provided there is proof of foreign currency remittance by the retiree, a copy of which shall be furnished PRA, the retiree shall have the option to open the account in US Dollar or its equivalent in Peso. Furthermore, the bank and the retiree maybe allowed to convert the retiree’s remitted or deposited funds into US Dollar, if allowable, or into Philippine Peso, for purpose of opening the deposit account and maintaining the same. The remitted currency, maybe maintained, provided that it maintains the value of the minimum required deposit.


Q: CAN THE REQUIRED DEPOSIT BE DIVIDED INTO ANY OF PRA’s ACCREDITED BANKS?
A. Yes, for a minimum deposit of US$10,000.00 per PRA Accredited Banks.

Q: UNDER WHOSE NAME IS THE REQUIRED FOREIGN CURRENCY DEPOSIT BE CREDITED?
A: 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.


Q: WHEN CAN THE REQUIRED FOREIGN CURRENCY DEPOSIT BE CONVERTED INTO INVESTMENT?
A: After one (1) month from the date of the issuance of the SRR Visa.

Investments

Q: WHAT AREAS OF INVESTMENTS ARE AVAILABLE TO A RESIDENT RETIREE?
A: The areas of investment are the following:
1. Purchase of condominium unit/s;
2. Long term Lease of a house and lot, condominium or townhouse unit/s;
3. Construction of a residential unit on a leased parcel of land;
4. Purchase of Proprietary Membership/Golf 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.

Note: A retiree who has converted his dollar deposit into an active investment may opt to substitute the same with another form of investment that is allowed under the PRA program.

Q: CAN RESIDENT RETIREE APPLY FOR PHILIPPINE CITIZENSHIP?
A: 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.