Expat Guide To Living In The Philippines- Costs, Visas, Safety, Pros (2022) (2024)

But it's not just the beach life that has over 300,000 Americans calling this little island nation their home. Foreigners stay for the country's combination of affordable prices, friendly locals, low visa costs, and a stress-free lifestyle.

When a short holiday is no longer enough, and you want to know what living in the Philippines is really like, Nomadic FIRE is here to provide you with the insider's view of expat life in the Philippines.

• Get realistic examples of the Cost of Living in the Philippines and the kind of lifestyle that the monthly budget buys you.
• Discover the best cities for expats to live in the Philippines
• Learn the multiple ways that you can legally retire and immigrate to the Philippines
  
• Learn the Pros and Cost of expat life in the Philippines

All

Cost of Living

Expat Insights

Insurance

Resource

Travel Essentials

Ultimate Guide

Visas

Page [tcb_pagination_current_page] of [tcb_pagination_total_pages]

Page [tcb_pagination_current_page] of [tcb_pagination_total_pages]

The power of Nomadic FIRE is combining Financial Knowledge with Minimalist Principles and leveraging Geographic Arbitrage to reach Financial Freedom in 10 years or less.

I have designed this series of Ultimate Overseas Living Guides for 3 types of people:

1. 1

   Digital Nomads working remotely andlooking to jump-start their path to Financial Independence.

2. 2

   Expats looking tolive abroad and leverage Geoarbitrage.

3. 3

   Retireesand looking to Reinvent their Retirement and upgrade their Quality of Life.

People usually wonder about safety when they first move to the Philippines. I get it. I understand. With the current President Duterte making weekly headlines for his "War on Drugs," it makes sense to be concerned.

The truth is that the "War on Drugs" is more like a "War on the Poor." Tourists and expats in foreigner hot spots rarely see any issues. Typically (before the pandemic hit), tourism in the Philippines generates 9 BILLION dollars annually from roughly approximately 8.26 millionforeign tourists. I haven't met many tourists or expats who have been affected.

You should watch out for petty theft and pickpockets in urban centers, crowded markets, and nightlife areas. However, even venturing into Manila's poorer neighborhoods, I was more concerned with my wallet, but never about my physical safety.

For short-term stays, 157 countries do not require a visa before entering the Philippines. The duration of stay is dependent on the country. For example, Americans in the Philippines can stay up to 30 days without a visa. Most foreign nationals can apply for a 6-month extension using a Long-Stay Visitor Visa Extension form (LSVVE). The LSVVE can be extended multiple times for a maximum stay of 36 months.

The visa terms are generous and Philippine extensions are easy. However, if you stay past your visa validity date, the Bureau of Immigration can impose penalties and fines for overstaying your visa.

There are three different Philippine visa categories:

• Temporary Visas- Section 9 non-immigrant visas for temporary stays (used for tourism, business, students, etc.)
• Permanent Visas- Section 13 immigrant visas are most commonly used by expats with a Filipino spouse who want to live in the Philippines permanently
• Special Visas-including the Philippine Retirement Visa or Special Resident Retiree Visa (SRRV). This visa is for aforeign nationalretiring tothe Philippines.

Permanent Residency Visa for Expat Retirees

Yes. The Special Resident Retiree Visa or SRRV is a permanent residency visa for expat retirees. Not only does the Philippines have an easy to acquire retirement visa, it is significantly easier to retire to the Philippines than Thailand, Vietnam, Indonesia, or any country in Southeast Asia.

There is even a Philippine government agency, the PRA, specializing in helping retirees move to the Philippines. The PRA assists expats with the application and offers financial incentives to encourage retirees to immigrate to the Philippines.

The Philippines does not have a dedicated Digital Nomad visa. However, the government allows foreigners to work in the Philippines. There are several additional steps if you want to work in the country legally.

• Taxpayer Identification Number (TIN)- from the Bureau of Internal Revenue (BIR)
• Alien Employment Permit (AEP)- from the Department of Labor and Employment (DOLE), if you are living in the Philippines using the SRRV
• Alien Certificate of Registration Identification Card (ACR-I-Card)- Bureau of Immigration, if you are staying in the Philippines on a tourist visa

The good news for SRRV holders is the Philippine Retirement Association will help expat retirees with the AEP and TIN application process.

Even in the expensive neighborhoods in Manila, expats can enjoy an upper-middle-class lifestyle for much less than $2,000 per month. If you have a lower monthly budget, living outside of the National Capital Region (NCR) can drop your monthly expenses significantly.

For example, you can rent a one-bedroom apartment in the Makati city center for $650 per month. While cheap by foreign standards, a similar apartment in tier 2 cities outside the capital, like Davao or Baguio, can be found for $350 per month.

The average salary is an excellent benchmark to understand the "real" cost of living in the Philippines. Wages in Manila, the country's financial hub, are higher than anywhere else in the country. Expatriates who earn more than average local salaries in Manila can reasonably afford a middle-class lifestyle in any smaller or less expensive cities in the Philippines. To compare how much further your money goes outside of Manila, the average income outside the capital is 70% less ($301 per month).

Expats earning over $2,790 are in the Top 1.3% of the country.

What are the best cities to live in the Philippines as an expat?

Metro Manila

Metro Manila, also called the National Capital Region (NCR), is the capital and largest city of the Republic of the Philippines. With over 12 million people, it is one of Asia's most densely populated cities. This massive metropolis is split into several modern municipalities. Makati City, the modern business center, along with Bonifacio Global City (BGC), are the two most popular areas for expats living in Manila.

Both Makati and BGC are modern, business-oriented areas with tall office buildings, posh residential areas, international schools, and booming nightlife. These areas are home to the best shopping malls and international restaurants in the country. Expats will find plenty of expat groups, meetups, and activities to easily make plenty of friends and build their social circle.

Cebu City

If you are looking for a tropical paradise with a "West Coast" feel, you have found it in the beautiful city of Cebu. The second-largest metro area in the country, Cebu is an ideal combination of urban city life and natural outdoor attractions. It isn't shocking to learn Cebu is one of the country's leading tourist destinations.

Cebu has white-sand beaches, turquoise waters, and plenty of sunshine year-round. You can find peace and quiet on remote islands and unspoiled coral reefs, or you can party in the many nightclubs located in the downtown area. There are several large resort areas with casinos, bars, and beach clubs. Plus, Cebu boasts an active nightlife scene, with several dance clubs and live music bars.

With non-stop flights to 40 cities in 11 countries, Mactan-Cebu International Airport, just 90 minutes by air from Manila, offers convenient access to the rest of the country and the rest of the world.

Davao City, Davao del Sur

The province of Davao del Sur is a beautiful place located on the southern island of Mindanao. This island paradise is home to Davao City, which, driven by the city's low crime rate, affordable housing prices, low traffic, clean air, and per capita income, was ranked by CNN as one of "Asia's Most Livable Cities."

With clean air and a mild tropical climate, the area is the prime growing region of the country. Davao's tropical fruit orchards supply most of the country's exotic fruits.

Davao is the country's up-and-coming expat destination with plenty of sights and activities for active expats. Hikers can explore Mount Apo, the country's highest peak. Those looking for sun and sand can find white sand beaches on nearby Samal Island. If you like watersports, you can dive a sunken WWII shipwreck near the city. And, if you're into cultural festivals, Davao hosts the country's largest Kadayawan festival, which lasts for seven days.

Expats with an SRRV Visa or an ACR-I-Card are eligible for coverage by the Philippine Health Insurance Corporation (PhilHealth). The insurance premiums for full coverage costs:

• Foreign Retirees with a SRRV Visa- $300 / 15,000 PHP per year
• Foreign Nationals with an ACR-I-Card- $335 / 17,000 PHP per year

However, PhilHealth will only provide access to public hospitals, where expats from the US or similar Western countries would be uncomfortable receiving complex medical care. Most expats and many wealthier Filipinos purchase additional private health insurance for access to better primary care doctors and hospitals.

The extra costs for higher quality private medical insurance mimic the US system, where premiums are dependent on age, pre-existing conditions, deductibles, coverage limits, etc.

Example of the HMO insurance premiums for a 25-year-old male or female in PESOS

The local currency is the Philippine Peso (PHP). At the time of this writing, the exchange rate is 1 US Dollar =50.38PHP. For reference, 1 Euro =56.63 PHP.

• €1000 Euros = 57,137 Pesos
• £1000 Pounds = 67,360 Pesos

Foreign exchange and international wire transfers play a crucial role in expats' daily lives. It’s important to understand how foreign exchange works and the effects international transfer fees can have on your cost of living.

Getting paid in USD, but paying bills in a foreign currency can kill your local buying power, especially if your bank gives you crappy exchange rates and charges you foreign transaction fees or international wire transfer fees.

Receive money as if you were still at home.

You don't need to hassle with multiple bank accounts. Receive your rental income, salary, pension, etc., using your Wise banking details.

Move your money between countries.

You can send money to more than 70 countries, always with a low and transparent fee. With Direct Debits in the US, UK, Europe, and Canada, paying your bills and subscriptions across currencies is easier.

Spend in local currency with a debit card.

Don't worry about currency rates when changing money. You can use a Wise debit card to always get the best exchange rate and avoid sneaky bank foreign transaction fees.

Save Money On Banking

The SRRV is a Non-Immigrant Visa. Expat retirees with an SRR Visa are considered non-resident aliens. Non-resident foreign nationals do NOT pay taxes on their foreign earned income (overseas investments or rental property abroad, as an example).

However, expats with income earned in the country (freelance work, owning a local business, local rental property, etc.) will need to pay taxes on the local-sourced income. However, the first 250,000 PHP / ~$5,000 is exempt from income tax.

You can find a complete list of countries withdouble taxation treatieswith the Philippines.

The Philippines and the United States have a double taxation treaty. You might be able to deduct the income tax paid to the US if you owe taxes on your local income. Consult a tax advisor for more information.

• Embassy of the Republic of the Philippines In Washington, DC
• US Embassy in Manila