Philippines

This article contains information about the Philippines relevant to Japan residents.

UK state pension recipients

The Philippines is one of only three Asian countries (along with Israel and Turkey), and one of only a handful of non-EU countries worldwide where residents receive annual uprating of the UK state pension. In contrast, those resident in Japan have their UK state pensions ‘frozen’ according to the later of (1) when they reached state pension age, or (2) when they became resident in Japan or another ‘frozen’ country or territory. For this reason, Japan-resident recipients of the UK state pension may wish to consider a period of residency in the Philippines. (If they then return to Japan, their pension will be frozen again.) Some reasons why Japan residents may consider the Philippines:

1. It is geographically the closest ‘unfrozen’ pension country to Japan
2. The Special Resident Retiree’s Visa (SRRV) is a pathway to indefinite residency with relatively low hurdles
3. Taxation is favourable:
   • non-Philippine-sourced income is not ordinarily taxable in the Philippines according to domestic Philippine tax law (however, bilateral agreements may create different scenarios)
   • some pensions are not taxable in the Philippines
4. English is widely spoken
5. It has a relatively low cost of living

Special Resident Retiree’s Visa (SRRV)

The Special Resident Retiree’s Visa (SRRV) allows multiple entries to the Philippines and indefinite stay in the Philippines.

Eligibility criteria:

• Aged 50+
• In good health (as defined by and determined by Philippine authorities)
• Able to fulfil the financial requirements:
  • If receiving pension > US$800/month, deposit of US$10,000 to be held in nominated bank in the Philippines for duration of stay; returnable on exit
  • If not receiving pension > US$800/month, deposit of US$20,000 to be held in nominated bank in the Philippines for duration of stay; returnable on exit
• Able to fulfil document requirements include police clearance

The application fee is currently US$1,400 and there is also a Philippine Retirement Authority (PRA) annual fee (PAF) which is currently US$360. The annual fee to maintain the status amounts to under a dollar a day and can be processed whether or not you are resident in the Philippines at the time.

Miscellaneous

There are restrictions on non-Philippines citizens owning land and property.