Moving to the Philippines in 2026: Retirement Visa (SRRV) and Low Cost of Living

The Philippine tax code carefully distinguishes between categories of taxpayers. A resident alien is taxed only on Philippine-source income, whereas a resident citizen is taxed on worldwide income. This distinction is the starting point for any analysis, and it works in the expatriate's favour.

The scale applicable to earned income has a first exempt bracket, at a rate of 0%³, and peaks at 35%⁴ above the last threshold.

Investment income

Dividends in cash or in kind are subject to a final tax at a rate of 10%⁵, provided for in section 24.

Capital gains fall under two distinct regimes, which is a particularity of Philippine law. Gains on the sale of shares not traded on a stock exchange are taxed at 15%⁶. Gains on the sale of real estate are subject to a levy of 6%⁷.

This latter rate deserves attention: under the code, it applies to the sale price or the highest zonal value, and not to the gain actually realised. A property sold at a loss can therefore still bear the tax — a point that international comparisons systematically omit.

Estate tax is set at a single rate of 6%⁸ on the net value of the estate, and corporate income tax at 25%⁹.

Two arrangements temper this rate. A domestic corporation whose net taxable income is up to ₱5,000,000¹⁰ and whose total assets, excluding the land on which it is located, are up to ₱100,000,000¹¹ is taxed at 20%¹². And the CREATE MORE law (Republic Act 12066, approved on 8 November 2024) sets out the incentives for registered enterprises, notably in economic zones: for an exporter, a temporary exemption of up to 7 years¹³, then, for 10 years¹⁴, either a special tax of 5%¹⁵ on gross income in lieu of national and local taxes, or enhanced deductions with a rate of 20%¹⁶.

This distinction between resident alien and resident citizen has a practical consequence that should be measured: it makes immigration status directly relevant to taxation, which is rare. The same income, received by two people living side by side, will be taxed differently depending on their nationality and residence status.

It also explains why the practical impossibility of obtaining Philippine citizenship is not, for an expatriate, the handicap it would seem elsewhere: remaining a foreigner is precisely what preserves the tax advantage.

The Philippines has a residence scheme for retirees that has built its reputation in the region, administered by a dedicated agency, as well as investor visas and standard work visas.

The retirement programme is based on a bank deposit held with an accredited bank, the amount of which varies with the applicant's age and with whether or not they receive a pension. The deposit may, under certain conditions, be converted into a real estate investment.

The Philippine Retirement Authority publishes the scale for this Special Resident Retiree’s Visa (SRRV), accessible from 40 years¹⁷ in the Classic option. The deposit is $15,000¹⁸ or $25,000¹⁹ depending on the age bracket for an applicant who can show a lifetime monthly pension of from $800²⁰ if single, and $30,000²¹ or $50,000²² without a pension, the higher amount applying to the youngest applicants. The agency also announces, for holders, an exemption from tax on pensions and annuities.

The conditions for converting the deposit into an investment and those of the programme's other options are not covered here: the scale has been amended several times and must be checked with the competent agency at the date of the application.

It is worth stressing what this visa is not: it does not, in itself, authorise paid work locally, and it is not a route to citizenship. It is a residence permit, renewable as long as the deposit is maintained.

One structural feature distinguishes the Philippines from many destinations: Philippine citizenship is in practice not available to a foreigner through ordinary residence. A relocation project must therefore be seen as long-term residence, never as naturalisation.

This is the country's main constraint, and it is constitutional. A foreigner cannot own land in the Philippines. The rule is a matter of public policy and cannot be modified by contract.

A foreigner may, however, own a condominium apartment, within a foreign ownership quota set for each building. They may also enter into a long-term lease on land, the duration and renewal conditions of which are regulated.

Arrangements designed to circumvent the prohibition — a Philippine company held by nominees, a purchase in the name of a Filipino spouse with a secret agreement — expose the parties to nullity of the transaction and to penalties. This is not a grey area: it is a prohibition.

The foreign quota in condominiums also affects resale: a building that has reached its limit can no longer sell to a foreigner, which restricts the exit market to local buyers.

We do not publish Philippine transfer taxes, property tax, or the exact level of the foreign condominium quota: they do not appear in our extracts.

One consequence for the estate deserves to be anticipated: a Franco-Filipino couple who purchase in the name of the Filipino spouse place the property outside the expatriate's estate. In the event of separation or death, the fate of the property is governed by Philippine family and succession law, which differs significantly from French law. This question should be addressed with a notary in both countries, before the purchase.

The cost of living in the Philippines is far below European levels, particularly for services and labour. The common use of English in administration and services makes settling in considerably easier.

We do not publish a typical monthly budget: we have not found an official Philippine series measuring a basket of expenses comparable to that of an expatriate.

Four items structure a budget. Housing, which varies greatly between Manila, Cebu and the provinces. Healthcare, where private hospitals in the large cities are of good standard but where insurance becomes expensive with age — a decisive item for a retirement project. Electricity, among the most expensive in Southeast Asia. And transport, in an archipelago where every inter-island journey requires a flight or a ferry.

Exposure to typhoons and earthquakes is a given of the project. It affects the choice of region, the build quality sought and the cost of insurance.

In return, the archipelago offers a rare diversity of living environments, from the dense metropolis to sparsely populated islands, at price levels that remain affordable on a European income.

1. Choose the route: retirement programme, investor visa or work visa, the conditions being in no way comparable;
2. check with the competent agency the amounts in force, as the scheme has been amended;
3. make the bank deposit with an accredited bank, a prerequisite for issuance;
4. for a real estate project, limit yourself to condominiums and check the building's foreign quota before any preliminary agreement;
5. treat the departure from France according to its own criteria and under the applicable tax treaty.

The fourth point is the one that gives rise to the most disputes. The quota is checked with the condominium association, not with the seller, and the check must come before any payment.

We do not publish processing times: we have no official, dated and quantified source for Philippine visas.

• A resident foreigner is taxed only on income from Philippine sources: this is the main advantage, and it is written into the code.
• Capital gains tax on real estate is levied at 6%⁷ on the price or the zonal value, not on the gain: a sale at a loss is still taxed.
• Land ownership is constitutionally closed to foreigners: workaround structures are void, not merely risky.
• The foreign ownership quota in a condominium determines whether the property can be resold.
• Citizenship is in practice not attainable: the project should be conceived as a long-term residence.

Finally, a Philippine passport opens access to far fewer destinations than a European passport: the question of naturalisation, which arises elsewhere, does not arise here. What the Philippines offers is a low cost of living, an accessible language and a tax territoriality that favours resident foreigners — provided one accepts never owning the land one lives on.