Philippines: a digital nomad visa in preparation

The Philippines has announced the creation of a permit for people working remotely for an employer or clients located outside the archipelago.

We do not publish the required income threshold, the duration of the permit, the date of entry into force or the documents to be provided: the scheme had been announced but not yet implemented at the time of our check, and we found no official text setting out its conditions.

This caveat is the rule for all announced schemes. The Indonesian experience shows that conditions reported in the press can come several months before implementation, and be amended before being applied.

The point to check, when the text is published, is the tax treatment of the holder's income. Croatia excludes it from its tax base; Montenegro does not. This difference is decisive for a long stay.

The Philippines does not tax the foreign-source income of foreign residents, which makes this question less pressing than elsewhere — but the exact scope of this rule for a remote worker present in the country will need to be clarified.

This caution is not a matter of principle: it stems from an observed pattern. Announcements of nomad visas have become a communication tool, and the gap between the announcement and the applicable text is often measured in years.

The Philippine Constitution reserves land ownership to Philippine citizens and to companies majority-owned by them. No residence permit changes this rule.

A foreign national may acquire a condominium unit in full ownership, within a quota set for each building. This is the only segment open to them.

A house with land can only be obtained through a long-term lease, whose remaining term determines its value, or through a Philippine spouse — which raises other issues in the event of separation or inheritance.

Arrangements using shell companies or nominees are unlawful and expose the buyer to losing the property, with no effective recourse. This is the most serious risk in Philippine projects.

A visa scheme, whatever it may be, therefore does not answer the question that determines a lasting settlement: what one can own and pass on.

The Philippine scale for earned income starts at 0%¹ and peaks at 35%², and the tax on domestic corporations stands at 25%³.

Dividends bear a final tax of 10%⁴, and gains on the sale of shares not traded on the stock exchange are taxed at 15%⁵.

The sale of real estate bears a levy of 6%⁶, based on the sale price or on the reference value if higher: a tax on the price, not on the gain.

Inheritance tax stands at 6%⁷ of the net value, with no progressive scale — a very low level by European standards.

1. Do not build a plan on a scheme that has been announced but is not yet in force.
2. Look at the existing routes: retirement visa, work visa, or successive stays on a visitor visa.
3. Deal with the land question first: it limits what one can own.
4. Plan ahead for healthcare, as major procedures often require evacuation to Singapore or Bangkok.
5. Handle the departure from France according to its own criteria and the France–Philippines tax treaty.

Finally, the archipelago is among the territories most exposed in the world to typhoons as well as to seismic and volcanic activity. Property insurance and construction quality are therefore issues in their own right, and they weigh more heavily on a relocation project than the residence permit chosen.