A New Life in the Philippines

The Philippines is made up of more than seven thousand islands. The count actually varies, depending on whether it is high tide or low tide. A unique island is typhoon battered and ruggedly beautiful Batanes, where people live in low stone houses without any locks, use homemade lamps to light their homes at night and go fishing in wooden canoes in 20 feet waves. Expats who decide to make the Philippines their retirement home can explore this and other islands, and find that each one has its own particular charm and delights.

Climate in the Philippines | Government in the Philippines | Medical Care in the Philippines | Tax in the Philippines | Real Estate in the Philippines | Shopping in the Philippines | Cost of Living in the Philippines

Climate in the Philippines

The Philippines is hot, humid and wet. The mean temperature for the entire year is 26.6 degrees C. The summer capital, Baguio, has a mean temperature of 18.3 degrees C, which is why droves of local tourists head for the mountain city during summer break. The rainy season starts June, the same month that school opens, and lasts till November.  The dry-cool season starts December and ends February while the dry-hot season lasts from March to May, a time of rice harvests, town fiestas and the May festival of flowers (Flores de Mayo).

Government in the Philippines

Political commentators call the Philippine political system an “elite democracy” since it is dominated by a number of interrelated families that are both politically and economically powerful.  Age-old social problems are still very much evident despite the 1986 successful People’s Power Revolution that kicked out the dictator Marcos.  Poverty is still prevalent, and the gap between the rich and poor is wider than before. To support their families, millions of Filipino women and men have joined the exodus of Filipino contract workers mainly to the Middle East, other Asian countries, Europe and the U.S.A.

Philippine agriculture and industry have been hit hard by the increased entry of imported goods.  There is widespread opposition to the present administration and President Gloria Macapagal Arroyo who was implicated in widespread cheating during the previous election and other anomalies. There seems to be no immediate threat to government, with the decrease in the strength of the “legal and illegal” left and relative quiet among the ranks of the military.

Tax System in the Philippines

The Philippine government has instituted a Special Resident Retiree’s Visa (SRRV) to attract retirees to the country. Qualified individuals are required to make certain deposits, which vary according to his or her age. Individuals with the SRRV will be entitled to benefits such as: tax free pensions and annuities; permanent, non-immigrant status with multiple entries; exemption from taxes for importation of personal belongings with value of up to $7,000; and exemption from travel tax.

Medical Care in the Philippines

The quality of medical care in the Philippines varies widely, from world class in Manila’s best-staffed and best equipped hospitals and medical centers, to primitive and downright life threatening.  It is best to have a list of reputable establishments and health professionals inside and outside Manila (if you live there), make your choice of physicians and hospitals, and make arrangements for your care before and not after you get seriously ill.  Friends, patients’ advocates, and local associations of health professionals can help you do this. In the country, medical and dental care is most expensive in Manila but it is still much cheaper than in the U.S. or Europe.  Many Filipino immigrants combine their vacations in the Philippines with medical procedures because of this combination of quality care and affordability. Retirees can also take advantage of relatively low labor costs if they need trained caregivers and nurses.

Real Estate in the Philippines

Foreign nationals cannot acquire land in the Philippines except as an inheritance. Existing investment policies, however, allow foreigners to invest in corporations registered with the Securities and Exchange Commission and which may own real property.  

Government and private business are trying to attract Filipinos to return to the Philippines and retire here.  There have been positive results. Half the buyers of condominiums in a retirement project in Subic (former U.S. base) are Filipino-Americans who spend their time in the U.S. and in the Philippines. They have the best of both worlds.   Many homes and apartments (old and new) are available in Metro Manila, Metro Cebu and Metro Davao although properties in smaller cities and towns are much cheaper.  You can also build your home from scratch since labor costs are low but it would require close supervision from you or a capable and honest representative.

Shopping in the Philippines

You can be adventurous and try shopping in the old established markets, namely, Baclaran, Divisoria, and Quiapo.  In Divisoria, you will need three to four hours to explore the sprawling buildings and open markets.  There are good bargains mixed with the bad. Large blankets from China can cost as little as US$2-3. Well-made embroidered cotton blouses are available at US$4-6.  However, there are many items that are shoddy and self-destruct after you wear or wash it once.  Baclaran offers locally made, cheap and durable children’s dresses, jeans,  pyjamas,  cotton underwear, etc.  Again you have to keep looking for the real bargains. Quiapo is famous for handicrafts sold in open stalls located under the bridge and in air-conditioned buildings.  However, if you prefer to shop in comfort and for high-end products, Manila is filled with malls.

Cost of Living in the Philippines

A couple can live quite comfortably on $1,500 a month and luxuriously on $2,000 a month in Metro Manila. You can rent a two-bedroom house in a  middle class subdivision for $500. Utilities will cost another $200 if you use air-conditioning. You can have excellent meals for about $300.  If, on the other hand, you have to be frugal, you can live simply in a small city like San Pablo in Laguna (a 2 ½  hour ride from Manila) for less than $1000 a month ($250 for rent, $200 for food, $100 for utilities, etc.).  The city is clean and cool because of its high elevation.  The people are friendly and laid back. San Pablo is famed for its chain of seven lakes and is a stepping stone to other tourist attractions in the Southern Tagalog area.