| GNERAL
NOTE :
1.
It does not mean that if you can’t avail the program,
you cannot purchase a property in the Philippines.
2.
It also doesn’t follow that because you want to
buy properties in the Philippines, you need to put your
money in the shortlisted banks of PRA.
POLICY
CHANGES RELATIVE TO THE IMPLEMENTATION OF THE SPECIAL
REDUCED DEPOSIT
In order
to liberalize the requirements of the Authority’s
program and to make it more competitive with the programs
of other countries and attractive to prospective foreign
retirees, the following changes, pursuant to Resolution
No. 24, Series of 2006, of the Board of Trustees, in
the rules and regulations of the Philippine Retirement
Authority for retiree enlistment in its program are
hereby adopted, effective 29 May 2006.
Special Reduced
Deposit – For principal applicants who are applying
for Special Resident Retiree Visa, the minimum qualifying
deposit is reduced as follows:
AGE : 35-49 years old
FROM : US$75,000.00
TO : US$50,000.00
AGE : 50 years and above
FROM : US$50,000.00
TO : US$20,000.00
Holding Period
– Retirees enrolled under this Program may be
allowed to withdraw their deposit for “conversion”
into an investment after a holding period of thirty
(30) days from the date of the issuance of SRR Visa.
Visitorial
Fee – For every conversion of the retiree’s
deposit into an investment, the concerned retiree will
pay the visitorial fee as follows:
Deposit/s : US$20,000.00
Annual Visitorial Fee : US$500.00 or
its peso equivalent
Deposit/s : US$50,000.00
Annual Visitorial Fee : US$750.00 or
its peso equivalent
Areas
of Investment – The areas of investments
for visa holders under the Special Reduced Deposit Scheme
shall be strictly limited to the following:
Purchase, acquisition and ownership of a condominium
unit;
Long-term lease of house and lot, condominium or townhouse
which should not be for a period shorter than 20 years;
Purchase, acquisition and ownership of golf or country
club share/s; or
Investment in shares of stocks of corporations duly
registered in the Philippine Stock Exchange
All applications for conversion of deposit shall be
submitted to the Board of Trustees for its approval.
Applicability
of the Program – The program is an experimental
project for six (6) months and shall apply ONLY to new
applicants. Previous SRRV holders CANNOT re-apply for
SRRV under this Program.
About
the Program
SPECIAL
RESIDENT RETIREE
The Special Resident Retiree's Visa (SRRV) entitles
the holder to multiple-entry privileges with the right
to permanent residence in the Philippines. The SRRV
is issued by the Bureau of Immigration of the Republic
of the Philippines in connection with the Philippine
Retirement Authority's Retirement Program for the foreigners
and former Filipinos.
APPLICANT
ELIGIBILITY
All foreign nationals except those classified as RESTRICTED
by the Department of Foreign Affairs (DFA) who are physically
healthy and with no derogatory record and who are at
least 35 years old and over, may join the Program.
AGE
/ DEPOSIT REQUIREMENTS
All foreign nationals below 50 and at least 35 years
of age are required to deposit the amount of US$75,000.00
with any PRA shortlisted bank. Those aged 50 and above
are required to deposit US$50,000.00. Former Filipinos
are required to deposit US$1,500.00. The deposit amount
of US$50,000.00 shall be required from an applicant
who is at least 35 years of age and belongs to any of
the following:
-
Retired
military personnel of governments recognized by
the Philippines; or
-
Former
members of foreign diplomatic corps who have served
for at least three (3) years in their respective
posts; or
-
Retired
officers and employees of international organizations
such as the United Nations and its affiliate agencies,
the World Health Organization, World Bank, International
Labor Organization and other similar organizations.
FAMILY
ELIGIBILITY
A
retiree can bring with him, without any additional deposit,
his spouse and a child who is unmarried and below 21
years old or, if the spouse is not joining, two (2)
children, provided they are legitimate or legally adopted.
Additional children with the same qualifications may
also be allowed to join the principal retiree under
the program provided there is an additional deposit
of US$15,000.00 per child. The US$15,000.00 deposit
is, however, subject to the same terms as the principal
deposit.
Dependents/children will continue to be members of the
program and retain their SRRV even after reaching the
age of 21 for so long as the required/additional deposit
of the principal retiree is maintained in the bank under
the PRA account or the investment has not been transferred
to other countries and still subsists in the Philippines.
THE
DOLLAR DEPOSIT
The
requisite dollar deposit can be opened in the name of
the principal retiree under an "and/or" account
with the spouse who is also a bonafide member of the
PRA Program. This also applies to an applicant/retiree
who is legally married to a Filipino citizen.
The
deposit earns interest in the same currency at minimum
LIBOR/SIBOR rate payable in Philippine pesos only. The
interest is withdrawable even without PRA clearance.
After six (6) months from the time it was opened in
any of the PRA short listed banks as a retiree account,
the deposit can be converted into active investments
subject to prior clearance from PRA.
If
the resident retiree decides to terminate his membership
in the program, the deposit (including interest) can
be withdrawn provided that the resident retiree has
notified the PRA in writing, accomplished the EXIT Interview
Form, submitted the Original Passport for the cancellation
of the SRRV and his PRA I.D. Card and has paid all taxes
and duties due on his importations (if any), through
the Program.
Under
PRA rules, should the resident retiree suffer an untimely
demise, the surviving spouse who is a holder of SRRV
has the option to become the principal retiree using
the original principal dollar deposit as his/her qualifying
deposit. If he/she chooses not to, the law on succession
shall apply.
DOCUMENTARY
REQUIREMENT
A prospective member should submit the following documentation
to the PRA:
-
Accomplished Philippine Retirement
Authority (PRA) Application form.
-
Valid passport
-
Department of Foreign Affairs (DFA)
Medical Examination Form #11 accomplished by a licensed
physician from the applicant place of origin, duly
authenticated by the Philippine Embassy Consulate
or PRA Medical Certificate (RSSC Form #002) accomplished
by a licensed physician in the Philippines.
-
Certification by a PRA shortlisted
bank of the requisite deposit amount of US$1,500.00,
US$50,000 or US$75,000.00 whichever is applicable.
-
Police Clearance issued abroad
and duly authenticated by the Philippine Embassy/Consulate,
or National Bureau of Investigation (NBI) in the
Philippines.
-
Photographs, 1x1 and 2x2, six (6)
pieces each.
-
If the spouse is joining the applicant,
original copy of Marriage Contract if the applicant's
marriage was solemnized in the Philippines or original
copy of Marriage Certificate duly authenticated
by the Philippine Embassy/Consulate nearest to the
applicant's residence abroad if the marriage was
contracted abroad.
-
If dependent/s is/are joining the
applicant, original copy of Birth Certificate/s
of dependent/s born in the Philippines or Birth
Certificate/s or Household Register duly authenticated
by the Philippine Embassy/Consulate nearest the
applicant's residence abroad.
-
Payment of a total of US$2,000.00
(for 35 to 49 years of age) of US$1,500.00 (for
50 years and above) as service and processing fees
and US$1,500.00 for former and overseas Filipinos.
ADDITIONAL
FEES
-
The amount of Php 7,600 charged by the Bureau of
Immigration for change-of-admission status
of the principal applicant into a special resident
retiree is included in the US$1,500.00 or US$2,000.00
service/processing fee but the additional fee of
7,600.00 for the spouse and for each dependent shall
be for the account of the applicant. Likewise, the
amount of Php 500.00 is charged as express lane
fee for every endorsement to the Bureau of Immigration.
US$15.00 per year is charged for every PRA ID card
of each applicant, spouse and dependent effective
August 16, 2001.
-
Service
fee of US $100.00 for each dependent (spouse and
children) effective April 1, 2001.
-
If the visa is issued by the Philippine
Embassy/Consulate abroad, the applicant and his
spouse and dependents shall pay the corresponding
visa fees.
-
The Retiree pays the visitorial
fee of one percent (1.0%) per annum of the Philippine
Peso equivalent of the requisite dollar deposit
converted into actual investment effective September
15, 2001.
BENEFITS
A
resident retiree or holder of the SRRV is accorded the
following benefits:
-
Permanent, non-immigrant status
with multiple entry privileges through the SRRV.
-
Exemption from customs duties and
taxes for one time importation of personal effects,
appliances, and household furniture worth
US$7,000.00 which should not be of commercial quantity
and must be availed of within 90 days upon issuance
of SRR Visa.
-
Exemption from exit clearance and
re-entry permits.
-
Exemption from payment of travel
tax provided the retiree has not stayed in the Philippines
for more than one (1) year from date of his
last entry into the country.
-
Conversion of the requisite dollar
deposit into active investments, including purchase
of condominium units.
-
Interest on the foreign currency
deposit is withdrawable anytime and payable to retirees
in Philippine pesos.
-
Foreign currency time deposit can
be converted into Philippine peso deposit after
the issuance of SRRVisa with interest subject to
20% withholding tax.
-
Pensions and annuities remitted
to the Philippines are tax-free.
-
Guaranteed repatriation of the
requisite deposit including invested profits, capital
gains and dividends accrued from investments upon
compliance with rules and regulations of Bangko
Sentral.
-
Exemption from securing the Student's
Visa/Special Study Permit.
INVESTMENT
OPTIONS AND TERMS
Resident retirees may avail of the following investment
opportunities:
-
Purchase of a condominium unit.
-
Formation of a new corporation
and registration with the Securities and Exchange
Commission.
-
Purchase of share of stocks in
existing corporations registered with the Securities
and Exchange Commission, but not those traded in
the Stock Exchange.
-
Lease of a parcel of land or house
and lot.
-
Construction of a residential unit
on leased parcel of land.
-
For former natural born Filipinos,
purchase of a lot not exceeding 5,000 square meters
in urban areas or three (3) hectares in agricultural
areas, for business and other purposes.
-
Purchase of proprietary/membership
shares in golf clubs.
The above investments cannot be sold,
transferred or encumbered without clearance from PRA.
BENEFITS
AND OBLIGATIONS
Foreign nationals are not allowed by the Constitution
of the Republic of the Philippines to acquire land except
through hereditary succession. However, under existing
investment policies and subject to foreign equity restrictions
foreigners are allowed to invest in corporations registered
with the Securities and Exchange Commission and which
may own real property.
In case of sale or liquidation of the retiree's investment,
he has the option to (1) re-deposit in his name and
or his spouse under the PRA account, the proceeds of
the sale either in Peso or in foreign currency, or (2)
re-invest the same in another allowable investment outlet.
A retiree is given ninety (90) days
from the issuance of his SRRV to avail of tax-free importation
of US $7,000.00 worth of personal effects/household
goods. The period may be extended for another sixty
(60) days upon the request of the retiree through the
PRA or The Department of Finance. He may dispose of
his personal effects/household goods within three (3)
years from the importation. The taxes due must be paid
if he decides to dispose of his personal effects/household
goods within three (3) years.
Should he decide to terminate his PRA
membership within three (3) years following the entry
of his personal effects/household goods, he is also
required to pay the necessary taxes and duties. However,
he may opt to ship back the items to his country of
origin to be exempted from paying the taxes and duties.
OTHER
OBLIGATIONS OF THE RETIREE
- To give the Authority a written notice of any change
of information supplied in the application form (e.g.
status, name and/or address) within sixty (60) days
from such change.
- To give the Authority a written sixty (60) days
notice of termination of his participation in the
program.
- To pay the Authority, by way of visitorial fee,
the amount equivalent to one percent (1.0%) of the
total amount in Philippine peso equivalent of the
foreign currency deposit converted into investment,
to be paid in advance for 3 years on the date of withdrawal/conversion
of deposit into investment.
- To notify the Authority in writing prior to his
foreign travel by filling up and submitting a Retiree's
Departure Form.
- Upon expiry of the one (1) year validity period,
surrender the I.D. Card for a replacement of a new
one.
- To comply with the rules and regulations of the
Authority.
APPLICATION
/ ENROLLMENT
A
retiree may apply for enrollment at:
PHILIPPINE RETIREMENT AUTHORITY
29/F Citibank Tower, 8741 Paseo de Roxas
Makati City, 1200 Philippines
PROCESS
OF SRRV ISSUANCE BY PHILIPPINE EMBASSY/CONSULATE
-
Applicant/Marketer
submits documents to Philippine Embassy/Consulate.
-
Applicant/Marketer
notifies PRA of application/documents submitted
to Embassy/Consulate:
- PRA Application form duly accomplished
- Photocopy of Passport page showing Date of Birth
- Medical and Police clearance from place of origin
valid for six (6) months, duly authenticated by
the Philippine Embassy.
- Certification of the Dollar Time Deposit by
any of PRA's short listed bank.
- Photographs
- Marriage Certificate if the spouse is joining
- Birth Certificate if a dependent child is joining.
- Payment of service/processing fee to PRA
-
Embassy/Consulate endorses application/documents
to the Depratment of Foreign Affairs (Manila) who
in turn endorses the same to PRA for evaluation
and processing.
-
PRA reviews documents. If complete,
forwards recommendation to DFA Manila for subsequent
transmittal to Embassy/Consulate.
-
Embassy/Consulate abroad issues
a single-entry SRRV to applicant.
-
Applicant enters Philippines with
a single-entry SRRV.
-
Upon arrival in Manila, applicant
goes to PRA office for the stamping of the multiple-entry
SRRV on the passport by the Bureau of Immigration.
PROCESS
OF SRRV ISSUANCE BY THE BUREAU OF
IMMIGRATION - MANILA
-
Applicant/Marketer remits deposit requirement to a
shortlisted bank in Manila.
- Bank
credits funds to special time deposit account in the
name of the applicant.
- Shortlisted
bank sends PRA certification under oath of inward
remittance of applicant's deposit.
- Applicant/Marketer
secures Medical and Police Clearance from place of
origin duly authenticated by the Philippine Embassy/Consulate.
If Medical or Police Clearance are not secured from
place of origin, PRA assists applicant to secure the
same in Manila in three (3) working days.
- Applicant
enters the Philippines as tourist.
- Applicant/Marketer
submits all documents to PRA in Manila:
- PRA
Application
- Medical
Clearance
- Police
or National Bureau of Investigation (NBI)
Clearance
- Certification
by bank of the deposit
- Photographs
- Marriage
Certificate if the spouse is joining
- Birth
Certificate if a dependent/child is joining
- Payment
of application fee
|
- PRA evaluates and, if
complete, endorses the application to the Bureau of
Immigration (BI) for the issuance of SRRV.
- Applicant is issued
SRRV by BI within five (5) working days upon completion/submission
of all requirements.
REMITTANCE
OF DEPOSIT
The procedure in remitting your US$1,500.00,
US$50,000.00 or US$75,000.00 deposit to any of our short
listed banks is as follows:
-
Go to the nearest major international
or commercial bank within your locality.
-
Inquire if that bank handles "Telegraphic
Fund Transfer" to banks in the Philippines.
-
Give the following instructions
to that bank (normally a form is provided for this
purpose):
|
To
________________________________________________________
(Name of Remitting International Bank)
Pay To ____________________________________________________
(Name of Depository Bank in the Philippines)
the amount of US 50,000.00/US 75,000.00 to
set up an FCDU time deposit account in the
name of
Mr. /Mrs.____________________________________________________
(Name of Retiree)
under the (PRA) retirement program. Upon receipt
of the remittances, please telephone/advise
PRA immediately.
_____________________________
(Signature of Retiree)
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SAMPLE
-
Retain a copy of the above Telegraphic
Transfer instructions.
SHORTLISTED
BANKS
-
BANK OF COMMERCE
-
CHINATRUST (PHILS.) COMMERCIAL
BANK
-
EQUITABLE PCI BANK
-
METROPOLITAN BANK AND TRUST COMPANY
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