Early Reverse Visa Questions

[Stevephoto 230]

Mabuhay everyone! My turn again! BUT, before I get to my questions, I'd like to offer those who are still in this prolonged state of 'limbo" some hope: I am cooking a special dinner tonight because Joan and I are celebrating 10 years together this week! We met on Facebook 10 years ago and are happily married 8 1/2 years. I understand that our journey was pre-covid, but we (and everyone else here) had our moments of doubt and worry. We are here to say: "hang in there!" It is worth it in the end!

 

On to my early questions: Those who followed our money transfer issues understand that we are looking to move (retire, in my case) to the Phils in less than 3 years. Does anyone have any opinions on what kind of visa would be best for me? I still plan to work in some capacity. I know that I can use the Balikbayan visa to buy some time, but would a 13A spousal visa or a retirement visa be the way to go. The 13A seems to have less financial requirements and perhaps less hassles than the retirement visa, but as always, your opinions are valued!

[flicks1998 1,044]

There are several factors to consider, however in general if you can get a 13A visa, that is usually the better way to go.  BB isnt really a visa, its a privilege that allows you to stay up to a year before you have to renew it.  It wont really fit for what you need.

 

SRRV can be expensive (unless you are former US military) and then you can get a reduced USD deposit you have to leave in a Philippine bank.  You can have employment on this visa, however as many SRRV holders found out during the pandemic, the retirement visa didnt really offer much perks.  For a time, SRRV holders couldnt even get back into the country, despite the whole purpose of the SRRV as a retirement visa.  Also, this visa has been cracked down on due to abuse by the Chinese.  

 

The 13A visa you will be given conditionally for 1 year, then you can apply for permanent residence.  The process will take about 2-3 months, meaning you can enter the country on the BB or just a normal 9a and extend.  If you plan to work for a local company, during the 13A process, you can apply for a SWP (special work permit) which will carry you over until you receive your 13A.  You can work legally on the 13A.  If you will work for a local company on a 13A, there are some things to keep in mind.  Companies will try their hardest to hire you on a local basis, meaning "like a local."  Thats because the companies dont have to meet any other requirements compared to other working visas.  For example, I worked in the Philippines on a 9g and there were certain requirements that companies had to meet.  I met some people working on 13a's doing a similar type job as me, but were paid 20-30 times less.  Yes, 20-30 times!  Mainly because they didnt understand the employment market.  If you will work for a local company (local company can also be any international company with an office in the Philippines) you need to push for more pay/benefits which can be tricky with the 13A.

 

If you will work remotely from the Philippines, you can do that on the 13A, however you need to be careful with the BIR.  Technically you would owe taxes to the BIR but there is no way for them to enforce this at this time, however they are looking at ways to capture taxes for remote workers, although nothing is in place yet.  If you will be paid into a US bank account and then just transfer money over, its even easier.  You'll still need to file US taxes.  If you are being paid from an organization in the US, you can just file and pay US taxes.  However the organization in the US may be worried about establishing PE (permanent establishment) which could trigger corporate taxes for them.  There are ways around this, but its too technical for this post.  Also they may want to second you to the PI if they have an entity in the PI.  If you are not being taxed in the US, but are taxed in the Philippines, when you file US taxes, you can take the foreign income tax credit which likely will eliminate any US taxes owed.  I have extremely simplified this tax explanation and there are much more details to it which I can give you in a PM.  Individual circumstances will come into play.

 

I do need to give one word of caution on working in the Philippines.  If you will work locally (local company or office of a foreign company) it will be a completely different aspect of live in the Philippines that you have not seen before.  Many expats are generally happy when they retire in the Philippines, however many expats are generally unhappy if they are working in the Philippines.  I saw this with many of the expats I moved into the country.  They are all bright-eyed when they arrive, but after 2-3 years, they are sick and tired of it and ready to go.  My entire perception of the country changed once I started working there.  Through my experience of managing an all-Filipino team (about 35 people) plus dealing with clients (Coke, HSBC, Microsoft, Chevron, etc etc etc etc etc etc) based in Manila/Cebu/Clark, I was burned out.  I wont go into all of the negativities here, but I wont even consider the PI as a place of retirement anymore.  I can share more stories in a PM.

 

Part of my work involved PI visa & immigration, so once it becomes closer to when you will actually move to the country, you can always reach out.  

[seekingthetruth 1,246]

6 hours ago, Stevephoto said:

Mabuhay everyone! My turn again! BUT, before I get to my questions, I'd like to offer those who are still in this prolonged state of 'limbo" some hope: I am cooking a special dinner tonight because Joan and I are celebrating 10 years together this week! We met on Facebook 10 years ago and are happily married 8 1/2 years. I understand that our journey was pre-covid, but we (and everyone else here) had our moments of doubt and worry. We are here to say: "hang in there!" It is worth it in the end!

 

On to my early questions: Those who followed our money transfer issues understand that we are looking to move (retire, in my case) to the Phils in less than 3 years. Does anyone have any opinions on what kind of visa would be best for me? I still plan to work in some capacity. I know that I can use the Balikbayan visa to buy some time, but would a 13A spousal visa or a retirement visa be the way to go. The 13A seems to have less financial requirements and perhaps less hassles than the retirement visa, but as always, your opinions are valued!

I have a 13a but have no interest in working here, so I can't advise on that angle.  If you do decide on 13a, consider one thing that Flicks forgot.  You can apply for it while in the U.S., and it is a permanent visa right away when you arrive.  If you wait until you live here, you have 1 year probation that Flicks mentioned.

 

The only thing I don't like about 13a is the cost to travel out of the country.  A permanent resident has to pay the Philippine Travel Tax.  p1620 per trip.  And, you have to pay for ECC-B, p2880.  The ECC-B might be good for a year (multiple trips within a year) but I am not sure. 

 

I have to pay the travel tax for my whole family, 3 adults X 1620 and 810 X 2 for the kids = p6480 per trip.  😬

 

I never liked the SRRV because of the big deposits, but if you are a vet, it is a good deal.  I think only 1500 USD?

[Talako 785]

4 hours ago, seekingthetruth said:

I have a 13a but have no interest in working here, so I can't advise on that angle.  If you do decide on 13a, consider one thing that Flicks forgot.  You can apply for it while in the U.S., and it is a permanent visa right away when you arrive.  If you wait until you live here, you have 1 year probation that Flicks mentioned.

Consulates in the US are not currently processing 13A visas.  They would be stuck doing the 2 part process in the Philippines.

[seekingthetruth 1,246]

38 minutes ago, Talako said:

Consulates in the US are not currently processing 13A visas.  They would be stuck doing the 2 part process in the Philippines.

Yes, but he is looking out 3 years.  God help us if things are not more normal then!

[Talako 785]

1 hour ago, seekingthetruth said:

Yes, but he is looking out 3 years.  God help us if things are not more normal then!

My faith in my reading comprehension just took a hit. 

 

Thanks for pointing that out.

[Stevephoto 230]

Salamat everyone! As always, greatly appreciated. To clarify more: @Talako, yes, I can retire from my job in US in October 2024, so nothing happening for a while! @flicks1998, Thank you and will do. The plan was to used the BB permit until either of the other two more permanent visas became available/viable. My choice of words for "work" was not the best so I apologize. I do not plan to work for anyone or another company. We are looking into business opportunities. My job would be to sit home and do the bookkeeping and inventory. Of course, it IS a job and would be reported as such, but not in the traditional sense. Did that for 40 years and have no desire to do it anymore! @seekingthetruth, good points. The travel tax is waived under the retirement visa, but yes, you need $10K in the bank (non-military and if your pension hits a certain mark--$20K if not). It is supposed to be used to secure money for rent, but we will have our own house. The 10K might not be a major problem, but I believe that requirement is permanent. Looks like the 13A might be the the best option, especially if they open them for consulates here. Thanks everyone. Talk you in a year or so, Flicks!