PLANNING TO RETIRE IN THE PHILIPPINES? This VISA might be the right one for you!

SPECIAL RESIDENT RETIREE’S VISA or SRRV

Are you a foreign citizen or national who desires or plans to retire in the Philippines? Or are you a former Filipino citizen who is now a naturalized citizen in a foreign country and who desires to retire in the Philippines without re-acquiring your Philippine citizenship? In short, you simply want to avoid the possible complication of having a dual citizenship but still you are looking forward to spending more time in the Philippines or even the rest of your life in the Philippines.  Perhaps, the SRRV or the Special Resident Retiree’s Visa is the right one for you!

What is the SRRV?

The Special Resident Retiree’s Visa (SRRV) is a special non-immigrant visa that entitles the holder to reside in the Philippines indefinitely with multiple entry and exit privileges.  It is separate and distinct from the existing visa categories defined by the Philippine Immigration Act of 1940, as amended, and its allied laws.  This visa is for foreign nationals, including former Filipinos who lost their Philippine citizenship by naturalization in a foreign country, who would like to make the Philippines their second home or investment destination.

SRRV is still issued by the Bureau of Immigration, but this one is being implemented through the Philippine Retirement Authority or PRA. You might wonder why the PRA?  And what is the PRA?

PRA or the Philippine Retirement Authority is a government-owned-and-controlled corporation attached to the Department of Tourism.  It was created way back in 1985 through Executive Order No. 1037 issued by the late President Marcos.  Its is mandated to attract foreign nationals and former Filipino citizens to make Philippines as their retirement destination. It was subsequently attached to the Board of Investments and now, it is attached to the Department of Tourism.

So please take note:  PRA is the only agency that accepts and processes SRRV applications.  Although there are accredited marketers whom you may approach to help you in your application. The list of these accredited marketers is found in the official website of the PRA.

Now, what are the benefits that you can get from having the SRR Visa?

 

No. 1: Indefinite stay with multiple-entry and exit privileges.  

·       As an SRRV holder, you may stay in the Philippines for as long as you want.  You may stay in the Philippines for good and embrace the local life of Filipinos.  You are free to come in and out of the Philippines anytime that you desire. 

 

No. 2: Entitlement to PHILHEALTH benefits & privileges.

·       As an SRRV holder, you may enrol under the Informal Economy member category of PhilHealth to gain access to medical care services in the country.

 

No. 3: Discount privileges from PRA accredited Merchant Partners.

·       PRA has accredited certain entities that render medical services, retirement facilities, resorts, and others. SRRV holders are given discount privileges by these merchants.

 

No. 4: Free assistance in transacting with other government agencies.

·       PRA provides assistance to its member-retirees in transacting with other government agencies, such as the Land Transportation Office for obtaining a driver’s license, NBI Clearance, obtaining an Alien Employment Permit from the Department of Labor and Employment,  and obtaining a Taxpayer’s Identification Number from the Bureau of Internal Revenue.

 

No. 5: Exemption from the Philippine Bureau of Immigration ACR-I Card and from Annual Reporting to the Bureau of Immigration.

·       If you are a foreigner and you are a permanent resident visa holder in the Philippines, you are issued an Alien Certificate of Registration or ACR-I Card.  However, if you are a holder of an SRR Visa, you are exempt from this.  That means, you are saved from the hassle of reporting to the Bureau of Immigration annually and of renewing your ACR-I Card.

No. 6:  Exemption from Customs duties & taxes for one time importation of household goods & personal effects worth up to US$7,000.00

·       Since you are moving to the Philippines as a permanent resident, you are entitled to bring in your household items and personal belongings without having to pay customs duties and taxes as long as you do not exceed the $7,000 limit.

 

No. 7:  Exemption from Tax from pensions & annuities.

·       What an excellent way to enjoy the proceeds from your pensions and annuities, right! As an SRR Visa holder, you can enjoy them tax-free!

 

No. 8: Exemption from Travel Tax, if retiree has not stayed in the Philippines for more than 1 year from last date of entry.

·       If you are an SRRV holder and you stay in the Philippines for less than a year from your last arrival in the Philippines, you are entitled to the travel tax exemption when you depart from the Philippines, say, when you go for a vacation in your home country to visit your family or friends. Travel tax is assessed whenever a person leaves the Philippines and the amount depends on whether the ticket is for a business class or for economy class. There are certain individuals who are exempt from payment of this tax and fortunately, SRR Visa holders are among them.

 

No. 9: Exemption from Student Visa or Study Permit.  If you apply for an SSR Visa, you are allowed to include your dependents.  And your dependents can enrol in Philippine schools without need for a student visa or study permit.

No. 10: As an SSR Visa holder, you will have an access to the Greet & Assist Program of the PRA at selected Philippine airports.

·       Isn’t it a pleasant experience when someone is there to give you a warm welcome on your arrival?

No. 11: Guaranteed Repatriation of the required time deposit or visa deposit.  As I will discuss later, there a visa deposit requirement for SRRV.

No. 12:  You are entitled to a Free subscription to the PRA Newsletter.  This will keep you posted on what’s happening around and on information that is relevant to your visa.

Do you know that there are actually different types of SRR Visa?  They are:  the SRRV Smile; the SRRV Classic, the SRRV Courtesy; the SRRV Expanded Courtesy; and the SRRV Human Touch. 

Do you know that in the past, foreign citizens or nationals aged 35 to 49 years old could qualify for SRRV but the application for SRRV was suspended in 2020 by the PRA’s Board of Trustees in order to give way for a review and amendment of the policies on age and visa deposit requirements.  When the PRA resumed in accepting applications in 2021, all SRRV applications were restricted to applicants who are 50 years and older only. 

From what I have gathered, there were talks about the visa being taken advantage of by some foreign nationals who come to the Philippines to engage in some illegal activities such as running an online gambling operation.  These definitely defeated the purpose of the SRRV. So, you now have to wait until you’re 50 years old before you can avail of this privilege.

So now, allow me to discuss each type of the SRR Visa.

The SRRV Smile

The SRRV Smile is for foreigners who are 50 years old and above and they would like to maintain their visa deposit of US$20,000 in any of the PRA designated banks as long as they are SRRV holders.

Yes.  You heard it right. For this type of visa, you will need to make a visa deposit of US$20,000 and that amount shall stay in the bank.  It will be returned to you, with interest, when you decide to surrender or cancel your visa.

 

The SRRV Classic

The SRRV Classic is for healthy retirees 50 Years old and above.  This type of SRR Visa requires a foreign currency deposit, depending on whether you are receiving a monthly pension or not.

o   The required foreign currency visa deposit is $10,000 if you collect a monthly pension or social security of $800+ per month or more.

o   $20,000 is the requisite deposit if you DON'T have a monthly pension or social security worth at least $800 per month.

o   This is the type of visa is the more flexible one because it allows allows you to convert your SRR Visa deposit into active investment such as the purchase of condominium unit which must be at least $50,000 in value or long term lease of house & lot.  Meaning, your deposit must be at least $50,000 in order to be convertible.

 

The SRRV Courtesy

The SRRV Courtesy is for:

·       former Filipinos, who are 50 years old & above; and

·       foreign nationals, who are 50 years old & above, and who are retired officers of International Organizations recognized by the Department of Foreign Affairs (DFA).

·       These include those foreign nationals who have served in the Philippines as diplomats, ambassadors, officers or staff of the international Organizations recognized by the DFA, such as the United Nations and the Asian Development Bank.

o   This type of SRR Visa requires a visa deposit of US$1,500.00.

 

The SRRV Expanded Courtesy

The SRRV Expanded Courtesy is for foreign nationals, 50 years old & above, who are retired Armed Force officers of foreign countries with existing military ties and/or agreement with the Philippine Government.

o   A monthly pension of at least US$1,000.00 and an SRR Visa deposit of US$1,500.00 are required.

o   The SRR Visa deposit includes the principal applicant and 2 dependents.

o   Additional dependent, entails additional SRR Visa deposit of US$15,000 each (except for former Filipinos).

o   CHILDREN must be legitimate or legally adopted by the Principal Retiree, unmarried and below 21 years old upon joining the program.

 

The SRRV Human Touch

The SRRV Human Touch is for ailing retirees, 50 years old & above, who need or require medical or clinical care.

·       A monthly pension of at least US$1,500.00, a health insurance policy accepted in the Philippines, and an SRR Visa deposit of US$10,000.00 are required.

·       So if you have a pre-existing medical condition, and you want to experience Philippines as the growing medical tourism destination for expats, this visa may just be right for you.

 

These are the QUALIFICATIONS:

For PRINCIPAL APPLICANTS, they must be foreign nationals or former Fiiipino citizens who are at least 50 years old.

For DEPENDENTS, the SPOUSE must be legally married to the Principal Retiree and the CHILDREN must be legitimate or legally adopted by the Principal Retiree, unmarried and below 21 years old upon joining the program.

Now, what are the requirements?  Based on the official website of the PRA, here are basic requirements:

·       Original valid Passport with valid or updated Temporary Visitor’s Visa;  Yes, you will need to apply first for a temporary visitor’s visa, which will just be upgraded when your SRRV is approved. 

·       Accomplished PRA Application Form;   This form can be downloaded from the PRA’s official website.

·       Original valid Medical Clearance;  The medical examination clearance can be completed by a licensed physician abroad and must be apostilled or authenticated by the Philippine embassy or consulate, whichever is applicable.  It can also be completed by a licensed physician in the Philippines.

·       Original valid Police Clearance from country of origin, and an additional NBI Clearance, if applicant has stayed in the Philippines for over 30 days from last date of entry.  Meaning, if you have stayed in the Philippines for more than 30 days prior to your SRRV application, you will need to obtain a Clearance from the National Bureau Investigation.

·       Photos (8 pieces, 2″x2″);

·       SRR Visa deposit that is inwardly remitted;  These are amounts that I mentioned earlier.  These are to be deposited in the banks accredited by the PRA. I will put the link in the description box of this video.

·       Marriage Certificate for joining dependent-spouse and Birth Certificate for joining dependent-child.

·       Fees

Processing/Service (one-time)

US$1,400.00 Principal applicant

US$ 300.00 Dependent applicant

Annual Fee of US$360.00 (for the Principal & 2 dependents)

 

Additional requirements may be requested depending on the SRR Visa Option to be chosen by the SRRV applicant. The Medical and Police Clearances are valid up to 6 months from date of issuance. All documents issued outside of the Philippines must be translated in English, if necessary, and must be apostilled or authenticated by the Philippine Embassy/Consular Office nearest the applicant’s residence, whichever is applicable.

I hope that I have given you an overview of what SRRV is all about.  I know that this is not going to be the only instance that I will be talking about SRRV as I am expecting questions about this topic.  But still, I hope that you have learned something from this article.  Always remember, ignorance of the law excuses no one from compliance therewith.   Ingat po kayo.

WHAT HAPPENS WHEN YOU DIE WITHOUT A LAST WILL & TESTAMENT?

 

    In many instances, I was asked, “Attorney, is it true that if I die without a will, the government will get everything that I own?”  For many times also, I have heard someone giving advice to another, “You should have a will or else kukunin lahat ng gobyerno ang nga ari-arian mo pag ikaw ay namatay na. Kawawa naman ang mga anak mo.”

    Totoo bang mapupunta sa gobyerno ang mga ari-arian mo kung ikaw ay namatay nang walang iniwang last will and testament? Let me qualify my answer. No, if you have legal heirs who are entitled to inherit from you by operation of law. Yes, if you don’t have a single legal heir at all.  Let me explain.

    Under our Philippine law on succession,  which is Chapter III of the Civil Code of the Philippines, kung ang tao ay namatay at siya ay may iniwang will o last will and testament, ang tawag po dyan ay testamentary succession.  As long as the will is valid, both intrinsically at extrinsically, ang will ang masusunod kung paano hahati-hatiin ang mana sa mga tagapagmanang binanggit sa will o huling habilin. 

     Ang ibig sabihin ng “intrinsically valid” ay kung ang nilalaman ng will ay naaayon sa batas.  Halimbawa, dapat walang compulsory heir na na-deprive ng kanyang legitime.  Ang legitime po ay bahagi ng inheritance na naka-reserve sa compulsory heir at hindi ito pwedeng balewalain ng nagpapamana o testator, maliban na lang kung may sapat sya na dahilan upang tanggalan ito ng mana at ginawa ang pagtanggal ng mana o pag-disinherit doon mismo sa last will and testament.  

·       Ang ibig sabihin naman ng “extrinsically valid” ay kung ang will ay ginawa ng naaayon sa formal requirements ng batas. Halimbawa, kung ito ay holographic will, dapat sulat kamay ito ng testator o yung nagpamana. Meaning, entirely handwritten. Otherwise, hindi ito valid.  Kung notarial will naman ito, dapat may mga instrumental witnesses ito na nakapirma sa lahat ng pages ng will, without which, hindi rin ito valid. Marami po ang requirements ng notarial will and you will really need the help of a lawyer there because it must be notarized.

     Now, kung ang tao naman ay namatay nang walang last will and testament, ang tawag naman dito ay “intestate succession”.  The same is true kung ang last will and testament was found by the court to be invalid.  In both cases, ang magiging basehan ng paghahati-hati ng mana at kung sinu-sino lang ang entitled na magmana ay ang batas — in this case, the Civil Code of the Philippines.

     Nakasaad kasi sa Civil Code kung sinu-sino ang mga legal heirs. And these legal heirs have the option whether to settle the estate extrajudicially or judicially.

    Kung walang utang na iniwan ang namatay, mas mainam ang extrajudicial partition of estate because it is not as complicated, as tedious and as costly as the judicial settlement or partition.  Kung nag-iisa lang ang tagapagmana, ang tawag doon sa dokumentong kailangan nyang i-execute to settle the estate ay affidavit of self-adjudication.

     Going back to the legal heirs — who are they?  Sila po yung mga heirs na entitled na magmana according to the order of succession.  Let me give you an overview of who they are and how it works, but I cannot discuss all the details in this video as it will need a very long discussion.

• Unang-una ay yung mga nasa descending direct line. Sila yung mga children and their descendants.  Meaning, yung mga anak at ang mga apo. Pababa po yan.
• Pangalawa, kung walang child or descendant, ang magmamana ay yung mga nasa ascending direct line, such as the parents or in their default, the grandparents.  Mga magulang o ang mga lolo at lola. Pataas naman po yan.
•  Pangatlo, kung walang legitimate children, ang mga illegitimate children. Pwede pong magmana pareho o nang sabay ang legitimate children at illegitimate children, pero may mga rules po to be followed. For example, the illegitimate child is entitled only to ½ of the share of the legitimate child.
•  Pang-apat, ang surviving spouse o yung asawa ng namatay. Pero pwede pong sabay na magmamana ang asawa ng namatay with the legitimate children or their descendants, or with the ascendants or with illegitimate children. May mga rules din po na susundin but I will expound on that in another video.
•  Panlima, ang mga collateral relatives who could be the brothers and sisters. The collateral relatives who can inherit are only those up to 5th degree of consanguinity, which means related by blood.  Meaning, hanggang nephews and nieces.

    Tandaan nyo po ang rule dito: Hindi po lahat entitled magmana.  Ang relative na pinakamalapit in degree doon sa namatay will exclude the more distant ones. According to the Civil Code of the Philippines:

"Art. 962. In every inheritance, the relative nearest in degree excludes the more distant ones, saving the right of representation when it properly takes place.

Relatives in the same degree shall inherit in equal shares, subject to the provisions of article 1006 with respect to relatives of the full and half blood, and of Article 987, paragraph 2, concerning division between the paternal and maternal lines. (912a)"

 Meaning, kung buhay lahat ng mga anak, hindi kasali ang mga apo sa magmamana because the children being the ones nearest exclude the grandchildren. A grandchild can inherit along with the children of the deceased if that grandchild takes the place of his or her deceased parent.  Ang tawag po dito ay representation.

    

    Isa pang halimbawa, kung ang tanging heirs ay ang mga kapatid at mga pamangkin, the brothers and sisters will exclude the nephews and nieces, except in cases where the nephew or the niece represents his or her deceased parent.

     As you have noticed in our discussion, hindi pumapasok ang government where there is at least one legal heir who is entitled to inherit from the deceased ab intestado.  The state or the government will step in only when there is no one else who qualifies to inherit from the deceased.  The Civil Code states that:

 

"Art. 961. In default of testamentary heirs, the law vests the inheritance, in accordance with the rules hereinafter set forth, in the legitimate and illegitimate relatives of the deceased, in the surviving spouse, and in the State. (913a)"

 

"SUBSECTION 6. - The State

 

"Art. 1011. In default of persons entitled to succeed in accordance with the provisions of the preceding Sections, the State shall inherit the whole estate. (956a)"

    Needless to say, it is not correct to say that the all the property of the deceased person will go to the government if he or she dies without a will.

    This could have resulted from a confusion or misinterpretation.  The word “estate” and “state” are different. Ang sinasabi po ng batas is that, kung ang isang tao ay namatay, all the property that a deceased person leaves behind shall form part of the estate.  And this estate shall be distributed to the qualified heirs of the deceased person, whether through a testamentary succession or intestate succession.

     Now, do you really need a last will and testament?  Well, it depends on you. If you think that the law is already fair enough in the determination of the heirs and in the apportionment of the inheritance, then, there is no need to execute a will. 

    But if you want to decide on who gets more of the free portion of the inheritance, then, you need a will. Remember, you can dispose only of the free portion of the inheritance.  You cannot deprive your compulsory heirs of their legitimes unless you disinherit them for a valid ground, also in your will.

     I hope that you learned something from this article. Always remember, ignorance of the law excuses no one from compliance therewith.  Ingat po kayo.

On Termination of Employment