It is ironic—Filipinos itch to leave the Philippines to work or live abroad while at the same time, foreign expatriates flock to the Philippines to work, study, or retire here. It is even more ironic that the poverty and low standard of living that push Filipinos to go abroad to live and to work are the very same factors that pull foreign expatriates to work, study, or retire here. In this article, we discuss reasons for this migration phenomenon.
How big is the expatriate community in the Philippines?
Official estimates peg the expatriate community living in the Philippines in 2010 to be about 200,000 this number has dramatically increased since 2006 when official records show that only about 36, 150 foreign nationals lived and worked in the Philippines. These are the only figures available because the 2020 census was delayed by the community quarantine imposed in the wake of the Covid-19 pandemic.
Indeed, the 2010 Census on Population and Housing conducted by the Philippine Statistics Authority show that only 177,368 foreign-born residents were in the Philippines but the Bureau of Immigration reports that around 1.5 million foreign tourists arrived. When we say “foreigners” we refer to those visitors to the Philippines who present with a passport from countries other than the Philippines.
What countries do these expats come from?
The census conducted by the Philippines Statistics Authority suggests that around 30,000 expatriates in the Philippines come from the United States; 29,000 came from China; 12, 000 come from Japan; 9,000 come from India; about 5000 expatriates in the Philippines come from Canada; around 3,500 expats come from the UK; and 3,200 come from Germany.
Expats who work in the Philippines
According to the Philippine Bureau of Labor and Employment Statistics, from 2000-2009, a total of 12, 218 Alien Employment Permits (AEP) were issued to foreign nationals. About half of the AEPs issued from 2000-2009 were issued to workers performing administrative, executive and managerial workers. These are the CEOs of multinational corporations. This is not surprising: international agencies have headquarters here such as the Asian Bank, the International Rice Research Institute, the World Health Organization, and the United Nations Development Program. Their top-tier personnel are foreign nationals. Note, however, that this number does not include foreign nationals who work in the Philippines as diplomats who hold diplomatic passports.
There is also a substantial number of foreign technicians, professionals and service workers working for multinational corporations. Interestingly, from the period of 2015-2018, a total of 169, 893 AEPs were issued to Chinese nationals who work on the online gaming and casino industry.
Expats who study in the Philippines
The Philippines is home to big universities that rank among the top 1000 universities of the world. A lot of foreigners come to the Philippines as exchange students or foreign students because they can get a good education that is affordable. In 2019, 4785 new student visas were issued by the Department of Foreign Affairs. In 2020, because of the travel restrictions imposed by quarantine conditions, only 1254 new student visas were issued.
The number of new visas does not give a complete picture of the number of foreign students actually studying in the Philippines at any one time. Consider that in 2019, 10,433 applications for student visa renewals were received, and in 2020 around 7,170 applications for student visa renewals were received. Add the number of new student visas issued to the number of student visa renewals then the number of student visas triples.
It is no wonder that they come to study here because they find the local population to be accepting of foreigners. They do not have difficulty adapting to university life here because the medium of instruction is English and Filipinos generally understand and speak English.
Perpetual tourists
There are other foreign nationals living in the Philippines who consider themselves “retirees” but who have not applied for retirement visas or permanent resident status. A lot of foreigners simply stay on in the Philippines by renewing or extending and re-extending their tourist visas. They often leave the Philippines only for a few weeks or a few short months in a year, and only to return to their home countries to prove their residence in their home countries so they do not lose their state pensions and healthcare benefits. But as soon as they have fulfilled the minimum number of weeks or months of stay in their home countries so that their pensions will not be cut-off, they return on a tourist visa to the Philippines.
They come here because they want to experience scenic natural wonders. They are also charmed by the possibility of spending less money for great tourist adventures. Others enjoy the tropical climate. To some, of course, what brings them to the Philippines is the sex tourism.
Balikbayan
Another group of those who migrate permanently to the Philippines are Filipino returnees or repatriates who are otherwise known as the balikbayan. These are natural-born Filipinos who have lived and worked for decades abroad and have either become legal permanent residents or naturalized citizens in other countries. Some of these Overseas Filipino Workers have families in the Philippines who had been recipients of remittances. They may have built retirement homes in the Philippines and they come back to invest their accumulated savings in a small business here or, they may live off of their pension from their host countries’ social security.
The Philippines has been welcoming of balikbayan. Las have allowed them to regain the Philippine citizenship they had lost previously or at least regain the advantages of Philippines citizenship such as the ability to own land. Indeed, it is normal to find a large modern house in the middle of a rice field—these are often balikbayan homes.
Expats married to Filipinos
Research suggests that a bulk of foreigners who consider themselves permanent residents in the Philippines have Alien Certificates of Registration (ACR) because they are married to Filipino citizens and have children born in the Philippines.
Since pre-colonial times, the biggest groups of foreigners who have made their homes in the Philippines are the Chinese and the Indians. These groups of foreigners came to trade in the Philippines and they stayed and intermarried with the local population. Their mixed-race children who were born in the Philippines are considered Filipino citizens by virtue of the citizenship of the Filipino spouse but may also be entitled to citizenship in the foreign spouse’s home country. These foreign residents with Filipino spouses may apply for naturalization while others simply maintain their ACRs year by year.
A lot of these expats married to Filipinos had previously visited the Philippines either as tourists or had been assigned here for their work. They had either met their Filipino spouse or partner who was an OFW working abroad or met them during their stay in the Philippines. They now reside here because they had married their Filipino spouse who desires to stay in the country.
Indeed, most expatriates married to Filipinos decide to stay not only because it is cheaper to have a family in the Philippines but they also find that the cultural gap is smaller between their home culture and the Philippine culture. Other expatriates who end up marrying Filipinos are charmed by the availability of Filipinos who are open to marrying foreigners and having a family with them.
Retirees holding special retirement resident visas
If we take the 2010 census’ estimated figure of 200,000 foreigners currently living in the Philippines, and only 12,000 of them hold employment permits and roughly 13,000 hold student visas, it is not far-fetched to infer that a bulk of the foreigners currently living in the Philippines come to live here permanently as retirees or permanent residents. Indeed, a total of 63, 538 retirement visas were issued to foreign nationals in the Philippines from 1987 until 2009 and in 2018 alone, 6437 such retirement visas were issued.
Since 1987, the government of the Philippines has advertised and marketed the Philippines as a retirement haven. Executive Order 1037 issued in 1985 created the Philippine Retirement Authority. This government agency has made it easier, more efficient, and more lucrative for foreigners to retire in the Philippines.
A special retirement resident visa (SRRV) is a lifetime non-immigrant visa—it has no expiry date and does not need to be renewed. It allows foreign-born nationals or Filipino repatriates an indefinite stay in the Philippines and allows multiple entries into and exits from the Philippines. Those who opt to stay in the Philippines on a SRRV are exempt from the annual renewal of their Alien Certificate of Registration, exempt from payment of the travel tax, exempt from payment of taxes on their pensions and annuities, and exempt from paying customs duties and taxes if they import household goods and personal effects worth up to $7,000 USD. The only requirement is for the would-be retiree aged 50 and over is to open a local bank account and maintain a deposit amounting to $10,000 (if they are pensioners) or up to $20,000 (if they are non-pensioners) in a local Philippine bank. If the SRRV applicant is between the ages of 30-49, the deposit is $50,000. The easing up of visa policies allows retirees to stay in the Philippines and make the Philippines their retirement home.
Sources:
Asis, Maruja M.B. “The Philippines’ Culture of Migration.” Migration Policy Institute. Available from: https://www.migrationpolicy.org/article/philippines-culture-migration
Bureau of Labor and Employment Statistics. “Foreign National Working in the Philippines.” LABSTAT Updates, Volume 14 Number 44. Available from: https://psa.gov.ph/sites/default/files/vol14_44_0.pdf
Howard, Robert W. Western Migration to the Philippines. University of New South Wales. https://osf.io/preprints/socarxiv/xkcm5/download
Jennings, Ralph. “Why the Philippines is Reporting Record Growth in Retirement Visas.” VOA New.org. https://www.voanews.com/east-asia-pacific/why-philippines-reporting-record-growth-retirement-visas