My Retirement Stategy For The Philippines, Insights Please.

[jon1]

Correction on the US States without Income Tax.... AL should be AK (Alaska)

[Thomas]

and what are the road conditions? safety? I take one needs an SUV of some kind to go to those towns? or not necessarily.

There are exceptions, but most highways are much narrower than we are used too. Some are realy scary short of space, when meeting a bus/lorry. And some in highland are scary to drive at even when NOT meeting any  :lol:     E g in some places there are narrow highways S turning at the top of a narrow ridge.   But the allowed top speed is low, which make it less scary.

Some highways are good/ok, but many have unrepaired holes, and at some the concrete end SUDDENLY turning into gravel, because they runned out of money when building it  :mocking:      

So at the HIGHWAYS you DON'T need a SUV to get to cities, BUT you need a STRONG car so it don't break if you hit a hole. 

(If you plan to go to rural places, specialy during rainy season, you can need 4WD to get through at muddy roads, but more and more such roads are improved to concrete. Some are to steep to get up with a common car.)

 

There are cheap "new" cars to buy in Phils  (=Most of it is new, but with old engines and such)

But if I have understood corect you want a "western" one. The imported ones cost MORE than in our home countries, because of higher custom fees, EXCEPT if they are assembled in Phils.  Three more brands think of if they will start assembling plants in Phils, because of that reason.   LOOK UP!   If you get a "bargain" offer at an used "western" car, then it's big risk it's smuggled, because many are becaise of the high custom fees.

 

--

Concerning your consulting work, the main rule is work done in Phils, is suppoused to be taxed in Phils, when your customers are abroad too.

It can be worth checking if you can adjust it to fullfil the demands to get reduced income tax:

(/There are companies which get tax free years, but I don't believe you can suit the demands any convinient.)

/I don't know if they count "export business" as local enough to fullfil demand to be counted as BMBE (=Barangay Micro Business Enterprice) but that would be best - and easiest.   NO INCOME tax for the OWNER "for ever".  Other taxes are normal. Ask the local barangay/municipaly office where you think of having your official company adress. If the first say "No", it can be worth thinking of chosing an other adress in an other barangay, because the law ISN'T clear, so it's open for interpretions concerning the "local" demand, so it's possible you can get "Yes" there   :)    An other advantage is this type of business cost almost nothing to register, and the process is much simplified compared to other business forms.

/Much more complicated, and I'm not sure if you can make so all demands are fullfiled, but if so YOU can get 15 % income tax as a "foreign specialist".

[newyorkmind]

There are cheap "new" cars to buy in Phils  (=Most of it is new, but with old engines and such) But if I have understood corect you want a "western" one. The imported ones cost MORE than in our home countries, because of higher custom fees, EXCEPT if they are assembled in Phils.  Three more brands think of if they will start assembling plants in Phils, because of that reason.   LOOK UP!   If you get a "bargain" offer at an used "western" car, then it's big risk it's smuggled, because many are becaise of the high custom fees.   -- Concerning your consulting work, the main rule is work done in Phils, is suppoused to be taxed in Phils, when your customers are abroad too. It can be worth checking if you can adjust it to fullfil the demands to get reduced income tax: (/There are companies which get tax free years, but I don't believe you can suit the demands any convinient.) /I don't know if they count "export business" as local enough to fullfil demand to be counted as BMBE (=Barangay Micro Business Enterprice) but that would be best - and easiest.   NO INCOME tax for the OWNER "for ever".  Other taxes are normal. Ask the local barangay/municipaly office where you think of having your official company adress. If the first say "No", it can be worth thinking of chosing an other adress in an other barangay, because the law ISN'T clear, so it's open for interpretions concerning the "local" demand, so it's possible you can get "Yes" there       An other advantage is this type of business cost almost nothing to register, and the process is much simplified compared to other business forms. /Much more complicated, and I'm not sure if you can make so all demands are fullfiled, but if so YOU can get 15 % income tax as a "foreign specialist".

 

 

Hey Thomas! Thanks a lot buddy! Very usefull info, I'll definitely look into these tax breaks if it can apply to me. It will make a difference to know all the rules and possible exemptions.

 

It seems like driving would be an adventure I would love to do at some point, the cars are same priced as here, I wonder if I can save money to take my car to the Philippines especially that it's fully paid and I bought it brand new here so I know its history, hopefully custom fees will not be so prohibitive. I'll definitely rent a car to drive to test driving on my next trip to Manila, wish me luck!

[jon1]

Importing a vehicle here is near impossible. I have heard that Balikbayans qualify to bring one vehicle in duty free. However, I have not known anyone able to do that. If I remember correctly, it has to be a brand new vehicle that has never been registered. One OFW I know tried to bring in a Suzuki Multicab and was unsuccessful. Basically, Customs refused to release it and eventually the storage fees were more than what it was worth and he had to walk away from it. 

 

Thomas is correct about the road situation in the provinces. There are also the rice being dried in one whole lane (usually after a rise or a blind curve). Also there will be roads washed out, landslides etc. A vehicle with a sturdy suspension system is a must. That is why I went with a 4Dr Mitsubishi pickup. Also get one with lots of torque and turbo diesel if possible. This is needed in the steep roads.

[newyorkmind]

Importing a vehicle here is near impossible. I have heard that Balikbayans qualify to bring one vehicle in duty free. However, I have not known anyone able to do that. If I remember correctly, it has to be a brand new vehicle that has never been registered. One OFW I know tried to bring in a Suzuki Multicab and was unsuccessful. Basically, Customs refused to release it and eventually the storage fees were more than what it was worth and he had to walk away from it. 

 

Thomas is correct about the road situation in the provinces. There are also the rice being dried in one whole lane (usually after a rise or a blind curve). Also there will be roads washed out, landslides etc. A vehicle with a sturdy suspension system is a must. That is why I went with a 4Dr Mitsubishi pickup. Also get one with lots of torque and turbo diesel if possible. This is needed in the steep roads.

 

Hey Jon, Thomas,

 

Thanks for the info!  I think I know why shipping can be a problem, philippine government is involved in it so I can imagine all the bureaucracy or maybe even corruption (??). I actually enjoy driving, and yes 4WD would be great, I want something simple tho and not too flashy, I'm thinking a compact SUV like a CRV or an old 4WD Land cruiser esp I heard you can actually go island hopping with cars and barges there and  that's the kind of adventure I'm into!

 

Planning this gets exciting everyday, all the details are coming together. Thanks guys!

Edited May 27, 2015 by newyorkmind

[newyorkmind]

There are also the rice being dried in one whole lane (usually after a rise or a blind curve)

 

Hey Jon,

 

I clicked through your website and browse through it. Very interesting content and enjoyed reading it,  I'm especially curious with the Mango Wine. I never tried that before, how does it taste compared to regular wine? Is it hard to make? With the abundance of good mangoes in the Philippines, that would be a great product if good.

[jon1]

 

There are also the rice being dried in one whole lane (usually after a rise or a blind curve)

 

Hey Jon,

 

I clicked through your website and browse through it. Very interesting content and enjoyed reading it,  I'm especially curious with the Mango Wine. I never tried that before, how does it taste compared to regular wine? Is it hard to make? With the abundance of good mangoes in the Philippines, that would be a great product if good.

 

 

It is comparable to a country fruit wine. It's not too hard to make but it took me a couple of tries to get it right. It takes a little bit of TLC on the front end. The version I am making is a light, slightly yellow color (in glass) and orange in carboy. It is fruity and a little sweet. I make the batches to full dry and back sweeten with White Grape Juice reduction. I have the wife taste as I add sweetener to it then take a gravity reading and mix the rest of the batch accordingly. It is really for the ladies as they love mangoes and sweet things. Most westerners would consider it a dessert wine. It is best served cold and as it is sweet it will definitely sneak up on you as I am making it at 10-11% ABV. So far almost every pinay that has tried it likes it a lot. I am making it for friends and family at the moment. I make beer for the fellas (Stouts, Ales, Porters, and Belgian Saisons).

 

 

I'm thinking a compact SUV like a CRV or an old 4WD Land cruiser esp I heard you can actually go island hopping with cars and barges there and  that's the kind of adventure I'm into!

 

I would test drive to see what you like. Consider turning radius, torque, etc. I have gone up and down both the West and East Roro Highways. The ferry schedules are fluid. I would try to take the shortest ferry rides as the ferries are in poor condition along with monitoring the weather. Avoid the ferries if rough seas or weather are forecast. Every year their are mishaps mostly due to overloading and poorly secured cargo and vehicles. 

Edited May 27, 2015 by jon1

[newyorkmind]

Most westerners would consider it a dessert wine. It is best served cold and as it is sweet it will definitely sneak up on you as I am making it at 10-11% ABV. So far almost every pinay that has tried it likes it a lot. I am making it for friends and family at the moment. I make beer for the fellas (Stouts, Ales, Porters, and Belgian Saisons).  

 

This is great, I'm definitely a customer if you do put out the mango wine in market. I don't even know if there is a wine culture or vineyards in the Philippines and the sort of thing I want to explore when I spend more time there. I also have an access to a mango farm so I am especially curious about mango wine, and can pursue even as a hobby, it seems so exotic. 

 

I didn't know that there is an East and West Roro system, thanks for the info. I'll definitely do more research on it. I know labor cost of mechanics is cheap in teh Philippines, I'm not sure how car parts compare though. 

 

Thanks and I'll definitely hang out more in your blog! Thanks for sharing! 

[Thomas]

It seems like driving would be an adventure I would love to do at some point, the cars are same priced as here, I wonder if I can save money to take my car to the Philippines especially that it's fully paid and I bought it brand new here so I know its history, hopefully custom fees will not be so prohibitive. I'll definitely rent a car to drive to test driving on my next trip to Manila, wish me luck!

Within a time frame related to when geting an immigrant type Visa, we can get our staff to Phils WITHOUT custom fees, but I believe vehicles are EXTEMPT from that, so I suppouse NOT worth bringing your car.

 

After I have settled RURAL I will need a car, but in your case I would wait to get a car - perhaps wait for ever   :)   because the not "kano priced" taxis, tricycles and public transports are so cheap in Phils.   If you want to explore the provinces, it can be done without OWN car e g by rent a car with driver, or go by a (VIP airconed) bus to the interesting province and use taxi/tricycle there.  

 

I'm thinking a compact SUV like a CRV or an old 4WD Land cruiser

SOME of the cars I talked about  (=mostly new, but engines and such are used) have 4WD.  You can look e g at olx. Same cars are called several different names, but e g Toyota MT (Look as a jeep,often STAINLESS body). Suzuki MT Pickup*. Some sell NEW ones of the later for 150 000 - 200 000p. Look up!  Most of them has only 660cc engines, but there are some with 1000cc too. The Toyotas have biger common car sized but old engines.  They aren't as convinent as normal cars, but much cheaper.   (I will probably be satisfied with a Toyota MT stainless "jeep" myself.  They LOOK as jeeps, BUT most of them DON'T have 4WD.)

 

*The Suzuki MTs are basicly same cars with different tops. (Pickup, double, minivan...)  4WD I have only seen at Pickups, but because of they are assembled in Phils, I suppouse you can order e g a Minivan with 4WD.

I heard you can actually go island hopping with cars

It's possible (but sometimes it can be problematic to move cars to other islands, because it's a part of trying to reduce car thefts and move them away.)

[newyorkmind]

After I have settled RURAL I will need a car, but in your case I would wait to get a car - perhaps wait for ever      because the not "kano priced" taxis, tricycles and public transports are so cheap in Phils.   If you want to explore the provinces, it can be done without OWN car e g by rent a car with driver, or go by a (VIP airconed) bus to the interesting province and use taxi/tricycle there.    

 

 

The idea  of having a driver is fascinating to me if I can afford it, also as long as I don't open my mouth, I don't have to deal with kano prices, it's a few hundred percent haha

 

I imagine the local cars/SUV will be way cheaper in maintennace at the neighborhood service shops with the manongs :)