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@teesquared

Firstly welcome to the forum, enjoy the info with searches.

There are many posts on this topic from many members with opinions on this question.

Firstly I would ask married, partner or single, your status can change the options but back to your question regarding retrieving your deposit for property purchase/lease? Some things you need to know and requires reading the fine print posted by the PRA and SRRV rules.

My understanding is this is possible but comes with caveats as follows. Using your deposit for property or a long term lease is permitted but requires the PRA to be listed on the title or lease as first mortgagees thus encumbered no different to borrowing money from the bank,,,,,, Honestly? The paperwork and legalities involved are cost prohibitive to A/ get in and B/ get out, draconian thinking, welcome to the Philippines.

I also read a few weeks ago and either misinterpreted/misread but believe this option is being dropped by the PRA, research wins the day.

Good luck.

Cheers, Steve.

Hi Steve and thank yo for the prompt reply.

I would be a single expat but building on land owned my a friend.

With legal docs to protect both sides. From what you say it might be better to just rent at least initially. I will research more.

Best regards

Tee.

@teesquared

Hi,

I want to make sure that you know other options on how to stay in the Philippines:

With a tourist visa - this will cost you about 60 USD for an extension of 2 months. The first month is free. Each time you go out of the Philippines (eg. Singapore, Hong Kong, Kuala Lumpur, ...) you have one month free. You can stay up to 3 years without going out of the Philippines.

Get married in the Philippines - you will be a permantent resident of the Philippines after an initial payment of 200 USD, a year after another 200 USD and then 50 USD every 5 years. For every exit you have to pay USD 50.

As a foreigner you cannot buy any land in the Philippines. You can buy a condo. In case you want to build your own house it can be in the name of your wife or in the name of a company.

Andy from Boracay (8 years in the Philippines)

@teesquared

Thanks Tee. I would suggest given you have 15 months before arrival there is plenty of time for research, do it well and properly.

Good luck.

Cheers, Steve.

Hi Tee!

Two weeks ago (16 January) I was in Kalibo, Aklan, with a recruitment delegation from PRA Head Office, Makati City. A question came up from an Italian retiree as to: whether it was possible for the 20K Deposit to also fund utilities (electricity, water etc.) on a leased premises? The answer to the question was, "if the value of the lease is agreed in advance between Lessee and Lessor to include utilities and the Lease Agreement states ONLY the total agreed figure then the Deposit can also be used for these payments". So, my conclusion, the ability to use the Deposit to fund a property Lease or Purchase is still on the table with PRA and with some creative accounting can be used to cover more than simply the property investment.

@martyn27

I would argue the toss on what you were advised. Read the fine print with regards to converting your deposit to property or lease, Your funds are still tied to either or and can't be spent willy nilly. The long and short of it all is available if you dig into the PRA fine print with regards to the above. gets expensive and your funds are still tied up with the PRA.

OMO.

Cheers, Steve.

@bigpearl

agreed funds are tied up unless used for lease or purchase. I had 20K SRRV before Covid but needed to withdraw the funds to finance new business during the pandemic. It took one visit to PRA Head Office to sign termination of visa papers and one visit to the bank to withdraw my funds and the interest accrued. I though the process simple and efficient. Maybe the process of termination has changed since the pandemic but I stand by my statements as made here, including the statements from the January 2025 event in Kalibo.

Greetings and I am back to this thread.

I did read somewhere that even if you use the deposit for a legitimate land lease or condo purchase then the PhilGov will take a charge on the property up to the percentage of the deposit. Is that true?

Thanks very much in advance.

Tee

@teesquared.

Greetings also to you and welcome to the forum.

Much has been talked about over the years in relationship to converting your SRRV deposit with the PRA into a long term lease or property purchase.

My understanding to date unless their rules have changed is as follows. I was going to go this way 8 years ago when we purchased here until I read the fine print,,,,,,, not easy to find.

The property/lease has to be at least US 50K to qualify whether you are on the 50K, 20K or 10K deposit.

The property or lease will be encumbered by the PRA with them as an interested party, ie a mortgage thus securing your deposit as an SRRV holder. Extra paperwork and an attorney to file the paperwork both going in and getting out. You can't sell the property or lease unless you redeposit the funds back to the PRA and have them removed as a mortgagee, even if you opt out of the program there is still paperwork and legals to accomplish.

It may be viable for the under 50 Y/O that has to deposit US 50K but questionable for the later 2 options.

Choices and good luck.

Cheers, Steve.

What a headache!  In that case, I think I would rather rent at this stage rather than gift them 10-50 grand, but that's my personal feeling. Maybe rules will change in the future.  Meantime I will keep researching and looking.

Thankyou and all the best

Tee.

Yes not easy Tee that's for sure but I will add that I have not looked into this for 6 or 7 years so perhaps best to speak to a marketeer with the PRA.

The system is over 40 years old and the only changes I have seen was the raising of the 35 age limit to 50 through a troubling time with certain countries abusing the system to gain employment in certain industries here in PH.

For me I simply avail a very generous visitor visa and been doing so for 14 years, 6 years full time, others have suggested "what if they change it?" Simply I will apply for an SRRV as it's still a great system for retirees especially ex aligned military vets.

Don't give up on it Tee, research.

Cheers, Steve.

Thanks Steve et al.for your advice and experiences

I will certainly feel like a stranger in a strange land...

Good in many ways, keep the old grey cells functioning ;-)