Living in the Philippines permanently and establishing self-sustaining businesses are among the plans of Englishman Peter and his Filipina wife. They live in the southern city of Bacolod, known for its warm and welcoming people. Here, Peter gives us some useful advice on topics like managing a visa, putting up a business, and interacting with the locals.	Peter Bennett

April 02 2007

-Where were you born?
South Yorkshire, United Kingdom

-In which country and city are you living now?
Bacolod City, Republic of the Philippines

-Are you living alone or with your family?
With my wife Gina (39). We have no children.

-How long have you been living in the Philippines? 
For about 3 years, part residency

-What is your age?
I am 45 years old.

-When did you come up with the idea of living in the Philippines?
Initially when my wife and I met, we had no plans ever to live in the Republic of Philippines. It was always nice to visit for a sunny vacation. But our plans were to reside in the United Kingdom to live and work. The idea of actually returning to my wife's native land only arose when we had a heart to heart about our future and what we could expect living in the UK. We tried to imagine our future life together in the UK in about 20 years time.

Although my wife has taken to the UK and adjusted much quicker than I ever imagined, i.e. made friends, and not just with Filipinos, also with indigenous people of the UK, got a nice job, and found interests, I could see at times that she does miss her home. That is only natural; I decided that she should at least have 2 visits per year to the Philippines and that has helped her transition. Also, being ex-military I knew that I could settle anywhere if required to do so, and after looking at the soaring cost of living in the United Kingdom and balancing that with a disappointing quality of life, we decided to make plans to carve out a future back in our 2nd home.

-Was it hard to get a visa or a working permit?
It is easy to live permanently in the Philippines as a tourist without too much let or hindrance by the Filipino authorities. Initially tourists are entitled to a 21-day visa on arrival at any Port of Entry. However, other visas, such as 59-day visas, can be obtained from any embassy in your country for payment of a fee. Visas have validities of 3 months to 6 months; however, as with all countries in South East Asia, visas can be extended and extended again for payments of small fees in the Bureau of Immigration that exists in most major cities. The only stipulation is that the foreigner must leave the country at least once a year; a 2-day trip to Hong Kong is the best way to comply with the rules, this is known locally as the "Visa run." Visa runs are also popular in Thailand where similar rules exist for foreigners.

Even though technically on these tourists visas foreigners may not work or run businesses, many expatriates living in the Philippines attempt to get around this by having all businesses in the name of their Filipino wife, or if not married, in the name of their Filipino business partner. If anyone is interested in retiring to the Philippines, it’s not hard to find a willing Filipino to become your business partner for immigration purposes, but as with all things related to business in the Philippines, caution is needed at all times.

For those foreigners who are not legally married to a Filipino citizen, there is little chance of being given permanent residency, but the extended tourist visa route is the simplest and easiest way to keep living in the Philippines without any let or hindrance.

-Was it difficult for you to get medical insurance before you went there or when you first arrived?
Doctors' visits are not expensive by UK standards, and in the UK we do not pay for a doctor's visit, as we have the National Health Service. Here, medical insurance generally is not required, although some have it. The state system is called Philhealth, but foreigners tend to pay their own way, when it comes to medical conditions. A typical doctor's visit costs around P300.00 to P500.00 depending on the length of consultation. Generally when I am in the Philippines I use a UK Worldwide coverage health insurance, but it’s not difficult to obtain a local scheme for payment of the right fees.

-How do you make your living in the Philippines? Do you have any type of income generated?
Getting a job in the Philippines as we know it is probably something that should not be tried. For one thing, jobs are scarce, money is short, Filipino wages are appalling by Western standards, it is unlikely that a westerner will ever be considered for a job. However, having said that, many westerners are now making a living teaching English to Korean students, and that has been a successful way of obtaining employment in the Philippines. Having a TESL qualification where English is taught as a foreign language is a passport to a job and there are many websites dedicated to this.

The key to having a quality of life in the Philippines as an expatriate is to set up and run your own business. The majority target foreign tourists as their own customer base. This makes good business sense, as foreign tourists are the ones who have money, and can spend it on services with people they trust.

As we are in and out of the Philippines, we are currently setting up sustainable businesses that can generate long-term income. We currently have a small portfolio of cash-generating businesses; we have diversified into buying arable land to grow sugar cane. We are also currently negotiating for an Internet gaming business and looking for suitable premises for a convenience store. All of these businesses do require amounts of capital investment for them to work, but once set up, they are virtually self-running, as labour and expertise for running your businesses are cheap. It’s not hard to find local labour to do work for you. The Philippines is a capital-starved country, there are many Filipinos who are smart, highly educated and productive; the problem is, they don't have the capital to put any of their ideas into practice. Anyone with some capital can build a business that will be sustainable in the future provided that they do not allow too much interference from Filipinos who are not relatives. Your best business asset will always be your Filipino wife. At present we do not require to live from these businesses, as our Income from the UK sustains us between our visits, but we are planting the seeds now for the future so that we can permanently reside without relying on the UK for our income.

Here is a helpful link for anyone contemplating investing in the Philippines:
 http://www.british-filipino.com/investor.html

-Do you speak the local language and do you think it's important to speak the local language?
I believe it’s incredibly important to learn the local language or at least learn the national language of Filipino, otherwise known as Tagalog. Foreigners generally are reluctant to bother learning Tagalog. In my view that is a mistake, because although Filipinos are bilingual, and many speak English as their second language, many Filipinos are nervous about speaking English as they consider they may not be proficient enough in English to converse with foreigners. Speaking Tagalog to a reasonable standard also acts as a protection, you can always know what is going on, especially when your business partner who may also be your wife is talking to other locals; you will as an expatriate feel left out of the conversation if you cannot understand what is being said, so I would advise interested ones to learn some Tagalog.

There are of course many local customs to be observed such as politeness and non-aggressiveness. You are of course representing your country, how you behave reflects on others who come after you, and it’s very easy for Filipinos to label all foreigners with the same name if you don't behave in the Philippines.

-Do you miss home and family sometimes?
This is hard for me to answer at present, since I have not lived here for more than a few months at a time. At first yes, one misses home, as everyone does, I am sure I will miss home when the time comes to live in the Philippines permanently.

As for recreation, the Philippines has an abundance of areas to snorkel and dive. As I am very happy to spend days snorkeling, the Philippine
Islands is the perfect place to do that, unlike UK where it’s mostly unsuitable for this recreation.

-Do you have other plans for the future?
Our plans for the future are naturally to get our business producing good profit margins, to enable us to reside permanently. Doing business in the Philippines is not the same as doing business in the UK, we have 2-3 business ventures that are taking shape. Our plan is to make these self-running and when we see the fruits of our investment and labour, then we will move there when we become totally self-supporting. This is like a try-before-you-buy type of expatriate life. It is not what everyone does, some arrive in a country with a lump sum and then try to make it work. Very often, it flops and they have to come back. Some arrive and only play at it, not taking it seriously enough.

-What about housing, have you bought, or are you renting a home? How much do you pay for it?
Housing is cheap compared with UK and U.S.A. standards. We own our own home which is one of the goals we set out to achieve before moving permanently. A house with 3 bedrooms and 2 bathrooms would cost in the region of between Php 10,000 or USD200.00 to Php 18,000 or USD 375.00 per calendar month to rent. Houses built to own are between Php 1M (around USD 20,000) and Php 5M around (USD 100,000) depending on location, amenities and personal requirements. Inside the city area, land is more expensive; out of the cities, land is less costlier. Houses and lots are measured in price per square metre.

-What is the cost of living in the Philippines?
The cost of living is cheaper than in Western Europe and the U.S.A. However, be aware that as in any country the cost of goods is slowly rising caused by inflationary pressures. Also, the U.S. Dollar is losing some of its value in the world markets, but the UK Pound and Euro are fairly stable against the Philippine Peso. A meal out for two can cost around USD 10.00 and if you can eat the local food, it's even cheaper at around Php 150.00.

To give an example, a family feast at Pizza Hut in the UK can cost around £25.00 with drinks, that’s about USD 48.75 and Php 2362.50. However, the same meal bought at Pizza Hut in the Philippines costs Php 800.00, or USD 16.49 and £8.46p.

The cost of living is about 75 per cent cheaper, and of course there are no local authority charges, TV licences, and stealth taxes like those levied in Western countries. However, be aware that local state services are not the same as in your own country, medical is not free, rubbish collection is not free. But labour is very cheap, and getting professional tradesman in the Philippines is a godsend. You can get just about any service you want for exceptionally cheap prices, and tradesman in the Philippines prefer to do work for foreigners, as they tip better.

-What do you think about the Filipinos?
Foreigners in my view are treated like celebrities. Anyone who is not a natural born Filipino is a foreigner by virtue of not being born a Filipino. It does not matter how good your Tagalog speaking ability is, and it does not matter how much you integrate into the culture, you are a foreigner and will always remain one. That is not to say that you are treated badly, far from it, the Philippines has a close family respect structure in place, age is respected, as is wisdom. Foreigners who have travelled the world are respected for their experiences and world knowledge, and the local people are respectful and friendly.

-What are the positive and negative aspects of living in the Philippines?
As with any country in the Far East, you have to accept that you are living in the third world. There are many positives such as cheap labour, beautiful sun-kissed beaches, great snorkeling and diving, long nights of barbecues and local cheap alcohol, cheap cost of living, English-speaking country.

However, there are also negatives to deal with: local bureaucracies that are hard to understand, Filipino factors in business which cause delays and frustrations, adjusting to climate and dietary considerations, getting sick in foreign countries.

-Do you have any tips for our readers about living in the Philippines?
The Philippines is 100 percent a third world country, its is steeped in incredible poverty. You will see things that you would not expect to see back home. Learning to not be over-critical helps, taking a laid back approach also helps, everything happens in its own time in the Philippines. Not trying to bully officials into getting it 'now' today is unheard of, unless you can pay express fees. Try not to go around saying "That wouldn’t happen in my country or we would never do it that way." One has to understand that you are not in your own country, and whilst things don’t always go the way you want, the Philippines as much as it is downright incomprehensible to the foreign visitor, actually works! But it works their way, and not yours. Be patient as much as you can, be polite, and respectful, and you will do fine in the Philippines.

-Do you have any favorite Web sites or blogs about the Philippines?
I would like to mention my own read only site for expatriates which is located at

http://www.british-filipino.com

This site is more for those parties interested in relationship issues for the Philippines-United Kingdom, it addresses visa related issues, discusses tips for single male travellers, and lots of useful tips and advice for those marrying and migrating back to the UK.

I would also like to mention my blog about living and retiring in the Philippines at

http://www.livinginthephilippines.info

I would also recommend a fellow expatriate Bob Martin who has been interviewed at this site, his blog is at

http://www.mindanao.com
http://www.liveinthephilippines.com