Special Resident Retirement Visa

[Markham]

Mark,You do not pay an annual management fee if your deposit remains intact. I know I do not pay it nor have I since inception. Should you encash your deposit then fees are payable. Visitation fee, enough to tell you its never been applied so it does not exist for those who are within the PRA scheme rules.Perhaps now is a good time to get all the other misunderstandings of how thisscheme operates out into the open so that an accurate rendition can be provided. Being a member of the scheme I can only relate facts to you as experienced through such membership for cash deposit holders.Only cash I physically hand over so far is the annual card admin fee of 10$, not a penny more.A quota visa is better if you can get one without paying the stupid amounts under the table that are demanded, no proof of course as the converstaion I had with the BI officer concerned was not witnessed.THE PRA scheme is not perfect by any means and compared to what is offered by other SE Asian countries is woefully inferior by comparison.I suggest joining the SRRV members Forum will go along way to gaining a far better and more accurate understanding of this scheme. Far more issues exist around this scheme than the few identified here, the Forum archive will assist in gaining a better understanding and working knowledge of the PRA scheme.mikeThe new Tourism bill when enacted will do a lot to enhance this scheme further

You receive an ID card as part of the SRRV, this can be replaced annualy at 10$ or purchase a 3 year one for 30$ far cheaper than going to BI every 59 days etc.

Whilst that is true, you omit to say that you have to pay an annual "Management Fee" of $500 or $750 plus a fee amounting to 1.5% of deposits removed/reinvested and a "Visitation Fee" whose amount appears to be unspecified. That's on top of the $1400 application fee and the approx $30 passport stamping fee. Suddenly the two-monthly trip to BI looks a lot cheaper!SRRVs may be attractive to retirees who wish to move here with their (non-Filipina) spouses or to those who don't intend to marry and can't afford a quota visa.Mark

Mike,Just as you can only relate the scheme as you've experienced it, so I can only judge by what was said - and written-down for me - when I talked to a SRRV "sales" lady about a year or so ago. It does seem as if the rules and charges are somewhat arbitrary, or maybe the correct information is not disseminated clearly enough by those who administer it.With regard to the $500 (or $750) annual administration fee, the lady explained that I could either pay this directly from another account or mandate the bank to pay out of the interest received, provided the interest is enough to cover that fee which she thought was unlikely. It was also explained to me that if I withdrew the deposit as a part-payment on, say, a condo, that I would have to pay a further annual fee equal to 1.5% of the amount withdrawn - though I would have the option of topping-up the deposit and reduce or avoid the extra 1.5% charge.I did talk with a financial adviser at HSBC about this scheme and came to the conclusion that it was not a good idea. Of slight concern, the deposit falls outside the PDIC insurance scheme.Mark

[mike]

Mark,You do not pay an annual management fee if your deposit remains intact. I know I do not pay it nor have I since inception. Should you encash your deposit then fees are payable. Visitation fee, enough to tell you its never been applied so it does not exist for those who are within the PRA scheme rules.Perhaps now is a good time to get all the other misunderstandings of how thisscheme operates out into the open so that an accurate rendition can be provided. Being a member of the scheme I can only relate facts to you as experienced through such membership for cash deposit holders.Only cash I physically hand over so far is the annual card admin fee of 10$, not a penny more.A quota visa is better if you can get one without paying the stupid amounts under the table that are demanded, no proof of course as the converstaion I had with the BI officer concerned was not witnessed.THE PRA scheme is not perfect by any means and compared to what is offered by other SE Asian countries is woefully inferior by comparison.I suggest joining the SRRV members Forum will go along way to gaining a far better and more accurate understanding of this scheme. Far more issues exist around this scheme than the few identified here, the Forum archive will assist in gaining a better understanding and working knowledge of the PRA scheme.mikeThe new Tourism bill when enacted will do a lot to enhance this scheme further

You receive an ID card as part of the SRRV, this can be replaced annualy at 10$ or purchase a 3 year one for 30$ far cheaper than going to BI every 59 days etc.

Whilst that is true, you omit to say that you have to pay an annual "Management Fee" of $500 or $750 plus a fee amounting to 1.5% of deposits removed/reinvested and a "Visitation Fee" whose amount appears to be unspecified. That's on top of the $1400 application fee and the approx $30 passport stamping fee. Suddenly the two-monthly trip to BI looks a lot cheaper!SRRVs may be attractive to retirees who wish to move here with their (non-Filipina) spouses or to those who don't intend to marry and can't afford a quota visa.Mark

Mike,Just as you can only relate the scheme as you've experienced it, so I can only judge by what was said - and written-down for me - when I talked to a SRRV "sales" lady about a year or so ago. It does seem as if the rules and charges are somewhat arbitrary, or maybe the correct information is not disseminated clearly enough by those who administer it.With regard to the $500 (or $750) annual administration fee, the lady explained that I could either pay this directly from another account or mandate the bank to pay out of the interest received, provided the interest is enough to cover that fee which she thought was unlikely. It was also explained to me that if I withdrew the deposit as a part-payment on, say, a condo, that I would have to pay a further annual fee equal to 1.5% of the amount withdrawn - though I would have the option of topping-up the deposit and reduce or avoid the extra 1.5% charge.I did talk with a financial adviser at HSBC about this scheme and came to the conclusion that it was not a good idea. Of slight concern, the deposit falls outside the PDIC insurance scheme.Mark

Mark et alSuggest you join the forum for the PRA http://srrv.studio2401.com. From here you will get accurate and up to date info as well as getting a direct line to the PRA for a definitive answer to any and all your questions. Do not rely on sales people they will sell you what you want, legacy etcPDIC is also coverd in the rules of the scheme as there more than a few banks to scatter your funds around in, the scheme can be multi banked.In my opinion the scheme is a mess that needs a lot of work on it. I am not yet ready to throw the baby out with the bath water. Have come close on a couple of occasionsmike

[mayen0515]

BTW, there are many different types of deals available and it would be best to call her directA friend of mine used to be a manager at that Bank and from her I came to the conclusion that a SRRV was a big rip-off. You do realise that the deposit - or what's left of it after commissions are paid - eventually becomes Government property, it is never returned to you or your heirs. These visas are not administered by BI but you will still be required to obtain an ACR-I card and report annually to BI. And of course, if you're an American citizen, you must make an annual declaration of that $10,000 account. If you've no pension or little in the way of a pension, the amount of your deposit increases to around $40 or $50 thousand.The Bank will pay interest on the deposit but it's one of the lowest, if not the lowest, rate available.Those that sell SRRVs to unsuspecting foreigners earn a huge commission, so it's in their interest to promote this where they can.I can think of better uses for my money than simply handing it on a plate to the Government, can't you?Marki know this reply is long past overdue, but for whatever it's worth, here goes...As to the commission, only PRA accredited marketers get it, since I'm not an accredited PRA marketer, I get 0 in that department...but still, as a bank employee,every PRA accountopened with me is a step closer to my bank deposit quota... So that's as far as ulterior motives go...But to shed some light on the matter, PRA depositors are not asked to pay the annual conversion & management fee...the banks that hold these deposits are the ones who pay for it, that is whyPRA interest deposit rates are lower than those of regular time deposits (those not under the PRA program) because banks quote rates that in the end, would still be profitable for them, net of the management and conversion fee. As of today, minimum PRA rate is at 1.25% compared to the regular time deposit rate of 2.25%, but still 1.25% is still higher compared to the 0.50% interest being paid out to regular savings accounts.So long as the PRA deposit is intact, the PRA member is only required to pay $10.00 a year for the renewal. However, PRA deposits are only required to be at the banks for 1 month, after the said period, the PRA member has the option to withdraw it and invest it in the PRA allowable investments (listed in the PRA website). If this is the case (PRA deposit no longer in the bank), the PRA member will then be required an additional $500.00 visitorial fee annually,but he is still entitled to all the privileges of the PRA program. However, he still has the option to put up the required deposit in the bank again to forego the annual $500.00 visitorial fee...And if you happen to have spouses who are former Filipino citizens, it would be cheaper if you have them apply as the principal member because former Filipino citizens are only required to put up $1,500.00 in the bank, the foreigner spouse can just be included as a "dependent" since each principal member are allowed up to 2 dependents.

Edited October 13, 2009 by mayen0515

[Mike S]

Hi Mayen ...... and thank you for that information ... it is certainly an advantage to have someone like yourself that is actually involved with the banking end of it ....... like many things here in the Philippines there are many stories and half-truths when ever government policies are being interpreted or explained ...... and many times it is the old "I have a friend .. who has a friend .. who has a friend" type of information but very little .. if any .. 1st hand accounts of actual people that have gone through it .......... now I also need to emphasize here that many times it is a communications barrier involving both verbal as well as cultural differences ......... and sometimes what we hear (or want to hear) is not really what is being said ....... I just want to add here that if you want additional information either opening a dollar or peso account or retirement visa you can visit Mayen at the Bank of Commerce here in Cebu at Osmena Circle ..... I hope she doesn't mind me giving out this information ...... but again with all the mis-interpretation out there ...... like a foreigner can't open a bank account here with out an ACR I card ....... I assure you you can and legally too ...... again see Mayen at BOC ....... and NO ....... I get nothing for promoting her or the bank ........ just a way of trying to pay her back for all the help she has given us (Julie and myself) over the past couple of years .......

[mayen0515]

Hi Mayen ...... and thank you for that information ... it is certainly an advantage to have someone like yourself that is actually involved with the banking end of it ....... like many things here in the Philippines there are many stories and half-truths when ever government policies are being interpreted or explained ...... and many times it is the old "I have a friend .. who has a friend .. who has a friend" type of information but very little .. if any .. 1st hand accounts of actual people that have gone through it .......... now I also need to emphasize here that many times it is a communications barrier involving both verbal as well as cultural differences ......... and sometimes what we hear (or want to hear) is not really what is being said ....... I just want to add here that if you want additional information either opening a dollar or peso account or retirement visa you can visit Mayen at the Bank of Commerce here in Cebu at Osmena Circle ..... I hope she doesn't mind me giving out this information ...... but again with all the mis-interpretation out there ...... like a foreigner can't open a bank account here with out an ACR I card ....... I assure you you can and legally too ...... again see Mayen at BOC ....... and NO ....... I get nothing for promoting her or the bank ........ just a way of trying to pay her back for all the help she has given us (Julie and myself) over the past couple of years .......

And just to emphasize...this is not a paid advertisement...hehehe...Thanks Mike and Lee!!!:SugarwareZ-037:

[MikeB]

Thank you, Mayen; there is a lot of misinformation about this subject.Does anyone know why the SRRV application fee is so high? $1400 is a staggering amount of money for this, especialy over there. I wasn't able to find any explanation on the PRA site; only the required amount. Are they doing extensive background checks, etc? If they were serious about encouraging foreign retirees to help their economy, you would think the fees would be more in line with the actual costs of processing the application.Also, what is the purpose of the deposit? Since the government can't touch it, is it a "good-faith" gesture on the part of the applicant?Thanks

[Mr Lee]

Thank you, Mayen; there is a lot of misinformation about this subject.Does anyone know why the SRRV application fee is so high? $1400 is a staggering amount of money for this, especialy over there. I wasn't able to find any explanation on the PRA site; only the required amount. Are they doing extensive background checks, etc? If they were serious about encouraging foreign retirees to help their economy, you would think the fees would be more in line with the actual costs of processing the application.Also, what is the purpose of the deposit? Since the government can't touch it, is it a "good-faith" gesture on the part of the applicant?Thanks

Mike, I am sure Mayen will answer this when she gets back to work, but in the mean time, since you are married to a Filipina like I am, you can avail of the Balikbayan privilege for a couple of years or forever if you wish to leave yearly and I find this to be the best and least expensive way to stay in the Philippines for us. I made a post about this here. BB privilege

[MikeB]

Thank you, Mayen; there is a lot of misinformation about this subject.Does anyone know why the SRRV application fee is so high? $1400 is a staggering amount of money for this, especialy over there. I wasn't able to find any explanation on the PRA site; only the required amount. Are they doing extensive background checks, etc? If they were serious about encouraging foreign retirees to help their economy, you would think the fees would be more in line with the actual costs of processing the application.Also, what is the purpose of the deposit? Since the government can't touch it, is it a "good-faith" gesture on the part of the applicant?Thanks

Mike, I am sure Mayen will answer this when she gets back to work, but in the mean time, since you are married to a Filipina like I am, you can avail of the Balikbayan privilege for a couple of years or forever if you wish to leave yearly and I find this to be the best and least expensive way to stay in the Philippines for us. I made a post about this here. BB privilege

Whoa! I am not married to a Filipina, or anyone for that matter. At least, not that I know of. That's why I'm interested in the SRRV.

[Mr Lee]

Thank you, Mayen; there is a lot of misinformation about this subject.Does anyone know why the SRRV application fee is so high? $1400 is a staggering amount of money for this, especialy over there. I wasn't able to find any explanation on the PRA site; only the required amount. Are they doing extensive background checks, etc? If they were serious about encouraging foreign retirees to help their economy, you would think the fees would be more in line with the actual costs of processing the application.Also, what is the purpose of the deposit? Since the government can't touch it, is it a "good-faith" gesture on the part of the applicant?Thanks

Mike, I am sure Mayen will answer this when she gets back to work, but in the mean time, since you are married to a Filipina like I am, you can avail of the Balikbayan privilege for a couple of years or forever if you wish to leave yearly and I find this to be the best and least expensive way to stay in the Philippines for us. I made a post about this here. BB privilege

Whoa! I am not married to a Filipina, or anyone for that matter. At least, not that I know of. That's why I'm interested in the SRRV.

Whoops, sorry I am getting a bit of old-timers and made an error. :rolleyes: Anyway, I sent a pm to Mayen and I am sure she will respond. The one good thing is that if you should marry a Filipina then you would be able to have her sign up under her name and save a bundle. I would recommend a getting a visitors visa ahead of time from the embassy or the consulate here and then stay the 60 days and then renew until you see where life will lead you, but I think you already know your way around. :541:

[mayen0515]

Thank you, Mayen; there is a lot of misinformation about this subject.Does anyone know why the SRRV application fee is so high? $1400 is a staggering amount of money for this, especialy over there. I wasn't able to find any explanation on the PRA site; only the required amount. Are they doing extensive background checks, etc? If they were serious about encouraging foreign retirees to help their economy, you would think the fees would be more in line with the actual costs of processing the application.Also, what is the purpose of the deposit? Since the government can't touch it, is it a "good-faith" gesture on the part of the applicant?Thanks

Mike, I am sure Mayen will answer this when she gets back to work, but in the mean time, since you are married to a Filipina like I am, you can avail of the Balikbayan privilege for a couple of years or forever if you wish to leave yearly and I find this to be the best and least expensive way to stay in the Philippines for us. I made a post about this here. BB privilege

Whoa! I am not married to a Filipina, or anyone for that matter. At least, not that I know of. That's why I'm interested in the SRRV.

Hello Mike,The PRA, in fact, does extensive background check. We had one PRA applicant just 2 weeks ago where he was finished with the documents for his PRA application. The bank have even already received the wire transfer that the client initiated, intended to fund his PRA deposit. However, his application for the PRA Visa was rejected because it turned out that he had a prior criminal conviction and his name was on the Interpol's list, the crime of which I'm not privy to...I just don't know how much these background checks cost but I'm pretty sure that it is not free...so he opted to have the money sent back to his foreign bank...and PRA also gave back a portion of the processing fee but I just don't know how much since he never showed his face at the bank again...But I could ask PRA tomorrow as to the breakdown of what the processing fee is supposed to pay for.As to the deposit, yes, it is intended as a "show of faith" as these are not measly accounts. However, the deposit can actually be withdrawn but for PRA specified investments (as listed in their website), the rationale being that they would want to keep the funds circulating inside the Philippines...I will try to find out more and I'll post them as soon as I get them...:SugarwareZ-034: