Corporate Immigration 2024 Comparisons

Immigration policy is governed by the Philippine Immigration Act of 1940. This is an old statute which was enacted long before the advent of global trade and mobility. Subsequent laws addressed the need to keep up with present business and economic realities insofar as immigration policy is concerned, and special visas were created for specific sectors such as economic zone locators, regional headquarters, retirees, and other investors. This was welcomed by foreign investors and the Philippine business community as it created significant economic activity in the Philippines. 

The Bureau of Immigration Modernization Act is currently being deliberated in Philippine legislature. If passed into law, it will update the Philippine Immigration Act of 1940 with new visa classifications, among other important changes.   

There are four types of sponsor-based employment visas for foreign nationals intending to work in the Philippines, as follows.

• A pre-arranged employment visa (9G). This is the generic work visa for foreign nationals who will be engaged by Philippine entities in authorised employment for the duration granted by the Bureau of Immigration.
• The Treaty Trader (9D). This applies for foreign nationals from the United States, Japan, or Germany who wish solely to conduct trade or commerce between the Philippines and their home country, as well as to direct the operations of a Philippine-based company.
• The Special Non-Immigrant Visa under Executive Order 226, as amended by Republic Act No. 8756. This is for foreign executives who will work for their employers’ regional headquarters in the Philippines.
• The PEZA, or Special Non-Immigrant Visa, issued by the Department of Justice to foreign employees of investors registered with the Philippine Economic Zone Authority.

There are two primary options available for unsponsored work and investment visas, as follows.

• The Special Investors Resident Visa, available to a foreign national who meets specific conditions. Issued by the Board of Investments, the visa allows the holder to reside in the Philippines indefinitely with multiple entry privileges, as long as their investment remains in the Philippines.
• The Special Retiree Resident Visa offered by the Philippine Retirement Authority to qualified foreign nationals considering the Philippines as their retirement destination. The visa allows the foreign national to stay indefinitely in the country, among other privileges.

Temporary visitors going to the Philippines may engage in a variety of activities, such as:

• pleasure and tourism;
• business or commercial, industrial, or professional activities, but these must be temporary in nature (this category would include those who are attending conferences and business meetings); and
• medical tourism.

Current statues and regulations do not specifically recognise the visa status of foreign remote workers employed by companies with no legal presence in the Philippines. This gap could give rise to complications, particularly if the remote worker intends to stay in the country for an extended period. In May 2023, the Bureau of Immigration revealed plans to launch a digital nomad visa. This would allow foreign nationals to stay in the Philippines for an extended period to work remotely. It will initially be valid for a year, to be extended by a further year if the foreign national meets specific conditions. More information is expected to be available this year.       

There are no prerequisite language requirements to obtain a visa, unless relevant to the employment for which the work visa is being applied for.

Some foreign nationals must undergo medical examinations with the Bureau of Quarantine before obtaining work visas.

Foreign nationals applying for sponsor-based employment visas must first obtain an alien employment permit from the Department of Labor and Employment. This process assesses the applicant’s suitability vis-à-vis the position applied for, and includes a labour market test. The objective is to establish the non-availability of a Philippine citizen capable and willing to assume the position in question. With respect to salary, applicants for a Special Non-Immigrant Visa under EO 226 must receive a salary of at least USD12,000 per annum, to be paid by the employer’s regional headquarters. While there is no minimum salary threshold for other types of work visas, the compensation of the foreign national must be in keeping with their position and financial requirements while in the country. 

The work visa is employer-specific, and is limited only to the position applied for. 

The current processing time for 9G, 9D and EO226 visas is approximately two to three months. PEZA visas are processed within one to two months.

Once the application has been submitted, applicants are advised to remain in the country until the visa is approved to avoid delays and complications in processing. If applicants need to leave urgently and their visa is approved while abroad, they are required to undergo a revalidation process within 15 days from arrival. This does not apply to PEZA visa applications; a new application should be filed if the applicant is abroad at the time of visa approval.

There is no formal and guaranteed way to expedite processing times. However, the Bureau of Immigration may consider urgent travel a grounds to expedite processing if the application is already at the implementation stage.

Foreign nationals with approved visas must obtain an Alien Certificate of Registration Identity Card (ACR I-Card). This must be presented along with their passport each time they leave and enter the country. Holders of work visas without multiple entry privileges must pay immigration exit fees before departing. The official receipt should be retained by the foreign national and presented upon return to the country.

All ACR I-Card holders must report in person during the first 60 days of each calendar year and pay the required fees, in accordance with the annual reporting requirement.

The typical cost of a sponsored employment visa is between USD1,500 and USD2,000 for the principal applicant. This covers government fees, charges and other expenses, and excludes legal fees.

Whether visa costs for an employment visa are paid by the individual or the employer is a matter of agreement between the individual and the employer.

Any violation of immigration laws and regulations may give rise to enforcement action against an erring individual and sponsor. Notable infractions include working without a valid permit and/or work visa, submitting spurious/fake documents to support an application, and overstaying. 

An employer must ensure that its foreign nationals have the appropriate permit and/or work visa before commencing work. Upon termination of employment, the employer must comply with visa downgrading procedures and other exit formalities for its foreign nationals. Any violation could lead to financial penalties.   

An employer has the right to check whether a foreign national that it seeks to employ is authorised to work in the Philippines. This typically involves requiring proof of the foreign national’s visa status. 

For a dependant visa, the Philippines recognises relationships between married spouses and children under the age of 21.

The holder of a dependent visa is not permitted to work in the Philippines. If they wish to do so, they must relinquish their current visa and file a separate work-visa application.