The Philippines is one of the best countries if you are looking to increase your net worth. One of the reasons for this is the ongoing development happening right now, but the question is, how to make money in the Philippines as a foreigner?
As a foreigner myself, I know just how challenging it can be. Thus let us cover some of the basics before moving forward.
It’s challenging for foreigners to become an employee in the Philippines unless there is a specific need for their service which cannot be fulfilled by local employment. Needless to say, there are a few ways to make money as a foreigner in the Philippines by being an employee.
In today’s article, we will discuss legitimate ways foreigners can earn money in the Philippines by sharing several opportunities. But first one important question….
Does A Foreigner Need To Register To Make Money In The Philippines
Like other neighboring countries, a foreigner will need a legal work permit to conduct employment in the Philippines. From feedback, it is often claimed that when a foreigner is employed locally, it is very challenging in terms of paperwork and requirements. Becoming the president of your own business is often a lot more accessible and secure; thus, many choose to set up a legal business in the Philippines.
4 Ways Foreigners Can Make Money In The Philippines
Becoming The President Of A Corporation In The Philippines.
One avenue for you to make money in the Philippines as a foreigner is to become president / CEO of a corporation. We have spoken about this extensively in other articles, but to summarize, we mentioned that foreigners could own the majority of a company in some circumstances.
This is usually the case if you start a business such as a remote call center. In this example, you are getting a large amount of your income overseas, and because of this, foreign ownership can be higher. However, if you generate your income in the Philippines, then standard (60%/40% – foreigner being the latter) ownership applies.
This is a grey area in terms of the law. A senior lawyer in Davao gave the information to me when I set up an outsourcing call center.
Additionally, here is the checklist for setting up a business in the Philippines;
- BIR registration
- DTI registration
- Mayor’s business permit
- SEC registration
- SSS, PhilHealth, and Pag-Ibig Fund registration
It is recommended to speak to an independent attorney/lawyer when setting up a business in the Philippines. You may also find that local attorneys’ prices are lower in smaller cities than in large metropolitan areas.
Being The President Of A Corporation In Your Home Country
Many foreigners looking to make money in the Philippines set up a business in the home country that is run without their direct involvement.
The great thing about this setup is you are not breaking any local and international law. The business back home is paying taxes just as it would do if you were there and you are also not working in the Philippines, so a work permit would not be required.
Alternatively, many foreigners also have the option to live in the Philippines off investments. This is not always the easiest, but as the world is changing and other investment vehicles such as cryptocurrency appear, there are now many ways to generate monthly cash flow.
There is, of course, one more option, and that is to invest in the Philippines. The Philippines law is reasonably relaxed (compared to other countries) in terms of foreign investment. Many companies handle taxation for you. An example of this is COL financial, who are stock traders for the Philippine Stock Exchange.
A culture coach is a very rare and unique opportunity for those looking to make money in the Philippines as a foreigner.
When I was looking for employment in the Philippines, I spoke to many friends and found that some companies were looking for a culture coach.
The business in question would hire a foreigner to help them with critical business operations, which involved another culture. An example of this could be a call center that wishes to hire somebody to help their sales agents sell more products to Western countries.
The title of this option is culture coach, and the reason for this is because when I first heard of these opportunities, it was explained to me as a culture coach; however, these positions fall under many different names.
Another option on how to make money in the Philippines as a foreigner is to work for your local embassy in the Philippines.
This type of job is often fairly regular compared to other opportunities on our list. However, there are often requirements and qualifications that will need to be met to succeed in an application.
Here is a list of embassies in the Philippines.
What’s the best option for foreigners to make money in the Philippines?
The most straightforward way to make money in the Philippines as a foreigner is to set up a business. Similar to setting up a business in any country, there is, of course, paperwork and specific requirements that will need to be met, but this is often a much easier route for foreigners.
Another benefit of setting up a business in the Philippines is that you can help develop the Philippines. The Philippines is a unique country, and it is also a developing country. Therefore, there are lots of opportunities to make money in the Philippines as long as there is local demand.
Alternatively, if you set up a business in your home country and grow it to the stage where it can be managed without your direct involvement, that is also an excellent option.
It’s recommended to speak to a local lawyer before starting any of the above operations. Compared to many neighboring countries, it is relatively easy to live long term in the Philippines. Still, there may be an option that a lawyer can suggest that is more applicable to you that can allow you to live long term and also earn money as a foreigner living in the Philippines.
Is it easy for a foreigner to work in the Philippines?
Many Filipinos are highly skilled and have an arsenal of experience, making it very difficult for business owners to hire foreign citizens when they often have many highly skilled local applicants.
Additionally, on top of the added paperwork that business owners need to file, there is also pay. In many cases, Filipinos are paid much lower than other Western countries; business owners often do not want to pay a higher amount for foreign staff.
This is not to say that finding local employment in the Philippines as a foreigner is 100% not possible
because that would be inaccurate; however, it is challenging for foreign job seekers. Thus a much easier option is to set up a business / build your investment portfolio.
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