3 days ago
What It Means To Be Wealthy In The Philippines
Entalula Island lagoon, Philippines
getty
With its breathtaking beaches, rich culture, and generous hospitality, the Philippines is a dream destination for travelers and digital nomads. But what does it mean to be wealthy in this Southeast Asian archipelago? From average salaries and cost of living to net worth and visa opportunities, here's what you need to know about being wealthy in the Philippines.
The Philippines was the 11th most-searched-for country by Americans in 2024, with many looking to relocate or vacation there. Who wouldn't want to go somewhere that Lonely Planet describes as "emerald rice fields, teeming megacities, graffiti-splashed jeepneys, smoldering volcanoes, bug-eyed tarsiers, fuzzy water buffalo and smiling, happy-go-lucky people." (Tarsiers are the world's only entirely carnivorous primate, a mix between a lemur and a monkey.)
These thousands of islands in the South China Sea offer beaches and biodiversity in abundance, a place that U.S. News ranks as the 45th best country in the world. A Spanish colony in the 16th century, it got its name after King Philip II of Spain; the country was ceded to the U.S. after the Spanish-American war in 1898 until it became a commonwealth in 1935—the country is predominantly Christian (83% of its residents). It celebrates its independence from the U.S. on July 4th, and its colonization by the U.S. has made it the third-largest English-speaking country in the world today.
The Philippines is a developing economy with a growing middle class, but average salaries remain modest compared to Western standards. According to the Organisation for Economic Co-operation and Development (OECD), the average household net-adjusted disposable income per capita in the Philippines is approximately $4,439 per year. This is significantly lower than the OECD average of $30,490 and the U.S. average of $51,147.
In 2021, one report stated that the average annual income of a family in the Philippines was approximately $5,500, and to qualify as middle class, one would need to earn between $300 and $2,000 per month.
However, salaries in the Philippines vary widely depending on the industry and location. For example, workers in Metro Manila, the country's economic hub, tend to earn higher wages than those in rural areas.
The cost of living in the Philippines is one of its most attractive features for expats and retirees. According to Numbeo, the cost of living in the Philippines is significantly lower than in the U.S., the U.K., or many European countries. The cost of living is 116% higher in the U.S. than in the Philippines, excluding rent.
The cost for a single person per month, not including rent, is as follows:
Furthermore, when you factor in rent, it becomes clear that the Philippines offers more for your dollar per square meter; rents in the U.S. are 455% higher than in the Philippines.
While rent in major cities like Manila or Cebu can be higher, it is still much more affordable than in most U.S. cities—rent in a city center can start at around $300.
Groceries and utilities are also cheaper than in the U.S., and a meal at an inexpensive restaurant in the Philippines could be around $3.
Wealth distribution in the Philippines is highly unequal, with a significant disparity between the rich and the poor. In 2022, the average wealth of adults in the Philippines was approximately $3,155, which is considerably lower than in the U.S., according to Statista.
Over the past ten years, there have been roughly 500 ultra-high-net-worth individuals in the Philippines—that's to say, someone owning $30 million or more.
Philippine billionaires, such as those on the Forbes Philippines Rich List, have amassed fortunes in industries like retail, banking, and property development.
The Philippines offers several visa options for foreigners looking to live or work in the country, namely it offers a Special Resident Retiree's Visa (SRRV), which is popular among retirees. To qualify, applicants must deposit a minimum of $10,000 to $50,000 in a Philippine bank, depending on their age and retirement income.
The government has recently announced the launch of a new digital nomad visa for individuals aged 18 and above, allowing them to stay and work in the country for a year, with the possibility of a one-year renewal. The government is seeking to attract tourists, as it fell short of its 2024 target of 7.7 million arrivals by 23%.
Being wealthy in the Philippines means more than just financial stability though—it's about travelers being able to enjoy a high quality of life in a country known for its natural beauty, rich culture, and warm people.
