SVEG? What is that? Well, it is the Special Visa for Employment Generation. Remember last year, in November, President Arroyo signed Executive Order 758, which provided for a new way for foreigners to stay long term in the Philippines. This executive order is what lead to SVEG, which was finally implemented last week.
I wrote an article about the new employment visa when it was first announced in November. At the time, we did not know any details about how the new visa would be implemented, what the rules would be or anything. First thought was that as long as you employed ten Filipinos in a business, you could stay forever. People started thinking that they could get 10 maids, sales clerks in a sari-sari store and such. Next, word started coming out that you might be required to invest as much as P15 Million to get the special employment visa. So, there was a lot of speculation, but not many facts.
Thankfully, the facts are now availalbe, and as of March 9, the SVEG can is available for those who wish to use it to live in the Philippines! Unfortunately, it will not make living here as easy as many thought, but it does give one more option for those who wish to make living in the Philippines part of their daily life.
So, if you wish to obtain a SVEG, what are the requirements? Let’s have a look:
- The foreigner must have controlling interest in the business that will employ a minimum of 10 Filipinos.
- The Filipino Employees must be Regular Employees. In other words, they cannot be hired on a temporary contract workers, but have permanent jobs.
- The Filipino Employees must be full time employees.
- The Filipino Employees must be employed in Managerial, Executive, Professional, Skilled or Unskilled positions.
- The Foreigner must supply the Bureau of Immigration with Alien Employment Permit issued by the Department of Labor and Employment (DOLE).
- The Foreigner must supply the Bureau of Immigration a letter from DOLE that certifies that the Alien employs ten Filipinos.
- Alien must supply proof that he acts in managerial functions and has the authority to hire, fire and promote the employees, and that he has the intention to remain in the Philippines indefinitely.
- Proof must also be supplied that the employees have been given all due benefits of regular employees – PhilHealth, Pag-Ibig and SSS.
- All provisions of the Philippine Constitution are still intact regarding foreign ownership of business, equity, foreign investment and capitalization.
In addition to these requirements, the alien must provide the following to the Bureau of Immigration:
- Notarized letter requesting SVEG.
- Copy of Passport.
- Company articles of incorporation.
- Proof of investment.
- Clearances from National Intelligence Coordinating Agency and Bureau of Immigration.
So, now we know what the SVEG is, and what the requirements are.
What do you think of it?
Here is what I think. Personally, I think that this is really a non-starter. There are already other visas in place that are less expensive to get and easily available. For anybody who is married to a Filipino, the 13 series residence visa is the obvious choice for anybody who lives here. For a person who is not married to a Filipino, the SRRV (Special Retirees Resident Visa) is much less costly and much less ongoing hassle.
Honestly, I see no real use for this SVEG visa. One thing in particular is that you are required to have a Work Permit in order to get the SVEG. However, the Work Permit is already virtually impossible to get. So, it’s kind of a catch 22 situation.
Next question, how can you have controlling interest in the business, yet Constitutional requirements regarding business ownership are still in effect? The constitution bars foreigners from having a controlling interest in a business here. I suppose the company could be a foreign company, and open a branch here in the Philippines, but that seems that it would be complicated, and beyond what most expats who simply want to live here would be able or willing to do.
Overall, I suppose it is a positive step to offer additional ways of staying in the Philippines long term. I am just not sure that the SVEG solves any problems as they are now.
What do you think? Any ideas?
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About MindanaoBob
Another fine bureaucratic contradiction to navigate back to point “A”.
sounds like a big hassle to me this new visa, it would be easier and cheaper to marry a filipina.
I’ll stick with the Filipino wife , Better benefits and not so much red tape and you only answer to one person not the government ….
..Phil n Jess
I have to agree with everyone on this! Why is that the laws regarding foreign ownership in the phils are so tough? Do you think it is to protect the wealthy?
Cheers, Jason
Bob,
First it was the law, now the visa, hopefully they will change or better explain the rules to make it work. If they put enough band-aids on something, maybe it will eventually become a bandage and heal the problem.
We will see. At least the govt is realizing they need more foreign investments here.
Hi mike – No doubt there! The filipina wife comes with other benefits too!
…yeah its called HEAD ACHES LOLOLOL….
Kamusta ka Bob,
Yeah, this is just one big hassle to me it looks like. And besides I will be getting married there, and most likely doing the 13 series residence visa. But also, I do want to have my own business there as well, and not only in my wifes name..maybe at first. But after awhile I would like it to be in both of our names. I know I can’t own land or property there.
Bob, you said getting a work permit is virtually impossible? This I didn’t know about. So how do you live there, and be able to have an income from a job or self-employment? I want to earn money there, but not just through the internet, would be nice, but I will want to venture into other things there as well.
Salamat kaayo,
Danny
Bob
FYI: 25% of $49 is $36.75 not $39.99.
I have a bad habit of seeing these kinds of things. I am working on it. Just not today…. Thanks Bob
Robert
Hi Bob – I think we’re all missing the point: Something was done”
It doesn’t matter whether one million or one benefit, something WAS done. Cloaked in the buzzword, “Progress,” some actual spets were taken from point “A” toward a goal. Remember, mis-steps count as steps, too.
Once a westerner figures out why a village will spend its next three months’ wealth just to have a “nice” fiesta, then a westerner will be able to better understand progress there.
Of course, the above is all tongue-in-cheek. I’m sure the true effect of this new visa program will be the hiring of additional bureaucratic employees in various new offices. Most new employees will be related – most likely in some way to those who made the program possible.
Hi everybody,
The Philippines is a lovely country, especially for a man, as there are so many beautiful, young, smiling women around. However the life for an expatriot is getting harder and harder, prices go up, visas fee up and no real benefits for us. We can not buy any land, or have our own 100% business. Now I remember Bob writing about the possibility that one day we may have to leave this beautiful land. I was researching this and found that there is a country close by, the country offers 6 months free visa on arrival (I am an Australian so do not know about other nationalities) which can be renewed without fuss and money, I, as an Australian, can buy myself house, land or a farm on my own name(has to be worth more then 250,000 ringgits,about US$70,000), I can have a business on my own name, go and come back as I wish, where living is cheaper, air cleaner, and there is more food voriety then in Philippines. I am talking about MALAYSIA. Whats more important is that Filipinas get free 1 month visa on arrival. So why don’t we take our wifes to Malaysia and start a new community!!!. hahaha,
Bob,
What is a 13 series visa?
RJ
Bob: From what you wrote above, this new Visa will not do much for very many people… except adding jobs within the bureaucracy. We finally got the NSO copies of our marriage certificate last week. We should be off to the BI in the next week for my 13A visa app… The copies took 5 months from the wedding… Abulug, Tuguegarao, then Manila. I’m guessing the process may take a few weeks once the application is approved. Now I just have to sit still long enough for the interview. Something for foreigners to keep in mind when getting married here… The documents are not instantly available like in the States. You need to renew on another visa until they are ready and that can take months.
Looked promising for a moment, but on further examination another dead end to the road.
At least something was put on offer. Well if the Govt are serious, they will make the necessary changes to get results. Pretty easy.
The marriage option is still the best.
hi bob,
I just read the complete EO-758 and some of the requirements you posted is not on the list,
section 2 of the EO-758
SECTION 2. Who may avail. – Non-immigrant foreigners who wish to avail of the SVEG should comply with the following conditions:
a. The foreigner shall actually, directly or exclusively engage in
a viable and sustainable commercial investment/enterprise in the Philippines, exercises/performs management acts or has the authority to hire, promote and dismiss employees;
b. He evinces a genuine intention to indefinitely remain in the Philippines;
c. He is not a risk to national security; and
d. The foreigner’s commercial investment/enterprise must provide actual employment to at least ten (10) Filipinos in accordance with Philippine labor laws and other applicable special laws.
The above-mentioned requirements must be continually satisfied by the foreigner for him/her to continue to be a holder of the SVEG.
source: http://immigration.gov.ph//index.php?option=com_content&task=view&id=469&Itemid=104
Hi Bob, I’m Filipina and married to a foreigner, he’s been living here for a year now and we have to travel 3 hours to the nearest immigration office and frankly, it’s getting too expensive and too much hassle. Wanted to know if there’s an office in Cebu that can process 13a? We’ve been referred to Manila but Cebu is closer and we both hate Manila – too crowded, too polluted, too many suckers! Thanks.
Good thing that this order has been signed in the Philippines. This is indeed a very welcoming idea for more investors who wish to establish their names in the country and open more job oppportunities for people.
Because of the SVEG Visa, more doors of opportunities are open for foreign business and investors. I think that this is a good step in promoting more jobs or employment in the country.
Before I got my SRRV I looked at the SVEG . I would NOT under any circumstances ever even consider getting a SVEG. Why? Because frankly it terrifies me!
To keep my SRRV I have to keep [ in my case] $20,000 in a bank account that pays me 500 php a year interest. But if I decide to get my money back all that happens is that they take away my SRRV and I am on the same footing as before- a visitor.
But what happens if I ever fail to meet the requirements of the SVEG? I have to maintain 10 employees for the SVEG, but what happens if one quits and i cant find someone to replace him?
Lets see what the Act says in the SVEG Regulations:
SECTION 4. Revocation of the SVEG. – (a) The Commissioner of Immigration shall revoke the SVEG
granted: (i) If the SVEG holder fails to maintain compliance of any of the conditions see forth in Section 2 hereof; (ii) If it was obtained through fraud or willfull misrepresentation of material facts; (iii) Upon conviction of the foreigner by final judgment for a crime or offense in the Philippines; or (iv) A final determination by competent authority that the foreigner poses a risk to national security.
(b) A foreigner whose special non-immigrant status is revoked under Sections 4 (a) (i), 4 (a) (ii) or 4 (a) (iv) hereof shall be deported via summary proceedings. In the case of revocation under Section 4 (a) (iii), the foreigner shall be deported after the service of sentence
So if I fail to comply with one of the provisions under Sec 4 [a][i] ie to have 10 employees then the Commissioner of Imiggration SHALL revoke my SVEG and I SHALL be deported !!
The Immigration Dept doesnt even have any leeway in the matter- the Act requires that you be deported for any infraction ! No warning, no right of appeal, no time to rectify the situation- they just deport you! Thats why I would never consider getting an SVEG. I just wouldnt be able to sleep at night ever
Hi brian – Yep! Not much benefit, don’t you think?
Hi mike – No doubt there! The filipina wife comes with other benefits too!
Hi Phil – I think you are on to something! Good idea.
Hi jason – Like you, I really see no reason why business ownership by foreigners is a problem, or should be. It seems like bringing in new ideas and such would be a positive for Filipino business. I would not doubt that you are correct. Protection for the wealthy from having to compete.
maybe u need your wife to give you a neck massage .
..Phil
you got that right i have one every day she just looks at me sometimes i repeat myself to her alot times and she will twist all around and say the thing i just said
Hi brian – Headaches? You must have the wrong Filipina wife!
Hi Bruce – actually this was never a law, it was originated by an Executive Order. I hope that it works out for the best!
Hi Danny – If you have a 13 series visa you are allowed to work, so that is not a problem for me. But, the people who don’t have a 13 series visa have a huge problem, because the work permit is otherwise nearly impossible to get.
Hi Phil – Ah… that sounds nice!
Hi Robert G – My bad. Sorry about that. I had it in my mind… $40, well 25% off is $10 off… I forgot that it was basically $50 to start out! I’ve made the correction – it is $36.75 in the store now! Again, my sincere apology.
My habit is even worse…wait for it:
25% of $49 is $12.25, but 25% OFF $49 is 436.75.
I know, I know, yes, I have nothing better to do with my time right now…damned insomnia! I’d better shut my eyes and count sheep I think!
Hi Paul – I think you hit the nail on the head! New jobs will be created – more bureaucrats to sit around waiting form the mass of “investors” to come!
Hi Markus – Others have mentioned Malaysia here in the past too. Personally, I think there are problems there too, though. Since you have a Filipina wife, why don’t you get a 13 series visa and virtually eliminate Visa fees, and a lot of hassle. I personally enjoy the Philippines.
Hi RJ – The most common 13 series visas are the 13(a) Visa and the 13(g) Visa. 13(a) is a permanent resident visa that is available to a foreigner who is married to a Filipino Citizen. 13(g) Visa is a permanent resident visa available to a a foreigner who is married to a former Filipino Citizen. Basically, it allows you to reside in the Philippines permanently.
Hi JohnM – I’m afraid that you are right on the effectiveness of this new Visa. Unfortunate, though.
Hi Pete – No doubt – marriage is the best way to go.
Hi Jim –
Hmm… I don’t get it… for me 25% off or $49 means 25% is taken off the price, resulting in the new price. I must be missing something.
LOL. It was a cheeky comment on the spelling (of versus off) Bob. But then I shot myself in the foot by failing to capitalise the 4 for a dollar sign, so the last figure should read $36.75, not 436.75. OK, I was a tired insomniac at the time!!!
Hi Jim – ha ha… no wonder I couldn’t figure it out!
Hi dans – the requirements you came up with are the Executive Order requirements. The requirements I gave are the implementation by the BI, they supersede the EO.
hi bob,
here is the memorandum circular order MCL-09- 001, i believe that is the complete guideline of the EO-758
http://immigration.gov.ph//index.php?option=com_content&task=view&id=471&Itemid=103
Hi Vee – Should be no problem to obtain a 13 series Resident Visa at the Bureau of Immigration in Cebu. I know that you can do it at the BoI in Davao.