Comparing The Expat Cost of Living In The Philippines vs. the USA (2024)

The local currency is the Philippine Peso (PHP). At the time of this writing, the exchange rate is 1 US Dollar =50.38PHP. For reference, 1 Euro =56.63 PHP.

• €1000 Euros = 57,137 Pesos
• £1000 Pounds = 67,360 Pesos

The top places for expats to live in the Philippines will cost roughly $1,000 to $1,500 per month for a single person. Lifestyle and location as a tremendous effect on your monthly cost in the Philippines. The most expensive cities are in Metro Manila, where neighborhoods like Makati and BGC have thriving expat communities who enjoy the nightlife, shopping, and entertainment amenities that come with living in the Capital city. However, the popularity comes at a cost both in crowds, traffic, and average prices of housing and food.

Smaller towns and mid-sized cities can offer you significantly better value for your money. You may have fewer international restaurants and nightlife, but you still have reasonable expat amenities and you get closer to the famous white-sand beaches the Philippines is known for.

Here is a personal breakdown of my spending living in BGC in Metro Manila. I spend more on food and less in entertainment than most people, as I use going out to eat with friends as entertainment. I spent quite a bit in transportation, at some point I might simply look at a leasing a car with a private driver.

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According toNumbeo's cost of living index by country, the Philippines ranks as the 54th cheapest country in the world (out of 138 countries), 58 spots above the 112th ranked United States.

The country's cost of living index score estimates the Philippines is roughly 43% less expensive than the US.

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Compared to Western countries, the costs of living in the Philippines remain extremely low. However, the low living costs and aneasy visa programhave increased the country's popularity and driven up prices in some popular retirement locations.

Manila, especially, is getting notoriety as the"World's Poorest Expensive City." However, there is still tremendous value in destinations outside of the Capital.

Monthly budgets in urban metros (specifically Manila, with Cebu City prices also climbing) are significantly higher than on the islands, in smaller towns, or rural areas. Though Manila still has lower rent compared to the US, UK, or EU, the housing prices in the Capital are incredibly costly compared to the rest of the country.

Renting a one-bedroom apartment in Davao City, considered the safest city in the Philippines, can be 50% less than Manila.

In Dumaguete, a charming university town one hour from Manila, my monthly cost was roughly $900 per month. That is about 795 Euros or 675 Pounds.

Local Filipinos food is diverse. The country has been a cultural melting pot for Southeast Asia for centuries combined with 5+ more centuries of colonization by the Spanish and the Americans have made Philippine cuisine a unique mash up, quite different than any of the country's neighbors in South East Asia.

What the country lacks is a street food scene on par with Vietnam, Thailand, or Malaysia. Expats and most upper-class locals avoid the questionable hygiene and quality of most street vendors.

However, you'll find plenty of affordable options at "fast-casual" or local mid-priced restaurants are delicious and incredibly cheap. Even on a $1,000 a month budget, you'll have lots of opportunities to eat out.

Home-cooked meals are still the cheapest meals and as a former US territory, you will find most US brands and ingredients you normally enjoy available at specialty supermarkets. However, I warn new expats,

"Expat life is remarkably cheap. Imported life is costly."

If you try to recreate your imported wine, steak, and truffle cheese lifestyle in the Philippines, you will blow through your monthly food budget in hurry.

You may have to send you maid to get the best prices, but local daily markets are where you can score the cheapest fresh fruits, vegetables, and meats. Otherwise, you can find US-style supermarkets in most major malls. The prices local goods will be cheaper than the US, but higher than what you would pay at the local market.

Again, use locally grown produce vs. imported ingredients for better savings

• Local Kangkong ($2 per lbs) vs. Imported Spinach ($4 per lbs)
• Local Papaya (0.70 per lbs) vs. Imported Seedless Grapes ($4.50)
• Local Bread Rolls (0.40 per 0.5 lbs) vs. Imported Bread Rolls (1.25 per 0.5 lbs)

Robinsons Supermarket Delivery Prices

• Inexpensive Restaurant - Philippines $3 vs. USA $15
• Mid-Range Restaurant (2 People, Three-courses)- Philippines $19 vs. USA $60
• Big Mac Index - Philippines $2.82 vs. USA $5.65

• Movie Tickets - Philippines $3 vs. USA $15
• Local Beer (0.5L) - Philippines $1.25 vs. USA $5
• Cigarettes 20 Pack (Marlboro)- Philippines $2.25 vs. USA $8
• Fitness Club - Philippines $36 vs. USA $37

Trikes pass for public transport in the Philippines

Driven by the lower average salary, any service that can be provided by local Filipino labor will be an affordable luxury only the wealthiest American retirees could afford in the US.

Aside from the personal driver mentioned in the previous section, you can enjoy a lavish lifestyle that includes:

• Weekly Massages- $5 per hour for services at your home
• Manicures- $12 - $20 depending on service
• Private Driver With Car- $400 per month
• Live-in Household Help- $100-$250 per month + board
• Food Delivery- $1 (Food Panda or Grab Food are the Philippines version of Uber Eats or Door Dash)
• Weekly Maid Service- $10 to clean a two-bedroom apartment

A housekeeper costs an average of $82 per month in Manila and $50 in rural areas.

SRRV Visa Costs

$1,400- ONE TIME PROCESSING FEE
$360- ANNUAL FEE PER FAMILY

*The SRRV Courtesy and Expanded Courtesy have a reduce annual fee of only $10
The annual fee covers up to three family members. Each additional dependent is $100 per.

For expats who do not qualify for the retirement visa, the Philippines has several visa options, including an extendable 9a tourist visa or 13a marriage visa that have smaller financial qualifications. You can find downloadable applications forms here.

Expat retirees with an SRRV visa can buy into the country's public healthcare system (Philippine Health Insurance Corporation or PhilHealth). The insurance premiums cost foreign Nationals roughly $300 per year.

However, PhilHealth only covers public hospitals, while expats retirees prefer the better equipped and better trained medical care at a private hospital. The additional costs for private medical insurance depend on age, pre-existing conditions, deductibles, and coverage limits.

Example of the private health insurance costs for a 25-year-old male or female in PESOS

Example of the HMO insurance premiums for a 25-year-old male or female

American retirees with the SRRV have the potential to substantially reduce their total taxes paid, depending on how their income is sourced. SRRV holders generally do NOT pay taxes on their foreign-sourced income, such as overseas ETFs and stocks or rental property in their home country.

In addition, the Philippines and the United States have a double taxation treaty, allowing you to potentially get a foreign tax credit. International tax law is complicated. Consult a tax advisor for more information.