Hi All, My name is Vanni. I am new. A little bit of background is here. http://www.british-filipino.com/index.php?threads/hi-from-me-and-my-davao-dream.10092/ I was wondering who, of you people, are from Davao City, lived/have been living in Davao or plan to. I am particularly interested in those who managed to set up a business, or work from there using their UK limited company as a vehicle. I would like to move more or less permanently to Davao by mid-2017 and set up one or more businesses revolving around software development and consultancy. I spent 4 months in Davao in 2014 and from what I could see (and still read), Davao is in full bloom and in need for businesses that look beyond the usual BPO tech-on-the-phone model. I think Dabawenyos deserve more than that, as all Filipinos. Any information exchange will be mostly appreciated. Thanks! Vanni
Welcome to the Forum and welcome to Davao, Vanni! I moved to the Philippines in 2007 and have been living here since 2010. It is probably the safest city in the country from crime, geological and meteorological points of view and has strong Mayor who's probably the most foreigner-friendly public official in the country and very keen to attract foreign business here. I am retired but I think your assessment of this cities opportunities is pretty much correct. The new Matina IT Park on MacArthur near NCCC Mall and S&R is nearing completion and is designed for both BPO and non-BPO IT companies and there are a number of call-centres including Sutherland and Telepower. You can not work or operate a business here unless you hold the correct category of Visa and there are three basic Visas available that allow foreigners to work and run one or more businesses: SIRV (Special Investors'), SRRV (Special Retirement) and 13(a) Permanent Resident (Marriage) Visa. SIRV is granted to investors whose business(es) employ a minimum of 10 people full-time whilst the SRRV besides requiring a sizeable bank deposit, wouldn't be advisable in your case. In any event, you will have to form a corporation with local partners holding 60% of the equity and voting rights (although all the paid-up capital will almost certainly come from you!).
Hi Mark, Thanks a lot for the quick, concise and insightful reply. I was very much aware of the stellar achievements of the Dutertes (father and daughter) in transforming Davao, and ever since I had the feeling that that was just the tip of the iceberg. It's a basic tenet of every civilised society that, where there is little corruption, efficiency and vision, investments will flock and trigger than kind of positive feedback loop. I was in Pearl Farm Resort in Samal on New Year's Eve 2013 and Sara Duterte (then Mayor) was there. She was 8-month pregnant and not in the best of moods, yet was able to exchange a warm handshake and congratulate with her and her father for how much their policies could accomplish in a relative short time and from an original socio-economic situation that looked hopeless. I read the notorious 40% cap on foreign investment was lifted a couple of years ago for companies that 1) are not into "retail", eg. don't sell products but offer services (and software consulting could well be one), and 2) have a majority of their clients and income outside the Philippines. I might be wrong and the 40% cap may still apply. Is the local (Davao) chapter of the SEC a good place to start from? In terms of Visas, I don't mind the $20K down and would be happy to apply for a SSRV retirement Visa, as I do not have the resources to employ 10 full-time locals from the onset. I am not sure that is possible, but if it possible I could start offering services using my UK limited company. What I did hear is that, even with an SSRV and SIRV, I won't be able to work as an employee, or even do practical work in my own company. In other words I could own and draw profits from a corporation I own, but not work there as a full-time employee. Do you know more about that? I was aware of the nearing completion Matina IT park and, when my company starts in earnest, I will probably rent a serviced office there. Thanks again. V.
You will need to consult with a reputable lawyer here - and I do know one - concerning the establishment of corporation here and whether or not the 40% cap would apply. I rather think it will as it is my understanding that the cap was lifted for businesses that are located in EPZs - Freeports and Special Economic Zones such as MPEZ and IT Park in Cebu. There is no such zone here in Davao even though Duterte has long battled with Manila to mandate one. Matina IT Park would be a good base. Next door is S&R Membership Shopping (think Costco) which stocks treats such as New Zealand Lamb, Smoked Salmon and frozen Cod fillets. You can buy fresh whole milk in litre bottles at both SM Davao City (1 km) and NCCC Mall which is next door to S&R (SM is more reliable). Immediately opposite is the Swiss Deli where you can buy English-style Back Bacon, English-style sausages as well as a good range of continental sausages and meats; they also bake their own bread. Also opposite the IT Park is De Borderij, a Dutch-owned and managed bar-restaurant; it's the main expat hang-out in town. That said, you do know that Ayala is building serviced office units as part of its Abreeza Residences development? I would suggest waiting until you are physically in the country before applying for a SRRV - if that is the route to residency you choose. That Visa is being constantly tweaked to make it more attractive but it will never be as attractive as Malaysia's "Malaysia: My Second Home" programme. The best Visa which gives you residency as well as investor/employer/employee rights is the Section 13(a) - but that means marrying a Filipina (highly recommended, by the way!).
Is EPZ and MPEZ the same as PEZA? If so, it looks like Matina IT Park received accreditation as a PEZA zone about 18 months ago. Which is great news, obviously. http://www.sunstar.com.ph/davao/business/2013/06/28/matina-it-park-gets-peza-accreditation-289611 I will definitely need more of advice like yours when I finally get to create my corporation in the Philippines. I will be going to Davao in April to visit my friends and, among other things, pay a large tranche of the condo. I will hopefully be able to call a few people, including the lawyer you may want to recommend me. When in Davao I was towards the end of Bacaca Road, a few blocks from the highway (who locals would inexplicably call "diversion road"). I was in Matina only a handful of times, and every time I was there I made sure I would pay a visit to Swiss Deli. The cakes and bread were out of this world. The things a honest Swiss man does when he's in love with her woman...and her whole culture! Didn't know about De Borderij, but will definitely pop there in April. And yes, I knew they were building a "corporate center" next to Abreeza. On a cursory look, I can see they have just completed it and 3 floors will be occupied by a BPO company (Convergys?). Not sure if the place has a PEZA accreditation, though. Mark, are you currently in Davao, or back in the UK? Please let me know if you have time and/or pleasure to talk to me in private. Thanks! Vanni
To find out whether there were any EPZs here, I did a simple Google search and also consulted the wiki page. Also, the last time I looked there was no indication on the building's signage that it is an EPZ/PEZA. Local newspapers are not reliable reporters of fact here and that's especially true of the SunStar! Diversion Road is, in fact, that road's correct name and it's Davao's equivalent to London's North Circular Road. It diverts through traffic from Gensan, central and north Mindanao to the international airport, Compostela Valley, Tagum and Mati that would otherwise congest the city's main arteries. The lawyer I mentioned is Attorney Susan Cariaga of the Cariaga Law Office, Cariaga Building, Mt Apo Street, Davao City, Telephone: (082) 221-2543; 227-6125. She's a family friend and God Mother to our older son, Hugh. She is often in Manila so you'd need to make an appointment well in advance. It's an old established family law firm that enjoys a good reputation. My wife and I live in Davao together with our two sons and moved here from Cebu City in 2010. I do have to come to the UK during April/May but I haven't made any bookings as yet. If I am here in Davao whilst you're here, we can certainly meet-up.
So much information compressed in a four-paragrapher, thanks! I have heard from multiple people that Matina IT Park has a PEZA accreditation and rents serviced offices. There are other BPO centres, including the one near Abreeza mall, but not sure if they are PEZA-accredited. I doubt I will create a corporation, indeed I will need to, until I need to have my own team there. I am working for a startup now, with one of my ex managers at an investment bank, and there are talks of projects starting for a couple of clients in the City. If I can get to work remotely, albeit for a lower rate, I might move to Davao as early as this May/June. We'll see... And by the way, thanks a lot for mentioning Susan Cariaga. The name does ring a bell, although I never met her in person. Thanks for the kind invitation, it would be great to meet fellow expats in Davao. May I ask, why did you move to Davao from Cebu? Quality of life?
Please bear in mind that for any settlement visa you will be asked to provide a recently-issued Police Clearance Certificate. In the UK these are known as ACPO Police Clearances and are issued by ACPO's Criminal Records Office - known by the acronym "ACRO". You apply by submitting an application form and paying a fee: further details on this web page. You might wish to seek Susan's advice and help regarding obtaining a Quota Visa. These do provide the ability to earn money here and have very few restrictions, if any. But they are expensive: approximately 150,000 Pesos but don't have a minimum deposit requirement or qualifying employee requirements of SRRV and SIRV. Davao's expats are mainly long-term permanent residents unlike Cebu where many live as tourists, paying fees to update their visas every two months or so. This latter group are whingers and whiners who seem to do little other than to congregate at some (cheap) bar and complain about anything and everything. My wife and I were out with friends in Cebu on evening and an occasional visitor from Hong Kong was with us. He's an Australian who teaches at one of the universities but spends much of his vacation time in the Philippines. He had recently returned from an extended stay in Davao and he used one phrase which he said summarises that place: "The Philippines done right". On the strength of that - and his more verbose description - we came here for a long weekend and made the decision there and then to move here. There's very little air pollution because the traffic enforcers and Police enforce the law, unlike Cebu or Manila. Davao has an artesian water supply which the World Health Organisation has adjudged to be in the top ten of the purest supplies in the world: you don't need to buy bottled water here. There is a volcano near by, Mount Apo, but it hasn't erupted at any time since written records began and Davao is south of the main typhoon track, besides which the city is completely surrounded and protected by mountains. It is probably the safest city in the country thanks to the city government tackling crime and corruption. As an example, around three weeks ago, Duterte issued a stern warning to those working at the Bureau of Immigration not to harass foreigners living or visiting the city - upon pain of death! So yes, quality of life is far better here - which maybe why quite a number of actors and singers have bought properties in the city and commute on a weekly basis from Manila.
However JohnAsh will doubtless remind you that there are no certainties where nature is concerned, that Mt Apo is likely to erupt and engulf the city (even though it's 40 miles away), a stray typhoon may navigate its way around western Mindanao and up Davao Gulf and that Duterte's real name is "Dirty Harry".
You don't recognise sarcasm when it confronts you then. Obviously. Duterte could well be the next President if he stands for election which is looking increasingly likely. That will herald a new Constitution as he shifts the country to a Federal model of governance.
