A comfortable retirement works out cheaper in Sri Lanka — around £1,350/month for a couple, versus £1,650 in Philippines (about 18% more).
Cost of living, side by side
| Philippines | Sri Lanka | |
|---|---|---|
| Modest (couple/mo) | £1,000 | £800 |
| Comfortable (couple/mo) | £1,650 | £1,350 |
| Premium (couple/mo) | £2,700 | £2,300 |
Indicative monthly estimates for a couple — real costs vary by location, lifestyle and exchange rates.
Philippines: Foreigners can own a condominium unit outright (freehold) as long as foreign ownership across the building stays within the 40% cap, but cannot own land directly. Land is instead held through a long-term lease (recently extended up to 99 years for qualifying projects) or via a genuine majority-Filipino company.
Sri Lanka: Foreigners cannot buy land outright, but since 2018 can purchase freehold apartments or condominiums on any floor, provided the full price is paid upfront by inward foreign remittance before the deed is transferred. Land and houses are otherwise accessed on long leases of up to 99 years.
Philippines: The Special Resident Retiree's Visa (SRRV) is the main route; since a 2025 overhaul it opens from age 40 with a bank deposit (from roughly US$15,000 for pensioner applicants aged 50+, more for younger or non-pension applicants) plus proof of income.
Sri Lanka: The 'My Dream Home' residence visa is for applicants aged 55+ and typically requires a US$15,000 fixed deposit plus around US$1,500 in monthly remittance (US$750 per dependant); it is granted for two years and is renewable.
Philippines: Private hospitals in Manila and Cebu are modern and far cheaper than in the West, and most expats use them; the state PhilHealth scheme is basic, so private cover is common — international plans from about US$1,000 a year, or cheaper local HMOs. Retirees enrolled through the retirement authority pay a modest annual PhilHealth fee of around US$250.
Sri Lanka: Public healthcare is free but basic and stretched, so expats lean on Colombo's good private hospitals such as Asiri, Nawaloka, Lanka and Durdans — near-Western standards with English-speaking staff at a fraction of UK prices, though complex procedures still add up. An international health policy is wise, with premiums rising after age 60.
Philippines: The Philippines taxes residents only on Philippine-source income, so a foreign pension is generally not taxed at all; retirement income remitted from abroad, and SRRV-holders' pensions, are explicitly exempt. It is one of the more tax-friendly bases for a pensioner, though your home country may still tax the pension.
Sri Lanka: Since April 2025 a resident's foreign income remitted to Sri Lanka through a licensed bank is taxed at a flat 15% (after the LKR 1.8m personal relief), so a UK pension brought in can be taxable. Income kept abroad is generally outside the net, and the UK-Sri Lanka double-tax treaty can reduce the bill, so take advice.
Philippines: Tropical and hot year-round with high humidity; the dry season (roughly November-April, coolest December-February) is most comfortable, while June-November is wetter with typhoon risk. Famously warm and welcoming, with normal precautions against petty crime and some far-southern areas best avoided; English is an official language and very widely spoken, and driving is on the right.
Sri Lanka: Tropical and warm year-round on the coast, cooler in the hills, with two monsoons — the southwest (May-September) wetting the west and south, the northeast (October-January) the east. The west and south coasts are loveliest from December to March. Safe and genuinely welcoming; English is widely spoken thanks to the colonial legacy and schooling, they drive on the left, and daily life is easy for British retirees though the roads can be hectic.
Philippines: For the buyer, one-off costs are roughly 4-5% — documentary stamp tax of 1.5%, transfer tax of 0.5-0.75%, plus registration and notary fees — while the 6% capital gains tax is customarily the seller's. Foreigners can own condominium units (not land), and title transfer through the Registry of Deeds takes some weeks.
Sri Lanka: Budget roughly 4-6% in one-off costs — stamp duty of about 4% plus attorney and notary fees of 1-3%. Foreigners buy freehold apartments for cash with the full price remitted from abroad, and a straightforward condo can complete within a few weeks to a couple of months.
Philippines: Cebu for city amenities with beaches close by, Metro Manila for the widest choice of hospitals and services, laid-back Dumaguete for an affordable university-town pace, and Tagaytay for cooler upland air near the capital.
Sri Lanka: Colombo for amenities and the best hospitals, the historic fort town of Galle on the south coast, cooler hill-country Kandy, and Negombo near the airport for beach life close to the city.
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