Philippines to Launch "2-Year Digital Nomad Visa" Foreign Ministry Concerned about Online Gambling Abuse

A bill to grant digital nomads a 12-month visa, which could be renewed for another 12 months, is being considered by the House Judiciary Committee.

Digital nomads are people who rely on digital technology to work everywhere.

According to House Bill 8165, eligible digital nomads are required to meet the following conditions:

Foreigners must be over 18 years of age

· Be able to show proof of sufficient income earned outside the Philippines

· Hold valid health insurance

Cannot have a criminal record in their home country

· Willing to pay processing, visa, entry and exit fees as determined by the Immigration Department

According to the bill's author, Rep. Surigao del Norte (Francisco Jose Matugas II), granting digital nomad visas would be beneficial to the country's tourism industry and economy. He noted that the global digital nomad population has grown rapidly in the wake of the new crown epidemic, with 54 countries and territories around the world already offering similar visas.

He told the hearing: "After the new crown epidemic, many people choose to work not only from home, but also in tourist destinations where they can explore beautiful places while working. In a 2020 study, the population of digital nomads in the United States has grown significantly, up 50 percent from 2019."

He added: "This visa category was proposed because governments at all levels realize that nomads spend more money than tourists, put less pressure on public services, create jobs for locals and even start local businesses. The provision of digital nomad visas can help revive the local economy, especially tourism, affected by the pandemic by allowing digital nomads to stay longer and spend more in the country."

However, Jonathan Keith Flores, the representative of the second district of the Department of Bukidnon (Butinong), and Leilani Feliciano, director of the Department of Foreign Affairs (DFA), raised concerns about the "broad" definition of "digital nomads" and proposed to change it.

"Can this type of visa be used by anyone to circumvent other requirements that we may have for the entry of foreign workers, especially regarding the increased risk of offshore gambling operators or online gambling employees in the Philippines, can they enter in this way?"

He added: "Part of our observation about this bill is its ambiguity and lack of scope and limitations. The definition of digital nomad is too broad, and we hope this will be reconsidered and reformulated to allow for a more specific definition of the digital nomad visa. Of course we have always supported the country's tourism goals, but we are also very concerned about security factors, especially online gambling and criminal entry, and digital nomad visas can be another way for them to enter."

"We are also already looking at very specific documentation requirements that will really prove that they are digital nomads, which will have to be strict. Because they are going to be coming to the Philippines to work and their salaries are not even affected by taxes. So we have to have very clear and strict criteria and documentation requirements," said Matugas."

The Ministry of Justice has proposed to include a provision in the bill that would explicitly prohibit digital nomad visa holders from working for offshore gaming operators or online gaming companies in the Philippines.

The Ministry of Foreign Affairs also proposed that the House of Representatives panel should seek the views of the country's security services on the bill. The ministry further asked the committee to reconsider the proposal to designate the Department of Immigration as the issuing agency for digital nomad visas, saying Philippine law requires the Department of Foreign Affairs to process and issue foreign visas.

The group created a technical working group to revise the definition of digital nomad workers and incorporate comments and additional safeguards proposed by government agencies.