Can Foreigners Rent Out Their Property on Airbnb in the Philippines?

Your house sits empty for a few months every year while you're back home. Why not rent it to holidaymakers in the meantime? We hear this question a lot, and it's a fair one. Airbnb makes finding guests easy, and Dumaguete, Dauin and Siquijor are popular with travellers.

The short answer: yes, it can work. But not automatically. Whether you're allowed to rent it out depends on how you own the property, what the building allows, which permits you have, and whether you've thought about tax. A listing on Airbnb is online in ten minutes. That doesn't make it legal.

Peter, who works with Genessa, spent four years as an Airbnb host in Germany. The basic idea is the same everywhere. The rules in the Philippines are not.

1. What do you actually own?

Before you think about guests, one question needs a clear answer: what do you own, and what don't you?

As a foreigner you can't buy land in the Philippines. Condos are different: you can own a unit as long as no more than 40% of the whole building is in foreign hands.

If you have a house on a lot, you'll usually have a lease or some other arrangement. That's legitimate, but it isn't ownership of the land. And this is the point many people miss: owning or being allowed to use a property doesn't automatically mean you're allowed to rent it to holiday guests.

2. Condo: read the house rules first

With condos, this is the most common stumbling block. Many buildings don't want a constant stream of strangers coming through. Understandable, if you live there yourself.

The rules are in the condominium corporation's by-laws and house rules. Some set a minimum rental period, some require every guest to be registered at reception, and some ban short-term rentals altogether.

Our advice: read these documents before you buy, not after. And get it in writing whether Airbnb is allowed. A unit can be perfect for long-term tenants and still be off-limits for holiday guests.

3. Which permits do you need?

If you regularly host guests, you're effectively running a small accommodation business. So you may need permits. For the Philippines, Airbnb itself mentions, among other things:

• business registration with the Department of Trade and Industry (DTI) or the SEC,
• depending on the location, a Mayor's Permit (the local business permit), a Barangay Clearance and other certificates, for example fire safety,
• in some cases, registration with the Department of Tourism (DOT), which also covers homestays and similar places. This can be done through the DOT's online portal.

What exactly applies to your place is up to the city or municipality. Dumaguete may handle it differently from Dauin, Bacong or Sibulan. So ask the local office directly before your first guests arrive.

4. And tax?

Yes, there's tax here too. Airbnb income counts as taxable income in the Philippines. Depending on your situation, that can mean income tax, VAT or percentage tax, plus local fees.

The deadlines are no joke: income tax is filed quarterly and yearly, VAT or percentage tax even monthly. Airbnb has a free tax guide for the Philippines.

The Bureau of Internal Revenue (BIR) is in charge. A local accountant doesn't cost the earth and saves you a lot of trouble. And remember that your home country may want its share of foreign income as well.

5. Leased house: what does your lease say?

If you lease a house or a lot, your lease contract is what counts. If it says nothing about subletting or holiday guests, you need the owner's permission, ideally in writing.

For context: private leases between foreigners and Filipino landowners have been capped at 25 years, renewable once for another 25, since 1974 (Presidential Decree No. 471).

You may have read about the new 99-year leases. They do exist since September 2025 (Republic Act No. 12252), but only for foreign investors with registered projects. For a tourism project, for example, the law requires a minimum investment of USD 5 million. So it's not meant for a private holiday home.

6. Does it actually pay off?

Dumaguete and the surrounding area have potential: divers in Dauin, backpackers on their way to Siquijor, families visiting relatives. But a night booked on Airbnb isn't the same as profit.

Do the honest maths: empty weeks in the low season, cleaning, laundry, repairs, electricity, water, internet, Airbnb fees, taxes. And above all: who looks after the guests while you're away? Who hands over the keys, who calls the plumber when the water stops at eleven at night?

So never buy a property just because of an expected Airbnb return. Only once ownership, permission, house rules and costs are clear can you do a realistic calculation.

Bottom line: sort it out first, then rent it out

As a foreigner, you can rent your property in the Philippines to holiday guests, under certain conditions. Whether that's allowed in your case depends on four things: ownership or lease, the building's rules, local permits, and tax.

Clear these up before you buy, not when the first bookings come in. That's why we look at every property not just as a house, but at whether it fits your plans. And if you want to rent out but won't be here, we also support hosts as co-hosts. Just ask. You can read more about that in what an Airbnb co-host actually does.

Note: This article is general information and doesn't replace legal or tax advice in the Philippines.

Sources

• Board of Investments – Doing Business in the Philippines 2025 – foreign ownership of land and condos.
• Airbnb – Responsible hosting in the Philippines – permits, DOT registration, tax deadlines.
• Airbnb – Tax Guide Philippines – tax guide for hosts.
• Department of Tourism – Accreditation Portal – registering accommodation.
• Presidential Decree No. 471 – maximum term of private leases to foreigners (25 + 25 years).
• Republic Act No. 12252 – Supreme Court E-Library – the law on 99-year investor leases.
• Philstar, September 2025 – report on the signing of RA 12252.