economy
-1,4 %
PHP 2.27tn of direct tourism added value in 2025
-1.4% year-on-year.
Period: 2025
GATAVIA GLOBAL · Gatavia Philippines
Short-term rentals in Philippines
This section explains how tourism rental works in the Philippines and how to properly separate the different legal, fiscal, and operational layers. The concrete answer depends on the type of property, the form of exploitation, and the applicable rules in each case.
✓ Information reviewed: 08/26/2026
🇵🇭
GATAVIA
This section explains how to analyze the market, profitability, and investment in the Philippines without confusing the different legal, fiscal, and operational layers. The specific answer depends on the type of property, the form of exploitation, and the rules that apply to the case. Specific and verified data are presented below in the Gatavia information block.
The investment analysis must separate the general tourism data from the real metrics of a specific property. National or regional overnight stays help to understand the demand, but do not equate to occupancy, average price, or profitability of a property.
Tourism market in Philippines
Data, context and key indicators for the tourism market.
economy
8,1 %
Tourism represents 8.1% of GDP
Contribution of tourism GDVA to GDP.
Period: 2025
demand
+3,0 %
PHP 3.26tn of domestic tourism spending
+3.0% year-on-year.
Period: 2025
demand
-6,4 %
PHP 698.46bn in international tourism expenditure
-6.4% year-on-year.
Period: 2025
demand
+1,2 %
PHP 3.26tn of domestic tourism spending
+3.0% year-on-year.
Period: 2025
employment
15,7 %
Weight of tourism in employment
Weight of tourism in employment Value: 15,7 % Reference year: 2025 Scope: Philippines Interpretation: Share of total employment.
Period: 2025
Regulatory alerts
Public information is not yet available for this section.
Regulatory framework
national
There is no single national license for Airbnb
Correct.
There is no single national license for Airbnb Application: Short-term accommodation Verified rule: Correct. Conditions: Exact address and operational model. Exceptions: Different types of accommodation and local regulations. Timing: Before publishing the accommodation/operation. Legal reference: RA 9593 + framework of LGU/BFP/OBO/PEISS
mixed
The Major Permit or Business Permit is a local operational requirement
Yes.
The Major Permit or Business Permit is a local operational requirement Application: Accommodation business Verified rule: Yes. Conditions: Business located in LGU. Legal reference: Local Government Framework / BPLS
Short-term rental taxation
Taxation
Accommodation income is taxable
Taxation
Individual graduated income tax reaches 35%
35
Taxation
Qualified individuals may elect 8% income tax regime
8
Taxation
Domestic corporate income tax generally 25%
25
Taxation
Qualified small domestic corporations can use 20%
20
Taxation
VAT general rate 12%
12
Taxation
VAT registration threshold base PHP3,000,000
3000000
Taxation
Non-VAT percentage tax generally 3%
3
Regulatory and market evolution
Public information is not yet available for this section.
PROFESSIONAL CONTENT
Gatavia Professionelles Dossier · Philippines
Advanced analysis for owners, managers and investors who need to go beyond public information.
01
Due diligence
Professional checks before purchasing, operating or converting short-term accommodation.
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02
Advanced regulation
In-depth analysis of requirements, restrictions, risks and regulatory scenarios.
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03
Professional taxation
Advanced tax treatment, scenarios and issues requiring special attention.
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04
Professional operations
Processes, recurring obligations and documentary control.
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05
Territorial radar
Assessment of territories, cities and areas with different market or regulatory conditions.
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06
Investors
Risks, costs, profitability, scenarios and criteria before making an investment decision.
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07
Managers
Compliance, representation, reporting and professional management for third parties.
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08
Metrics and alerts
Professional indicators covering market, demand, risk and regulatory evolution.
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This dossier is included with Gatavia Country and Gatavia Global.
Sources and reference authorities
Board of Investments
Board of InvestmentsBoard of Investments
Board of InvestmentsBureau of Fire Protection
Fire Safety Guidelines on Different Types of OccupancyBureau of Fire Protection
Fire Safety Inspection CertificateBureau of Internal Revenue
Bureau of Internal RevenueBureau of Internal Revenue
Individual tax rates effective 2023 onwardsBureau of Internal Revenue
Bureau of Internal RevenueBureau of Internal Revenue
Bureau of Internal RevenueBureau of Internal Revenue
Bureau of Internal RevenueBureau of Internal Revenue
RR 3-2024 implementing EOPT VAT and Percentage Tax changesDepartment of the Interior and Local Government
Department of the Interior and Local GovernmentDepartment of the Interior and Local Government
Department of the Interior and Local GovernmentDepartment of Tourism
Department of TourismDepartment of Tourism
Department of TourismDepartment of Tourism
Department of TourismDepartment of Tourism
Department of TourismDepartment of Tourism
Department of TourismDepartment of Tourism
Department of TourismDILG CALABARZON
DILG CALABARZONEnvironmental Management Bureau
ECC Requirement Coverage ScreeningEnvironmental Management Bureau
PEISS Guidelines and 2026 Boracay amendmentsEnvironmental Management Bureau
Projects Not Covered / CNCEnvironmental Management Bureau
ECC/CNC Online StatusGovernment of the Philippines
1987 Constitution - Article XIIGovernment of the Philippines
Condominium Act - RA 4726Government of the Philippines
Government of the PhilippinesGovernment of the Philippines
CREATE Act - RA 11534Government of the Philippines
Ease of Paying Taxes Act - RA 11976Government of the Philippines
Data Privacy Act - RA 10173Government of the Philippines
Government of the PhilippinesPhilippine Statistics Authority
Tourism Contributes 8.1 Percent to the Philippine Economy in 2025Philippine Statistics Authority
Tourism environmental accounts 2025Philippine Statistics Authority
Tourism Time Series Data 2000-2025Philippine Statistics Authority
Philippine Tourism Satellite AccountPROFESSIONAL PDF GUIDE
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Gatavia organises professional information for information and management purposes. General information does not replace legal, tax or technical advice tailored to a particular case.