Boracay Commercial Property

Foreigners cannot directly own land in the Philippines, including commercial lots. However, foreigners can own commercial building structures on leased land, or hold up to 40% equity in a Philippine corporation that owns commercial property. For retail units within condominium-type commercial buildings, the 40% foreign ownership rule applies per building.

Boracay commercial property includes retail units, restaurant spaces, office units, resort lots, boutique hotel development sites, and commercial lots. The most active segment is restaurant and retail units in Station 2, which benefit from the highest tourist foot traffic on the island.

Boracay commercial properties in prime tourist zones deliver gross rental yields of 7–12% annually, higher than residential properties due to commercial rental rates. Restaurant spaces in Station 2 with strong foot traffic can achieve yields at the upper end of this range. Net yields after taxes and maintenance typically settle at 5–8%.

The BIATF imposes strict controls on all commercial development in Boracay. These include height restrictions (typically 2–3 floors maximum in most zones), setback requirements from the shoreline, density limits, and environmental compliance requirements. Any commercial development must obtain BIATF clearance before construction.

Foreigners can operate businesses in Boracay through a Philippine corporation (up to 40% foreign equity for most business types) or through a sole proprietorship if the business is in a category open to 100% foreign ownership. A Philippine attorney and accountant are essential for business registration, BIR registration, and ongoing compliance.