Quick Answer
Foreigners can buy Boracay condominium units outright (up to 40% per building). Land requires a long-term lease (50 years) or Philippine corporation structure. The purchase process has 7 steps and takes 4–8 weeks for title transfer. Total closing costs are 3–5% of the purchase price.
Table of Contents
Legal Ownership Options for Foreign Buyers
Foreign nationals have three legal pathways to own or control property in Boracay, Philippines. Each has different implications for cost, control, and flexibility.
Option 1: Condominium Freehold Ownership. The simplest and most common option for foreign buyers. Under the Philippine Condominium Act (RA 4726), foreigners can purchase condominium units outright, provided total foreign ownership in any single building does not exceed 40%. The buyer receives a Condominium Certificate of Title (CCT) in their name.
Option 2: Long-Term Land Lease. For land and villa properties, foreigners can enter a long-term lease agreement of up to 50 years, renewable for an additional 25 years. The lease is registered with the Registry of Deeds and provides effective long-term control of the property. The lessee can own the building structure on the leased land.
Option 3: Philippine Corporation. A foreign national can hold up to 40% equity in a Philippine corporation that owns land or property. The corporation must have at least 60% Filipino ownership. This structure provides more flexibility but involves ongoing corporate compliance requirements.
The 40% Foreign Ownership Rule Explained
The Philippine Condominium Act limits total foreign ownership in any single condominium building to 40% of the total floor area or units. This is a building-level restriction, not a buyer-level restriction — a single foreign buyer can own multiple units, as long as the total foreign ownership in the building remains below 40%.
In practice, this means that popular resort developments in Boracay can sell out their foreign allocation quickly. BORACAYNAVI tracks the current foreign ownership ratio for all listed developments and will only present units in buildings where foreign ownership capacity remains available.
Once a building reaches 40% foreign ownership, no further units can be sold to foreign nationals until existing foreign-owned units are resold to Filipino buyers. This creates a secondary market dynamic where foreign-owned units in popular buildings can command a premium.
Step-by-Step Purchase Process (7 Steps)
Property Search & Due Diligence
Identify suitable properties and conduct title verification (TCT/CCT check at Registry of Deeds), BIATF compliance check, and encumbrance verification. BORACAYNAVI handles all due diligence for listed properties.
Reservation & Contract to Sell
Pay a reservation fee (typically PHP 50,000–200,000) to secure the property. Sign the Contract to Sell (CTS), which outlines payment terms, conditions, and buyer protections under the Maceda Law.
Downpayment & Installments
Pay the agreed downpayment (typically 20–30% of purchase price). Remaining balance is paid in installments or via bank financing. Foreign buyers typically pay in full or use overseas bank transfers.
Deed of Absolute Sale
Upon full payment, execute the Deed of Absolute Sale (DOAS) before a Philippine notary public. Both buyer and seller must sign. For foreign buyers, a Special Power of Attorney (SPA) can be used if the buyer cannot be present.
BIR Tax Clearance
File and pay Documentary Stamp Tax (1.5% of purchase price) and Capital Gains Tax (6% of selling price, paid by seller) at the Bureau of Internal Revenue (BIR). Obtain BIR Certificate Authorizing Registration (CAR).
Transfer Tax Payment
Pay Transfer Tax (0.5–0.75% of purchase price) at the Local Government Unit (LGU) — in Boracay's case, the Municipality of Malay, Aklan. Obtain Transfer Tax receipt.
Title Transfer at Registry of Deeds
Submit all documents to the Registry of Deeds for title transfer. A new TCT or CCT will be issued in the buyer's name. This process typically takes 2–6 weeks. BORACAYNAVI monitors the process to completion.
Required Documents for Foreign Buyers
Closing Costs Breakdown (3–5%)
| Cost Item | Rate | Paid By | Notes |
|---|---|---|---|
| Documentary Stamp Tax (DST) | 1.5% | Buyer | Of purchase price |
| Transfer Tax | 0.5–0.75% | Buyer | Paid to LGU (Malay, Aklan) |
| Registration Fee | ~0.25% | Buyer | Registry of Deeds |
| Notarial Fee | ~0.1–0.2% | Buyer | For DOAS notarization |
| Capital Gains Tax | 6% | Seller | Of selling price (seller pays) |
| Real Estate Agent Commission | 3–5% | Seller | Typically paid by seller |
| Total Buyer Closing Costs | ~3–5% | Buyer | Of purchase price |
Role of a Philippine Attorney
While not legally required, engaging a Philippine real estate attorney is strongly recommended for all foreign buyers. An attorney provides independent legal advice, reviews all contracts, and ensures your interests are protected throughout the transaction.
Key services provided by a Philippine real estate attorney include: title verification and due diligence, review and negotiation of the Contract to Sell, drafting or review of the Deed of Absolute Sale, advice on the appropriate ownership structure, preparation of Special Power of Attorney documents, and monitoring of the title transfer process.
Attorney fees for a standard condominium purchase typically range from PHP 30,000 to PHP 80,000, depending on the complexity of the transaction. BORACAYNAVI can recommend vetted Philippine real estate attorneys with experience in Boracay transactions.
BIATF Compliance for Boracay Properties
The BIATF (Boracay Inter-Agency Task Force) was established following the island's 2018 rehabilitation to regulate development and operations on Boracay. All property developments and businesses on the island must obtain BIATF clearance.
For buyers, BIATF compliance means verifying that the property you are purchasing has obtained all required BIATF clearances and that the development is operating in compliance with BIATF regulations. Non-compliant properties risk closure orders, which can significantly impact rental income and property value.
BORACAYNAVI verifies BIATF compliance for all listed properties as part of our standard due diligence process. We will not present any property that has outstanding BIATF compliance issues.
Tax Obligations for Foreign Property Owners
Real Property Tax (RPT). Annual tax assessed by the LGU at approximately 1–2% of the assessed value of the property. Assessed value is typically 20–40% of market value. RPT is paid annually, with discounts for early payment.
Income Tax on Rental Income. Rental income from Philippine property is subject to Philippine income tax. For non-resident foreign individuals, a 25% final withholding tax applies to gross rental income. For resident foreign individuals, regular income tax rates apply. Hotel pool income is typically reported and withheld by the operator.
Capital Gains Tax on Sale. When you sell your property, Capital Gains Tax of 6% of the selling price (or zonal value, whichever is higher) is payable. This is technically the seller's tax, but it is important to factor into your exit strategy calculations.
Frequently Asked Questions
Yes. Foreign nationals can purchase condominium units in Boracay outright under the Philippine Condominium Act (RA 4726), provided total foreign ownership in any single building does not exceed 40%. Foreigners cannot directly own land but can enter long-term lease agreements of up to 50 years (renewable for 25 years), or hold up to 40% equity in a Philippine corporation that owns land.
The Philippine Condominium Act limits total foreign ownership in any single condominium building to 40% of the total units. This means that in a 100-unit building, a maximum of 40 units can be owned by foreign nationals. BORACAYNAVI tracks the current foreign ownership ratio for all listed developments to ensure compliance before any purchase.
While not legally required, engaging a Philippine attorney is strongly recommended for foreign buyers. An attorney will review the title, draft or review the Contract to Sell and Deed of Absolute Sale, advise on the appropriate ownership structure, and ensure all legal requirements are met. BORACAYNAVI can recommend vetted Philippine real estate attorneys.
Yes. Foreign buyers can purchase Boracay property remotely using a Special Power of Attorney (SPA) — a notarized document that authorizes a trusted representative in the Philippines to sign documents on your behalf. The SPA must be notarized in your home country and authenticated by the Philippine Embassy or Consulate (apostilled).
As a buyer, you pay Documentary Stamp Tax (1.5% of purchase price), Transfer Tax (0.5–0.75%), and Registration Fee (~0.25%). Total buyer closing costs are approximately 3–5% of the purchase price. The seller pays Capital Gains Tax (6% of selling price). As a property owner, you pay Real Property Tax annually (approximately 1–2% of assessed value).
The title transfer process in Boracay typically takes 4–8 weeks from the date of full payment and DOAS execution. This includes BIR processing (2–4 weeks), LGU Transfer Tax payment (1–2 days), and Registry of Deeds registration (2–4 weeks). BORACAYNAVI monitors the entire process and provides regular updates to buyers.
About This Guide
Written by the BORACAYNAVI Editorial Team
Reviewed by: Licensed Philippine Real Estate Broker
Last updated: January 2026 | This guide is for informational purposes only and does not constitute legal advice.