Airbnb in Cebu: Laws, Profitability, and Setup (2025 Guide)

1. Introduction: Why Cebu for Airbnb?

Cebu is a tourism and business hotspot in the Philippines. With its mix of beautiful beaches, international schools, IT Park, and vibrant nightlife, the city attracts a steady stream of travelers — both local and foreign.

Airbnb has flourished here, offering an alternative to hotels and a lucrative opportunity for property owners. But how legal is it? How much can you actually earn? And what’s required to start?

Let’s dive into the essentials.

2. Is Airbnb Legal in Cebu?

Yes, Airbnb is legal in Cebu, but hosts must comply with national and local regulations. Here’s what you need to know:

National Requirements (Philippines-wide)

• DTI or SEC Registration: Required if you operate as a business.

• BIR Registration: Income from Airbnb must be declared and taxed.

• Tourism Accreditation (DOT): Optional but helpful for credibility.

• Barangay Clearance: Often required to operate in residential communities.

️ Cebu City and Mandaue City Ordinances

• Cebu City: No formal Airbnb ban, but condos and subdivisions can impose restrictions.

• Mandaue: Requires Mayor’s Permit for transient accommodations.

• Lapu-Lapu (Mactan): Stricter in certain barangays; Airbnb allowed in most condos but not always in residential homes.

Condominium Rules

• Each condo has its own bylaws. Some, like Avida Towers Riala, are Airbnb-friendly. Others, like Horizons 101, prohibit short-term rentals.

• Check with the condo’s HOA or property management before listing.

3. Pros and Cons of Running an Airbnb in Cebu

✅ Pros

• Higher ROI than long-term rentals

• Flexible pricing per season

• Ideal for tourists, expats, digital nomads

• Cash flow in PHP or foreign currency

❌ Cons

• Higher maintenance and turnover

• Booking gaps and seasonality

• More regulatory requirements

• HOA conflicts if improperly managed

4. Airbnb Profitability in Cebu (2025)

Average Earnings by Unit Type

Common Expenses

• Condo Dues: ₱2,500 – ₱6,000/month

• Utilities (Electricity + Water): ₱3,000 – ₱6,000

• Internet & Cable: ₱1,500/month

• Cleaning Fees (per turnover): ₱300 – ₱700

• Management Fees: 15% – 25% if using a property manager

• Tax (8% on gross OR graduated rates)

Net ROI for a well-performing unit is typically 6%–10% annually.

5. Airbnb vs. Long-Term Lease: What’s Better in Cebu?

Verdict: Choose Airbnb for cash flow and flexibility. Use long-term leases if you want passive income with less effort.

6. Where Are Airbnb Units Most Profitable in Cebu?

Cebu IT Park

• Best for business travelers and BPO employees

• Units in Avida Towers Riala, Asia Premier, Calyx Center perform well

Cebu Business Park

• Near Ayala Center, perfect for digital nomads and expats

• High demand for 1BR or 2BR with modern interiors

Mactan Island

• Great for beachfront Airbnb rentals

• Maribago, Punta Engaño, and Buyong are prime areas

Lahug and Mabolo

• Cheaper entry price, still Airbnb-friendly

• Good for budget-conscious travelers and local guests

7. Step-by-Step: How to Start Your Airbnb in Cebu

Step 1: Choose the Right Property

• Condo units preferred for easy turnover

• Check for building rules and amenities

• Look for near-transport or nightlife hubs

Step 2: Legal Setup

• Register with DTI or SEC (if business scale)

• Secure BIR TIN and issue receipts

• Barangay clearance and Mayor’s Permit (if required)

Step 3: Furnish Your Unit

• Invest in comfy bed, quality sheets, smart TV, high-speed WiFi

• Use neutral tones, warm lighting, tropical touches

• Add self check-in tools (keypad, lockbox)

Step 4: Listing Creation

• Use Airbnb, Agoda Homes, Booking.com, and Facebook

• Upload professional photos

• Write an optimized title and description with Cebu location tags

Step 5: Guest Communication and Hosting

• Install apps for auto-replies

• Offer airport pickup or early check-in

• Maintain a review-friendly experience (cleanliness, clear instructions, fast replies)

8. Airbnb Management Options

If you’re overseas or don’t want to manage daily bookings, consider hiring:

✅ Local Property Managers

• Charge 15%–25% commission

• Handle check-ins, cleaning, guest support

• Examples: HostPH, RentPad Plus, local real estate brokers

✅ Co-Hosting Services

• Useful if you own multiple units

• Some even handle interior design and listing optimization

9. What Airbnb Guests in Cebu Expect

• Clean, modern interiors

• Reliable Wi-Fi (fiber recommended)

• Air conditioning

• Water heater

• Proximity to malls, beaches, or nightlife

• Local guidebook or travel tips

10. Red Flags to Avoid

• HOA or neighbors who oppose Airbnb

• Properties with unclear titles or developer disputes

• Overpricing in off-season

• No emergency contact or maintenance support

11. Sample Airbnb Earnings Projection (Studio in IT Park)

12. Key Takeaways

• Airbnb is legal in Cebu but requires due diligence on local and building rules

• Profitability is high, especially near IT hubs and beachfronts

• Pre-furnished or smart-designed units perform best

• Net ROI ranges from 6%–10% for active hosts

• Hands-free options are available for OFWs or foreign owners

13. Final Verdict: Is Airbnb in Cebu Worth It in 2025?

✅ Yes. With digital nomad culture growing and Cebu’s infrastructure improving, Airbnb rentals are a high-performing real estate strategy. Just be smart about location, legal setup, and hospitality — and you’ll enjoy returns far better than traditional leases.