In 2023, Travel+Leisure website has named Boracay Island in the Philippines as “10th out of 25 islands around the world for 2023” with a score of 92.94. This is due to the island’s innate beauty which never failed to captivate tourists from all over the world since it was discovered by European backers in the late 70s.

From a lay-back beach escapade to a vibrant tourism hub that attracts tourists from all over the world, Boracay island has become a magnet for real estate investors. There are now various real estate developments in the island which includes world-class hotels and resorts. There are also several condominium and townhouse units for those who want to make the island a regular holiday destination. 

Whether it is the acquisition of hotels and resorts, condominium or apartment units, or commercial or residential lots, investors have to be reminded of the following considerations about buying real estate in the Philippines:

1. Foreigners are prohibited from buying land. They can only invest in condominiums or apartments with separate title of ownership from the land.
2. Former Filipinos are allowed to own land in exceptional cases. Filipinos with dual citizenship are allowed to own land as if they are Filipino citizens.
3. Foreign corporations can own land by investing in a Filipino corporation up to 40% of its capital stock.
4. Foreigners may acquire condominium units and shareholdings or membership in condominium corportions up to not more than 40% of the total and outstanding capital stock of a Filipino-owner or control corporation.
5. Foreigners can lease condominium not exceeding a period of 50 years and renewable once for not more than 25 years.

In addition, real estate investors should be aware of following issues that are peculiar to Boracay island:

1. Only properties covered by a Certificate of Alienable and Disposable (A&D) land classification and Certicate of Compliance with the 25+5 Beach Easement Ordinance are eligible for private ownership. 
2. Road side properties should be compliant with road easement requirements.
3. Most of the properties in Boracay island are covered only by tax declarations issued by the local government of Malay, Aklan. Real Estate investors and buyers should make sure that these properties are already issued and Certificate of A&D and are compliant with the beach and road easement regulations.

It is also emphasized that under the Section 29 of Republic Act 9646 otherwise known as the “Real Estate Service Act of the Philippines” only licensed real estate brokers can practice or offer to practice real estate service in the Philippines or offer himself/herself as real estate service practitioner, or use the title, word, letter, figure or any sign tending to convey the impression that one is a real estate service practitioner, or advertise or indicate in any manner whatsoever that one is qualifed to practice the profession, or be appointed as real property appraiser or assessor.

For any legal information on buying real estate in Boracay island or any other areas in the Philippines, especially beach front properties, send us your legal inquiry via our e-mail attybaciii@gmail.com.