Is Airbnb legal in Cebu City?

In Cebu City, regulations concerning Airbnb and similar short-term rental platforms are designed to ensure compliance with local laws while promoting tourism and maintaining the quality of life for residents. Here are the key aspects of these regulations based on the gathered information:

1. Business Registration: Hosts operating Airbnb listings in Cebu City are required to secure a business registration from local government units (LGUs). This includes obtaining necessary permits, such as a Mayor’s Permit and Barangay Clearance, to legally operate their rental business.

2. Compliance with Local Ordinances: Hosts must adhere to city ordinances regarding the operation of short-term rentals, which may include adhering to specific zoning laws. This ensures that residential neighborhoods are not adversely affected by commercial activities.

3. Health and Safety Standards: In the wake of COVID-19, the Cebu local government implemented health protocols that hosts must follow, such as sanitation and safety measures. Compliance with the Department of Tourism’s guidelines is also enforced to ensure guest safety.

4. Tax Obligations: Income earned through Airbnb rentals is subject to taxation. Hosts should consult with local tax authorities to understand their tax liabilities, which typically include income tax and other relevant taxes, such as VAT.

5. Insurance and Liability: While Airbnb offers some host protection and liability coverage, local laws may require hosts to carry additional insurance to cover potential damages or liabilities incurred during guest stays.

6. Community Engagement: Hosts are encouraged to inform their neighbors about their rental activities to foster good relations and manage expectations regarding noise and the turnover of guests in the neighborhood.

These regulations reflect a comprehensive approach to balancing the interests of tourism with community standards and residential quality of life in Cebu City. Property owners looking to engage in short-term rentals are advised to thoroughly research and comply with these local regulations to ensure sustainable operation.