Philippines Extends Land Lease Term for Foreign Investors to 99 Years

The Philippines has approved a landmark measure allowing foreign investors to lease private land for up to 99 years, a move aimed at boosting foreign direct investment (FDI) and strengthening long-term economic growth.

President Ferdinand Marcos Jr. signed Republic Act 12252 on August 29, officially extending the maximum lease period from the previous 75 years to 99 years. The law was made public this week.

Under the new legislation, foreign investors may now enter into long-term land leases provided their projects are registered with the Board of Investments (BOI) or other state investment promotion agencies under the Foreign Investments Act or the CREATE Act. All lease contracts must also be registered with the Registry of Deeds.

Officials said the policy seeks to offer greater stability and predictability to international companies planning major industrial, agro-business, tourism, or infrastructure projects. The Philippines has been working to reverse a 27 percent decline in FDI, which fell to $2.96 billion as of May 2025, down from $4.04 billion a year earlier.

“This new law gives foreign investors a stronger sense of security and encourages them to invest in long-term projects that will generate jobs and economic opportunities,” Senator Chiz Escudero, a sponsor of the measure, said in a statement.

The legislation also includes safeguards: investors must begin their projects within three years of lease signing, and violations can result in fines ranging from ₱1 million to ₱10 million, or imprisonment of up to six years.

The Philippines has historically restricted foreign land ownership, permitting only lease arrangements. The new 99-year lease ceiling is seen as one of the most liberal in the region, aligning the country with global practices and signaling openness to international capital.