Philippines Introduces 99-Year Land Lease for Foreign Investors

Sep 20, 2026

73 min

Sep 20, 2026 22:30

Yes, the Philippines now has a 99-year private-land lease framework: What to know

## New Legislation Extends Lease Duration

The Philippines has enacted Republic Act No. 12252, allowing foreign investors to lease private land for up to 99 years. This law, approved on September 3, 2025, amends the previous Investors' Lease Act, which permitted a maximum lease of 75 years.

## Key Features of RA 12252

The new law is designed to attract foreign investment by providing a longer lease period and enhancing the security of leasehold interests. It requires foreign investors to register with the Philippine Board of Investments or other relevant agencies. The lease is automatically terminated if the land's use is changed without authorization or if the investment is withdrawn.

## Conditions and Limitations

Not all foreigners can access the 99-year lease. It is specifically for qualifying foreign investors with approved investments. The land must be used for the intended investment, and the lease must be registered and annotated on the land title.

## Leasehold vs. Ownership

The law does not allow foreigners to own land outright. A 99-year lease grants the right to use the land but does not equate to ownership. The Supreme Court has emphasized that lease agreements should not disguise ownership transfers to foreigners.

## Economic Implications

The extended lease period is expected to improve investment conditions by affecting project financing, depreciation schedules, and long-term planning. It aims to make the Philippines more competitive in attracting foreign investments, particularly in sectors like industrial estates, tourism, and agro-industrial enterprises.

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