Philippines Extends Foreign Land Leases to 99 Years to Boost Investment

President Ferdinand Marcos Jr. has signed Republic Act 12252, extending the maximum lease period for private land by foreign investors in the Philippines from 50 years plus a 25-year renewal to a total of up to 99 years. This legislative change aims to attract more foreign investment, especially for long-term commercial and industrial projects such as factories, industrial estates, and agro-industrial enterprises, while maintaining safeguards such as shorter lease terms for critical infrastructure or vital services as determined by the government. The new law requires foreign investors to have approved investment projects under existing foreign investment acts and mandates registration of lease contracts and any subleases with the local Registry of Deeds, making the leases binding against third parties. Violations of the law now carry heavier penalties, including fines between P1 million to P10 million and nullification of contracts. The move responds to concerns from investors about lease uncertainty under the previous law and aims to enhance the Philippines' competitiveness in attracting foreign direct investment, which has lagged behind regional peers like Vietnam and Indonesia. While the law liberalizes lease terms for investors, foreign ownership of land remains prohibited under the Philippine Constitution.