President Marcos signs law extending foreign land leases to 99 years

President Ferdinand Marcos Jr. has signed a law that allows foreign investors to lease private land for up to 99 years to attract long-term investments in the Philippines.

Republic Act No. 12252, which amends the Investors' Lease Act (Republic Act No. 7652), aims to provide greater stability for investors with projects that require long-term planning, such as industrial estates, factories and agricultural enterprises.

The new law extends the previous lease limit of 75 years (a 50-year initial term and a 25-year renewal).

Under the new law, foreign investors can lease private lands subject to the following conditions:

• The total lease period cannot exceed 99 years.
• The leased land must be used exclusively for the approved and registered investment.
• The size of the leased area must be reasonable for the project and comply with the Comprehensive Agrarian Reform Law and the Local Government Code.
• The foreign investor must have an approved and registered investment under Philippine law.

The law also allows for a shorter lease period if recommended by the Fiscal Incentives Review Board or other relevant agencies, particularly for investments in vital services or critical infrastructure. This provision can be invoked in the interest of national security or for government-identified development priorities.

Any foreign investor not investing in the Philippines, as defined by the new law, will continue to be covered by existing regulations, including Presidential Decree No. 471.

A lease contract can be immediately terminated if a foreign investor withdraws their approved investment or uses the leased area for a purpose other than what was authorized. This is without prejudice to the lessor's right to seek compensation for damages.

The new law introduces a provision that permits a lessee to sublet the property with the lessor's consent, unless the lease contract expressly prohibits it. Sublease contracts must be registered with the Registry of Deeds and annotated on the land's Certificate of Title.

The president signed the law on September 3, 2025.