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The Philippines has enacted a groundbreaking law allowing foreign investors to lease private land for up to 99 years, significantly extending the previous maximum lease term of 50 years with a possible 25-year renewal. Signed by President Ferdinand Marcos Jr. on September 3, 2025, the new law aims to boost foreign investment by providing greater lease-term stability and predictability for long-term commercial, industrial, tourism, and agricultural projects.
The legislation amends the 1993 Investors’ Lease Act and mandates lease agreements to be registered with the respective provincial or city Registry of Deeds, ensuring transparency and security for investors. It also requires foreign lessees to demonstrate social and economic contributions to the country to qualify for lease renewal.
David Leechiu, head of Leechiu Property Consultants, noted that the extended lease terms “should open up a massive amount of investment capital from foreign parties,” facilitating projects such as hotels that will further boost tourism. This move also improves the Philippines’ competitive position within Southeast Asia, where countries like Thailand already offer 99-year leases.
The law also grants the Philippine president authority to impose shorter lease durations for investors involved in vital services or industries classified as critical infrastructure or national priorities, balancing national security concerns with investment incentives.
This reform comes amid a significant decline in net foreign direct investment into the Philippines, which fell nearly 27 percent to $3 billion from January to May 2025, highlighting the need for policy changes to attract sustained capital inflows. Neighboring countries continue to outpace the Philippines in investment inflows, increasing the urgency of competitive reforms.
President Marcos has also signed complementary legislation to enhance state revenue from large mining operations through a profit-based tax system, expected to attract additional investments in that sector.
Overall, the 99-year land lease law is seen as a key policy to foster greater investor confidence, encourage economic diversification, promote joint ventures with local partners, and accelerate growth in tourism, real estate, agriculture, and industry. While ensuring protection of national interests, the law provides a more investor-friendly environment to support the Philippines’ long-term economic development goals.