99-year land leases to foreigners begin 

Starting on Sunday, January 4, 2026, foreign businessmen and corporations may henceforth lease land in the Philippines for 99 years, almost negating the stringent land ownership limits enshrined in the 1987 Constitution.

Last Thursday, the Department of Trade and Industry (DTI) and the Board of Investments (BOI) jointly announced the signing of the implementing rules and regulations (IRR) for Republic Act No. 12252, which amended the Investors’ Lease Act passed 32 years ago.

The government released the IRR to implement the extended property lease for foreigners.  The business community hailed the move, saying the strict land ownership limits under the Constitution are a primary deterrent to business enterprises. 

The Department of Trade and Industry (DTI) and the Land Registration Authority (LRA) signed the IRR for Republic Act 12252, also known as the Investors’ Lease Act.  

The document, signed by Trade Secretary and Board of Investments (BoI) chairperson Cristina A. Roque and LRA administrator Gerardo Panga Sirios, was presented at a ceremony in New Clark City, hosted by the Bases Conversion Development Authority (BCDA), on December 19, according to the DTI.

Article XII, Section 7 explicitly reserves private land ownership for Filipino citizens or corporations in which Filipinos hold at least 60 percent of the capital, a policy designed to protect the national patrimony and prevent foreign dominance over key resources.

This “60/40 rule” effectively bars foreigners from outright owning land, limiting them instead to equity stakes in Filipino-majority corporations or land leases. 

Under the old Republic Act 7652 (the original Investors’ Lease Act of 1993), foreign investors could lease private lands for up to 50 years, with a one-time renewal option for another 25 years, totaling a maximum of 75 years. 

These limits have been criticized by some sectors as outdated barriers to economic growth.

Economic data support this contention, as the Philippines lags behind other Asean countries in the competition for foreign direct investment (FDI).

The Philippines is a consistent laggard in Southeast Asia for FDI inflows, with annual inflows of around $9- $10 billion, far below Vietnam’s $20 billion. 

The new measure law extended the maximum lease period to 99 years, comprising an initial term of up to 75 years, renewable once for up to 24 years, while maintaining the constitutional ban on outright foreign ownership.